Even wizards pay taxes. Just ask Ron Weasley

There is no magic spell that can save Rupert Grint – a.k.a. Ron Weasley – from the tax collector. In August, the Harry Potter star lost an appeal for a £1.3 million tax refund. Grint, on the advice of his advisors, attempted to change his accounting date so that 20 months of income would be …

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Have you heard of tax code Section 181?

Back in 2004, in conjunction with the American Jobs Creation Act, there was a tax code section passed by Congress of which few people have heard. Section 181 allows taxpayers to claim their investment as a 100% loss on taxable income up to $15,000,000 (Yes, that is 6 zeros!) for qualifying motion pictures and television …

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How data breach can affect your business

Data breach is a topic that makes the news when large companies are affected. Earlier this year, Arizona’s largest health system provider, Banner Health, was hacked. As one of the affected individuals, I can only think about the immediate cost that Banner Health incurred when they offered me and all those impacted by the breach …

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Is crowdfunding taxable? Your generosity and the IRS

As the internet has grown, it has helped take crowdfunding from a novelty to an industry in which billions of dollars change hands each year. Companies like Kickstarter and GoFundMe have helped the industry grow to the point that it now rivals venture capital and angel investments as a source of financing. Celebrities like Spike …

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A guide to ERISA fidelity bonds for employee benefit plans

The Employee Retirement Income Security Act (ERISA) has rules and regulations in place to protect private sector employee benefit plans from risk of loss. ERISA section 412 and related regulations (29 C.F.R. § 2550.412-1 and 29 C.F.R. Part 2580) require that fiduciaries and any person who “handles funds or other property” of an employee benefit …

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New AZ minimum wage business impact

On November 8 Arizona voters passed the “The Fair Wages and Healthy Families Act” to increase the AZ minimum wage. Here are our initial observations regarding this new law. We expect that there will be clarification and guidance in complying with the new act forthcoming from the state. For 2016 the minimum wage is $8.05 an …

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Unintended consequences of employee incentive programs

The recent revelation regarding aggressive sales practices at Wells Fargo shocked the financial community and highlights some of the unintended consequences of employee incentive programs. Employers normally have the best of intentions when they roll out an incentive program. The desired result is a win-win situation in which revenues increase and employees are rewarded for …

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Phoenix conforms to AZ TPT simplification rules

As you may know, as of July 1, 2016, Arizona has begun to implement their new TPT Simplification process. While some find the AZ TPT simplification process to be a headache, it has some advantages. Once all of the cities conform to the new law, taxpayers will only be required to file a single form …

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New 2016-2017 special per-diem rates for travel

Use of per-diem rates has been a long standing method of deducting business travel expenses for tax purposes to encompass amounts paid for lodging (excluding taxes), meals and incidental expenses. Rate tables are utilized that show daily expense rates and are used in place of the laborious task of keeping more detailed expense records of …

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Deferred compensation: does it work?

Former Major League All-Star Bobby Bonilla made headlines on July 1st, 2011, when he showed up on the New York Mets payroll. Most would expect a 48 year old former major leaguer to be on the payroll in the position of a coach or mentor, but Bobby Bonilla was just beginning to receive money that …

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