The American Institute of Professional Bookkeepers VOLUME 2: Issue 6

The Special Accounting Rule
—and other year-end reminders

Under The Special Accounting rule, an employer may elect to treat taxable noncash fringe benefits, such as personal use of company cars provided any time in November or December 2005, as being paid in 2006. If you make this election for tax year 2005, you must notify affected employees no later than Jan. 31, 2006.
            Here are some other year-end reminders.

But employer-provided vehicles and dependent care benefits are just two fringe benefits.

How—and where—do you report fringes such as: l bonuses, vacation pay, gift certificates, electronics or jewelry? l exempt fringes such as certain employee discounts or use of employer-leased workout centers? l below-market or interest-free loans? l group-term life? l third-party sick pay? l business expense advances under an accountable plan v. nonaccountable plan? l federal per diem reimbursements? l nontaxable moving expenses? l other benefits?

Find answers instantly in the box-by-box, line-by-line chart, “What goes where on the W-2, 941 and 940” in the December issue of our monthly technical briefing for members, The General Ledger—yours free if you join now (

Join now and you also get:
Free Report #1: Join now and you will also get “21 Key Bookkeeping Changes in Current Tax Laws”. Discover:

• 2005 business tax breaks to remember at tax time
• New recordkeeping requirements for deducting cell phone expenses
• New rules that let you take—or revoke—Sec. 179 deductions for prior years, and how to do it
• IRS-approved partly paperless accountable plans
• Which meals are 50% v. 100% deductible
And 20 other key changes you should know about. 

Free Report #2: “Better Bookkeeping in 15 Minutes—the 25 Best Bookkeeping Tips of 2005.” How to:

• Post returned checks
• Withhold from car allowances
• Know when to take, or refuse, a prompt-payment discount
• Record checks made out to cash
• Prove expenses if canceled checks are lost
• Correct W-2 errors the easy way
• Prepare internal income statements
• Set up successful collection calls  

Free Report #3: “The Bookkeeper’s Guide to Internal Controls.” Know easy ways to protect yourself: 

• if you sign company checks
• if you withhold taxes on paychecks
• against liability for company loans
• against liability for company notes
• against liability for retirement plans
• against inadvertent disclosure

Find out how to protect your company or clients, including: 

• 9 easy ways to prevent bad-check losses
• 5 ways to protect company bank accounts and other cash
• 12 policies that prevent fraud
• 15 signs that employees are stealing
• And more.

But when you get more than these 3 free special reports when you join.
You also get a free monthly technical briefing on the latest changes in bookkeeping, payroll, reporting requirements and other key areas in The General Ledger newsletter. You can call our free Member Answerline and let experts answer your everyday bookkeeping and payroll questions. You get special member discounts on products and services for bookkeepers, and more. To join now, click here:


BOOKKEEPING TIPS is a twice monthly newsletter published by
The American Institute of Professional Bookkeepers (AIPB),
Suite 500,  6001 Montrose Road, Rockville, MD 20852.
Tel.: 800-622-0121, Fax: 800-541-0066,

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