Weinberg & Company

              Certified Public Accountants

SIMPLY STATED

MARCH  2017

 

ACCOUNTING NEWS

Naming names: A new rule

A new rule that became effective February 1st requires disclosure of the name of the accounting firm partners who head the audits of U.S. public companies. Auditors are now required to file a new PCAOB Form AP, Auditor Reporting of Certain Audit Participants, for each issuer audit disclosing:

  • The name of the engagement partner.
  • The names, locations, and extent of participation of other accounting firms that took part in the audit, if their work constituted 5 percent or more of the total audit hours.
  • The number and aggregate extent of participation of all other accounting firms that took part in the audit whose individual participation was less than 5 percent of the total audit hours.

The PCAOB will make the information available to the public through a new database called AuditorSearch which will be linked to their website.

Accountant Survey: Economic growth ahead

More than two-thirds of CPAs and accountants expect President Donald Trump to accelerate U.S. economic growth, according to a recent survey by accounting industry publication Accounting Today. Thirty percent of public accountants say they are “very confident” and 39 percent are “somewhat confident” that the new administration will boost the American economy.

“Somewhat fewer – though still a majority of accountants polled – have a very positive (30 percent) or somewhat positive (33 percent) impression of the president’s stance on issues that matter to their firms; 24 percent have a somewhat or very negative impression,” the publication reports.
 

SEC to require hyperlinks

U.S. securities issuers will be required to include a hyperlink to each exhibit in a corporate filing’s exhibit index under new rule and form amendments just approved by the SEC. “As the SEC looks for new ways to modernize financial disclosures, one of the easiest things we can do is add hyperlinks that automatically direct users to additional information on our EDGAR system,” SEC Acting Chairman Michael Piwowar said in a news release.

The rules will take effect September 1st. Nonaccelerated filers and smaller reporting companies that submit filings in ASCII will have until September 1st, 2018 to comply with the rules.

IRS won’t reject returns missing health coverage disclosure

The IRS announced that it will not reject tax returns just because a taxpayer has not indicated on the return whether the taxpayer had health insurance, was exempt, or made a shared-responsibility payment.

This year the IRS had put into place systems that were designed to reject returns that did not provide the information, but as a result of President Donald Trump’s Jan. 20 executive order mandating that federal agencies reduce the burden of the Patient Protection and Affordable Care Act the IRS will allow returns without that information to be processed.

Unclaimed Tax Refunds

The IRS announced that it has $1-billion of unclaimed tax refunds waiting for people who have not filed a 2013 income tax return. Half the refunds are over $763. Leading the unclaimed refund list are people from the state of Texas, followed by California, Florida, and New York.

Individuals have three years to claim refunds for tax returns they have not yet filed, reports Accounting Today, but notes that, “the IRS may still hold onto the 2013 tax refund check if taxpayers have not yet filed their tax returns for 2014 and 2015.”

MONEY TALKS

Upward Mobility

Mobile in-person payments — consumers paying for products or services on their phones, but picking them up or using them in person — are projected to grow by 6.8 times from 2015 to 2021, according to research firm Forrester and reported by the WSJ. Overall mobile payments are also expected to grow, says Forrester. In the U.S., mobile payments are estimated to reach $112.2 billion in 2016 and will grow at a compound annual growth rate of 20% to reach $282.9 billion by 2021.

Cheers!

MasterCard is adding a new feature to its payment app Qkr! for Masterpass that will allow iOS and Android users to create an “open tab” at participating bars. No need to leave a physical payment card or ID with the bartender — just open a tab within Qkr – order, pay, even split the bill with others. In order to use the app, consumers must set up an account on MasterCard’s mobile wallet, Masterpass.

Call an audible

Now, business owners can audibly speak their daily personal and work transactions into an app that will categorize the transaction and input it into a spreadsheet or accounting software. The new app called Talk was co-founded by serial entrepreneur KC Truby and featured in Accounting Today.

Talk integrates with Xero and QuickBooks and partners with others like Automatic.com which uses GPS to track and record where a user’s car has been. Plug it into the car’s diagnostic port and Talk records and accounts for each business trip. Truby says the basic app, good for a one-person small business, is free to download. Talk Pro is $6.95 per month. The Enterprise level is priced at $97. [Talk website]

Too tired to move?

Can’t wait to retire and move away from the rat race? A new survey indicates that relocating in retirement may be a younger person’s dream and not so common among retirees. “While 73% of people aged 18 to 29 said they like the idea of moving when they’re done working, that percentage dropped to 50% for people aged 50 to 64, while just one in five of those aged 65 and up said they would consider a move,” according to a survey of about 1,000 people conducted for Bankrate in 2014 and recently reported by MarketWatch.

How to spend a tax refund

According to a new survey by Bankrate.com, only 6% of taxpayers will spend their tax refunds on shopping, vacations or such other splurges and sprees. However, more than a third of the people surveyed say they will use the refund to save or invest; 27% will use it to pay down debt. The IRS expects to receive more than 153 million individual tax returns this tax season. The average refund paid in the 2015 tax year was $2,860. [CNBC: full story]

Millennials take control

Millennials have surpassed Baby Boomers as the nation’s largest living generation, according to population estimates released this month by the U.S. Census Bureau. Millennials, defined as those ages 18-34 in 2015, now number 75.4 million, surpassing the 74.9 million Baby Boomers (ages 51-69). Generation X (ages 35-50 in 2015) is projected to pass the Boomers in population by 2028, according to Pew Research Center.

Generational wealth transfer

$30 trillion in financial and non-financial assets is expected to pass from the baby boomers, the wealthiest and one-time largest generation in U.S. history, to their heirs. This great wealth transfer is creating challenges for boomers, their heirs and the financial advice industry alike, reports NBR/CNBC. According to a survey by Investment News, 66 percent of children fire their parents’ financial advisor after they inherit their parents’ wealth.

QUOTABLE

Happy St. Patrick’s Day

May you have the hindsight to know where you’ve been, the foresight to know where you are going, and the insight to know when you have gone too far.

Here’s to me, and here’s to you. And here’s to love and laughter. I’ll be true as long as you. And not one moment after.
 
Everyone is nice till the cow gets into the garden.
 
Don’t give cherries to pigs or advice to fools.
 
It is often that a person’s mouth broke his nose.
WEINBERG & COMPANY

Simply the right choice

 

Weinberg & Company is a leading, international, full service, multi-office CPA firm serving clients throughout the United States and the Pacific Rim. Founded over two decades ago, the practice groups include: Assurance and Audit, Tax and Accounting, and Advisory Services. Weinberg has a depth of knowledge and experience to meet the needs of both public and privately held companies, high net worth individuals, entrepreneurs, family offices, and can provide customized business management services. www.weinbergla.com

1925 Century Park East, Suite 1120  

Los Angeles, CA 90067

(310) 601-2200

6100 Glades Road, Suite 205

Boca Raton, FL 33434

(561) 487-5765  

Room 2109, 21/F, Shui On Centre

6-8 Harbour Road, Wanchai, Hong Kong P.R.C.

DISCLAIMER:
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
Quick Links

Corey Fischer
Firm Managing Partner

310-601-2200

CoreyF@weinbergla.com

Jeffrey B. Engler
Director of Tax,
Los Angeles 

310-601-2200
JeffreyE@weinbergla.com

Bruce Weinberg
Florida Managing Partner

561-487-5765

________________________

SERVICES

Assurance & Audit
Tax & Accounting
Consulting
Private Client
Business Management

INDUSTRY EXPERTISE 

Consumer Goods
Apparel
Distribution
Leisure Time Industries
Life Sciences
Media & Entertainment
Manufacturing
Real Estate
Technology
______________________

 

To show sotck chart