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FRAUD CONTINUING EDUCATION WILL BE REQUIRED BEGINNING JULY 2005 FOR CALIFORNIA CPA'S

The Fraud continuing education (CE) requirement will become effective for CPA licenses renewed on or after July 1, 2005. Licensees who are subject to the accounting and auditing (A&A) or government CE requirement will need to complete an additional eight hours of fraud CE specifically related to the detection and/or reporting of fraud in financial statements. The fraud CE requirement is part of the 80 hours of CE required for license renewal but is not part of the 24-hour A&A or government CE requirement.
Fraud CE is not required for licensees who are not subject to the A&A or government CE requirement.
For additional information, please review Section 87 of the Accountancy Regulations. The Accountancy Regulations are located on the Board’s Web site at www.dca.ca.gov/cba by clicking on “Accountancy Act and Regulations” on the left-hand menu.

STATE OF TEXAS ETHICS CPE COURSE
Licensees certified or registered on or after September 1, 1999 are required to report to the Board the completion of a two-hour Board approved ethics course within three years of the end of the initial license period.
In all cases, after reporting the initial requirement, a minimum of two hours of Board approved ethics must be taken and reported by every third subsequent annual renewal notice. In order to obtain CPE credit, the course must be taken from a sponsor whose course has been approved by the Board as meeting the standards of Section 532.32.

STATE OF NEW YORK ETHICS CPE
Mandatory Ethics CPE - For each triennial registration period beginning on or after September 1, 2001, all licensees engaged in the practice of public accounting are required to complete as part of the continuing professional education requirement at least four contact hours in professional ethics during the triennial registration period. For example, a CPA who last renewed his/her registration prior to September 1, 2001 does not have to complete the course until the next registration period. Anyone who has registered since September 1, 2001 has the full three-year period to complete the component.
A licensee who completes his/her CPE in a concentration must complete at least four contact hours in professional ethics in the subject area, accounting or auditing or taxation, in which the study was completed.

FLORIDA SELF-STUDY CPA CPE CONTINUING EDUCATION COURSES
All self-study continuing education courses qualifying for accounting and auditing and technical business credit must be taken from sponsors approved by NASBA's Quality Assurance Service (QAS) program. Self-study providers offering behavioral credit only will not be required to register with the QAS program.

GEORGIA UNIFORM CPA EXAM (Computer Based Examination)
Effective April 5, 2004, any request for applications, questions, concerns, etc., pertaining to the CPA Examination must be answered by the CPA Examination Service. You may reach them by calling 1-800-CPA-EXAM in Georgia or outside of Georgia (615) 880-4250 and ask for the Georgia Coordinator.

OHIO ELECTRONIC LICENSE RENEWAL BEGINS
The Board's sixth year of electronic license renewal began on October 7, 2004. The first online renewal transaction occurred at 2:50 PM EDT on that date. The online renewal website will be available through January 3, 2005.

THE TEXAS STATE BOARD OF ACCOUNTANCY TRANSITIONS TO COMPUTER BASED TESTING
For further information, go to their site: www.tsbpa.state.tx.us

ILLINOIS SCORE RELEASE FROM THE APRIL - MAY 2004 TESTING WINDOW
CPA Examination scores for Illinois candidates have been received in the Board office from the test provider and the National Candidate Database. They are being proofed and prepared for mailing by July 26, 2004.

Scores were received from the National Candidate Database in a different time frame than originally announced. Therefore, candidates who took more than one part of the exam in the April-May testing window will receive all their scores in one mailing. Originally it was anticipated that scores would be released one section at a time.

The Internal Revenue Service today announced there will be no change in the interest rates for the calendar quarter beginning Jan. 1, 2005. The interest rates are as follows:

IRS Officials Urge Care for Those Making a Car Donation

The Internal Revenue Service issued a consumer alert today to help taxpayers avoid potential pitfalls when they donate their automobiles to charities.

In addition, as taxpayers plan their charitable giving, donors should understand the way that the American Jobs Creation Act of 2004 will alter the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004.

Next year, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.

Under the new rules, the charitable organization must provide an acknowledgement to the donor within 30 days of the sale stating the amount of gross proceeds. Alternatively, if the charity significantly uses or materially improves the vehicles, the charity must certify this intended use and duration and provide an acknowledgement to the donor within 30 days of the contribution. If the charity significantly uses or materially improves the vehicle, generally, the donor may deduct the vehicle’s market value.

For the remainder of 2004, however, the new rules do not apply. Under the rules in effect for 2004, taxpayers will be able to deduct the fair market value of the contributed property.

HUD & IRS Launch Joint Effort to Help Families

The Department of Housing and Urban Development and the Internal Revenue Service announced today they will join forces to help low-income taxpayers receive free tax assistance and learn about important tax benefits. The new partnership will help low-income people with such things as free tax return preparation, the Earned Income Tax Credit and the child tax credit.

The partnership agreement signed today by HUD Secretary Alphonso Jackson and IRS Commissioner Mark W. Everson will result in improved services and greater coordination to reach low-income taxpayers. These taxpayers may benefit from but be unaware of critical tax breaks such as the Earned Income Tax Credit (EITC).

NEW DISASTER AREA TAX RELIEF INFO FROM THE IRS

Special tax law provisions apply when the President declares a location to be a major disaster area. Depending on the circumstances, the IRS may grant additional time to file returns and pay taxes.
For more information, go to Tax Relief in Disaster Situations