KEY ACCOUNTING INDUSTRY INSIGHTS & UPDATES IN 5 MINUTES - JULY 2021

1. AI’s Growing Influence Over CPA Services

We need to address what’s happening with the emergence of Artificial Intelligence in the accounting profession, the repercussions, and how firms are adapting. Read More

2. SEC intensifies scrutiny of crypto

The Securities and Exchange Commission is ramping up enforcement against cryptocurrency providers, as the Internal Revenue Service has also stepped up investigations and compliance efforts. Read More

3. SBA officially closes Restaurant Revitalization Fund

The U.S. Small Business Administration (SBA) announced the closure of the Restaurant Revitalization Fund (RRF) after awarding the program’s full $28.6 billion appropriations to more than 100,000 restaurants, bars, and other businesses that provide on-site food and drink. Read More

4. IRS Offers Guidance on Multiemployer Retirement Plans and the PBGC

Notice 2021-38 provides guidance under provisions of the American Rescue Plan Act of 2021 regarding special financial assistance paid by the PBGC to eligible multiemployer defined benefit pension plans that are financially at risk. Read More

5. IRS begins distributing monthly child tax credit payments

The IRS and the Treasury started disbursing advance monthly payments Thursday of the expanded Child Tax Credit in a program that aims to lift millions of families out of poverty. Read More

6. Farm businesses receive guidance on the tax treatment of losses

The IRS issued Rev. Proc. 2021-14 on Wednesday instructing taxpayers with a net operating loss (NOL), consisting entirely or partly of a “farming loss,” as defined in Sec. 172(b)(1)(B)(ii), on how to make or revoke certain elections including those available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, P.L. 116-136. Read More

7. IRS Starts Sending Unemployment Income Tax Refunds

The Internal Revenue Service will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year. Read More

8. SBA officially drops PPP Loan Necessity Questionnaire requirement

The U.S. Small Business Administration (SBA) has informed lenders that it is eliminating the loan necessity review for Paycheck Protection Program (PPP) loans of $2 million or greater. Read More

9. AICPA Seeks Feedback on CPA Exam Core and Disciplines Content

Stakeholders are asked to provide feedback on preliminary content through September 7, 2021. This valuable input from the profession will help guide the development of new CPA Exam blueprints and Exam design, which will then be shared via Exposure. Read More

10. Biden looks to corral Democrats on $3.5T Senate plan

President Joe Biden urged Senate Democrats to act boldly on his sweeping social and economic agenda Wednesday, as they began hashing out details of a $3.5 trillion tax and spending agreement that marks a crucial step forward for his plan. Read More

11. ASB addresses agreed-upon procedures for asset-backed securities

A new statement of position issued Wednesday by the AICPA Auditing Standards Board (ASB) addresses the effects of changes to the attestation standards on agreed-upon procedures related to rated asset-backed securities issued in accordance with the Securities Exchange Act of 1934, as amended when those engagements fall within the definition and scope of “third-party due diligence services.” Read More

12.  Last of the 'Dirty Dozen': Schemes peddled by tax promoters

In the fourth and final installment of this year’s IRS “Dirty Dozen” list, which highlights common tax-related scams, the IRS cautioned taxpayers to be on the lookout for schemes peddled by unscrupulous tax promoters, including syndicated conservation easements, abusive micro captive insurance arrangements, and other abusive arrangements (IR-2021-144). Read More

13. Ivix receives $13M in funding to help fight tax evasion

Ivix, a technology company that aims to help international tax authorities catch large-scale tax evasion, has scored $13 million in seed funding. Read More

14. IRS Releases New Draft Instructions for Sch. K-2 and K-3

The redesigned forms and instructions give useful guidance to partnerships, S corporations and U.S persons who are required to file Form 8865 with respect to controlled foreign partnerships on how to provide international tax information. Read More

15. Democrats propose a tax on carbon-intensive imports in the budget deal

Senate Democrats are moving to impose tariffs on carbon-intensive imports as a way to help pay for their tax-and-spending legislation, according to one person familiar with the plan. Read More

16. Proposed bill to regulate tax preparers has AICPA support

The AICPA signaled strong support for a bill introduced in Congress last week that would authorize the Treasury to regulate paid tax return preparers and mandate minimum competency standards. The proposed legislation has bipartisan backing and is sponsored by Reps. Jimmy Panetta, D-Calif., and Tom Rice, R-S.C. Read More

17. New QuickBooks Card Reader Integrates Directly with QuickBooks Payments

Intuit QuickBooks is introducing QuickBooks Card Reader, a new innovative payments device designed for today’s small business owners. Integrated with QuickBooks Payments, which processes more than $65 billion in volume annually, the card reader is the latest fintech offering to help small businesses get paid faster, no matter how or where they work. Read More

18. IRS urges tax pros to beef up security this summer

The Internal Revenue Service has launched a campaign this summer to persuade tax professionals to improve their cybersecurity amid an escalating series of ransomware attacks around the world. Read More

19. Quality management proposal provides an opportunity to consider risks

The evolving, risk-based approach to audit firm quality management is consistent with a trend that has become well established in the accounting profession. Read More

20. Real estate accounting tech company Proper raises $9M in funding

Proper, a San Francisco-based provider of automated accounting and bookkeeping services for real estate property and asset managers, has scored $9 million in Series A funding from investors. Read More

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