February 2003
IRA Update
On November 19, 2002, the IRS issued Revenue Procedure 2002-73 that extends to September 30, 2003, the deadline for amending pre-approved plans to comply with the Uruguay Round of the General Agreement on Tariffs and Trade (GATT), the Uniformed Services Employment and Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996, and the Taxpayer Relief Act of 1997, which are collectively known as the GUST amendments.
The Economic Growth and Tax Relief Reconciliation Act of 2001 was extended for some but not all purposes until September 30, 2003. However, according to informal discussions with the IRS, the 2001 Act must be amended by December 31, 2002, if the employer would like to use a compensation base that conforms with the higher 2002 limitations for a calendar-year plan.
Seymour Goldberg, JD, CPA
Goldberg & Goldberg, P.C.
Melville, N.Y.
The CPA Journal is broadly recognized as an outstanding, technical-refereed publication aimed at public practitioners, management, educators, and other accounting professionals. It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting professionals with the information and news to enable them to be successful accountants, managers, and executives in today's practice environments.
Visit the new cpajournal.com.