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A company that is in business for any length of time will find itself spending an increasing amount to maintain an ever-increasing storage facility for its payroll records To avoid this issue, there should be a document destruction policy that requires the accounting staff or records administrator to remove and destroy certain types of records after they have exceeded a preset age The number of years used before document destruction is authorized will vary by company, since they may be located in states that require extra time periods before certain types of records can be eliminated By using a retention schedule and document destruction policy, a company can more or less automatically destroy records after a document s retention period has expired However, some companies prepare and execute a form similar to that shown in Exhibit 121, which requires specific authorization to destroy records This permits a recheck of the decision to destroy, even if a document is on a retention schedule This might be necessary if the retention periods are changed by law, litigation is in process that may require use of the documents, or other circumstances arise However, records should generally be destroyed in accordance with a document destruction policy so that a company can use its consistent application as a defense in the event of a lawsuit where the litigant attempts to obtain access to the records Each record scheduled for destruction should be checked, because it is far too easy to destroy vital records through erroneous filing In no event should a box of records be destroyed on the basis of the label; the contents must be reviewed There are many ways to destroy records For paper, the cleanest and most efficient method is shredding An alternative is to pulverize and recycle, although this may be unacceptable for confidential material Finally, there is incineration, which is not good for the environment and also often leaves pieces of unburned paper Whatever method is used, strict accountability as to what was done, when, and how successful it was is needed to ensure adequate control of the process.



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(Individual, Estate, or Trust)

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OMB No 1545-0121

Department of the Treasury Internal Revenue Service (99)





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business need to limit the space devoted to databases for a single testing program This problem, however, should pose the briefest of obstacles in building modern, authentic tests Versioning of reference material is also an important issue Ensuring that the databases are both up to date and consistent with test content and scoring keys is a challenge The content of the databases is dynamic, changing as rules and regulations change Distribution to test centers, however, is periodic as is distribution of test content Ensuring that all test questions conform to the current database and coordinating the release of new database content is a balancing act In accounting, updating these tools must be coordinated with both the timing of regulatory changes and the retirement of obsolete test content Multi-Stage Adaptive Test Models The Uniform CPA Examination was launched using a computerized semiadaptive design based on testlets (a special case of the CAST model proposed by Luecht and Nungester, 1998) This represents the rst operational testing program to make use of the model in a large volume certi cation program The selection of the model was based on expected gains controlling item exposure, providing useful feedback information, ensuring score accuracy at shorter test lengths, and allowing examinees a limited opportunity for review and revision of their responses (Luecht et al, 2002) The main purpose of the CPA examination is to identify candidates with suf cient knowledge and skills to protect the public interest A secondary purpose is to provide accurate information to failing candidates to help guide further study to retake the examination The MST targets the administration of appropriately dif cult items to lower or higher scoring candidates, while ensuring a broad range of content for diagnostic scoring and precision of the passing score decision (Breithaupt & Hare, 2004) There are pragmatic issues that limit the usefulness of the adaptive model Key among these are limitations of the item banks, administration software and scoring validation methods Equally, or perhaps more, important is the burden on the testing program to communicate to stakeholders accurately and gain acceptance of the administration method from the profession A number of questions were raised by the oversight boards and candidates when the AICPA announced its decision to implement an MST design Examples are How can making high scoring candidates take harder questions be fair to them Won t giving easier items to low scoring candidates afford them a better chance to pass than if they were forced to take the same items as the higher scoring candidates and Do you mean that two candidates may answer the same number of items correctly and one may pass while the other one fails While the administration and scoring models might be established among testing professionals, it is important to recognize and address the misconceptions of each stakeholder group A lack of support from stakeholders may result in the rejection of a sound test design and the validity of score interpretations may be questioned.

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Use a separate Form 1116 for each category of income listed below See Categories of Income on page 3 of the instructions Check only one box on each Form 1116 Report all amounts in US dollars except where specified in Part II below a b c Passive income High withholding tax interest Financial services income d e f Shipping income Dividends from a DISC or former DISC Certain distributions from a foreign sales corporation (FSC) or former FSC g h i j Lump-sum distributions Section 901(j) income Certain income re-sourced by treaty General limitation income

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