Regulatory Roundup, Jan. 4-10

By:
Chris Gaetano
Published Date:
Jan 10, 2017

AICPA

AICPA, ASA and RICS to Provide Clarity to Investors, Auditors and Regulators on Understanding Value of Businesses and Intangible Assets

Press Release:  The American Institute of CPAs (AICPA), the American Society of Appraisers (ASA) and RICS (Royal Institution of Chartered Surveyors) are offering a new credential that will enhance the quality, consistency and transparency of fair value measurement results in financial reporting. Financial professionals who obtain the Certified in Entity and Intangible Assets.
Published on January 10, 2017

Prof. Rajiv D. Banker Receives CGMA-Sponsored AAA Lifetime Contribution Award

Press Release:  The AICPA, CIMA and the Management Accounting Section of the American Accounting Association have named Rajiv D. Banker, Merves Chair and Director of the Center for Accounting and Information Technology, Fox School of Business, Temple University, as recipient of the 2017 AAA Lifetime Contribution Award.
Published on January 09, 2017

Professor Recognized for Research on Internal Whistleblowing

Press Release:  The AICPA, CIMA and the Management Accounting Section of the American Accounting Association (AAA) have honored Bryan R. Stikeleather, Assistant Professor at the University of South Carolina’s Darla Moore School of Business, with the 2017 Greatest Potential Impact on Management Accounting Practice Award.
Published on January 09, 2017

AICPA Sends IRS Recommendations To Simplify Interest Capitalization Regulations and Reduce Administrative Burden

Press Release:  The AICPA has recommended changes to the Internal Revenue Service to reduce the complexity and administrative burden facing taxpayers who must comply with the interest capitalization regulations under Internal Revenue Code section 263A(f), Special Rules for Allocation of Interest to Property Produced by the Taxpayer.
Published on January 05, 2017

AICPA Issues New Revenue Recognition Guide

Press Release:  The American Institute of CPAs has issued the first online edition of an Audit & Accounting Guide on Revenue Recognition to assist entities and auditors to understand, implement and audit the new rules.
Published on January 04, 2017

CBO

Trends in Spending by the Department of Defense for Operation and Maintenance
O&M costs grew by almost 50 percent between 2000 and 2012, after adjusting for inflation. Much of that growth was in spending for health care, civilian pay, and contracted professional and maintenance services.

Monthly Budget Review for December 2016
The federal budget deficit was $207 billion for the first three months of fiscal year 2017, CBO estimates—$8 billion less than the shortfall recorded during the same period last year.

FASB

FASB Issues Guidance Clarifying the Definition Of A Business

Norwalk, CT, January 5, 2017—The Financial Accounting Standards Board (FASB) today issued an Accounting Standards Update (ASU) that clarifies the definition of a business. The ASU affects all companies and other reporting organizations that must determine whether they have acquired or sold a business.

GAO

Retirement Security: Improved Guidance Could Help Account Owners Understand the Risks of Investing in Unconventional Assets
People who invest their retirement accounts in unconventional assets—such as real estate or virtual currency—may be placing their savings at risk. Retirement accounts allowing such unconventional investments increase owners' responsibilities in ways they may not understand—and mistakes can trigger taxes and penalties. Moreover, account custodians may prematurely close an account or let valueless assets and fraud go undetected because they did not accurately determine the value of unconventional assets. We recommended that IRS improve guidance for account owners with unconventional retirement assets and clarify how to annually value such assets.

Troubled Asset Relief Program: Status of Housing Programs
As of October 31, 2016, the Department of the Treasury (Treasury) had disbursed $22.6 billion (60 percent) of the $37.51 billion Troubled Asset Relief Program (TARP) funds obligated to the three housing programs (see fig.).

Flood Insurance: FEMA Needs to Address Data Quality and Consider Company Characteristics When Revising Its Compensation Methodology
The Federal Emergency Management Agency (FEMA) has yet to revise its compensation practices for Write-Your-Own (WYO) companies to reflect actual expenses as required by the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act), and as GAO recommended in 2009.

GASB

GASB Issues Invitation to Comment in Project Designed to Improve Financial Reporting Model
Norwalk, CT, January 4, 2017—The Governmental Accounting Standards Board (GASB) has issued an Invitation to Comment (ITC) on potential improvements to the governmental funds portion of the financial reporting model.

IASB

Invitation to Tender—Estate Agency services for property acquisition
The IFRS Foundation is reviewing options for relocating its London offices, due to its lease at 30 Cannon Street expiring in September 2018. The IFRS Foundation may move to an alternative location, possibly overseas, but would prefer to remain in the UK, either within the City of London or its outskirts.

Listen to our latest webinar on the forthcoming insurance contracts Standard

In November 2016, the International Accounting Standards Board discussed issues that arose during the external testing and drafting of the forthcoming insurance contracts Standard.

IRS 

IRS and Partners Look to Start of 2017 Tax Season; Encourage use of IRS.gov and e-File; Warn of Refund Delays
WASHINGTON — The Internal Revenue Service and partners from the states and tax industry today reminded taxpayers that the nation’s 2017 individual income tax filing season opens Jan. 23. The IRS expects more than 153 million tax returns to be filed this year and taxpayers have until Tuesday, April 18, 2017, to file their 2016 tax returns and pay any tax due. The deadline is extended because the Emancipation Day, a holiday in Washington, D.C., will be observed on Monday, April 17, pushing the nation’s filing deadline to April 18.

Prepared Remarks of Commissioner John Koskinen on 2017 Filing Season Kickoff
We’re here today to let everyone know about some important changes for the upcoming tax filing season, which begins in just a couple of weeks. We also want to take this opportunity to remind taxpayers of what they need to do to protect themselves from identity theft as they get ready to file their return. As part of the Security Summit effort, I’m delighted to be joined today by representatives of the states, tax professionals, the software industry, and consumer organizations. I want to thank them for taking the time to participate in this call. 

NYC Dept. of Finance 

January 10, 2017
Posted 2016 NYC-1127 - Personal Income Tax & Non-resident NYC Employee Payments Form

January 5, 2017
Posted 2016 Business and Excise tax forms

NYS Dept. of Taxation and Finance

A.G. Schneiderman And Acting Tax Commissioner Manion Announce Felony Conviction Of Former CEO Of Multi-Million Dollar Energy Company

ALBANY – Attorney General Eric T. Schneiderman and Acting Commissioner of Taxation and Finance Nonie Manion today announced the plea and conviction of Gary Mole, 52, an Australian citizen and the former CEO of Glacial Energy Holdings (“GEH”), stemming from the underreporting of over $18.5 million dollars in taxable income by Glacial Energy of New York (“GENY”), a wholly owned subsidiary of GEH.   

SEC

SEC Awards $5.5 Million to Whistleblower

Washington D.C., Jan. 6, 2017 — The Securities and Exchange Commission today announced an award of more than $5.5 million to a whistleblower who provided critical information that helped the SEC uncover an ongoing scheme.

SEC Charges Two Brokers With Defrauding Customers

Washington D.C., Jan. 9, 2017 — The Securities and Exchange Commission today charged two New York-based brokers with fraudulently using an in-and-out trading strategy that was unsuitable for customers in order to generate hefty commissions for themselves.

Investment Adviser, Lawyer Settle Charges in Secret Referral Fee Scheme

Washington D.C., Jan. 9, 2017 — The Securities and Exchange Commission today announced that a Connecticut-based investment adviser has agreed to admit wrongdoing and pay more than $575,000 to settle charges that he defrauded a client and then compounded his scheme by attempting to mislead SEC investigators while lying to other clients about the status of the SEC’s investigation.

SEC: Port Authority Omitted Risks to Investors in Roadway Projects

Washington D.C., Jan. 10, 2017 — The Securities and Exchange Commission today announced that the Port Authority of New York and New Jersey has agreed to admit wrongdoing and pay a $400,000 penalty to settle charges that it was aware of risks to a series of New Jersey roadway projects but failed to inform investors purchasing the bonds that would fund them.

TIGTA

Analysis of Resources Allocated to Taxpayer Services
Overall, the amount of the IRS’s Taxpayer Services appropriation increased $198 million from FY 2013 to FY 2016. However, the amount of user fee receipts that the IRS used to supplement its annual Taxpayer Services appropriation was only about $40 million of the total $421 million user fee receipts in FY 2015. This $40 million represents a 79 percent decrease since FY 2013.

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