Audit & Accounting

A new wealth management firm is launching as a result of a merger between Yampolsky Mandeloff Silver Ryan and Citrin Cooperman & Co. LLP.

FedEx said it is preparing to meet with an audit team from the Internal Revenue Service to discuss the IRS's tentative conclusion that FedEx should reclassify its delivery drivers as employees rather than independent contractors.

In partial deference to corporate appeals, the Financial Accounting Standards Board has agreed to allow a one-year deferral for part of the implementation of Financial Accounting Statement 157, Fair Value Measurements.Investors have long called for financial statements that report market values - observable or calculated - and FASB constituents in the corporate sector have generally supported the concept. But after a year of preparing to implement FAS 157, corporations went to the board to complain that implementation had turned out to be prohibitively difficult.

The alternative minimum tax isn't the only tax that will continue to surprise taxpayers if Congress fails to act on its repeal. The estate tax, currently set to expire in 2010, will return with a vengeance to a full 55 percent in 2011 if Congress does nothing.The Joint Committee on Taxation estimated that in 2009 there will be 9,600 estates subject to the estate tax. While that number falls to zero in 2010, it will jump to nearly 62,000 in 2011, with increases every year thereafter.

Since this is our first column of the New Year, it may be particularly appropriate to look back into 2007 to try to predict some of what will happen in 2008. The history of important tax developments that took place in 2007 is rich and varied. Shakespeare's "What is past is prologue" was never so apt.In that spirit, we have selected 10 developments as standouts in terms of their impact on the future, and especially on 2008 tax strategies. We explain each of these top 10 below. And, of course, respecting the difficulty of prioritizing just 10 2007 tax developments as most significant, we conclude by listing several more as runners up!

The Institute of Management Accountants has joined a widespread call for the Securities and Exchange Commission to accept financial reports prepared under international accounting standards without reconciliation with U.S. generally accepted accounting principles.The IMA's main concern is not so much that filings by foreign companies might be easier, but that convergence with international standards would effectively replace the U.S. set of standards - which the institute believes are onerous, if not downright crushing.

The Financial Accounting Standards Board is heading into a year in which the ball of due process will spend a lot of time in the court of the board's constituents.Between New Year's Day and early spring, the board may have as many as 11 documents issued for public comment, with a couple more out by summer. Three final documents may be issued in the first quarter, but they're the only pronouncements expected before 2009.

Is weather more important than healthcare costs? According to a new national research from Longevity Alliance and conducted by Harris Interactive, U.S. adults aged 40+ who plan on relocating after they retire may overlook how their healthcare costs could change from one location to another. Actually, about three in four (76 percent) of adults planning to relocate after retirement say that they consider the cost of healthcare as important or very important in their decision. But, the cost of healthcare is ranked number three of five behind the overall cost of living, and climate, and just ahead of ease of transportation and proximity to friends and family. What this means is that overlooking the cost of healthcare and health insurance can have real consequences for retirees. Costs vary from one part of the country to another and insurance premiums, Medicare health plans, Medicaid, and long-term care rates can also change exponentially. As an example, consider that the average annual premium for a Medicare Supplement insurance policy in New York could be around $3,700; yet that same policy holder moving to Phoenix will find the premium to be as low as $1,200. Quite a difference. According to Longevity Alliance president Steve Zaleznick, too may times, people considering retirement and relocation don’t give any thought to how it could affect their healthcare and insurance costs. “As retirees grow older, those costs grow larger, so choosing a region that makes those costs affordable is a key component of a sound retirement strategy.” Zaleznick offers five specific tips before anyone moves:

Accounting firm Beard Miller Co. has combined with Edwards Sauer & Owens, a Pittsburgh-based CPA firm that will build BMC's presence in central and western Pennsylvania.

Parente Randolph has merged with Boyle, Brogan, Shusman & Nicastro, expanding Parente's office space and clientele in South Jersey.