CalCPA Daily Clips

March 22, 2022

BUSINESS
How to build an advisory board that succeeds
Too many advisory boards gather esteemed folks without defining their role, commitment or purpose, all of which is the CEO’s responsibility.
SmartBrief/Leadership
https://corp.smartbrief.com/original/2022/03/ceos-make-or-break-the-value-of-advisory-boards
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Tips for building a successful risk-taking culture
Founders aren’t the only ones who need to be comfortable with ambiguity. In the early years, everyone in your company has to be ready to shoulder risk.
MIT Sloan
https://mitsloan.mit.edu/ideas-made-to-matter/6-tips-building-a-successful-risk-taking-culture

PERSONAL FINANCE
How to plan financially for buying your first home
It’s important for first-time homebuyers to request mortgage quotes from multiple sources and to consider the true impact of taking out a loan on financial health.
CNBC
https://www.cnbc.com/2022/03/21/buying-your-first-home-heres-what-you-need-to-know.html
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Could your tax refund help you weather the inflation crisis? Here’s how to use it wisely.
If you have cash coming your way from the IRS, it could be just the thing that helps you get through these tricky times.
USAToday
https://www.usatoday.com/story/money/taxes/2022/03/21/tax-refunds-inflation-protection/49965215/

POLITICS & POLICY
What kind of rebate will Californians get?
Lawmakers agree that Californians deserve some kind of rebate — they just can’t agree on how much it should be and who should get it.
CalMatters
https://calmatters.org/newsletters/whatmatters/2022/03/gas-tax-rebate-california/

PROFESSION
Internal audit transformation is on the rise, but gaps remain
Changes have made internal audit functions more visible in organizations, even though the transformation has been forced by a pandemic-fueled change in working models.
FM
https://www.fm-magazine.com/news/2022/mar/internal-audit-transformation-rise-gaps-remain.html
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How Firms Can Retain Top Talent During the Labor Crunch
Within the industry’s present landscape, we are seeing more and more frequently that talented college students wishing to enter the workforce are looking for positions at a much higher salary than before.
CPA Practice Advisor
https://www.cpapracticeadvisor.com/firm-management/article/21261214/how-firms-can-retain-top-talent-during-the-labor-crunch

REGULATORY
SEC Proposes Rules to Enhance and Standardize Climate-Related Disclosures for Investors
The rule changes would require registrants to include certain climate-related disclosures in their registration statements and periodic reports, including information about climate-related risks that are reasonably likely to have a material impact on their business, results of operations or financial condition, and certain climate-related financial statement metrics in a note to their audited financial statements.
SEC
https://www.sec.gov/news/press-release/2022-46
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PEEC issues wide range of ethics guidance for CPAs
Ethics guidance has changed for CPAs as a result of new interpretations and revised interpretations issued by the AICPA Professional Ethics Executive Committee. The guidance addresses noncompliance with laws and regulations for members in business and in public practice, as well as threats to independence.
Journal of Accountancy
https://www.journalofaccountancy.com/news/2022/mar/peec-issues-wide-range-ethics-guidance-cpas.html
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PCAOB cautions firms on use of outside service providers for audit confirmations
The Public Company Accounting Oversight Board issued a Spotlight publication Monday containing some observations and reminders for auditing firms about relying on outside service providers for electronic audit confirmations.
AccountingToday
https://www.accountingtoday.com/news/pcaob-cautions-firms-on-use-of-outside-service-providers-for-audit-confirmations

TAX
Recent IRS guidance on cryptoassets
With the Internal Revenue Service bringing more enforcement scrutiny to bear on cryptoassets, augmented by tax reporting requirements, now is the time to get ahead of the compliance curve.
The Tax Adviser
https://www.thetaxadviser.com/issues/2022/feb/recent-irs-guidance-cryptoassets.html
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Will the New Tax Treatment of R&D Expenses Stand?
Congress may still reverse course on eliminating the long-rooted ability to immediately expense R&D costs.
CFO
https://www.cfo.com/accounting-2/tax-accounting-2/2022/03/rd-tax-treatment-amortization-deductions-estimated-taxes/
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How is Crowdfunded Income Taxed?
Crowdfunding organizers and any person receiving amounts from crowdfunding should keep complete and accurate records of all facts and circumstances surrounding the fundraising and disposition of funds for at least three years.
CPA Practice Advisor
https://www.cpapracticeadvisor.com/tax-compliance/news/21261179/is-crowdfunded-money-taxable
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TIGTA: Computer issues led to erroneous CDCC credits
The inspector general urged the IRS to make changes to its computer-coding system after identifying multiple control weaknesses in processing claims.
AccountingToday
https://www.accountingtoday.com/news/tigta-urges-irs-to-update-computer-code-in-wake-of-erroneous-child-and-dependent-care-credits-issued-as-part-of-american-rescue-plan
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Tax Court Weighs in on Reasonable Compensation
The Tax Court recently found that there’s indeed a limit on the tax deductibility of wages paid to employees by the employer.
AccountingWeb
https://www.accountingweb.com/tax/business-tax/tax-court-weighs-in-on-reasonable-compensation