Posted on 01/21/2015 6:05:10 AM PST by taildragger
FR Tax Pro's I need your feedback.
The following are the main points post an indirect conversation with a CPA after they attended a Seminar on Section 3115, and changes to the "Code".
This has to do with Section 179 expensing vs. going to the Deprecation Schedule(s).
Here they are:
* Not expensing any capital goods over $500.
* They want businesses to depreciate any capital good (Marcs) above $500.
* "They" might want businesses to go back and amend many years to comply.
* No statue of limitation as to how far back "they" can go.
* If the CPA's makes a mistake, they could have fines up to $1000 and or loose that title.
* The additional work could take days to do taxes of a small firm and the major revamps could take a month.
* You are exempt if you hire a major auditing firm ( like any Dow or Fortune 500 company does).
Factions within the CPA world has asked the powers that be, please reconsider these changes with their recommended revisions.
One can make the logical leap to the fact that this might potentially burden many a small business.
I would be a blessing to get FR CPA's, Enrolled Agents etc to confirm all or any of this, and or correct any errors.
I look forward to your replies....
CPA'a are regulated by the individual states not the federal government.
It’s just a stupid, complicated rule.
Aren’t they all?
A CPA who does tax work is likely covered under “IRS Circular 230” and so is subject to the IRS “Office of Professional Responsibility” which can fine or institute proceeding against tax preparers.
Just section 179 the assets. Why do they even have these stupid rules?
Thanks, again I ask as I don’t know what I don’t know and I may have lost something in translation.
The King tells us we need to do our taxes in the pale moonlight, while the fireflies are 3/4 out, the crickets are half quiet, its 63 3/268ths of a degree, and we have to consult section 362, paragraph 3, of form 2662.
And we’re talking about it like its a legitimate task.
Another indirect fleece by the Feds. Hell yes it will be a burden having to dig through mountains of paper and data even if you use accounting software like Peachtree or Quickbooks. I’ll just send them a bill for my time...: )
bttt....
Not just a fleece, it is a direct hit at the middle class which would be the majority of small business starts. This administration is the best at building walls to prevent growth except in our immigration population.
* Not expensing any capital goods over $500.
* They want businesses to depreciate any capital good (Marcs) above $500.
* “They” might want businesses to go back and amend many years to comply.
* No statue of limitation as to how far back “they” can go.
* If the CPA’s makes a mistake, they could have fines up to $1000 and or loose that title.
* The additional work could take days to do taxes of a small firm and the major revamps could take a month.
* You are exempt if you hire a major auditing firm ( like any Dow or Fortune 500 company does).
My training was similar.
Section 179 allows a business owner to depreciate new assets more quickly than MACRS. I was taught years ago that everything that had a useful life over a year was to be depreciated. Now we are told under $200 (or $500) won't be depreciated, and over $200 must be depreciated - with a new set of “clarifications” on repairs and upgrades.
Yes, the IRS may decide if a business needs to restate depreciation.
The fines for all Circular 230 professionals are increasing, are for each event and give the IRS one more way to bully folks. And IIRC a single violation of a C230 rule may be referred to the state board of accountancy as a reason why one should be delisted as a CPA. Talk about a sledgehammer to tack a pin to the wall.
NO mention at all of any audit form conveying immunity from penalty due to a private audit.
I think I need a little more info. Section 3115 is to request a Change in Accounting method for IRS purposes. It covers a lot more than Section 179 expense.
If the IRS recommended to disallow section 179 expense of items over $500, there would be a business community melddown. This past year, businesses could use section 179 expense up to $500,000.
Either your accountant suffered a lunch coma and did not hear things correctly or he did not communicate with you very well.
I think this is what my CPA friend might be alluding too rather than a lunch carbo-coma. Poster Texas Booster's in post 12 gets to it, I think they might be in the biz if you will.
More importantly my question is will it be a joint meltdown, of the Business Community and the CPA Community as they both have to deal with this torrid paperwork exercise that will suck of gobs of their time and energy?
That might be the million dollar question.
I’ve beena CPA for nearly 40 years. They, whether Congress of President, have always messed around with Section 179.
The original tax code as enacted way back when, had one sentence:”Income from whatever source derived, shall be taxed.”
From a few simple words, easily understood by most, a blankety ***** complex, unintelligible, unreadable, and probably never has been read by any one person, cluster**** has originated.
Congress, please eliminate the current tax code and go to a gross receipts tax. Or take time out of your busy day, and read the mess you’ve created!
Your list does not make sense:
“* Not expensing any capital goods over $500.”
For 2014 businesses can Sec. 179 expense up to $500,000. Your line indicates that businesses can not Sec. 179 expense an item with a value over $500. That is not true.
“* You are exempt if you hire a major auditing firm....” This is absolutely false. No matter who does the work, the client is always on the hook.
I still need more information if you want to go down this path.
Yes but what is unique about this messing, it seems to be ruffling some feathers, am I all wrong here, or is this going to grind small business to a potential halt in paperwork, just like the "1099" compliance > $600 in Obamacare would and was rescinded because it was so Erroneous, even Obama had to remove it...
Are we talking about changes for 2014 (seems like it's too late to make changes like that, now) or for 2015 or later?
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