Practice Management

Cohen & Co. has acquired Mercurio & Bridgford, expanding the Ohio-based firm's presence in Florida.

The House Ways and Means Committee has passed a bill aimed at forestalling the spread of the alternative minimum tax for another year.

The Internal Revenue Service has granted an extension to victims of the Midwest floods so they will have more time to make their quarterly estimated tax payments.

It takes solid strategies and steps to grow a niche business, and Gale Crosley, president of Crosley + Co., shared some of her strategies with approximately 100 participants during a pre-conference session at the Forum for Women in Accounting here.

The Research Claims Audit Techniques Guide: Credit for Increasing Research Activities Section 41 just released by the IRS is a great roadmap for practitioners of what to expect on an audit. Although the research credit has not been extended, it is expected to be. This guide issued by the Large and Mid Size Business Division (LMSB-04-0508-030) really shows how IRS will scrutinize research credit refund claims (RC claims), which have been designated a Tier I Issue, which in turn means they are of high strategic importance to LMSB and have significant impact on one or more industries. The guide is particularly geared toward those prepared under the most common approach being used, prepackaged RC claim studies. How those studies are typically done is explained in detail, as well as the potential problems that IRS sees with them. Eustace, T.C. Memo 2001-66, aff’d 312 F.3d 1254 (7th Cir. 2002) is cited as presenting a typical research credit claim involving an accounting firm study and a prepackaged submission. This is an extensive section in the guide on how an auditor should go about evaluating RC study-based claims and specific advice that an information document request (IDR) should be made for the engagement letter from the outside consultant conducting the study. Even the accompanying exhibits have great information, such as a 19-step checklist that the auditor should follow when reviewing the claim, a comprehensive mandatory research credit claims IDR, and even a check sheet to help deal with computational issues. I don’t get excited by every audit technique issued, but this captured my interest because it reminded me of a guide IRS put out a number of years ago on cost segregation. That guide was used by some practitioners as a blueprint on how to successfully conduct a cost segregation study that would withstand IRS review. Both that and the latest guide illustrate that as more professionals utilize studies as significant revenue generators by justifying the fees charged as a small percentage of the tax benefits obtained, IRS will adopt a uniform policy with regard to them. There is a great benefit to this as the audit technique guide is very informative and explains exactly what won’t and will pass IRS muster.

The Internal Revenue Service violated some of its own legal requirements in some of the seizures of taxpayer property it conducted in the past two years, according to a new report.

The Internal Revenue Service has issued proposed regulations implementing amendments to the tax return preparer penalties.

One of the consequences of the credit crisis that began in the summer of 2007 was the deterioration in the U.S. housing market, rendering the valuations of securitized or structured mortgage-backed assets volatile.The contracting demand for these assets — which had been dramatically overvalued by brokers who earned substantial commissions by pushing over 600 varieties of these assets to hedge fund managers through repos that were leveraged without regulatory bounds — precipitated the tightening of unsecured term funding. That led to credit downgrades, massive write-downs of MBS assets by financial institutions according to mark-to-market accounting rules, and illiquidity.

IRS PLANS TAX SHELTER CRACKDOWNWashington, D.C. — Internal Revenue Service Commissioner Douglas Shulman promised to continue enforcement efforts against tax shelters.

Let’s face it: The next 15 years are going to be hard for small firms to compete and survive. The external environment and demographic facts speak clearly:* 8,000 Baby Boomers are retiring each day.