Jacob Scott, CPA     Dec 01, 2021     912

Here are the quick updates on the accounting industry for the month of December 2021.

1. Meal portion of per diem allowance can be treated as attributed to a restaurant

The 100% deduction allowable as a business expense in 2021 and 2022 for food or beverages provided by a restaurant applies to the meal portion of a per diem rate or allowance, the IRS clarified Tuesday in Notice 2021-63. Read More

2. IRS relaxes OIC policies

The Internal Revenue Service agreed to ease its policies for low-income taxpayers who are trying to settle their tax debts and still get tax refunds, after the head of the Taxpayer Advocate Service asked for relief. Read More

3. Xero Acquires Inventory Management Company LOCATE Inventory

Xero Limited, a maker of cloud-based financial and management solutions for small businesses, is acquiring LOCATE Inventory or LOCATE (the trading name of New Tack, Inc), a U.S. cloud-based inventory management provider, to better support the inventory needs of small businesses and enhance its e-commerce capability. Read More

4. FASB issues risk-free rate rule to cut costs for nonpublic lessees

Private company, not-for-profit, and employee benefit plan lessees will be able to elect risk-free rates by class of underlying asset rather than at the entity wide level for lease accounting under a new standard issued Thursday for nonpublic entities by FASB. Read More

5. Withum merges in Restivo Monacelli

Withum, a Top 25 Firm based in Princeton, New Jersey, is adding Restivo Monacelli LLP, a firm headquartered in Providence, Rhode Island. Read More

6. Introduces New Product Features

The company is rolling out a series of new product features that expand’s ability to be the all-in-one financial operations platform for small and midsize businesses and accountants. Read More

7. New FAQs cover interplay of unemployment income exclusion and credits

Taxpayers whose 2020 income tax returns were revised by the IRS to exclude unemployment benefits from gross income may be eligible for the additional child tax credit or earned income tax credit as a result, the IRS advised in two frequently asked questions (FAQs) it added Friday to its 2020 Unemployment Compensation Exclusion FAQs webpage. The IRS also addressed a possible complication for FAFSA applicants. Read More

8. IRS offers online tool for U.S. withholding agents to report foreign income

The Internal Revenue Service introduced an online tool Monday to help U.S. withholding agents comply with their reporting and withholding responsibilities for IRS Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding). Read More

9. IMA hits record high of new CMAs in 2021

The Institute of Management Accountants released its annual review Tuesday, highlighting the fact that it had reached a record high number of 46,859 active Certified Management Accountants, with 12,926 new certifications earned in the past fiscal year. Read More

10. FASB declines to extend nonpublic lease accounting effective date

Private companies and not-for-profits will not see further relief from the effective date of FASB's new lease accounting standard after the board voted unanimously Wednesday to reject a request for a two-year extension that was submitted by the Pennsylvania Institute of CPAs (PICPA). Read More

11. KPMG sued for $600M over alleged sloppy auditing

KPMG LLP was sued for at least $600 million over its role in the insolvency of Dubai private-equity firm Abraaj Group, the latest in a string of complaints of sloppy auditing made against the Big Four firm. Read More

12. Court finds federal tax cut ban unconstitutional

An Alabama federal court has invalidated the “Tax Cut Ban” provision of the American Rescue Plan Act of 2021. Read More

13.IRS issues inflation adjustments for 2022 returns

The IRS issued Rev. Proc. 2021-45 Wednesday, adjusting for inflation a wide array of amounts applicable to the 2022 tax year for use with individual, business, and estate and trust returns and related tax issues. Amounts under 62 Code sections are updated. Read More

14. Audit committee disclosures in proxy statements keep increasing

Audit committees at public companies have been upping the amount of disclosures they have been providing in proxy statements, especially when it comes to cybersecurity and non-audit services. Read More

15. Steve Cox of IRIS Software says practices that can diversify will flourish

“The role of the accountancy practice is changing,” says Steve Cox, Head of Accountancy at IRIS Software. “While some clients used to see their accountants as number crunchers, the challenges that clients have had to face within their businesses over the last couple of years is provoking reappraisal.” Read More

16. Audit committee cybersecurity disclosures on the rise

Although public company audit committee disclosures on cybersecurity continue to increase significantly, other disclosures by audit committees increased just slightly or stagnated in 2021 compared with 2020, according to a Center for Audit Quality (CAQ) report issued Wednesday. Read More

17. Digital networks will power the future of accounting

Software as a Service and the cloud have been important drivers of innovation — particularly during the COVID-19 pandemic — but the next stage of technological change will revolve around digital networks, according to Aaron Harris, the chief technology officer of business software developer Sage. Read More

18. Employee retention credit: Opportunities remain

The employee retention tax credit (ERC) has been valuable for some, but seemingly out of reach for others. "It is a really powerful credit that at a high level seems pretty easy, but there are a lot of twists and turns to the implementation," said Courtney Vitale, CPA, tax director at CBIZ MHM LLC. Read More

19. IRS proposes tax rules related to COVID-19 testing

The Internal Revenue Service released an advance copy of a set of proposed regulations that can help taxpayers, employers and insurers navigate the complex tax rules surrounding COVID-19 testing and health insurance coverage. Read More

20. Biden bill has tax cut for mere millionaires, hike for mega rich

For millionaires trying to decipher if they will pay more or less in taxes under President Joe Biden’s Build Back Better plan, the answer largely depends on just how much income they get, and how it’s earned. Read More

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About The Author

Jacob Scott, CPA

Member, Advisory Board

Jacob Scott is a CPA with over 20 years of experience in the area of accounting & finance and has worked as a Senior Audit Associate at EY. Jacob drives the financial planning of the company by analyzing its performance and risks. He retains constant awareness of the company’s financial position and acts to prevent problems. He also sets up and oversees the company’s finance IT system as well as sets targets for and supervise all accounting and finance personnel (management accountants, internal auditors, etc.) Besides overseeing all audit and internal control operations, Jacob develops the corporate fundraising strategy and manage relationships with partners and investors. His roles also include preparing timely and detailed reports on financial performance on a quarterly and annual basis and conducting analysis to make forecasts and report to upper executives. He ensures adherence to financial laws and guidelines.  He has a keen interest in activities and societies, industry tours, educational seminars, cultural activities, sports, and most importantly attending conferences.

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