Compliance Monitor

Regulatory change tracking, filing deadline management, audit prep checklists, and compliance calendar maintenance for accounting and finance firms. Use when...

Compliance Monitor Skill

Regulatory tracking, deadline management, and audit prep for accounting and finance firms.

When to Use

• Tracking federal and state tax filing deadlines for clients
• Monitoring GAAP/FASB/IRS regulatory changes that affect client engagements
• Generating audit preparation checklists
• Managing compliance calendars and sending deadline reminders
• Flagging upcoming obligations across a client portfolio

When NOT to Use

• Actual tax preparation or filing — use a tax professional and licensed software
• Securities/investment compliance (SEC, FINRA, CFTC) — out of scope
• Legal advice — always escalate to counsel
• Real-time regulatory databases — this skill uses web search + known sources; always verify with primary sources
• International compliance outside US federal/state — limited coverage

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Core Capabilities

1. Filing Deadline Tracking

Track key IRS and common state filing deadlines:

Key Federal Deadlines (Tax Year 2025):
- Jan 15: Q4 estimated tax payment (Form 1040-ES)
- Jan 31: W-2 / 1099-NEC / 1099-MISC employer filing
- Feb 28: Paper 1099 information returns to IRS
- Mar 17: S-Corp / Partnership returns (1120-S, 1065) — or 6-month extension
- Apr 15: Individual (1040), C-Corp (1120), FBAR (FinCEN 114), Gift Tax (709)
- Apr 15: Q1 estimated tax payment
- Jun 16: Q2 estimated tax payment
- Sep 15: Q3 estimated tax payment; extended S-Corp/Partnership returns
- Oct 15: Extended individual and C-Corp returns
- Dec 31: Year-end planning cutoff (retirement contributions, charitable gifts, etc.)

To look up a specific deadline or extension:

1. Use web_search with query: "[form number] [tax year] due date IRS" or "[state] [entity type] filing deadline [year]"
2. Cross-reference with IRS.gov Tax Calendar: https://www.irs.gov/businesses/small-businesses-self-employed/online-tax-calendar

2. Regulatory Change Monitoring

Monitor for updates from key sources:

Federal Sources:

• IRS Newsroom: https://www.irs.gov/newsroom
• FASB Standards Updates (ASUs): https://www.fasb.org/page/PageContent?pageId=/standards/accounting-standards-updates.html
• AICPA Standards: https://www.aicpa-cima.com/resources/landing/professional-standards
• Federal Register (tax regs): https://www.federalregister.gov/agencies/internal-revenue-service

Search Pattern:

web_search: "IRS [topic] [year] update" OR "FASB ASU [year] [topic]" OR "GAAP change [year] [industry]"

What to watch for:

• New or revised tax forms
• Rate/threshold changes (standard deduction, contribution limits, depreciation tables)
• New reporting requirements (e.g., 1099-K threshold changes, digital asset reporting)
• FASB ASUs affecting client financials (revenue recognition, lease accounting, credit losses)
• State conformity with federal changes

3. Audit Preparation Checklists

Financial Statement Audit Checklist

Pre-Audit (60-90 days before fieldwork):

• Confirm audit scope and materiality thresholds with engagement partner
• Update permanent file: entity structure, key contracts, related parties
• Request client PBC (Provided By Client) document list
• Confirm trial balance tie to prior year audited financials
• Identify significant accounting estimates (impairment, reserves, fair value)
• Update risk assessment — new systems, transactions, personnel changes

PBC Document Request List (standard):

• General ledger (full year)
• Bank statements and reconciliations (all accounts)
• AR aging schedule and subledger
• AP aging schedule and subledger
• Fixed asset register with additions/disposals
• Debt agreements, schedules, and confirmation responses
• Lease agreements (ASC 842 schedules)
• Payroll records and tax filings (941s, W-3)
• Entity formation docs, minutes, and resolutions
• Related party transaction schedule
• Significant contracts entered/modified during year
• Insurance policies and certificates
• Prior year audit report and management letter

Fieldwork:

• Confirm cash — bank confirmations sent and returned
• Test AR — confirmations, subsequent receipts
• Test AP — search for unrecorded liabilities, subsequent disbursements
• Inventory count observation (if applicable)
• Test journal entries for unusual/late entries
• Analytical procedures — fluctuation analysis vs. prior year and budget
• Evaluate going concern indicators

Wrap-Up:

• Subsequent events review (S-1 and S-2 events)
• Representation letter obtained
• Contingencies and commitments confirmed
• Disclosure checklist completed
• Final quality review

IRS Audit Response Checklist

• Identify audit type: correspondence, office, or field
• Note response deadline (typically 30-60 days from notice date)
• Pull all documents related to questioned items
• Prepare organized binder: chronological, tabbed by issue
• Draft response letter — factual, concise, no volunteering
• Identify potential penalties and abatement opportunities
• Consider power of attorney (Form 2848) if CPA will represent
• Document all communications with IRS (dates, contact names, reference numbers)

4. Compliance Calendar Generation

To generate a compliance calendar for a client, collect:

• Entity type (individual, S-Corp, C-Corp, Partnership, LLC)
• State(s) of filing
• Fiscal year end
• Special situations: payroll, sales tax, multi-state, nonprofit, foreign accounts

Then produce a month-by-month action list with:

• Deadline date
• Form/filing required
• Responsible party (client vs. firm)
• Status tracking (pending / in progress / filed)

Example output format:

CLIENT: Acme Corp (S-Corp, Texas, FYE Dec 31)
COMPLIANCE CALENDAR — 2026

JAN 31  → W-2s to employees; 1099-NECs to contractors
JAN 31  → File W-2s (W-3) and 1099-NECs with IRS
MAR 17  → Form 1120-S due (or file 7004 extension)
APR 15  → TX Franchise Tax Report due
APR 15  → Shareholder K-1s delivered
SEP 15  → 1120-S extended return due
DEC 31  → Year-end tax planning review

5. Regulatory Change Alert Workflow

When asked to monitor for regulatory changes on a topic:

1. Search for recent updates:

   web_search: "[topic] IRS 2026 update" 
   web_search: "FASB ASU 2025 2026 [topic]"
   web_search: "[state] tax law change 2026"
   

2. Summarize the change: what changed, effective date, who it affects, action required

3. Flag impact for known client types:

   • Individuals vs. businesses
   • Industry-specific (real estate, healthcare, manufacturing)
   • Size thresholds that trigger/exclude the rule

4. Recommend action: update workpapers, notify clients, revise checklists, or monitor further

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Usage Examples

Example 1: Client Deadline Check

"What are all filing deadlines for our S-Corp clients in Q1 2026?" → Generate list: 1099s (Jan 31), W-2s (Jan 31), 1120-S (Mar 17) or extension, state variants

Example 2: Regulatory Alert

"Has the 1099-K threshold changed for 2025?" → web_search for IRS 1099-K 2025 threshold → summarize current rule, effective date, client impact

Example 3: Audit Prep

"We have a financial statement audit starting in 6 weeks. What do we need?" → Run through Pre-Audit checklist, generate PBC request list, identify risk areas

Example 4: Compliance Calendar

"Build a compliance calendar for a new C-Corp client in Illinois, FYE June 30" → Map fiscal year to federal Form 1120 deadlines, IL corporate income tax, plus any payroll/sales tax obligations

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Key References

• IRS Tax Calendar for Businesses: https://www.irs.gov/businesses/small-businesses-self-employed/online-tax-calendar
• FASB Standards & ASUs: https://www.fasb.org
• AICPA Practice Aids: https://www.aicpa-cima.com
• State Tax Authority Directory: https://taxfoundation.org/state-tax-agencies/
• FinCEN (FBAR, BSA): https://www.fincen.gov

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Important Disclaimers

This skill provides compliance frameworks and checklists — not legal or tax advice. All deadlines should be verified against primary sources before relying on them. Tax law changes frequently; always confirm current rules with IRS.gov or a licensed tax professional before advising clients.