SEC Approves New Guidance for Compliance with Section 404 of Sarbanes-Oxley
The SEC approved interpretive guidance to help public companies strengthen their internal control over financial reporting while reducing unnecessary costs, particularly at smaller companies. The new guidance will enhance compliance under Section 404 of the Sarbanes-Oxley Act of 2002 by focusing company management on the internal controls that best protect against the risk of a material financial misstatement.
Further Relief From the Section 404 Requirements for Smaller Companies and Newly Public Companies
The SEC is adopting an extension proposed in August to further postpone the date by which smaller public companies must comply with the internal control reporting requirements mandated by Section 404 of the Sarbanes-Oxley Act of 2002. There is a 60 day comment period on the proposed guidance.
Senate Passes Tax Relief and Health Care Act of 2006
The Tax Relief and Health Care Act of 2006, H.R. 6408, extends and/or modifies many important tax provisions, including key tax breaks that expired at the end of 2005. These extensions include:
Research credit,
Work Opportunity Tax Credit/Welfare-to-Work Tax Credit, New markets tax credit, State and local sales tax deduction, Earned Income Tax Credit (EITC), the Qualified Zone Academy Bonds and a host of energy related tax provisions scheduled to expire at the end of 2007.
The bill also carries a number of non-extender provisions. Contact your Hood & Strong LLP tax professional for additional details.
Change in Nonqualified Deferred Compensation Plan Compliance Deadline
On Oct. 4, 2006, the IRS issued Notice 2006-79, extending the existing transition relief for nonqualified deferred compensation arrangements established under Internal Revenue Code Section 409A.
Before the notice was issued, companies that sponsored nonqualified deferred compensation plans had until Dec. 31, 2006, to make a good-faith effort to get those plans in compliance with the American Jobs Creation Act of 2004. Notice 2006-79 extends the deadline for compliance to Dec. 31, 2007. The IRS took this action to allow plan sponsors ample time to make any changes that may become necessary after it issues final regulations for Sec. 409A, which are expected later this year.
There are some exceptions to this new deadline, so please check with us if you have any questions as to how Notice 2006-79 may affect you or your nonqualified deferred compensation plan.
SEC Offers Further Relief
The Securities and Exchange Commission today issued two releases to grant smaller public companies and many foreign private issuers further relief from compliance with Section 404 of the Sarbanes-Oxley Act of 2002.
New Guidance for Smaller Businesses Released
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has released their Internal Control over Financial Reporting — Guidance for Smaller Public Companies.
Tax Increase Prevention and Reconciliation Act (TIPRA)
President Bush recently signed the TIPRA into law. The Act provides a variety of tax breaks that may apply to you. Specifically, it extends expensing rules for small businesses and tax rate reductions on dividends and capital gains.
New Report Documents Critical Role of Small and Midsized Manufacturers in Future of U.S. Economy
Our network affiliate RSM McGladrey, sponsored this probing report which concluded that the future of U.S. manufacturing depends primarily on the continued success of small and midsized manufacturers.
The Risk Assessment Suite of Auditing Standards
To further enhance audit quality, the AICPA Auditing Standards Board has approved a set of eight new Statements on Auditing Standards (SASs) - collectively referred to as the Risk Assessment Standards.
An Introduction to 529 Plans
529 plans are being heralded as one of the best savings vehicles for education planning. This introduction offered by the Securities and Exchange Commission focuses on the fees associated with the Plans and much more.
