If you are visually impaired or blind, you can visit the PDF version by Pressing CONTROL + ALT + 4
<br /> www.cpaj.com December 2013<br /> ANNUAL TAX UPDATE<br /> Helping Individuals and<br /> Businesses Weather<br /> Tax Season<br /> Tax Software Survey •Year-End Planning • Preserving Business Deductions • Marriage & Divorce<br /> <br /> <br /> CONTENTS<br /> december 2013<br /> 6 PERSPECTIVES 20 IN FOCUS <br /> 6 Perspectives<br /> Year-End Tax Planning for 2013: How the<br /> American Taxpayer Relief Act Affects<br /> Individuals and Businesses<br /> Publisher’s Column: The Power of a<br /> Professional Advocate<br /> Recognition<br /> Is It Time to Change the Name of Form 1040?<br /> Updating a 100-Year-Old Precedent<br /> Determining a Practice’s Value in the<br /> 2013 M&A Market<br /> Do Multiple Reporting Frameworks Enhance<br /> F<a title="The CPA Journal - December 2013 page 1" href="http://viewer.zmags.com/publication/2393daa9?page=1"> www.cpaj.com December 2013 ANNUAL TAX UP</a> <a title="The CPA Journal - December 2013 page 2" href="http://viewer.zmags.com/publication/2393daa9?page=2"> </a> <a title="The CPA Journal - December 2013 page 3" href="http://viewer.zmags.com/publication/2393daa9?page=3"> </a> <a title="The CPA Journal - December 2013 page 4" href="http://viewer.zmags.com/publication/2393daa9?page=4"> CONTENTS december 2013 6 PERSPECTIVES 20 IN F</a> <a title="The CPA Journal - December 2013 page 5" href="http://viewer.zmags.com/publication/2393daa9?page=5"> vol. LXXXIII/no. 12 30 ESSENTIALS 56 ESS</a> <a title="The CPA Journal - December 2013 page 6" href="http://viewer.zmags.com/publication/2393daa9?page=6"> Not Yet a Member? Well, You’re Missing Out! </a> <a title="The CPA Journal - December 2013 page 7" href="http://viewer.zmags.com/publication/2393daa9?page=7"> FAE 2013/2014 Web Events FAE's Upcoming Live We</a> <a title="The CPA Journal - December 2013 page 8" href="http://viewer.zmags.com/publication/2393daa9?page=8"> PERSPECTIVES tax planning Year-End Tax Plan</a> <a title="The CPA Journal - December 2013 page 9" href="http://viewer.zmags.com/publication/2393daa9?page=9"> publisher’s column The Power of a Profession</a> <a title="The CPA Journal - December 2013 page 10" href="http://viewer.zmags.com/publication/2393daa9?page=10"> (Continued from page 6) al retirement account (IR</a> <a title="The CPA Journal - December 2013 page 11" href="http://viewer.zmags.com/publication/2393daa9?page=11"> $11,950 of taxable income for estates and trusts.</a> <a title="The CPA Journal - December 2013 page 12" href="http://viewer.zmags.com/publication/2393daa9?page=12"> products, such as energy-efficient windows, insul</a> <a title="The CPA Journal - December 2013 page 13" href="http://viewer.zmags.com/publication/2393daa9?page=13"> this provision by the year’s end. In fact, due to</a> <a title="The CPA Journal - December 2013 page 14" href="http://viewer.zmags.com/publication/2393daa9?page=14"> EXHIBIT 3 Meeting the `No Time Limit' Relief Prov</a> <a title="The CPA Journal - December 2013 page 15" href="http://viewer.zmags.com/publication/2393daa9?page=15"> recognition Recognition T he editors would lik</a> <a title="The CPA Journal - December 2013 page 16" href="http://viewer.zmags.com/publication/2393daa9?page=16"> viewpoint Is It Time to Change the Name </a> <a title="The CPA Journal - December 2013 page 17" href="http://viewer.zmags.com/publication/2393daa9?page=17"> practice management Determining a Pract</a> <a title="The CPA Journal - December 2013 page 18" href="http://viewer.zmags.com/publication/2393daa9?page=18"> viewpoint Do Multiple Reporting Frameworks En</a> <a title="The CPA Journal - December 2013 page 19" href="http://viewer.zmags.com/publication/2393daa9?page=19"> fits the public trust and advances a country’s go</a> <a title="The CPA Journal - December 2013 page 20" href="http://viewer.zmags.com/publication/2393daa9?page=20"> estimated that as many as 20 million SMEs could u</a> <a title="The CPA Journal - December 2013 page 21" href="http://viewer.zmags.com/publication/2393daa9?page=21"> FAE 2014 Conferences 36th ANNUAL Nonprofi</a> <a title="The CPA Journal - December 2013 page 22" href="http://viewer.zmags.com/publication/2393daa9?page=22"> In Focus A New Look at Tax Software 2013 Annu</a> <a title="The CPA Journal - December 2013 page 23" href="http://viewer.zmags.com/publication/2393daa9?page=23"> DECEMBER 2013 / THE CPA JOURNAL </a> <a title="The CPA Journal - December 2013 page 24" href="http://viewer.zmags.com/publication/2393daa9?page=24"> 2013 Trends The recent tax season represente</a> <a title="The CPA Journal - December 2013 page 25" href="http://viewer.zmags.com/publication/2393daa9?page=25"> To solicit survey participants, the NYSSCPA e-m</a> <a title="The CPA Journal - December 2013 page 26" href="http://viewer.zmags.com/publication/2393daa9?page=26"> four of the products: Drake Software, GoSystem Ta</a> <a title="The CPA Journal - December 2013 page 27" href="http://viewer.zmags.com/publication/2393daa9?page=27"> of use, whereas ATX, CCH ProSystem fx, and Go Sys</a> <a title="The CPA Journal - December 2013 page 28" href="http://viewer.zmags.com/publication/2393daa9?page=28"> Exhibit 5 provides descriptive detail on the u</a> <a title="The CPA Journal - December 2013 page 29" href="http://viewer.zmags.com/publication/2393daa9?page=29"> costs. Although cost is least likely to be rated </a> <a title="The CPA Journal - December 2013 page 30" href="http://viewer.zmags.com/publication/2393daa9?page=30"> EXHIBIT 6 Providers with Highest Ratings Cost</a> <a title="The CPA Journal - December 2013 page 31" href="http://viewer.zmags.com/publication/2393daa9?page=31"> than 12% indicated that they had changed tax prep</a> <a title="The CPA Journal - December 2013 page 32" href="http://viewer.zmags.com/publication/2393daa9?page=32"> ACCOUNTING & AUDITING auditing </a> <a title="The CPA Journal - December 2013 page 33" href="http://viewer.zmags.com/publication/2393daa9?page=33"> for policy support of the PCAOB’s Office of Resea</a> <a title="The CPA Journal - December 2013 page 34" href="http://viewer.zmags.com/publication/2393daa9?page=34"> noncompliance with the Financial Responsibility R</a> <a title="The CPA Journal - December 2013 page 35" href="http://viewer.zmags.com/publication/2393daa9?page=35"> accordingly. In addition, the new com- pliance or</a> <a title="The CPA Journal - December 2013 page 36" href="http://viewer.zmags.com/publication/2393daa9?page=36"> examination process. All requests for audit workp</a> <a title="The CPA Journal - December 2013 page 37" href="http://viewer.zmags.com/publication/2393daa9?page=37"> account statements are sent directly from the cus</a> <a title="The CPA Journal - December 2013 page 38" href="http://viewer.zmags.com/publication/2393daa9?page=38"> TAXATION tax policy </a> <a title="The CPA Journal - December 2013 page 39" href="http://viewer.zmags.com/publication/2393daa9?page=39"> income tax rate from 39.6% to 35%. In addition, t</a> <a title="The CPA Journal - December 2013 page 40" href="http://viewer.zmags.com/publication/2393daa9?page=40"> Under prior law, certain investment income was </a> <a title="The CPA Journal - December 2013 page 41" href="http://viewer.zmags.com/publication/2393daa9?page=41"> Social Security tax from 12.4% to 10.4%, which in</a> <a title="The CPA Journal - December 2013 page 42" href="http://viewer.zmags.com/publication/2393daa9?page=42"> TAXATION federal taxation A Primer on Househo</a> <a title="The CPA Journal - December 2013 page 43" href="http://viewer.zmags.com/publication/2393daa9?page=43"> families. Medicare taxes pay for hospital insuran</a> <a title="The CPA Journal - December 2013 page 44" href="http://viewer.zmags.com/publication/2393daa9?page=44"> n A substitute Form W-2 with the same EIC informa</a> <a title="The CPA Journal - December 2013 page 45" href="http://viewer.zmags.com/publication/2393daa9?page=45"> as a stand-alone return, “ADJUSTED” should be wri</a> <a title="The CPA Journal - December 2013 page 46" href="http://viewer.zmags.com/publication/2393daa9?page=46"> TAXATION compliance & enforcement Meeting th</a> <a title="The CPA Journal - December 2013 page 47" href="http://viewer.zmags.com/publication/2393daa9?page=47"> stantiation requirements are met. IRC sec- tion 2</a> <a title="The CPA Journal - December 2013 page 48" href="http://viewer.zmags.com/publication/2393daa9?page=48"> useful interpretations of tax law for tax- payers</a> <a title="The CPA Journal - December 2013 page 49" href="http://viewer.zmags.com/publication/2393daa9?page=49"> Strategies for Compliance Substantiating busi</a> <a title="The CPA Journal - December 2013 page 50" href="http://viewer.zmags.com/publication/2393daa9?page=50"> TAXATION tax policy Assessing the Marriage P</a> <a title="The CPA Journal - December 2013 page 51" href="http://viewer.zmags.com/publication/2393daa9?page=51"> it took effect on January 1, 2013. In addi- tion,</a> <a title="The CPA Journal - December 2013 page 52" href="http://viewer.zmags.com/publication/2393daa9?page=52"> The revival of PEP and Pease will exacerbate th</a> <a title="The CPA Journal - December 2013 page 53" href="http://viewer.zmags.com/publication/2393daa9?page=53"> on 2010 tax return information report- ed by the </a> <a title="The CPA Journal - December 2013 page 54" href="http://viewer.zmags.com/publication/2393daa9?page=54"> TAXATION federal taxation New Method for Comp</a> <a title="The CPA Journal - December 2013 page 55" href="http://viewer.zmags.com/publication/2393daa9?page=55"> to reduce the complexity and burden of the calcul</a> <a title="The CPA Journal - December 2013 page 56" href="http://viewer.zmags.com/publication/2393daa9?page=56"> pays the following business expenses: Supplies </a> <a title="The CPA Journal - December 2013 page 57" href="http://viewer.zmags.com/publication/2393daa9?page=57"> FAE 2014 CPE Save on 2014 CPE! Plan for CPE Sav</a> <a title="The CPA Journal - December 2013 page 58" href="http://viewer.zmags.com/publication/2393daa9?page=58"> FINANCE personal financial planning The Tax </a> <a title="The CPA Journal - December 2013 page 59" href="http://viewer.zmags.com/publication/2393daa9?page=59"> IRC section 71(c)(2) explains as follows: If a</a> <a title="The CPA Journal - December 2013 page 60" href="http://viewer.zmags.com/publication/2393daa9?page=60"> The parties must designate in the separation agr</a> <a title="The CPA Journal - December 2013 page 61" href="http://viewer.zmags.com/publication/2393daa9?page=61"> Recapture Rule CPAs should also be mindful o</a> <a title="The CPA Journal - December 2013 page 62" href="http://viewer.zmags.com/publication/2393daa9?page=62"> FINANCE employee benefit plans Cash-Balance </a> <a title="The CPA Journal - December 2013 page 63" href="http://viewer.zmags.com/publication/2393daa9?page=63"> EXHIBIT Additional Contributions under a Cash-Bal</a> <a title="The CPA Journal - December 2013 page 64" href="http://viewer.zmags.com/publication/2393daa9?page=64"> tain IRS rules and regulations. The hypo- thetica</a> <a title="The CPA Journal - December 2013 page 65" href="http://viewer.zmags.com/publication/2393daa9?page=65"> THE EDITORS INVITE CPAS from all areas of practic</a> <a title="The CPA Journal - December 2013 page 66" href="http://viewer.zmags.com/publication/2393daa9?page=66"> MANAGEMENT practice management Measuring Dama</a> <a title="The CPA Journal - December 2013 page 67" href="http://viewer.zmags.com/publication/2393daa9?page=67"> that this article does not address a situation wh</a> <a title="The CPA Journal - December 2013 page 68" href="http://viewer.zmags.com/publication/2393daa9?page=68"> curring costs and calculate the amount of avoidab</a> <a title="The CPA Journal - December 2013 page 69" href="http://viewer.zmags.com/publication/2393daa9?page=69"> FAE 2013 Conferences Find out about significant</a> <a title="The CPA Journal - December 2013 page 70" href="http://viewer.zmags.com/publication/2393daa9?page=70"> RESPONSIBILITIES & LEADERSHIP reg</a> <a title="The CPA Journal - December 2013 page 71" href="http://viewer.zmags.com/publication/2393daa9?page=71"> February 1, 2013, however, the court clari- fied </a> <a title="The CPA Journal - December 2013 page 72" href="http://viewer.zmags.com/publication/2393daa9?page=72"> of violations is predictably low” (http://www.ij.</a> <a title="The CPA Journal - December 2013 page 73" href="http://viewer.zmags.com/publication/2393daa9?page=73"> be exempt from passing a qualifying exam and comp</a> <a title="The CPA Journal - December 2013 page 74" href="http://viewer.zmags.com/publication/2393daa9?page=74"> TECHNOLOGY what to bookmark Website of the M</a> <a title="The CPA Journal - December 2013 page 75" href="http://viewer.zmags.com/publication/2393daa9?page=75"> requesting taxpayer. TSB-As are only bind- ing fo</a> <a title="The CPA Journal - December 2013 page 76" href="http://viewer.zmags.com/publication/2393daa9?page=76"> CLASSIFIEDMARKETPLACE PROFESSIONAL OPPORTUNITY l</a> <a title="The CPA Journal - December 2013 page 77" href="http://viewer.zmags.com/publication/2393daa9?page=77"> CLASSIFIED Peer Review If you nee</a> <a title="The CPA Journal - December 2013 page 78" href="http://viewer.zmags.com/publication/2393daa9?page=78"> CLASSIFIED Looking to sell you practice? Ready to</a> <a title="The CPA Journal - December 2013 page 79" href="http://viewer.zmags.com/publication/2393daa9?page=79"> CLASSIFIED SALES TAX PROBLEMS? More tha</a> <a title="The CPA Journal - December 2013 page 80" href="http://viewer.zmags.com/publication/2393daa9?page=80"> CLASSIFIED Now you can offer your clients multi-s</a> <a title="The CPA Journal - December 2013 page 81" href="http://viewer.zmags.com/publication/2393daa9?page=81"> ECONOMIC & MARKET DATA monthly u</a> <a title="The CPA Journal - December 2013 page 82" href="http://viewer.zmags.com/publication/2393daa9?page=82"> EDITORIAL a message from the editor-in-chief </a> <a title="The CPA Journal - December 2013 page 83" href="http://viewer.zmags.com/publication/2393daa9?page=83"> </a> <a title="The CPA Journal - December 2013 page 84" href="http://viewer.zmags.com/publication/2393daa9?page=84"> </a>