Category: IRS

From U.S. GAAP to IGAAP: The Shift to IFRS

In 2008, the Securities and Exchange Commission (SEC) released a discussion roadmap regarding the adoption of International Financial Reporting Standards (IFRS) by U.S. companies in which entities that are interested in IFRS are allowed to file as early as 2011, even if the regular registration commences in 2014. Two years after the publication of the roadmap, the SEC announced that they would start considering the integration of IFRS into the country’s financial reporting system as soon as the specified readiness requirements are met and the U.S. GAAP and IFRS concurs.The Financial Accounting Standards Board (FASB) and the International Accounting Standards…

Getting to Know the Public Company Accounting Board

The enactment of the Sarbanes-Oxley Act (SOX) on July 30, 2002 led to the establishment of the Public Company Accounting Oversight Board (PCAOB). A private-sector, non-profit entity governed and supervised by the Securities and Exchange Commission (SEC), PCAOB was formed to supervise accounting professionals, particularly the auditors of publicly traded corporations, with a view of safeguarding the investors’ interests and to assure the public that companies’ audit reports are informative, trustworthy, and impartial. In addition, the Board oversees broker-dealer audits. These include submitted compliance reports in adherence to federal security laws and policies. Timeline of PCAOB since the Legislation of…

Consumer Alert: IRS Phone Scam

While most people are appropriately suspicious when they get phone calls from anyone offering you the deal of a lifetime, some still fall prey to phony calls from the IRS asking for back taxes. As a preemptive measure, the IRS has issued a consumer alert bulletin warning of this malicious attempts. According to the IRS: "An aggressive and sophisticated phone scam targeting taxpayers, including recent immigrants, has been making the rounds throughout the country. Callers claim to be employees of the IRS, but are not. These con artists can sound convincing when they call. They use fake names and bogus IRS…

IRS & Unrelated Business Activities of Not-for-Profits

The IRS released its 2012 Work Plan outlining areas the Exempt Organizations (EO) division will focus on in 2012. Among other things, it will increase its scrutiny on organizations with unrelated business activities and on private foundations. Exempt Organizations Division Activity The EO is developing a model that will identify organizations which report significant gross receipts from seemingly unrelated business activities but which show no tax liability. This is in conjunction with the EO’s upcoming unrelated business income tax project. The EO will also be on the lookout for impermissible political activities being undertaken by an organization. It will also…

More Form 990 Reporting Changes

Form 990 is a "Return of Organization Exempt from Income Tax" that provides the IRS annual financial information. It is used by government agencies to stop organizations from abusing their tax-exempt status. Even after significant revisions to Form 990 in 2009, the IRS has struck again. Now, more tax-exempt organizations will be required to file a Form 990 or 990-EZ, instead of the much simpler 990-N. The table below shows the filing thresholds for 2010 as compared to 2009. Filing Thresholds for 2010 Form 990 2010 Amounts 2009 Amounts Gross Receipts Equal or Greater Than  $    200,000   $    500,000  Total…