The Importance of A Conflict of Interest Policy

Conflict of Interest policies for board members are a much needed piece for any not-for-profit organization.  A conflict of interest policy will help board members recognize when their activities are related party transactions and should have different treatment.  These treatments include processes for decision making and disclosures to the financial statements.  When a board member …

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Plan Transfers

In today’s market the mergers and acquisitions of businesses are on the rise.  If the company maintaining your 401(k) plan is purchased, or merges with another company, what issues should you be considering?  There are risks associated with the accounting of plan transfers that the plan administrator should be aware of.  Plan transfer risks include: …

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New Reporting for Certain Ponzi Scheme Losses

Financial headlines in the last several years have been filled with stories of investors whose losses have occurred as a result of Ponzi Schemes.  In 2009 the U.S. Securities and Exchange Commission identified 20% of the fraud cases they investigated as Ponzi schemes.  Investment News reported that 9,244 billion in losses from Ponzi schemes were …

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Determination of Income for Child Support: Consider Income Control When A Parent Holds an Interest in a Closely Held Business

When a parent has income generated from an ownership interest in a closely held corporation or partnership, it is important to determine how the earnings of the entity flow through to the parent.   Both Subchapter S-Corporations and Partnerships are pass-through entities.   The income or loss from operations flows through to the parent’s individual return based …

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Best Practices for Not-for-Profit Organizations

“Best practices” can be a buzz phrase you hear a lot, especially when it comes to governance of a not-for-profit organization.  With the overload of information available to organizations, it’s easy to see why some view the task of incorporating best practices into their own activities as a bit daunting. The following are some “basics” …

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Assessing Your Assessment the Wrong Way

Tax assessments are formally recorded on a record of assessment in accordance with Internal Revenue Code Section 6203.  The assessment is made by an assessment officer signing the summary record of assessment per Treasury Regulation section 301.6203-1.  The summary record of assessment must “provide identification of the taxpayer, the character of the liability assessed, the …

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Plan Restatements and Amendments

Have you recently restated or amended your plan document?  If yes, are you confident that your plan is being administered in accordance with the updated sections?  A common fallacy of the plan administrator is the sole reliance on the third party administrator (“recordkeeper”) to ensure that the plan is being properly administered, subsequent to the …

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Choosing A Phoenix Area Real Estate Appraiser

A real estate appraisal is an opinion of market value formed by a professional appraiser. The process involves specific market area research, analysis of significant information relevant to the property, specialized expertise and impartial judgment regarding the value of the property. To begin your search, ask for referrals from an accountant, attorney, real estate agent …

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Commercial Damages – Lost Profits, Loss of Business Value, or Both

Damages in commercial litigation are generally determined based on a lost profits calculation or as a reduction in value of the business. Where the damage is temporary, it is usually more appropriate to determine the lost profits from the date the damage was caused to the date the business recovered from the actions of the …

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