CPA Hot Topics 10/11/11 – Tax Update

Garrett Gleim sends CPA candidates bimonthly emails concerning different aspects of the CPA exam. Candidates can see the most recent email and all the archives here on the CPA Candidate Forum.

I hope each of you have allowed yourself ample time to study during September so you can take one section of the exam during the first couple weeks of October. From the emails that I have received, I know some people are trying to complete two sections in the October-November window (one in early October and one at the end of November) so they can get the CPA exam behind them this year. If you are not going to be able to finish the CPA exam before 2012, don’t worry. The changes between 2011 and 2012 are not as significant as they have been in previous years. We are working hard to have our 2012 materials completed by late November. If you have purchased our Review System, the switch to the new materials will be simple.

Because they are not tested on the CPA exam, I have never written a Hot Topics email about specific nuances of tax law changes. But I saw an interesting tax notice from the IRS concerning the tax treatment of employer-provided cell phones (Notice 2011-72). The government is actually making our accounting jobs easier. Under the guidance recently issued, employers who provide cell phones to their employees or who reimburse employees for business use of their personal cell phones, can enjoy tax-free treatment without burdensome record-keeping requirements. As long as there are substantial reasons relating to the employer’s business, any personal use will be considered a nontaxable de minimis fringe benefit.

We have confidence you will pass the CPA examination if you prepare for it properly. Gleim is here to assist you through this process. We guarantee you will achieve your goals by following our system for success. Good luck on the exam.

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