Arizona Legislature Assists Repair, Installation and Maintenance Businesses with TPT Relief

Repair, installation and maintenance companies in Arizona have often been classified as contractors for purposes of transaction privilege tax (TPT).  While this allowed them to purchase supplies tax-free, it subjected them to the standard 30% contractor deduction for labor, regardless of actual labor cost. Now there’s relief. Arizona Governor Brewer signed into law H2535 which …

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What Can the Site Visit Tell Me That’s Not Already in the Numbers?

One of the most important parts of a good business valuation is viewing the facilities in which a company operates and speaking at length with those most involved in the management of the business.  The primary objective of the site visit is to gain a broader perspective of the business and its operations and identify …

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The Role of the Expert Witness: Advocacy vs. Objectivity

Being a business valuator/expert witness often places the practitioner in the precarious position of deciding whether to be an advocate for their client’s position or an objective professional whose job it may be to not necessarily please the client. After many years of practice, it is very difficult for the practitioner to separate his or her …

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Overhead Myth – Regulating Administrative Expenses

I was surprised this morning when I opened my email and saw the news: Today, the CEOs of all three of the major charity watchdog groups (GuideStar, BBB Wise Giving Alliance, and Charity Navigator) published a letter “condemning the use of administrative expenses as a measure of nonprofit performance.” This is HUGE news for the …

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Is the IRS Getting Sneaky?

We have heard it said many times “know your customers”.  Based on this premise the IRS is trying to understand factors that affect how compliant you are as a taxpayer.  By focusing their questions to Schedule C filers they hope to understand what factors contribute to compliant taxpayers and what factors contribute to non-compliant taxpayers. …

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Fraud Risk Assessments in Government

You may have heard your auditor ask you in the past whether management is doing a fraud risk assessment on a regular basis.  You may also have heard them ask how often the results of that assessment are being communicated to your board.  In many of the governmental entities we’ve done fraud questionnaires with, it …

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