Accounting. Tax. Small Business. Tech. From CPA's. For CPA's.

Learn All About the New IRS Whistleblower Program

Via The Tax Advisor

Many people are not aware of Internal Revenue Code section 7623 which allows the IRS to pay people who “blow the whistle” on persons who fail to pay the tax they owe.  The "whistleblower” can receive up to 30 percent of the additional tax, penalty and other amounts the IRS collects.

The program actually dates back to 1867, but was standardized through provisions of the Tax Relief and Health Care Act of 2006.

The IRS has a site here that provides a lot of information about the program, and its history.  Additionally, the Tax Advisor has a detailed article here with everything you may want to know about this program.


Filed under: Tax Examinations and Collections

SEC Vote Reveals Likely IFRS Implementation Date

Via The Journal of Accountancy

The Securities and Exchange Commission voted unanimously on Wednesday on a new timeline for implementation of International Financial Reporting Standards for all US Public Companies.  The action calls for more study on the change from US Generally Accepted Accounting Principals, but envisions 2015 as the earliest date for implementation.


Following is a video of SEC Chairman Mary Schapiro’s statement regarding the vote:

Filed under: Accounting Standards, Financial Statements

Taxpayers Handed Another Victory on the Issue of Materially Participating LLC Members and the Passive Loss Rules

The Tax Court held this week that the passive loss limitations under IRC 469 do not suspend losses from an LLC member who materially participated in the management of an LLC.

In the case (Newell, TC Memo 2010-23) The IRS disallowed losses of a taxpayer ruling that the losses were suspended under the passive activity loss rules of IRC 469.  The IRS conceded that the taxpayers materially participated in the business, but argued that the taxpayer’s interest in the LLC must be treated as a limited partner interest, which under IRC 469(h)(2) cannot be treated as an interest in which the taxpayer materially participates.

The Tax Court held that 469(h)(2) did not apply.

Filed under: Limited Liabilty Companies, Tax

IRS Issues Rules of Qualified Plan Rollovers to Roth IRA’s

Via the Journal of Accountancy

The 2010 exception to the income restriction on Roth IRA conversions has garnered much attention, but mostly as it relates to rollovers of traditional IRA accounts to Roth IRAs.  But, the exception can relate to rollovers from qualified plans, such as 401k plans, to Roth IRAs as well.  The IRS recently issued Notice 2009-75 to address the issue of converting from qualified plans, and the Journal of Accountancy has summarized it here.

You can find the complete text of the notice here.

Filed under: IRAs, Tax

Obama Unveils $3.83 Trillion Budget and Tax Proposal Package


On February 1st, President Obama presented to Congress his fiscal year 2011 federal budget proposal which included various tax provisions.  Some of the highlights include:

  • – Extended Making Work Pay Credit
  • – 2010 Bonus Depreciation/Expensing
  • – Higher Child Care Credit
  • – Reinstatement of Top Tax Rates
  • – Tax-Free Small Business Stock
  • – $5,000 Employee Hiring Credit
  • – Sweeping International Tax Reforms
  • – Enhanced Information Reporting
  • – Reinstated Estate Tax

Although the final details have yet to be worked out, CCH has provided a good analysis of the proposal as it stands now.

Filed under: Tax Legislation

IRS Issues New Guidance on Automatic Accounting Method Changes

Via the Journal of Accountancy

The IRS has released Revenue Procedure 2009-39 which provides clarification and modifications to Revenue Procedure 2008-52 and 97-27.  These IRS releases provide guidance to taxpayers on qualifications to change tax accounting methods without the advance approval of the IRS commissioner.  They provide a list of permitted methods, and the procedures for actually making the changes.

The Journal of Accountancy article linked above provides a good detailed explanation of the topic, and the Revenue Procedure can be found here.

Filed under: Uncategorized

Double Your Haiti Gift with $2 Million Match

The Foundation for Christian Stewardship, through their partner, the National Christian Foundation, has received a grant allowing them to match contributions to their "NCF Haiti Renewal Fund", up to $2 million. 

An accelerated tax deduction, and a dollar for dollar match on your contribution, certainly provides the means for a wise and effective financial contribution to help people in need at this time.

Learn more about this opportunity here.

Filed under: Charitable Giving

Survey Reveals Taxpayer Support for TARP Tax

Via The Wall Street Journal

A majority of participants of a recent survey about the "Troubled Asset Relief Program tax" supported the tax when it was described as a "responsibility fee" that would "discourage big bonus payouts and ensure the big banks that caused the crisis pay for the bailout." However, about 40% of respondents opposed the fee when they were told banks would pass on the cost to consumers and restrict small-business lending.

Filed under: Tax, Tax Legislation

Congress Passes Early Tax Deduction for Haiti Relief Donations

Via Bloomberg

On Thursday, January 21, 2010, the Senate unanimously passed the Haiti Assistance Income Tax Relief Act, which was identical to the House bill passed on Wednesday.  The president is expected to sign the bill into law this week.

The act allows taxpayers to deduct contributions made for the relief of victims of the January 12, 2010 Haiti earthquake on their 2009 tax returns instead of their 2010 returns.  The contributions must be made after January 11, 2010 and before March 1, 2010 to be eligible for accelerated deduction.

Filed under: Charitable Giving, Tax, Tax Legislation

IRS Updates Maximum Allowable Vehicle FMV for Employee Fringe Benefits

Via the Journal of Accountancy

In Revenue Procedure 2010-10, the IRS has updated the maximum allowable fair market value (FMV) of an employer-provided vehicle that can be used with the cents-per-mile and fleet-average rules, for determining the value of an employee’s personal use of vehicles. 

The new maximum FMV is $15,300 for the cents-per-mile rule and $20,300 for the fleet-average valuation rule for passenger automobiles.  For trucks, the respective FMVs are $16,000 and $21,000.

Filed under: Fringe Benefits, Tax


Hi. My name is Paul Nienow, and I am a CPA living and practicing in Southern California. CPA 411 is a place where I share news and information that peaks my interest, and may (or may not) be of interest to other CPA's, business people and entrepreneurs.

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