Real Estate Professional – Would You Really Qualify

In a recent Tax Court case, the court concluded that a taxpayer, who also engaged in a consulting activity, wasn’t a real estate professional for purposes of the passive activity loss (PAL) rules. He failed to show that more than half of the personal services that he performed during the year were performed in real …

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ERISA Attorneys – Why Have One?

One of the key reasons to hire an Employee Retirement Income Security Act (“ERISA”) attorney is to complete a plan document that will be in compliance with all ERISA regulations. The plan document should be reviewed every two years by your attorney for any amendments that need to be made in order to stay in …

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Enterprise Accounting: Government Vs. Business

In the world of business financial reporting, readers of financial statements are primarily the owners/management of the business, its lenders, and possibly current or future investors.  A government’s financial statements usually have a much wider impact.  A government’s financial statements may be used as a tool to evaluate business and residential relocations, to determine the …

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More changes coming to form 990

The 990 is an annual informational reporting return that nearly all not-for-profit organizations must file with the IRS on an annual basis. It provides various information on the filing organization’s mission, programs, and finances. The 990 received a serious overhaul by the IRS a few years ago, and they’re still making changes to this day. …

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Top 12 Points to Avoid Endowment Confusion

Here are twelve points on how to avoid endowment confusion. These points are in no particular order. (1)  UPMIFA is a uniform law.  Each state has adopted their own version of this law (except for Pennsylvania).  See upmifa.org for more information. (2) If a permanent endowment goes underwater, the negative amount in unrestricted net assets is considered …

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Enrollment Documentation

Did you know that one of the most common errors found in a 401K audit is due to a lack of proper documentation of enrollment? When a company is required to have their 401K plan audited it is a good idea to make sure that there are proper procedures as well as documentation in place …

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Segregation of Duties: Cash

In previous blogs, I have written on “Segregation of Duties: Accounts Receivable and Sales” and “Segregation of Duties: Inventory and Cost of Sales”.  Have you made the necessary adjustments to your internal control structure to adequately provide these important segregations?  Just to reiterate – these are extremely important if you wish to reduce the risk …

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