CalCPA Daily Clips
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CalCPA Daily Clips

CalCPA

Nov 23, 2020

4 min read

CalCPA Daily Clips

Nov. 23, 2020

MEMBER IN THE NEWS
(Chuck Rettig mentioned.)
AICPA disagrees with IRS chief on penalty relief
The AICPA is firing back after a congressional hearing featuring IRS commissioner Charles Rettig, asking for penalty relief for taxpayers dealing with the pandemic.
AccountingToday

BUSINESS
Why companies are not testing employees for COVID-19
A worldwide survey shows 17% of companies are testing workers for the coronavirus, and half of those respondents are testing at least once a week. Although testing is widely available, most companies cite the cost and complexity of testing as main reasons to forgo it.
The New York Times

PERSONAL FINANCE
Here’s how much of your pre-retirement income Social Security will replace
Social Security benefits are an important source of retirement income, but they can’t be your sole source.
USAToday
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Factors to consider when selecting an HSA plan
If you are selecting a health savings account provider on your own, instead of through your employer, there are several factors to consider, including fees and investing choices. It is also important to understand how you expect to use the plan.
U.S. News & World Report
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Don’t fall for the ‘Secret Sister’ gift exchange scam. Here are 7 reasons to avoid it.
A new example of holiday fraud is making the rounds: the “Secret Sister” gift exchange. Like the old-fashioned chain letter, it’s still illegal–and it promises what it almost never delivers–but it’s arriving nowadays via social media, mostly Facebook.
USAToday

POLITICS & POLICY
Business and Jobs Task Force Quits Ahead of Likely Additional Business and Job Closures
It is more than ironic that the governor’s Task Force on Business and Jobs Recovery closed down just as businesses and workers face the prospect of more restrictions and closures with a surge of the coronavirus.
Fox&Hounds
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Revenue windfall creates political dilemma
As Gov. Gavin Newsom makes the final decisions on writing a 2021–22 budget, he’s receiving some good revenue news from his beancounters.
Fox&Hounds

PROFESSION
As an accountant, would you rather be a dentist or a surgeon?

More and more CPAs need to decide if they want to run their practices like dental offices or neurosurgery practices. And there’s nothing funny about that.
AccountingToday
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How CPAs help clients reinvent struggling businesses during COVID-19
As the coronavirus pandemic has changed the business environment, clients have turned to CPAs for help in keeping businesses afloat. CPAs serving restaurant, medical and real estate clients discuss how they have used client advisory services to help clients stabilize and reposition businesses.
Journal of Accountancy
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Visual reporting: Presentations your clients won’t forget
It can be frustrating to put so much thought and effort into giving your clients the information they need but find it just doesn’t have the necessary impact.
AccountingToday
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CPA Exam gets refresh after practice analysis
Understanding of business processes and data analytics will receive greater focus while other topics will be de-emphasized on the CPA Exam. These changes are occurring in response to findings of a recently completed practice analysis designed to respond to changes in the work newly licensed CPAs perform.
Journal of Accountancy

REGULATORY
Analysis: With end of crisis programs, Fed faces tricky post-pandemic transition
The possible arrival of a coronavirus vaccine in the coming weeks means the Federal Reserve may soon have to lay out its plans for helping the economy navigate the potentially choppy transition to a post-pandemic world.
Reuters
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Rule aims to give all industries access to banking
The Office of the Comptroller of the Currency has proposed a rule that would prohibit banks from refusing to lend to certain industries. The OCC says the rule would provide fair access to banking services based on risk criteria.
Reuters
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IRS Issues Tax Guidance on PPP Loans
The Treasury Department and the IRS have just released additional guidance on the tax treatment of forgiveness of Paycheck Protection Program (PPP) loans authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act. But is it enough?
AccountingWeb
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PPP “Loan Necessity” Form Causes a Stir
A questionnaire asking borrowers to justify their $2 million-plus Paycheck Protection Program loans is confusing and burdensome, says the AICPA.
CFO

TAX
IRS Criminal Division Identified $2.3 Billion in Tax Fraud in 2020
Key focuses of CI in fiscal year 2020 included COVID-19 related fraud, cybercrimes, with an emphasis on virtual and cryptocurrencies, traditional tax investigations, international tax enforcement, employment tax, refund fraud and tax-related identity theft.
CPA Practice Advisor
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Inadequate IRS funding is a threat: IRSAC
In its annual report, the advisory council offered recommendations on 26 issues.
AccountingToday
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The New Form 1099-NEC Summarized
The IRS has revived Form 1099-NEC and will be used in 2021 to report 2020 non-employee compensation.
AccountingWeb