Practice Management

Many are surprised to learn that while it sometimes appears that the Internal Revenue Code reaches into every aspect of our lives, it lacks focus in addressing the complex tax consequences that face the unfortunate victims of Ponzi schemes.Of course, if the reports are true, there may have never before been a Ponzi scheme like Bernard Madoff's, so it is time to take a fresh look at things.

MORE TAXPAYERS TO FILE ONLINENew York - Approximately 40 percent of online households plan to file their federal taxes via the Internet this year, up from under 34 percent four years ago, according to a report by researchers at the Conference Board and TNS, which surveyed 10,000 households and found that consumers' concerns about conducting financial transactions online have been easing over the last few years.

The $787 billion American Recovery and Reinvestment Act of 2009 (P.L. 111-5, Feb. 17, 2009) provides almost $300 billion in tax relief. As a stimulus package, the bill makes available over $280 billion in tax relief in the short term in 2009 and 2010. For business, over $75 million in tax benefits are provided for 2009 and 2010. Although most of that is accelerated depreciation, which, over a 10-year period when tax bills are "scored," almost evens out, the immediate benefits to business taxpayers are substantial. What's more, to avoid discouraging taxpayers from making investments and purchases before the act was passed, most of the tax incentives are retroactive to Jan. 1, 2009.While some of the business benefits can help businesses of any size, the act targets significant benefits at small businesses in particular. This is consistent with the Obama administration's view that small business is the principal engine for jobs growth. Notably, the act seeks to encourage spending for major purchases of capital equipment by extending enhanced small-business expensing and 50 percent first-year bonus depreciation. Small businesses that are incurring losses now but made profits within the last five years can take advantage of enhanced net operating loss carrybacks. S corporations and owners of qualified small-business stock also received benefits that can reduce their taxes.

The tight economy means more accounting professionals pursuing fewer quality engagements. Consolidators, larger practices, telemarketers, rainmakers and others establish new footholds during tough times. These competitors squeeze firms of all sizes, forcing them to sell more effectively to survive. Without a booming economy as a propellant, accountants should base their growth on how well they can sell their services in a more competitive marketplace.If you want to be among the top 10 percent of business development specialists, you don't have to be 100 percent better in prospecting, client presentations or closing. If you become only 20 percent better in each step of a professional sales method, your opportunities to win engagements will protect your future. Small improvements can make the big difference between a winner and second place.

What's the hottest issue in the accounting profession right now?No, it's not IFRS, or fair value accounting or even the latest President Obama-driven tax legislation.

Despite all the tax changes in the past year to stimulate the economy, the Internal Revenue Service appears to be weathering the tax season well so far.

The Financial Accounting Standards Board has issued a “plain English” summary of the board’s actions when it modified the standards for fair value and mark-to-market accounting in response to congressional demands.

The Securities and Exchange Commission has revoked the license of an Arizona CPA and filed charges accusing him of running a $67 million Ponzi scheme.

Accounting firm network Horwath International has changed its name to Crowe Horwath to emphasize its association with Crowe Chizek.

The Internal Revenue Service should determine whether using tax software creates any security and compliance risks, recommended the Government Accountability Office in a new report.