Are PayPal Accounts Reported on the FBAR?

When filing your Report of Foreign Bank and Financial Accounts (FBAR), you may not be inclined to report your offshore PayPal account. After all, PayPal accounts aren’t real bank accounts, right? Well, you may need to think twice about this question. According to John C. McDougal, a senior special trial attorney with the Internal Revenue …

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Plan sponsor record retention guidelines

As plan auditors we are frequently asked how long documents relating to a plan should be retained by the plan sponsor. Like anything related to the Internal Revenue Service (IRS), there is no one simple answer. Before discussing some general guidelines on record retention, let’s discuss some general responsibilities of the plan sponsor to operate …

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States Focus on the Taxation of Cloud Based Services

With the ever-increasing advances in technology, taxation of cloud based services and products have recently piqued the interest of state taxing authorities. Many of the existing state tax laws do not specifically address these issues, since the laws were written when these types of services were not very typical. As such, many states have begun …

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Applying Useful Lives to Fixed Assets

Selecting useful lives to depreciate fixed assets over can be a difficult task. It is hard to predict how long an asset will last or how long it will be before it becomes obsolete. The answer to this question first depends on the type of asset. A computer, for example, can become obsolete well before …

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R&D Tax Credit: What Does R&D Mean?

When I say “R&D” what do you think of? Is it a scientist making a breakthrough? Maybe it’s an engineer at the forefront of technology? If so, you are on the right track, but if that’s all you think of, then it’s time to start taking a broader view. We have blogged about the R&D …

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Rules for Claiming Software Expenses for Taxes

The rules for claiming software expenses are complex because there are so many different ways software can be acquired or used. You can buy, lease or develop software to use, or develop it to sell to others, and each of those methods comes with its own set of rules. If you buy software, the general …

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Tax Favored ABLE Accounts for Those Faced with Disabilities

Recognizing the special financial burdens faced by families raising children with disabilities, ABLE accounts (Achieving a Better Life Experience) are designed to enable people with disabilities and their families to save for and pay for disability related expenses. Enacted on December 19th, 2014, as part of the Tax Increase Prevention Act of 2014, the ABLE …

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The Basics of the Statement of Cash Flows

In our last blog posting, we covered certain non-recurring items that the Emerging Issues Task Force is looking at related to Statement of Cash Flows presentation. Let’s step it back a bit and go over the basics of the Statement of Cash Flows. Who – Financial statement preparers. What – The Statement of Cash Flows …

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Q&A: Advertising

What is advertising? As defined, advertising is the promotion of an industry, entity, brand name, product or service through the use of media. Its purpose is to create a positive image for the company and to encourage individuals to use the company’s products or services. Advertising, however, is not fundraising. When do I report the …

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