Category: IRS

Important 2019 Independent Mortgage Banker Tax Extenders

The President signed on December 20th the “Taxpayer Certainty and Disaster Tax Relief Act of 2019” (only Congress could come up with these names).  The Act is part of the overall omnibus spending package and apart of the “Further Consolidated Appropriations Act, 2020” (H.R. 1865, P.L. 116-94). There are several tax provisions within the law that are extenders that had expired.  The two most significate items in the Act affecting independent mortgage bankers: The Act retroactively extends this exclusion of income related to discharges of indebtedness of qualified principal residence before Jan. 1, 2021. (Code Sec. 108(a)(1)(E), as amended by…

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…