TEC initiatives.As a senior technical committee of the AICPA AICPA
See American Institute of Certified Public Accountants (AICPA). , the Tax Executive Committee (TEC) is authorized to speak for the Institute on tax matters, and is also designated by governing Council as a standard-setting body. However, numerous other committees, technical resource panels (TRPs) and task forces initiate and propose solutions to policy issues, technical and tax administration problems, for consideration and approval by the TEC. They also initiate proposals for products and services for members in tax practice.
Since the last cut-off cut-off Anesthesiology The point at which elongation of the carbon chain of the 1-alkanol family of anesthetics results in a precipitous drop in the anesthetic potential of these agents–eg, at > 12 carbons in length, there is little anesthetic activity, date for this column (June 15, 2004, see TTA TTA Telecommunications Technology Association (Korea)
TTA Teacher Training Agency (UK)
TTA Triangle Transit Authority (Raleigh/Chapel Hill/Durham, North Carolina, USA) , August 2004, p. 515), the TEC met once (Aug. 2-3, 2004) and exercised its review function on several projects. TEC actions taken after Sept. 1, 2004 will be reported in a future column.
The TEC continues to monitor the Tax Section's strategic plan; for the original plan, see www.aicpa.org/download/ tax/tax_section_strat.pdf. In August 2004, the Tax Section Strategic Plan Implementation Task Force met to discuss performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees . , timelines and delegation of responsibility for completing the strategic plan's action plan components. It also addressed the results of having scanned the environment to determine whether to modify the plan, deriding that it should not change it for emerging external environmental trends. At its August 2004 meeting, the TEC considered the task force's recommendations and modified several outcome measures. With the start of the new committee year in October 2004, Bob Zarzar, as immediate past TEC chair, will lead this task force.
Since the June 2004 meeting, the Statements on Standards for Tax Services (SSTS SSTS SVM (Service Module) Structure Subsystem
SSTS Statements on Standards for Tax Services (AICPA)
SSTS Solid-State Transfer Switch
SSTS Section Seven Tracking System (US EPA) ) Quality Control Task Force (chaired by Joe Scutellaro) has revised its preliminary report on SSTS Proposed Interpretation No. 3-1, "Tax Practice Quality Control," based on the TEC's feedback. The TEC will consider the revision at its November 2004 meeting, when it will decide whether to issue the interpretation for public comment.
General: On June 28, 2004, Bob Zarzar, then TEC chair, responded by letter to a request made by Nina Olson, National Taxpayer Advocate, to identify serious problems encountered by taxpayers. The letter identified as most troublesome (1) compliance with Forms 1099-DIV, Dividends and Distributions; (2) fiscal-year flexibility for small businesses; and (3) the complexity in applying phaseout phase·out
A gradual discontinuation. methods and definitions. It also offered possible solutions.
On July 13, 2004, the TEC commented on the proposal in S 882, the Tax Administration and Good Government Act of 2004, addressing the registration of Federal return preparers and refund anticipation loan A (Tax) Refund Anticipation Loan (RAL) is a high interest rate short-term loan secured by a taxpayer’s expected tax refund. United States
In the United States, the taxpayer commonly applies for the loan through a paid tax preparation firm. providers. In a letter to the Senate Finance Committee and House Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. Committee, the AICPA supported appropriate regulation of all tax preparers. The letter, which was prepared by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. Practice and Procedures Committee (chaired by Mark Van Deveer), generally backed the concepts behind the legislation, but identified several drafting provisions that appear problematic. The comments can be viewed at www.cpa2biz biz
Noun 1. .com/Resource Centers/Tax/Tax+Practice/Preparer Registration.htm.
On July 22, 2004, the TEC commented extensively to the Senate Finance Committee on its charitable governance discussion draft. The comments, collaborated on by the Tax Division's Exempt Organization Taxation TRP Trp tryptophan.
tryptophan. (chaired by Harvey Berger) and the Not-for-Profit Expert Panel (chaired by Stephen Kattell), strongly supported strengthening public oversight of tax-exempt organizations. The letter is available at www.cpa2biz.com /ResourceCenters/Tax/Exempt+Orga nization/EO_Roundtable.htm.
International: On June 29, 2004, the TEC commented to the Senate Finance Committee and the House Ways and Means Committee on the provisions in S 1637, the Jumpstart Our Business Strength Act (JOBS Act), that would combine, for citizens living abroad, the foreign earned income Sources of money derived from the labor, professional service, or entrepreneurship of an individual taxpayer as opposed to funds generated by investments, dividends, and interest. and housing expense exclusion limits. The comments, which were prepared by the International-Taxafion TRP (chaired by Andy Mattson), urged Congress to reconsider these provisions. In the AICPA's view, the provisions as drafted would reverse longstanding international tax policy and decrease American jobs and exports. The letter can be found at www.cpa2biz.com/Resource Centers/Tax/International/Foreign IncomeHousing.htm.
Tax shelters tax shelter: see tax exemption. : On June 30, 2004, the TEC submitted a letter to the Senate Finance Committee and the House Ways and Means Committee supporting the approach taken by HR 4520, the American Jobs Creation Act of 2004, to curtail cur·tail
tr.v. cur·tailed, cur·tail·ing, cur·tails
To cut short or reduce. See Synonyms at shorten.
[Middle English curtailen, to restrict tax shelters, over the Senate's method in' the JOBS Act. The AICPA's opposition stems from two proposals in the JOBS Act: (1) the codification The collection and systematic arrangement, usually by subject, of the laws of a state or country, or the statutory provisions, rules, and regulations that govern a specific area or subject of law or practice. of the economic substance doctrine; and (2) the raising of the return standard to "more likely than not" for all return engagements. These proposals are not in the House bill. The letter can be found at www.cpa2biz.com/ ResourceCenters/Tax/Legislative%2c+ Administrative%2c+Judicial/TaxShelter Bills.htm.
Tax accounting: On Aug. 24, 2004, the TEC commented to the IRS on Rev. Proc. 2004-23--the intangible asset Intangible Asset
An asset that is not physical in nature.
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. automatic consent procedure for taxpayers changing an accounting method under Regs. Sec. 1.263(a)-4. The comments, prepared by the Tax Accounting TRP (chaired by Barry Tovig), identified how Rev. Proc. 2004-23 significantly burdens small and medium-sized businesses and their accounting firms, chiefly due to the issuance of the procedure after the due date for calendar-year taxpayers. The TRP offered several suggestions to ease this burden. The comments are available at www.cpa2biz.com/ ResourceCenters/Tax/Tax+Account ing/AutomaticConsent.htm.
Partnerships: On Sept. 3, 2004, the AICPA commented to Treasury and the IRS on Rev. Rul. 2004-43. Prepared by the Partnership Taxation TRP (chaired by Betsy Case), the comments addressed the ruling's application of Secs. 704(c)(1)(B) and 737 to the distribution of partnership property following an assets--over partnership merger. The AICPA is concerned that the ruling conflicts with the plain language of Regs. Sees. 1.704-4(c)(4) and 1.737-2(b)(3). The comment letter can be accessed at www.cpa2biz.com/Resource Centers/Tax/Partnership/AmiMixing Bowl.htm.
Through its various task forces, TRPs and committees, the TEC continues to monitor numerous other projects. The Tax Division is committed to providing the best service possible to AICPA members. Leadership and membership appointments for committees and TRPs for the current committee year (which started on Oct. 19,2004) have been completed. However, AICPA members who would like to volunteer for Tax Division activities (e.g., on task forces or for future appointed service) should contact Ed Karl at (202) 434-9228 or email@example.com. Members having suggestions for new services or products should contact Bill Stromsem at (202) 434-9227 or wstrom firstname.lastname@example.org.
Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat.
Trained by D. : Prof. Purcell is Chair of the AICPA Tax Division's Tax Executive Committee. DC Currents heightens awareness of the Tax Division's activities and apprises readers of tax policy, technical issues and other practice support matters.
Editor: Thomas J. Purcell III, J.D., Ph.D., CPA Associate Professor of Accounting and Professor of Law Creighton University Sitting on a 108-acre campus just outside Omaha's downtown business district in the Near North Side neighborhood, the University currently enrolls about 6,800 students. Creighton is one of 28 member institutions of the Association of Jesuit Colleges and Universities. Omaha, NE