• Study: Small Teams Better at Innovating, Large Teams Better at Building Upon Innovations

    By:
    Chris Gaetano
    |
    Feb 21, 2019
    A study outlined in the Harvard Business Review, looking at 65 million papers, patents, and software products that came out between 1954 and 2014, has concluded that innovative ideas that disrupt current paradigms almost always come from small teams of 1-3, while large teams are better at developing and building upon already existing ones. 
  • SEC Charges Five for Creating Sham Companies to Sell Stock

    By:
    Chris Gaetano
    |
    Feb 21, 2019
    The Securities and Exchange Commission has charged a broker-dealer, a transfer agent, and three others in a scheme that involved creating 19 sham companies that posed as legitimate businesses so that they could get them registered on public exchanges and sell their stock to unwary investors. 
  • NYS Confirms Economic Nexus Applies to Sales Taxes in Wake of Supreme Court's 'Wayfair' Ruling

    By:
    Chris Gaetano
    |
    Feb 20, 2019
    The New York State Department of Taxation and Finance has released guidance confirming its intentions to pursue an economic nexus standard when it comes to sales tax liability in the wake of a Supreme Court decision that affirmed state governments' ability to tax out-of-state vendors, even if they lack a physical presence there.
  • SEC Proposes Expanding 'Test-the-Waters' Provision to Any Company Considering an IPO

    By:
    Chris Gaetano
    |
    Feb 20, 2019
    The Securities and Exchange Commission has proposed expanding the "test-the-waters" provision, which allows smaller companies to private discuss the possibility of going public with investors, to firms of any size. 
  • Businesses Increasingly Buying Gunshot Detectors to Manage Potential Shooter Threats

    By:
    Chris Gaetano
    |
    Feb 19, 2019
    Businesses are reacting to news of workplace shootings not with metal detectors, which might alienate customers and employees, but rather with gunshot detectors, which previously were used primarily by the military to triangulate sniper locations. 
  • Study: Competition Mattering Less as Same Groups of Investors Increasingly Own Shares in Most Competing Companies

    By:
    Chris Gaetano
    |
    Feb 19, 2019
    While monopoly power and its deleterious effects on market competition are well known, a recent article in the Harvard Business Review says that these same hazards are starting to emerge in a different way as, increasingly, the same groups of investors have large ownership stakes in most of the major players in an industry. 
  • Regulatory Roundup - Feb. 12-19

    By:
    Chris Gaetano
    |
    Feb 19, 2019
    With so many regulators out there, it can be tough to keep track of all the decisions being made. This is the NYSSCPA’s regular series that collects relevant regulatory announcements from the past week, and puts them in one place to help you stay on top of the issues.
  • Treasury Department Defends Lower Refunds, Saying They Are Positive Sign

    By:
    Chris Gaetano
    |
    Feb 15, 2019
    Treasury Secretary Steven Mnuchin, in response to reports that people were getting lower refunds than expected or even owing money when they usually get it back, said that this state of affairs should be seen as a positive thing, as it means people are not overpaying the government as much. 
  • FASB Proposal Outlines When Contract Liabilities in Business Combinations Are Recognized

    By:
    Chris Gaetano
    |
    Feb 15, 2019
    The Financial Accounting Standards Board (FASB) has issued a proposed standards update that, if implemented, would guide when and how an entity recognizes contract liabilities it assumes in the wake of a business combination. 
  • J.P. Morgan Issues Its Own Cryptocurrency

    By:
    Chris Gaetano
    |
    Feb 14, 2019
    J.P. Morgan, as a way to facilitate easier payment transfers, has launched its own cryptocurrency, JPM Coin, making it the first major bank to do so. 
  • OECD Countries Coordinating on Tax Law Changes for Digital Products

    By:
    Chris Gaetano
    |
    Feb 14, 2019
    Tech companies have for years bedeviled tax collectors around the world through the use of complex tax structures that allow them to pay little, if any, money to their host countries, often by routing profits through foreign subsidiaries. The Organisation for Economic Co-operation and Development, an intergovernmental organization, is now soliciting input on three possible plans for an international tax regime covering the complex world of tech profits. 
  • Study: Automation Linked to Lower Incomes, Higher Chance of Leaving Firm

    By:
    Chris Gaetano
    |
    Feb 13, 2019
    A Boston University study looking at 36,000 companies in the Netherlands has found that automation has the effect of lowering workers' income and increasing the probability they will leave their firm, though the effects were most pronounced for experienced, well-paid employees. 
  • Study: 64 Percent of Controllers Were Encouraged to Cook Books

    By:
    Chris Gaetano
    |
    Feb 13, 2019
    A recent study has found that the majority of controllers have, at some time or another, been encouraged—and sometimes strongly pressured—by their employers to manipulate financial information. 
  • Role of Tech Firms in Audit, Already Significant, Expected to Grow

    By:
    Chris Gaetano
    |
    Feb 12, 2019
    Technology firms such as IBM are increasingly playing a significant role in the audit process, as more and more clients segment out engagements between traditional CPA firms and specialized tech companies, which can better understand the hardware and software that businesses have grown to rely upon. 
  • Study Critiques SEC Pay Ratio Rule, Calls It Disclosure By Soundbite

    By:
    Chris Gaetano
    |
    Feb 12, 2019
    The CEO pay ratio rule that was implemented as part of the Dodd-Frank Act mandates that companies disclose the ratio between CEO pay and median employee pay, and while the ostensible purpose was to shine light on compensation-related governance issues,  two law professors have concluded that, given the vagueness of the rule's requirements, it serves as little more than "click bait" to incite emotions. 
  • Many Early Filers Surprised by Tax Bill Post-TCJA

    By:
    Chris Gaetano
    |
    Feb 11, 2019
    Many early filers used to getting a refund are finding out this year that, due to changes in the Tax Cuts and Jobs Act, they actually owe extra money to the IRS, sometimes for the first time ever. 
  • Lawmakers Propose Legalizing Cannabis on Federal Level

    By:
    Chris Gaetano
    |
    Feb 11, 2019
    Sen. Ron Wyden (D-Ore.) and Rep. Earl Blumenauer (D-Ore) have introduced a bill that, if passed, would legalize cannabis on the federal level, which would have the effect of ending the myriad tax and financial restrictions faced by today's cannabis business owners. The legislation would, at the same time, respect individual state laws regarding the substance.
  • Regulatory Roundup: Feb. 5-11

    By:
    Chris Gaetano
    |
    Feb 11, 2019
    With so many regulators out there, it can be tough to keep track of all the decisions being made. This is the NYSSCPA’s regular series that collects relevant regulatory announcements from the past week, and puts them in one place to help you stay on top of the issues.
  • President Suggests Openness to Changing SALT Cap, But Senate Republicans Disagree

    By:
    Chris Gaetano
    |
    Feb 8, 2019
    The president, in a recent media interview, suggested an openness to changing the state and local tax deduction cap that, as part of the Tax Cuts and Jobs Act, reduced the previously unlimited deduction to a $10,000 maximum.
  • IRS Paid $312 Million to Whistleblowers in 2018

    By:
    Chris Gaetano
    |
    Feb 8, 2019
    The IRS paid a total of $312 million last year to whistleblowers, whose tips allowed the service to collect an additional $1.441 billion. 

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