Brought to you by the Maryland Association of CPAs Nominate yourself or colleague! Regulation / oversight FASB delays revenue recognition effective date by one year Citing challenges for financial statement preparers, FASB voted Thursday to delay the effective date of the new revenue recognition standard by one year, with early adoption permitted as of the original effective date. (From the Journal of Accountancy) Maryland owes $34 million for Medicaid claims, says auditor A federal inspector general has found that Maryland incorrectly billed Medicaid for services for the developmentally disabled in hundreds of thousands of cases and that the state owes the U.S. government more than $34 million, according to an audit to be released Tuesday. (From The Baltimore Sun) How to make sense of Obama’s changes to overtime policy President Obama has announced that he wants to double the threshold for which salaried employees are exempt from overtime, to $50,440 per year. The move would expand the number of people eligible for overtime from about 8 percent of the salaried workforce to about 40 percent. What effect would making more low-level managers eligible for overtime have on the labor market? (From The Washington Post) Amid new overtime rules, more employers might set email curfew The buzzing phone or ding of an email from the bedside table might be standard these days. But a long-awaited proposal that would increase the number of employees eligible for overtime pay could mean more companies curtailing the use of work email after hours. (From NPR) Tax Senate panel releases bipartisan tax reform proposals The Senate Finance Committee has released a series of reports from five bipartisan tax working groups that have been working on various aspects of tax reform. (From Accounting Today) IRS sees increase in whistleblower tips The Internal Revenue Service’s Whistleblower Office received more claims last fiscal year than in any prior year as the program has begun paying out larger awards to tipsters with information on tax evaders. (From Accounting Today) IRS phone scam ringleader gets 14-year sentence A scammer who organized a scheme in which taxpayers were threatened with calls purporting to come from the Internal Revenue Service and the FBI demanding payment has been sentenced to 14 years in prison. (From Accounting Today) IRS to amend required minimum distribution rules for pensions The Internal Revenue Service and the Treasury Department plan to amend the required minimum distribution regulations under Section 401(a)(9) of the tax code to address the use of lump sum payments to replace annuity payments being paid by a qualified defined benefit pension plan. (From Accounting Today) IRS cracks down on hedge fund tax strategy Hedge funds that used a strategy to claim billions of dollars in tax savings will face new scrutiny from the government, according to guidance issued by the Internal Revenue Service. (From the New York Times) Here’s the latest on the IRS’s delayed 501(c)(4) political activity rules With the IRS expected to step aside during the 2016 election cycle, a nonprofit law expert offers his take on what to expect with the regulations around the political activity of 501(c)(4) social-welfare organizations. (From Associations Now) EU official: 11 nations might tax financial transactions by 2017 Negotiations over a planned tax on financial transactions in 11 European countries could wrap up later this year and the levy could be in place by early 2017, EU Economic Affairs Commissioner Pierre Moscovici said. (From Reuters) Hacker pleads guilty to stealing tax filings from 4 CPA firms A Bulgarian hacker has admitted to participating in a $6 million fraudulent tax return scheme in which he used tax-filing information stolen from at least four major CPA firms in the U.S. (From Accounting Today) Hobbies may be serious business in the eyes of the IRS Clients often want to know how the IRS goes about determining whether activities like freelance writing are hobbies — or whether their intention is to realize business profits. There aren’t any all-purpose guidelines. The answer depends upon the particular circumstances. (From AccountingWEB) Public practice / A&A PCAOB mulling new form for naming audit partner The Public Company Accounting Oversight Board is seeking public comment on a “middle ground” proposal to disclose the names of lead audit partners in a new form to be filed with the regulator rather than in the auditor’s report. In the board’s latest proposal, “Form AP” would name the engagement partner but would not be included in the client company’s SEC filings. (From CFO) PCAOB sanctions firms for broker-dealer audits The Public Company Accounting Oversight Board has sanctioned seven audit firms for violating independence requirements in connection with audits of brokers and dealers, and sanctioned engagement partners at two of the firms for causing the violations. (From Accounting Today) AICPA offers guidance on audit response letters to lawyers The American Institute of CPAs has posted new information on its Web site for auditors who are asking for further information from attorneys. (From Accounting Today) Fraudsters are targeting your elderly financial planning clients -- fight back Financial abuse of the elderly takes many forms. The perpetrators include family members, friends, caretakers, unscrupulous financial advisors and all manner of other schemers who target seniors over the phone, online or maybe by showing up to their mark’s home for a job. Here’s how financial planners can fight back. (From Financial Planning) Change your thinking about ‘small’ clients Work that CPA firms did for small clients was once known as “writeups.” Today, write-ups are almost non-existent since most everybody has small business accounting software such as QuickBooks. The size of the business and the need for CPAs haven’t changed, but the services we offer have. (From CPA Trendlines) Business and industry Survey: Future audits must do more Audits of publicly-traded companies should move beyond assuring the validity of financial statements and noting risk factors, and take into account insights derived by data analytics, artificial intelligence, and other advanced technologies, according to a study. (From CFO.com) A new "mission" for internal audit Changes to professional guidance unveiled this week are designed to help internal auditors provide service that helps their organizations successfully navigate risks that are changing and accelerating rapidly. (From the Journal of Accountancy) Flexible approach a necessity in internal audit planning Internal auditors may need to change their approach to audit planning to keep up with unexpected and fast-paced changes in risks, a new global survey shows. (From the Journal of Accountancy) CFOs outpace CEOs in pay gains — sort of CFOs did better than their bosses on the pay front in 2014, enjoying a 5.2% median hike in “actual total direct compensation” compared with a 3.2% gain for CEOs, according to Compensation Advisory Partners. (From CFO.com) Technology Cyber attacks expand. Here's how to protect your business Tax records, employment records, financial records and more are all stored digitally by federal and state governments, employers, banks, creditors and even social media. If you are alive, you are vulnerable; if you are dead, you may still be vulnerable. (From SmartCEO) For CFOs, cybersecurity risk is like an iceberg Hidden in the depths are cybersecurity perils that could really bring down suppliers, partners, and systems. (From CFO.com) BYOD privacy and policies: How to protect your business With a large portion of employees available and online 24/7, many workers opt to use their personal devices to stay connected. In a world where corporations are working harder than ever to balance legal and regulatory obligations with business efficiency, this continued expansion of electronic data, partnered with the blurred lines between business and personal information, is straining already stretched legal departments and adding privacy and data leaks to the top of the list of growing concerns for organizations. (From Bloomberg BNA) Talent management Midsize U.S. companies struggle to retain employees The United States had more open jobs in April than at any time in the past 15 years, according to the most recent data from the US Bureau of Labor Statistics. The shortage of talent was perhaps most evident at mid-size U.S. companies. (From CGMA) How to find future leaders at your company High-potential talent are employees who have the ability and aspiration to be successful leaders within an organization. While it might make sense for a high-performing employee to also have high potential, that’s not always the case. (From Entrepreneur) Today's economy is working for millennials - and not so much for boomers The national unemployment rate is at a seven-year low, and the country has had several successive months of job growth across a number of different industries. But a survey reveals that millennials benefit the most from today’s economy, while boomers are left behind. (From the Baltimore Business Journal) Personal finance Study: Millennials unprepared for retirement A new survey from the Indexed Annuity Leadership Council (IALC) reveals that 37 percent of millennials say they have no money for retirement, and 24 percent say they owe more than they’ve saved. (From AccountingWEB) From our blog, CPA Success Stop selling. Start solving … and healing Quit worrying so much about your products and sales, your margins and KPIs. Start worrying about your customers. What problems do they have? Can you help solve those problems? Stay focused on the wellness of your customers and the money will take care of itself. Speaking in public? Make it memorable. Here’s how Everyone can be an excellent public speaker if they spend time learning how to do it well. Your audience is hearing your presentation for the first time. They will have no idea if you forget to mention something, or what words you may miss. Try your best to keep it simple. MACPA member Tim Samuel takes a closer look. Sage helps transform CPAs one by one The MACPA recently finished up the spring “Sage Vision to Strategy” workshops with a session at MACPA Beach Retreat in Ocean City. The association ran these workshops all over the state this spring and reached almost 350 CPAs, thanks to Sage and Jennifer Warawa, who initiated the concept almost two years ago. The premise is simple and powerful: Sage believes the best way to help business is to help the accountants and CPAs think about how they can support businesses better, and that means getting clear on their vision. MARYLAND ASSOCIATION OF CPAs 901 Dulaney Valley Rd, Ste 800, Towson, MD, 21204­-2683 800­-782­-2036 | MACPA.ORG Update your email preferences here