A New Way to Drive Tax Revenues

The I-95 Corridor Coalition is testing out a new way of collecting tax revenues. With the ever growing popularity of fuel efficient vehicles such as electric cars and vehicles touting high miles per gallon, states are having a hard time coming up with enough revenue to fill the budget for road repairs and rest areas. …

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Disproportionate distributions in an S Corporation

First, let us start with the definition. A disproportionate distribution is a payout of corporate profits whereby some shareholders receive cash or other assets and others receive an increased interest in the company. So, why is this important? Good question! S Corporations need to carefully monitor distributions to shareholders to make sure there are no …

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How to Prepare for Your 401(k) Audit

There are a few simple steps that can be taken during the planning phase of the audit in order to gain efficiencies during the fieldwork phase. You should be in communication with your auditor before the Plan’s year-end date. This is the best time to come to an agreement about the terms, timing and fees …

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Brexit and Bankruptcy

How can a macro-economic event, such as when the United Kingdom voted to exit the European Union, impact everyday people and corporations and help them emerge from bankruptcy protection in the United States? When the UK voted to exit the EU, this caused a significant panic in the investment community, particularly investments in foreign stocks. …

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Why You Should Keep Your CPA in the Loop

Planning for your year-end audit, review or compilation engagement should be kept on your mind all year round. There are several events that can occur in your business throughout the year that can impact the financial statements and the year-end engagement. We value a continuing and positive rapport with our clients throughout the year. While …

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Potential $34 Million Error in Amended Return Refunds

The Treasury Inspector General for Tax Administration (TIGTA) recently released a report (Reference number 2016-30-032) stating that improvements are necessary within the IRS’s examination process for approving amended returns with claims for refunds and abatements. TIGTA found that within a statistical sample of 84 amended returns that 31 claims were not appropriately substantiated. The sample …

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Inventory production – accounting for indirect costs

I often see that indirect costs that are incurred in the production of inventory are not capitalized, especially with smaller companies. Direct labor costs may be captured in the inventory valuation but not always indirect costs. So, what are indirect costs? Indirect costs (or “overhead”) include such items as: Building/factory rent Utilities Supervisory payroll Payroll …

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Five Easy Changes to Create Value in Your Small Business

A handful of questions to begin – Are you thinking of selling your small and medium-sized entity (“SME”)? Is your largest asset in your estate your business? Are you the CEO, CFO, general manager and sales force of your SME? Do you fear going on a two week vacation because of the number of phone …

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Information Security

Earlier this month the United States Computer Emergency Readiness Team (US-CERT) and the Department of Homeland Security issued an alert that Symantec and Norton antivirus software contain multiple vulnerabilities. Symantec has, in response, released patches that will fix the vulnerabilities and the US-Cert encourages all users to patch their software immediately. The alert is good …

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When & How to Sign Up for Medicare Parts A & B

As more individuals push off retirement and getting Social Security, many are in danger of missing the enrollment period for Medicare Part B. In most cases, if you don’t sign up for Part B when you’re first eligible, you’ll have to pay a late enrollment penalty for as long as you have Part B. Your …

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