According to Accounting Today, the New York Tax and Finance Authority sent out thousand of notices since the filing season ending in May to individuals earning as little as $100,000 a year. What do these individuals have in common? They have claimed to have left the state during the COVID-19 pandemic and New York wants to recoup lost revenue on their earnings.
How many notices have been sent out?
Why is this unusual as compared to previous year tax notice triggers?
What are the five criteria that New Yorkers must provide to prove they are now domiciled in another state?
Explain the U.S. Supreme Court’s rejection of the case of a New Hampshire challenge to Massachusetts’ practice of taxing people who once worked in that state but started telecommuting from elsewhere during the pandemic and why it bolsters New York’s position.
What is the difference between a desk tax audit and a field tax audit
Borak, D. (2021). New York blitzes $100K earners with remote-worker tax audits. Accounting Today, Aug. 12 (Retrievable online at https://www.accountingtoday.com/articles/new-york-blitzes-100k-earners-with-remote-worker-tax-audits?)
According to Accounting Today, IRS and Treasury Department guidance was released for employers who paid qualified wages after June 30, 2021, and before Jan. 1, 2022, as part of the CARES Act.
What was the objective of including employee retention credits (ERCs) as part of the CARES Act?
During the COVID pandemic, what program proved to be more popular than the ERCs?
Can a business take advantage of both the ERCs and the more popular program?
How can an employer claim the ERC?
What questions are addressed by the new guidance?
Cohn, M. (2021) IRS offers further guidance on ERC, even as Congress may end it soon, Accounting Today, August 4 (Retrievable online at https://www.accountingtoday.com/news/irs-offers-further-guidance-on-employee-retention-credit-even-as-congress-may-end-it-soon?)
According to Accounting Today, tax rules surrounding NFTs or nonfungible tokens are not clear. NFTs are basically digital assets whose data is stored in a blockchain, similar to cryptocurrency like Bitcoin and Ethereum.
What can NFTs digitally represent?
Why are NFTs a kind of a goldmine for the IRS?
What Internet sites specialize in selling NFTs? Have any traditional sellers tackled NFTs?
Cohn, M. (2021). Tax guidance on NFTs remains a murky area. Accounting Today, August 6 (Retrievable online at https://www.accountingtoday.com/news/tax-guidance-on-nfts-remains-a-murky-area?)
According to Accounting Today, the Securities and Exchange Commission (SEC) charged Ernst & Young (EY), one of its current partners, and two of the firm’s former partners Monday with violating auditor independence rules and improper professional conduct.
What was the public company audited by EY according to this charge?
What were the auditor independence rules and professional conduct requirements violated according to the SEC?
What was the settlement in this case?
What was the audited company’s chief accounting officer’s role in the misconduct charge?
Cohn, M. (2021) SEC charges EY and partners with audit independence misconduct. Accounting Today, August 9 (Retrievable online at https://www.accountingtoday.com/news/sec-charges-ey-and-partners-with-audit-independence-misconduct?)
According to the New York Times, hundreds of businesses around the world are grappling with potential cybersecurity vulnerabilities after a software provider to more than 40,000 organizations has been the victim of a “sophisticated cyberattack.”
What types of organizations in Sweden have been hit?
What is the name of the software company that has been the victim of a cyberattack?
What makes this particular cyberattack stand out?
How much ransom have some of the affected companies were being asked for?
Would accounting firms using this software be vulnerable?
Browning, K. (2021). Hundreds of Businesses, From Sweden to U.S., Affected by Cyberattack. The New York Times, July 2 (Retrievable at https://www.nytimes.com/2021/07/02/technology/cyberattack-businesses-ransom.html)
According to the Washington Post, mortgage rates were above 3 percent but only for a week before they slid back below that level.
What is the 30-year fixed average percentage on a 30-year mortgage?
What are points on a mortgage?
What is Freddie Mac?
How many lenders across the country are aggregated to come up with Freddie Mac’s weekly national averages?
Orton, K. (2021). Mortgage rates dip back below 3 percent. The Washington Post, July 1 (Retrievable online at https://www.washingtonpost.com/business/2021/07/01/mortgage-rates-dip-back-below-3-percent/)
According to Reuters, Facebook hits $1 trillion value after the judge rejects antitrust complaints.
Federal and state antitrust complaints sought to have Facebook sell what apps?
Where did the judge find flaws in the arguments?
What was the bright spot for the FTC in the case?
Bartz, D. and E. Culliford. (2021). Facebook hits $1 trillion value after judge rejects antitrust complaints. Reuters.com, June 28 (Retrievable online at https://www.reuters.com/technology/us-judge-tells-ftc-file-new-complaint-against-facebook-2021-06-28/)
According to Accounting Today, a new report posits that sustainability reporting standards, as well as assurance services to verify that reporting, vary widely across jurisdictions and individual practitioners and require better standardization.
Which organizations presented the report?
According to the report, what percentage of companies report some level of sustainability information, and what percentage reporting sustainability information provide some level of assurance on it?
What countries have a relatively high level of sustainability assurance?
Cohn, M. (2021) Sustainability assurance seen as full of inconsistencies. Accounting Today, June 23 (Retrievable online at https://www.accountingtoday.com/news/sustainability-assurance-seen-as-full-of-inconsistencies?)
According to Accounting Today, KPMG faces a 15M pound fine (or $21M), for gross misconduct in the U.K.
What were the name of the company and the private equity firm that relied on misstatements by KPMG?
What was the name of the partner at the head of the consulting engagement?
How many times did does the conflict of interest situation allege that KPMG misrepresented statements or lost objectivity?
Gillespie, T. and E. Milligan. (2021). KPMG faces $21 million fine for H.I.G. Capital conflict. Accounting Today, June 28 (Retrievable online at https://www.accountingtoday.com/articles/kpmg-faces-21m-fine-for-h-i-g-capital-conflict?)