Professional Accounting Blog

Accounting For Your Prosperity

The Bipartisan Budget Act of 2018

Posted by Karen McCarthy on Feb 15, 2018 3:39:21 PM

Topics: Tax Planning & Strategies

New budget agreement brings additional tax changes

The ink on the Tax Cuts and Jobs Act (TCJA), which swept in a tidal wave of changes to federal tax rules, had been dry for only seven weeks before Congress passed more legislation that could affect many taxpayers. The Bipartisan Budget Act of 2018 (BBA), which President Trump signed into law on February 9, 2018, contains several tax-related provisions that could reduce the amounts some taxpayers owe for the 2017 tax year.

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DOL Audit Risk: Missing Participants in Defined Benefit Plans

Posted by Brian Dunfee on Feb 15, 2018 9:16:00 AM

Topics: Accounting & Auditing, Benefit Plan Advising & Auditing

The challenge of locating missing participants for benefits due to them under a qualified retirement plan is nothing new.  However, an apparent new focus by auditors with the U.S. Department of Labor (DOL) regarding vested benefits under a defined benefit pension plan (DB) is making this challenge especially onerous and, potentially, costly.

The DOL has recently begun seeking out for audit inquiry those plans that have filed Form 5500s indicating large numbers of terminated vested participants.  The data included on the census file may be focused on demographic and historical payroll data in order to provide for accurate benefit payment calculations.  However, as time goes on, those components of the census may not change but mailing addresses can become obsolete very quickly after termination of employment and as time progresses beyond that date.

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Deadline Quickly Approaching to Opt-In to Ohio’s Centralized Filing for City Tax Returns

Posted by Leslie Kasten on Feb 1, 2018 12:39:24 PM

Topics: Tax Planning & Strategies

New Tax Law Provides More Generous Depreciation-Related Tax Breaks.jpg

There are over 600 cities and villages in Ohio that impose a municipal income tax on businesses.  Many businesses find it a burden to comply with the filing requirements and the price to comply is sometimes higher than the taxes that are due.

Effective for taxable years beginning on or after January 1, 2018, business taxpayers are able to opt-in and file one municipal net profit tax return with the Ohio Department of Taxation.  Sole proprietors, single member LLC’s, and individuals are not eligible for this filing system.  Businesses that elect into the centralized system will file a single municipal net profits tax return that will include every municipality in which they are required to file returns. It is not mandatory to opt-in, however, the centralized filing system is an all or nothing system meaning you cannot pick and choose which cities to include or exclude.

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Several Provisions of the Tax Cuts and Jobs Act (TCJA) Target Base Erosion and Inbound Investment

Posted by Allen Littman on Jan 30, 2018 1:34:51 PM

Topics: Tax Planning & Strategies, Accounting & Auditing

New Rules Intended to Prevent Abuse of the New U.S. Territorial Tax System Also Target Foreign-Controlled Companies

Background

As 2018 unfolds, the fog of tax reform has cleared and we can now clearly see the many benefits of the U.S. Tax Cuts and Jobs Act.  Lower tax rates for businesses and individuals, increased expensing of business asset purchases, repeal of the corporate alternative minimum tax (AMT) and increase of individual AMT thresholds are just a few of the tax benefits now available to U.S. taxpayers.  For U.S. businesses owned by non-U.S. persons, however, it is a bit more of a mixed bag, as there are several unfavorable provisions.  These include several provisions ostensibly designed to prevent base erosion in the light of the new U.S. territorial tax system.  Many of these provisions, however, target foreign-controlled companies.  

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Could Receivables Fraud Strike One of Your Clients?

Posted by Meaden & Moore on Jan 25, 2018 9:34:48 AM

Topics: Investigative and Forensic Accounting

Accounts receivable are a popular fraud target because so many transactions are recorded to it. This article describes common receivables scams, as well as various preventive measures and methods of detection.

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Why Experts Insist on Touring a Company’s Facilities

Posted by Meaden & Moore on Jan 22, 2018 10:48:40 AM

Topics: Investigative and Forensic Accounting

Without site visits and management interviews, it can be difficult for a valuation professional to gather all of the information needed to fully understand a business’s operations. This article provides insight on how these steps facilitate the valuation process. A sidebar identifies three cases that showcase the importance of these procedures.  

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Solving the Mystery of the Phantom Employee

Posted by Meaden & Moore on Jan 18, 2018 10:01:32 AM

Topics: Investigative and Forensic Accounting

Ghosts in a business’s payroll record may be costing them thousands of dollars in bogus salary and bonus expense each year. This article explains how phantom employee frauds work, including the warning signs and tips to help businesses “exorcise” phantom employees from their books. 

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How the Tax Reform Affects Your Company’s Financial Statement

Posted by Kelli Bernstein on Jan 17, 2018 8:51:42 AM

Topics: Tax Planning & Strategies, Accounting & Auditing

Some of the tax reform provisions will likely significantly affect financial statements. A few things that likely will be impacted by the reduction in the corporate tax rate to a flat 21 percent include the income tax provision, deferred taxes and valuation allowance assessment.

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Calculating Lost Profits for Start-ups

Posted by Meaden & Moore on Jan 15, 2018 2:44:38 PM

Topics: Investigative and Forensic Accounting

Lost profits estimates are often based off of a company’s historical performance. But the usual methods of calculating these damages may fall short when a start-up is involved. This article explains the alternative methods of assessing lost profits that experts use for companies without an established track record.

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New Tax Law Provides More Generous Depreciation-Related Tax Breaks

Posted by Jonathan Ciccotelli on Jan 4, 2018 9:14:41 AM

Topics: Tax Planning & Strategies

If your business is buying new assets in 2018, you’ll be able to benefit in several ways under the new tax reform law, commonly referred to as the “Tax Cuts and Jobs Act” (TCJA), which was signed into law by President Trump on December 22. You even may be able to take advantage of some of the enhancements on your 2017 tax return!

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