Taxable settlement? The tax side of staying quiet

The news headlines as of late have been filled with stories of individuals who are telling the world their stories of sexual harassment. The cast of accused encompasses a wide span of people. Hollywood, journalists and government officials are just a few of the many who have been called to account for their alleged behavior. …

Keep Reading

90 Days, the IRS and Tax Court – your probationary period

If you have received a notice of deficiency from the IRS, you probably already know that procrastination is not your friend when it comes to this notice. The IRS issues a statutory notice of deficiency, sometimes referred to as the 90 day letter, if there has been a redetermination of your tax liability. The redetermination …

Keep Reading

401(k) loans: back to the basics of borrowing

There are a few basic rules the DOL has established when it comes to 401(k) loans. More and more companies are including the loan option in their plans. Listed below are some basic tips on loans. Please remember to review your own Summary Plan Description for specific guidelines related to your plan loans. If your …

Keep Reading

Year-end physical inventory count instructions

The year-end physical inventory count can be a daunting task for companies that have large amounts of inventory. Having a successful physical inventory count relies heavily on planning, emphasis and direction provided by management. There can be significant ramifications to an unsuccessful inventory count such as recounts of total inventory, material adjustments to accounting records, …

Keep Reading

How can you benefit from an 83(b) election?

When is an 83(b) election appropriate to make and what are some of the benefits from it? Section 83 applies to employees who receive stock that is subject to vesting. It is an election that would allow the taxpayer to be taxed at the time of the receipt of the property. There are various examples …

Keep Reading

Implications of misclassifying workers

What type of workers do you have in your business? How do you determine if they are a contractor or an employee? These are questions that need to be asked and thought about on a consistent basis because of the implications that the wrong answers can create. You don’t want to end up misclassifying workers. …

Keep Reading

The basics of preventing fraud in any business

Upon hearing the term “fraud,” companies like Enron and Worldcom typically come to mind. While it’s usually these large, complex cases that get the public’s attention, the truth is that numerous forms of fraud can run rampant in any type of organization. In fact, a study by the Association of Certified Fraud Examiners (ACFE) reported …

Keep Reading

How to increase your 401(k) participation

Like most people who work in the accounting field, I am a stickler when it comes to spending. I am also a strong believer in the concept of living below your means and that saving early for retirement can go a long way. But I know that everyone is not like me. When I saw …

Keep Reading

Tax implications of Bitcoin transactions

Cryptocurrencies are making a big splash in today’s economy. The most popular cryptocurrency is the Bitcoin. The price has skyrocketed in 2017 from $1,000 to over $5,000 U.S. dollars. This is because the Bitcoin is becoming more prevalent in use and many companies are beginning to recognize and accept it as a payment system. Most …

Keep Reading

1099s already? Start thinking about them now

Every year, Christmas decorations seem to show up earlier and earlier at stores. We all know those people that get upset with anything Christmas related showing up before Thanksgiving. In some ways I feel like I am doing the same thing with this blog. I can just imagine people saying, “1099s? The year’s not even …

Keep Reading