The AAA-CPA Weekly Update
Sep. 5, 2012

2012-2013 membership dues are due by Oct. 1
Payments may be made via our website by logging into the Members Only section, via fax at 703-352-8073 or by mail. Our office address is: AAA-CPA, 3921 Old Lee Highway, Suite 71A, Fairfax, VA 22030. Please contact Kimmy Livingston at or 888-ATTY-CPA if you did not receive your statement.

We saved a spot for you
The AAA-CPA Fall Meeting & Education Conference is just a few months away, and we've saved a spot for you. Don't miss out on the many opportunities to network with your peers and be updated on the latest education topics, all while enjoying the setting of the PGA National Resort. Click here for full details.

Member receives 10 Avvo rating
E. Martin Davidoff, Esq., CPA, past president of the AAA-CPA from Dayton, N.J., has achieved a 10 Avvo rating. Click here for more information.

Federal tax update
by David S. De Jong, Stein Sperling Bennett De Jong Driscoll PC
In Veriha v. Commissioner, 139 TC No. 13, the tax court determined that each self-leased vehicle was a separate item of property for a purpose of the recharacterization rule. The rule converts otherwise passive income into nonpassive income for the purpose of preventing taxpayers with other passive losses from artificially creating passive income to permit offset. The court based its decision on the fact that there were separate lease agreements and indicated that it might reach a different result under alternative facts.

Most Americans say rich should pay more taxes, according to new survey
The Associated Press via CBS News
As the income gap between rich and poor widens, a majority of Americans say the growing divide is bad for the country and believe that wealthy people are paying too little in taxes, according to a new survey. The poll released by the Pew Research Center points to a particular challenge for Republican presidential candidate Mitt Romney, whose party's policies are viewed by a wide majority as favoring the rich over the middle class and poor. More

Bush-era tax cuts will cost US nearly $1 trillion over next decade
The Huffington Post
Keeping tax cuts for the wealthy could cost the U.S. big time. Letting the Bush-era tax cuts of 2001 and 2003 expire on schedule at the end of 2012 would bring the government nearly $1 trillion in revenue over the next 10 years, according to a new report from the Congressional Budget Office. That's $823 billion in added revenue and $127 billion in interest to be exact, for a total $950 billion in 10-year deficit reduction. More

US firms move abroad to cut taxes
The Wall Street Journal
More big U.S. companies are reincorporating abroad despite a 2004 federal law that sought to curb the practice. One big reason: taxes. Companies cite various reasons for moving, including expanding their operations and their geographic reach. But tax bills remain a primary concern. A few cite worries that U.S. taxes will rise in the future, especially if Washington revamps the tax code next year to shrink the federal budget deficit. More

SEC finds investors are financially illiterate
Accounting Today
The Securities and Exchange Commission recently issued a financial literacy study confirming earlier studies that U.S. retail investors lack basic financial literacy. The SEC study was mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act and directed the SEC, among other things, to identify the existing level of financial literacy among retail investors, including subgroups of investors. More

US IRS audits of tax-exempt bonds up, tax recovered down-agency
The U.S. Internal Revenue Service more than doubled its audits of tax-exempt municipal bonds from fiscal year 2005 to 2010, but the amount of taxes collected as a result of the audits declined. The tax-collecting agency increased staff to do the audits and spends "substantial" time auditing bonds that are meeting their tax-exempt requirements, resulting in no new taxes collected, according to a report from the Treasury Inspector General for Tax Administration. More

SEC proposing to eliminate ban against hedge funds advertising to general audience
The Associated Press via The Washington Post
Hedge funds would be allowed to advertise to the general public under a proposal put forth recently. The Securities and Exchange Commission voted 4-1 to seek public comment on the proposal, which would formally lift a ban on hedge funds marketing their investments to a wide audience. The public has 30 days to comment, after which the SEC will likely take a final vote.More