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New Newsletter Program
Please let me start this month's newsletter with a short
apology. We are using a new newsletter program and some of you are
receiving this newsletter who have not subscribed to it. Please, if you
do not wish to receive the newsletter again click on the unsubscribe
button at the bottom and you will receive no further emails from us, but
please do not list this as spam! Over 5,000 tax professionals around the
country have subscribed to the newsletter and we don't want to limit
their ability to receive the letter. Again, sorry for the problem and
thanks for your patience.
To offset the hassle I have tried to make this our biggest newsletter
ever for you. In our next newsletter we will talk about the new Small
Business Health Care Credit that over 600 people have already heard us
talk about in our 2010 HealthCare & Hiring
Act course.
Bob Jennings
SSARS
19 Rocks our World!
I
never thought I would say this, but for the first time, 2010 has a
"must attend" accounting class! All the rules you know just
changed.
Over 30 years ago the AICPA established the rules for reporting on
unaudited financial statements known as SSARS (Statements on Standards
for Accounting and Review Services). Modified substantially over the
ensuing 30 years, in recent years SSARS has become difficult to navigate
and confusing to implement.
In January of 2010 the AICPA’s ARSC committee released SSARS 19 as a
radical revision to many prior SSARS. SSARS 19 renders many previous
SSARS (AR 20, 50 & 100 in SSARS 1) obsolete by replacing them with a
new standard. The new rules apply to all financial statements with
periods ending on or after December 15, 2010 and earlier application is
encouraged.
SSARS 19 is made up of three chapters: a framework of rules;
compilations; and reviews. Composed of over 100 pages it is easier to
reference and read and more clearly identifies the requirements for
accountants. SSARS 19 does not just stop at this revisionary treatment
however, as it also makes fundamental changes in the rules to follow when
preparing compilations or reviews:
- Materiality is
now defined for compilations and reviews,
- A new concept of
evidence is introduced,
- Written
engagement letters are now required for compilations and reviews,
- Knowledge of the
client’s industry and business is separately defined for
compilations and reviews, and reviews will require a greater
knowledge base than compilations,
- Workpaper
requirements have been increased. For compilations the engagement
letter is required as well as any communications to management
regarding fraud and illegal acts, if any communication was made, any
findings or issues relating to the financial statements that came to
the accountant’s attention that, in the accountant’s judgment, are
significant, as well as actions taken to address such findings, and
to the extent that the accountant had any questions or concerns, how
those issues were resolved and finally, documentation that provides
a clear understanding of the work performed. Reviews now require
documentation of significant findings in addition to documentation
of inquiries made and responses, ARP performed and results.
- Significant
changes were made to the body of the accountant’s compilation and
review reports. Additionally the accountant is now allowed to
explain reasons for lack of independence in a compilation if they
wish. Independence
is still required for reviews as this proposed change did not make
it to the final SSARS.
All of our compilation and review
seminars will include the latest report letters, engagement letters,
workpaper examples and checklists to allow you to lead the industry in
compliance with the new SSARS 19 rules by this fall!
Online Webcasts: June
7 (10-6 EDT), August
2, August
23, December
31 (10-6 EST)
Live Compilation
Seminars:
Portland, Or, June 3,
Clarksville, IN Training Center June 7, August 2,
December 31,
Grand Rapids, MI June
10
Madison, WI June
21-22
Fargo June
24
Chicago Aug. 16
Indianapolis Aug. 23
Latest Upcoming Selected Online Webcasts:
Form 1041 for Estates & Trusts
June 9
Form 706/709 latest
rules
June 10
Technology
June 11
Quickbooks for
clients
June 21
Quickbooks for accountants
June 22
Preparing your clients
for
Retirement
June 28
Our new On Demand Online video courses are
now becoming available-try our new 2-hour "2010 Health Care and Hiring Act" and watch
when you want, where you want!
June & July Cities for Live
Society Sponsored Seminars:
Portland, OR Compilations,
Technology
Oklahoma City Technology, 1041
Grand Rapids, MI Compilations
Lincoln City, OR Hot Retirement
Topics, Prac. Mgmt
Madison, WI Compilations &
Reviews, Small Firm
Fargo, ND Compilations, Hot Tax
Topics
Anchorage, AK Technology, 1041
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The Health Care
Bill Tax Changes Schedule-Short Form
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2010
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Adoption Credit Increase
Adoption Assistance Program Increase
Tanning Excise Tax
Small business health care tax credit
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2011
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W-2 Reporting of health insurance
SIMPLE cafeteria plans
Penalty increase on non-qualified HSA distributions to 20%
Over the counter reimbursements from Flex & HSA prohibited
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2012
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1099 Change for corporate payments
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2013
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Increase in medical itemized deduction base for
under 65 to 10%
.9% surcharge tax in Medicare for high income taxpayers
3.8% surcharge tax for unearned income for high income taxpayers
Flex account contributions limited to $2,500
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2014
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Premium assistance credit
Excise tax on uninsured
Penalty tax on employers not providing insurance
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2017
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Age 65 and over increase in medical expense
itemized deduction base to 10%
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2018
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Excise tax on high cost employer health plans
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New
Preparer Regulations
On
January 4, 2010 the IRS released the new preparer regulations. Although
there is much more guidance to come, here is the "Executive
Version" for now:
1. All paid tax preparers, including CPA's, EA's, some PA's and Attorneys
will have to re-register an existing PTIN after the electronic system is
in place this fall. Any preparer without a PTIN must obtain one this
fall, including those CPA's, EA's and attorneys without one. All paid
preparers must be registered by 1/1/2011.
2. All tax preparers, including those who prepare part of a return, and
including employees of CPA, EA and law firms, will have to obtain a PTIN
and will be required to obtain at least 15 hours of tax CPE every year
beginning 1/1/2011.
3. With the exception of CPA's, EA's, some PA's and attorneys all other
paid tax preparers will have to take a minimum competency test(s) within
the next 3 years as the testing system is phased in starting in April,
2011. There is no grandfather rule or other exception. The 1st exam will
be the non-business 1040 series, and the second exam will be the business
1040 series.
4. A user fee will be required for registration and renewal. On May 3 the
IRS announced that Accenture will be establishing the online registration
system which is set for an official launch date of 9/1/2010.
5. Jennings Seminars is in the writing stage of review courses for both
exams and will be rolling them out through state societies and online
late this fall.
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