NEWS HIGHLIGHTS FOR THURSDAY - 6.23.16

By:
Maya Lindsay
Published Date:
Jun 23, 2016

NYSSCPA Members in the News

David Evangelista (Rockland)
Evangelista to Lead NY Accounting Foundation
CPA Practice Advisor
David Evangelista, CPA, a nationally-known employee benefit plans advisor and auditor, was recently elected president of the Foundation for Accounting Education’s (FAE) Board of Trustees.  Evangelista, of Stony Point, N.Y., is a principal at MSPC Certified Public Accountants and Advisors, P.C., with offices in New York and New Jersey. His one-year term as FAE president began June 1.

Other Accounting and Finance News

Millions of U.S. Consumers Are Escaping Subprime
Wall Street Journal
The percentage of Americans with subprime credit scores has fallen to the lowest level in more than a decade, a development that could give bank lending and the overall economy a boost. The share of U.S. adults with credit scores that are considered “subprime” fell to 20.7% in April, the sixth consecutive year-over-year decline and the lowest level since at least 2005, when Fair Isaac Corp., or FICO, started tracking the data.

2016 Summer Reading for Accountants
Accounting Today
With summer officially here, it’s time to relax and recharge, so you can go back to your firm with new ideas and new strategies. With that in mind, we’ve put together this collection of worthwhile reads.  The topics range pretty widely, but with the staff crunch that’s currently gripping the profession, don’t be surprised if there’s a significant focus on HR and generational issues.

Common Risks for Accounting Mergers and Acquisitions
International Federation of Accountants
Risks are going to exist but can be mitigated when setting up a merger or acquisition, according to Joel Sinkin, President of Transition Advisors, LLC. an expert in accounting M&A. Diligent planning, including legal counsel, is required at the outset.

Deferred Compensation Proposed Rules Offer Clarity
Bloomberg BNA
Long-awaited proposed rules on nonqualified deferred compensation plans and state and local government deferred compensation plans offer much-needed clarifications and technical corrections, attorneys said. The proposed rules on nonqualified deferred compensation plans under tax code Section 409A, issued by the Internal Revenue Service on June 21, aim to clarify and modify 9-year-old final rules under that section, the IRS said.

House Republicans Seek to Eliminate IRS Chief’s Paycheck
Wall Street Journal
Republicans have a new idea for attacking IRS Commissioner John Koskinen: Stop paying him. Mr. Koskinen’s salary of about $165,000 a year would be cut to zero until the next president takes office Jan. 20, under an amendment the House of Representatives is considering this week. “There’s been profound frustration,” said Rep. Mark Sanford of South Carolina, who is leading the effort along with Rep. Ken Buck of Colorado.

Keeping the cash coming: How Gov. Cuomo, Sen. Jeff Klein and others wound up preserving the LLC loophole, from which their campaigns rake in millions from real-estate interests and others
New York Daily News
One hundred years after Albany's capitol building opened in 1879, it became a national landmark. Prisoners at Sing Sing cut its original marble columns and arches. No one knows its nooks and crannies better than Andrew Cuomo, halfway through his sixth term there, four as chief adviser to his father who was both lieutenant governor and governor, and now governor himself.

Make Finance Your Business Partner
Automation World
Manufacturing managers may or may not be aware or agree, but the accounting profession sincerely believes it is your business partner. Accounting organizations and major accounting firms have published huge amounts of material instructing accountants how to become business partners to their organizations; and many claim that objective has been achieved.

Global Regulators Push New Crisis-Prevention Arsenal, Oversight for Mutual Funds
Wall Street Journal
Mutual funds should have the ability to lock up investors’ funds or charge shareholders for withdrawals if they urgently need cash to ride out a crisis, according to a new set of policy recommendations from a panel of global regulators. The plan from the Financial Stability Board released Wednesday in some cases goes beyond what U.S. regulators have proposed for bolstering the safety of the mutual-fund industry, which many regulators fear could be a spark for the next financial crisis.

 

IRS Offshore Disclosure Processes Should Improve

Tax-News.com

The Internal Revenue Service (IRS) needs to improve its efforts to address the noncompliance of US taxpayers who are denied access to or withdraw from its Offshore Voluntary Disclosure Program (OVDP), according to a report released by the Treasury Inspector General for Tax Administration (TIGTA). TIGTA pointed out that those noncompliant taxpayers who use offshore accounts to hide assets and income outside the United States in an effort to evade their federal tax obligations, and who could face significant penalties and possible criminal prosecution if discovered by the IRS, are allowed, through the OVDP, to disclose those undeclared offshore accounts and related income, while mitigating penalties.

 

IRS Faces New Restrictions and Budget Cuts in Spending Bill

Forbes

Later this week, the U.S. House will take up H.R. 5485, FY 2017 “Financial Services and General Government Appropriations Act.” Among other things, this is the appropriations bill which funds our friends at the IRS. From a limited government perspective, this bill is a big win for taxpayers. First and foremost, it cuts IRS spending down to $10.9 billion, $236 million below last year’s approved level and $2.7 billion below the president’s request.

 

Election Uncertainty Takes Toll on Business

Wall Street Journal

After months of contentious campaigning, Democrats and Republicans have settled on their presumptive presidential candidates. But that has done little to end the uncertainty that many small-business owners say is weighing on their operations. Roughly one-third of 715 small-business owners surveyed in June by The Wall Street Journal and Vistage Worldwide Inc. said that uncertainty related to the November presidential election is having a negative impact on their business.

 

New PwC Assurance Leader Aims to Increase Diversity

Accounting Today

PricewaterhouseCoopers recently announced PwC’s new leadership team, including Maria Moats, a Latina who has been working as chief diversity officer at the firm and will assume the role of U.S. assurance leader, effective July 1. As chief diversity officer, Moats was responsible for setting the strategy of PwC’s diversity and inclusion efforts in the U.S.

 

Central Banks Ready for Anything as ‘Brexit’ Vote Nears

Wall Street Journal

Everyone from Barack Obama to George Soros and soccer superstar David Beckham has had something to say about Thursday’s U.K. vote on the European Union. Now it comes down to those who really matter: millions of U.K. voters. Polls point to a knife-edge vote just tilted toward remaining in the EU.

 

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