NEWS HIGHLIGHTS FOR TUESDAY - 8.2.16

By:
Maya Lindsay
Published Date:
Aug 2, 2016

NYSSCPA Members in the News


Matt Bryant (Rochester)

As summer winds down, students should prepare financially for college

WROC Rochester First

CPA Matt Bryant sits down with Allison Warren to discuss getting ready for college.  His biggest recommendation for students is to prepare as early as possible. Parents starting to save early is great, as is teaching kids to do the same. Bryant also recommends researching the colleges the student is considering. A lot of state colleges have lower tuition costs, as do community colleges.


Other Accounting and Financial News Stories

 

New Online 401(k) Plans Disrupt Retirement Market

Wall Street Journal

Disruption is coming to the 401(k) industry. Led by technology entrepreneurs and backed by venture capitalists, a crop of startups have launched online 401(k) plans in recent months with the aim of bringing robo-style automated investment services to small businesses, many of which offer their workers high-cost 401(k)s or no retirement savings plans at all. The upstarts are pursuing a large market that has been relatively ignored until recently—a vacuum that has prompted some states to start requiring small businesses to offer retirement plans.

 

IRS Announces Fines Paid to FINRA Are Not Deductible

Lexology

Fines pertaining to violations of federal securities laws and certain FINRA rules may not be deducted. The Internal Revenue Service (IRS) in low-level advice recently announced its position that certain fines paid to the Financial Industry Regulatory Authority (FINRA) are not deductible under Section 162(f) as fines paid to an entity “serving as an agency or instrumentality of the government."

 

A Quick CFO Exit Can Spell Trouble

Wall Street Journal

When 3D Systems Corp. announced it was “privileged” to be hiring Ted Hull as its new finance chief in November 2014, it seemed like a coup given his experience at companies including Cisco Systems Inc. and International Business Machines Corp. Six months after he joined, 3D Systems stock was down more than 30%. In a May 15, 2015 press release, 3D Systems said Mr. Hull was leaving at the end of the day “to meet company needs and to pursue personal interests.”

 

Game-Changing Women's Initiatives at CPA Firms

Accounting Today

I have coached many CPA professionals over the course of my career, addressing pertinent topics that aid the professional development of my clients. It’s become obvious—especially in recent years—there’s value in providing programs geared toward women. This is because there are significant differences in how genders communicate, lead and motivate their staff. These differences can be complementary and supportive of each other; unfortunately, they sometimes represent a detriment in the workplace.

 

IRS Lays Out Plan for Maintaining Tax Qualification for Individually-Designed Plans after Elimination of the Determination Letter Cycles

JD Supra Business Advisor

Changes to Remedial Amendment Cycles and Deadlines The Revenue Procedure confirms the IRS’s decision to end the staggered 5-year remedial amendment cycle system for amending individually-designed plans and requesting determination letters of continuing tax qualification. Cycle A plans and controlled group or affiliated service group plans that made a Cycle A election prior to January 31, 2012 will still have a final opportunity to submit determination letter applications by January 31, 2017.

 

Why Your 401(k) Is Not Safe At Home

Wall Street Journal

Among investors, familiarity doesn’t breed contempt; it breeds comfort. And that can be dangerous. Consider how employees save for retirement. Your salary already depends on the health of the company you work for. So putting part of your retirement money into your company’s stock is piling risk upon risk.

 

Corporate Close-Up: States Offering Mixed Message On Future Of Franchise Taxes

Bloomberg BNA

State franchise taxes exist in just under half of the states in the U.S. An odd stepchild of the state corporate income tax, franchise taxes are a catch-all for taxes that don’t fit the old categories of levies such as income, excise, property or sales. Some states have recently retired their franchise tax, while others have shown a continued commitment to it. Most state franchise taxes are calculated based on the capital stock or net worth of companies, often in one specific industry.

 

It’s Called Financial Repression, and Governments Around the World Are Doing It

Wall Street Journal

The money markets are screaming about a global shortage of dollars. Financial stress indicators are flashing yellow. The Bank of Japan on Friday took special measures to help its banks access greenbacks, and interbank borrowing rates for dollars are at the highest level since 2009. In the 2008 and 2011-12 panics, the money markets acted as a warning of a credit crunch, as trust between lenders and borrowers broke down.

 

Accounting News Roundup: Non-CPA Managing Partners and Bad Accountant: Caught on Tape! | 08.01.16

Going Concern

Non-CPA managing partners - Does the managing partner of an accounting firms need to be a CPA? If we assume that a managing partner's duties include setting the overall vision and running the day-to-day operations of the firm, I think the answer is, "No." If we also assume that a managing partner is the best business person and not just the best CPA in a particular office or firm, then I think the answer is also, "No."

 

Citrin Cooperman Merges in Kirkland Albrecht & Fredrickson

Accounting Today

Citrin Cooperman has entered the Boston region by merging in Kirkland Albrecht & Fredrickson on Monday. KAF’s 10 partners and 40 other staff members in its Braintree and Woburn, Mass., offices are joining Citrin as a result of the merger, which took effect on August 1. Citrin Cooperman ranked 22nd on Accounting Today’s 2016 list of the Top 100 Firms, with $195 million in annual revenue.

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