The straight line

For the 2006 filing year, the Internal Revenue Service changed the cooperative tax reporting form from 990C to 1120C. Almost immediately, problems arose. The IRS was not set up to accept tax deposits for form 1120C so the deposits were recorded as 1120. The IRS assured us that they would automatically reclassify 1120 payments to 1120C for all taxpayers that had previously filed form 990C.

The volatility that the market is currently experiencing in regard to handled commodities, grain, fertilizer and fuels will cause us to adapt our audit procedures to match the risks it imposes.

Simply put, in accounting for mergers in the past, we have combined the balance sheets of the entities involved. After this Statement becomes effective, that will no longer be the practice.

These new standards were undertaken in response to recommendations to the ASB made by the Public Oversight Board’s Panel on Audit Effectiveness. The development of these SAS’s was influenced by the major corporate failures of the past several years which weakened the public’s confidence in the effectiveness of audits and led to an intense scrutiny of the work of auditors.

The AMT was initiated back in Congress because of the increasing number of high-income individuals that were legally able to avoid paying any income tax. Over the years however, as the rules were not adjusted for inflation, many middle class taxpayers began to fall into the AMT trap.

The new rate for business miles is up 2 cents from 2007 however, medical and moving miles are down 1 cent from last year. The rate for miles driven in the service of a charitable organization has remained the same.