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:

4. Individuals vs. businesses
5. Industry-specific (real estate, healthcare, manufacturing)

6. Size thresholds that trigger/exclude the rule

7. 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.