All of us at the ASCPA and the AICPA share the deep sadness and concern the entire nation feels over the devastation caused by Hurricane Katrina. Our hearts go out to the hundreds of thousands of Americans whose lives have been forever changed, including the thousands of AICPA members and their families living in areas affected by this disaster.
The AICPA is reaching out to members and the state CPA societies in the Gulf Coast to determine their immediate and long-term needs and to help coordinate relief efforts. In many areas, communication and transportation systems are inoperable, and for many CPAs and their clients and employers, business has been interrupted indefinitely and records have been lost. What can you do? You can help immediately by donating to the relief organizations listed on https://www.aicpa.org/news/2005/katrina_relief.htm.
In the coming weeks and months the AICPA will continue to work with the American Red Cross, IRS, DHS/FEMA and other organizations to understand how the expertise of the CPA profession can be brought to bear on the recovery effort. They are also speaking with other regulators such as the DOL and the SEC on relief efforts. The items below detail some of the initiatives already underway. Future News Updates will provide links to more detailed information. As the long period of recovery for the people of the Gulf Coast begins, we encourage you to join us in this effort.
1. Online Disaster Recovery Resource Center Created
2. CPA Firms to Help Affected Firms to Ensure Practice Continuation
3. AICPA Working With IRS on Relief for Victims of Katrina
4. Disaster Recovery Guides, Mobilization Kit and Other Resources Available
5. AICPA Issues Technical Practice Aid on Auditor’s Consideration of Impact of Losses from Natural Disasters
6. AICPA and the IRS Partner to Provide Pro-Bono Tax Assistance to Disaster Victims
1. Online Disaster Recovery Resource Center Created
The AICPA has established a central, online Disaster Recovery Resource Center. Visit this site frequently for up-to-date information, useful links to other Web sites and a wide range of practical tools on this topic. It includes resources for members to use to assist their employers and clients, as well as practice management guidance for firms directly affected by Hurricane Katrina. The site will be updated regularly, check back often.
2. CPA Firms to Assist Affected Firms with Practice Continuation
The AICPA is mobilizing CPA firms through PCPS to identify and implement ways that firms around the country can assist individual CPAs and firms in Louisiana, Mississippi and Alabama. PCPS, with the assistance of the AICPA audit quality centers and sections, plans to establish a “firm volunteer center” which will identify firms that wish to volunteer resources for affected CPA firms. Resources that firms may be able to offer may include office space and technology including servers and software support. Firms might also volunteer to hire, on a temporary basis, staff from affected firms. A hotline staffed by volunteers and consultants will also be established to respond to firm continuity and disaster-related practice management issues. If you have an urgent practice management question in the interim send an email to pcps@aicpa.org. For technical questions, contact the A & A Technical Hotline on 888 777 7077, menu option number 5, followed by menu option number 3.
3. AICPA Working with IRS on Relief for Victims of Katrina
The AICPA Tax Team has been meeting frequently with the IRS to exchange ideas on providing relief for taxpayers in the Presidential Disaster Areas struck by Hurricane Katrina (see IR-2005-84) in addition to areas already announced by the IRS on August 30th. Among the items under discussion are further extending the filing dates, expediting the process for filing amended 2004 returns for disaster related claims, automatic abatement of penalties and interest, suspending enforcement activities for all those in the presidential-declared disaster area. Visit www.aicpa.org and www.irs.gov for the latest releases.
4. Free Disaster Recovery Guide, Mobilization Kit and Other Resources Available
Disaster Recovery: A Guide to Financial Issues was developed by the AICPA PFP Team to help individuals and families in the days, weeks and months following a disaster when they are most in need and often vulnerable to financial challenges. The guide, produced by the National Endowment for Financial Education, the AICPA and the AICPA Foundation, is distributed by participating local chapters of the American Red Cross. As part of this effort, the AICPA developed the Disaster Recovery CPA Mobilization Kit to support state societies and CPAs in their volunteer outreach to those affected by disaster. The kit focuses on the pro-bono services CPAs can offer in moments of crisis and includes a press release template, byline article and PowerPoint presentation. The AICPA Tax Section’s Disaster Area Practice Guide is also available. It has just been updated to reflect guidance for victims of Hurricane Katrina –and includes links to important IRS and other tax-related disaster recovery resources.
5. AICPA Issues Technical Practice Aid on Auditor’s Consideration of Impact of Losses from Natural Disasters
The AICPA has issued a new Technical Practice Aid (TPA) outlining auditor’s responsibilities when a natural disaster affects an audit client’s operations subsequent to the end of audit field work but prior to the issuance of the financial statements and auditor’s report. Other TPAs will be developed based on issues identified by members via the TIPS hotline and staff research.
6. AICPA and the IRS Partner to Provide Pro-Bono Tax Assistance to Disaster Victims
The AICPA and the Internal Revenue Service have joined forces to provide pro-bono tax assistance to victims of disaster who come to Department of Homeland Security/FEMA Shelters. The IRS will work with the AICPA and state CPA societies to connect disaster victims with CPAs in order to provide them the counseling they may need. The counseling will include tax matters such as personal casualty loss decisions and filing amended tax returns, as well as pending IRS examination and collection matters. This new partnership is another example of CPAs working in the public interest to help Americans with their financial recovery from major disasters such as Hurricane Katrina. More details on this agreement will be available on www.aicpa.org and www.irs.gov shortly.