NEWS HIGHLIGHTS FOR WEDNESDAY - 5.4.16

By:
Maya Lindsay
Published Date:
May 4, 2016

Whitepaper Explores New Technologies and Expanding Role of Accountants
CPA Practice Advisor
CPAs are on the front lines with clients every day. As a CPA, we see our clients’ struggles, their wins, their vulnerabilities, and their strengths. Our relationship is critical, and it is very important for us to be seen as their number one trusted advisor. To do so, it’s critical for us to know about all the new ways our small business customers can increase their cash flow. Increased cash flow means a better managed business – and of course, technology is at the helm of these solutions.

Finance 2.0: How Finance Can Deliver Value in a Changing Environment
Accounting Today
Finance is changing, and that much is clearly evident whether you are employed at a public firm, private industry or academia. Forces including corporate governance, sustainability, increased risks linked to cyber security and analytics, as well as the increasing demand for information are driving changes in accounting profession.

3 Reasons Why Small to Mid-sized CPA Firms Can’t Seem to Find Talent-and How to Address It
Thomson Reuters
According to the 2015 Trends Report from the AICPA, the future for the accounting profession looks bright. Accounting enrollments for the 2013-14 academic year surpassed 250,000 for the first time and accounting firms hired 43,252 accounting graduates in 2014, a seven percent increase from the previous survey conducted in 2012. Further, 91% percent of all firms said they expected to hire accounting graduates at the same or higher levels over the next year and 97% of bachelor’s accounting programs and 70% of master’s accounting programs anticipate that enrollment will be the same or higher.

Three Steps to Help Close the Tax Gap
Center on Budget and Policy Priorities
Americans paid about 82 percent of the federal taxes they owed for tax years 2008-2010 voluntarily and on time, according to new IRS data.  Including enforcement and late payments, that number rises to 84 percent.  But this means that the government didn’t collect an annual average of about $406 billion of owed taxes over that period.

New Fed Bailout-Prevention Rule to Reach Beyond Banks
Wall Street Journal
Asset managers such as Pacific Investment Management Co. look set to lose hard-fought protections against the cost of a bank failure, as the Federal Reserve on Tuesday proposed another rule aimed at preventing taxpayer bailouts for financial firms. The proposal would force changes to derivatives and other esoteric financial contracts of the type that destabilized broader financial markets after the 2008 collapse of Lehman Brothers Holdings.

IRS Miscalculating Tax Credits for Obamacare
Accounting Today
The Internal Revenue Service’s computer systems miscalculated the allowable Premium Tax Credits for more than 27,000 taxpayers who received subsidies for health insurance under the Affordable Care Act, according to a new report. The report, from the Treasury Inspector General for Tax Administration, evaluated the effectiveness of the IRS’s verification of health care tax credit claims during the 2015 filing season.

Banks, tech companies move on from bitcoin to blockchain
Thomson Reuters
As a debate raged across the internet Monday over whether the mysterious founder of the bitcoin digital currency had finally been identified, executives at a major bitcoin conference in New York had a simple message: we've moved on. That's because bitcoin, the digital currency, has largely been supplanted by blockchain, the technology that underlies it, as the main interest of investors, technology companies and financial institutions.

High Anxiety: Markets Get Roiled
Wall Street Journal
Stocks and oil futures tumbled and Japan’s yen hit its highest intraday level against the dollar since October 2014, as investors struggled to reconcile recent market gains with unease over the pace of global growth. The latest tumult erupted after the Reserve Bank of Australia on Tuesday cut its benchmark rate by one-quarter of a percentage point to 1.75%. The move reflects soft inflation and economic sluggishness driven in part by weak demand from China, the largest buyer of Australian exports.

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