The AAA-CPA Weekly Update
Jan. 11, 2012

Learn how to keep your money, your clients and your license to practice — the new rules of client trust accounts with Jay Foonberg, Esq., CPA, at the Western Regional Education Conference, Jan. 20 - 22, 2012, San Diego
AAA-CPA
Generally accepted accounting terminology is contrary to the terminology used in the new rules of client trust accounts and can lead an uninformed attorney-CPA to financial ruin and disciplinary problems. With the knowledge of this course, you can make things happen rather than asking, "What happened?" This interactive session will provide current information on the new rules and requirements for attorney client trust accounts. Knowing the new rules will enable you to protect your own license and give you a competitive advantage in attracting and keeping attorney clients and their referrals. This session can also help you craft appropriate fee agreements to avoid disciplinary and financial problems. IOLTA, electronic banking, bank failures, FDIC coverage, required monthly, quarterly and annual reconciliation and reports will be covered.

For more details about the conference and to register, click here.More

Alan E. Weiner, CPA, J.D., LL.M., new chairman of the IRS Garden City
AAA-CPA
Alan E. Weiner, CPA, J.D., LL.M., has been selected as the 2012 - 2013 chairman of the IRS Garden City, Long Island, N.Y., Tax Practitioner Liaison Committee. He is the founding tax partner and now Partner Emeritus at Holtz Rubenstein Reminick, Long Island, N.Y., and New York City. This committee consists of Internal Revenue Service officials and tax practitioners. The committee provides an informal dialogue between the government and tax return preparer community. More

2011 Federal Tax Update
by David De Jong, Esq., CPA, Stein Sperling
The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 expands the required repayment of excess advance payments of the health insurance premium assistance credit for those with rising incomes effective 2014.



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S Corporation Quarterly Update
by Sydney S. Traum, Esq., CPA
Recent Private Letter Rulings

Section 1362(f) permits the IRS to ignore a terminating event if certain conditions are met. The IRS must agree that the termination was inadvertent; steps must be taken to correct the situation within a reasonable time after discovering the terminating event; and the corporation and all shareholders must agree to make corrective adjustments required by IRS consistent with treatment of the corporation as an S corporation.More

IRS says audit rates have grown for the wealthy
The Associated Press via The Boston Globe
If you earn less than $200,000 a year, there's a strong chance you don't have to worry about an Internal Revenue Service audit. But if you make more than $1 million annually, the odds have been rising that you'll be hearing from the tax man.More

SEC changes policy on firms' admission of guilt
The New York Times
The Securities and Exchange Commission, in a fundamental policy shift, said that it would no longer allow defendants to say they neither admit nor deny civil fraud or insider trading charges when, at the same time, they admit to or have been convicted of criminal violations. The change is the first time that the SEC has stepped back from its longstanding practice of allowing companies to settle fraud charges by paying a fine without admitting wrongdoing. More

IRS expands innocent spouse relief
Accounting Today
The Internal Revenue Service has extended innocent spouse relief to a greater number of taxpayers under newly proposed guidelines. The new proposed guidelines are designed to offer relief to more innocent spouses who request equitable relief from income tax liability caused by unpaid taxes of their estranged spouses. More

Free simple tax prep available at Wal-Mart stores
The Associated Press via CBS News
The free preparation of the simple tax forms will be made available at more than 3,000 Wal-Mart Stores nationwide starting Jan. 9. The nation's largest retailer has contracted with the top two tax prep companies, H&R Block Inc. and Jackson-Hewitt Tax Service Inc., to set up kiosks inside its stores where customers can have their tax returns completed by trained preparers. More

Teaching financial skills to clients' kids
InvestmentNews
Welcome to the new year. The annual surge in gift giving and receiving — and returning — is behind us, which means that many of the children and grandchildren of your clients are sitting with more money than they had a month ago.More

Key tax deductions left hanging
CNN Money
It may be a new year, but when Congress returns from its winter break it will be all old business that lawmakers failed to finish before Christmas. The fight over a temporary extension of the payroll tax cut and long-term federal unemployment benefits sucked up all the oxygen on Capitol Hill. And it will suck up more between now and the end of February, when the two-month extension Congress managed to pass expires. More