Are You Ready for the New Lease Accounting Standard?

Dart stuck in bull's-eye of dartboard8 steps to take.

via Robert Half
roberthalf.com

At the start of 2019, the implementation deadline for the Financial Accounting Standards Board’s (FASB) new lease accounting standard passed for public companies. Now, the focus – and pressure – is on privately held organizations, which must adopt the requirement by 2020. And new research suggests that many of these firms may find themselves scrambling to meet the deadline for compliance.
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The #1 Problem: Staffing, Staffing, Staffing

Smallest firms plagued most by growing tax complexity. 

via AICPA

Top trends: Join the survey, get the results.

Staff recruitment remains the top issue for most CPA firms, while growing tax complexity and risk management regarding privacy and data security are rising challenges, new research by the AICPA shows.

Today's Best Talent, Career, and Growth Strategies
Join the survey: Get the answers.

“Finding qualified staff” is the No. 1 issue for every firm-size segment except sole practitioners, according to the 2019 PCPS CPA Firm Top Issues Survey, matching the topline results from the last survey two years ago.

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The ABCs of Building a Financially Healthy Medical Practice

Portrait of Reed Tinsley
Tinsley

Checklist: 24 practice statistics you should benchmark for medical-office clients.

By Reed Tinsley

Reed Tinsley, CPA is a Houston-based CPA, certified valuation analyst and health care consultant at rtacpa.com. He works closely with physicians, medical groups and other health care entities with managed care contracting issues, operational and financial management, strategic planning, and growth strategies. His entire practice is concentrated in the health care industry.

As changes continue to occur in the health care industry, physicians are taking a hard look at the numbers of a medical practice and gauging whether the year at hand will be economically successful.

To analyze the productivity of the practice, physicians depend on accurate and timely information. However, with the focus of every practice on delivering quality health care, the financial side often becomes neglected or ignored. This is where you, as their CPA, come in. READ MORE →

Deducting Litigation Expenses: New Appellate Court Decision

Statue of scales of justiceAuditors said the activity wasn't profit-seeking.

Portrait of Christopher DeMayo
DeMayo

By Christopher M. DeMayo
Withum

The Fifth Circuit Court of Appeals issued a decision on March 29, 2019, that explains some of the requirements for deducting litigation expenses.

The facts of the case are bizarre, but the controlling legal principles are not.

In a nutshell, the taxpayer was the sole shareholder of a company that was a commercial cleaning franchisor (“Company”). In November 2002, the taxpayer traveled on vacation with his girlfriend and two employees of his company to the Caribbean island of St. Maarten, where he owned a home. One of the employees was a bodyguard and the other was a former girlfriend.

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Join CPA Trendlines at #AICPAENGAGE

CPA Trendlines at AICPA Engage 2019: From top left, Cieslak, Caragher, Kuesel, Dobek, Reeb, Johnston, Rampe, Vetter, Kepczyk, George, Koltin, Wiley, Sinkin, Johnson, Shimamoto, Steffen, Livingston, River, Tankersley.
CPA Trendlines at AICPA Engage 2019: From top left, Cieslak, Caragher, Kuesel, Dobek, Reeb, Johnston, Rampe, Vetter, Kepczyk, George, Koltin, Wiley, Sinkin, Johnson, Shimamoto, Steffen, Livingston, River, Tankersley.

See you in Las Vegas...

By CPA Trendlines

If you're going to the AICPA's mega-conference, Engage (#AICPAENGAGE), in Las Vegas, June 8-13... or simply tuning in for the live streaming, don't miss the chance to see, meet, and chat with dozens of CPA Trendlines' leading expert authors and contributors, including: READ MORE →

Taxpayers Deserve Better Receipts

Businesspeople standing atop 5 stacks of coinsWant to know exactly where YOUR tax dollars go? Want to vote on it?

By CPA Trendlines Research

Here’s an idea: Taxpayers should get a receipt so they can see what they’re paying for.

MORE: Troubles with IRS Private Debt Collection | What Difference Does One Word Make? | What’s the Real Impact of IRS Audits? | Tough Lessons from Tax Season | Why Shouldn’t All Tax Practitioners Need Licenses? | Data Divers Profile Taxpayer Filing Styles | Salary Survey Shows Pay for Tax Professionals
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Actually, that’s already a thing, and it’s been in the Internal Revenue Code since 1990.
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Troubles with IRS Private Debt Collection

Businessman sitting in office chair, covering his face with his handThe IRS listed 6 risks. The GAO found 10 more.

By CPA Trendlines

Here’s a curious situation: The Internal Revenue Service of the wealthiest nation on earth, with all its power to collect taxes – be it by withholding, by a polite letter of request, by slapping somebody’s assets with a lien, by knocking on a delinquent’s door – sometimes the IRS can’t afford to collect back taxes.

MORE: What Difference Does One Word Make? | What’s the Real Impact of IRS Audits? | Tough Lessons from Tax Season | Why Shouldn’t All Tax Practitioners Need Licenses? | Data Divers Profile Taxpayer Filing Styles | Salary Survey Shows Pay for Tax Professionals | Fixing the Tax System: Accountants Sound Off | The Big Free-File Flop
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When it can’t, it gives the power and privilege to a private debt collection (PDC) agency.
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The One Word that Changed the IRS

https://cpatrendlines.com/2019/05/09/what-difference-does-one-word-make/And why the IRS now needs a new mission statement.

By CPA Trendlines

Ten years ago, the Internal Revenue Service changed a word in its mission statement.

MORE: What’s the Real Impact of IRS Audits? | Tough Lessons from Tax Season | Why Shouldn’t All Tax Practitioners Need Licenses? | Data Divers Profile Taxpayer Filing Styles | Fixing the Tax System: Accountants Sound Off | 2 Ways the EITC Error Rate Is High | Who’d Like a Friend in the IRS?
GoProCPA.comExclusively for PRO Members. Log in here or upgrade to PRO today.

Before: “Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all.”

After: “Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and enforce the tax law with integrity and fairness to all.”

The change was made without public discussion. It just appeared: subtle and quiet but deep and disturbing.

What’s the difference? Attitude and approach. READ MORE →

CHARTS: Tax & Accounting Among Biggest Jobs Creators in U.S.

Also: who's hiring, who's not among client business sectors.

By CPA Trendlines Research

The tax and accounting industry is adding jobs at the rate of 37,000 per year, according to the latest data available, making the profession one of the fastest growing sectors of the U.S. economy.

At the top of the jobs ranking are individual and family services, computer systems design and related services, amusements, gambling, and recreation, home health care services, and warehousing and storage.

Meanwhile, if you have clients in apparel, printing and related support activities, commercial banking, department stores, electronics and appliance stores, telecommunications, sporting goods, hobby, book, and music stores, the outlook is not so rosy -- They're all trimming payrolls.

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A DeSoto at the Core of the IRS

Technician checking something at data centerThree recommendations for overhauling IRS tech.

By CPA Trendlines Research

The Internal Revenue Service runs a pretty good business. For every dollar invested in its budget, it rakes in $300 in federal revenue, an annual total of $3.5 trillion on a budget of $11.43 billion.

MORE: What’s the Real Impact of IRS Audits? | Tough Lessons from Tax Season | Data Divers Profile Taxpayer Filing Styles | Hello, IRS? Anybody Home? | Wanna Change The Tax World? | The Big Free-File Flop | The Demise of Schedule A? | Survey: Busy Season Goes Sour | Lessons Learned: How the Federal Shutdown Hit Busy Season 2019
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How odd, then, to find that the brains of the operation is a computer system that dates back to about 1960.
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