Professional Accounting Blog

    Accounting For Your Prosperity

    Supreme Court’s Wayfair Decision Makes Waves

    Posted by Leslie Kasten on Jun 22, 2018 11:37:08 AM

    Topics: Tax Planning & Strategies

    Physical Presence No Longer Required to Assess Sales Tax

    Yesterday, in a 5-4 vote, the US Supreme Court in South Dakota v. Wayfair ruled that states can begin collecting sales taxes from out-of-state merchants even when they don’t have a physical presence within the state.  The Court stated that “there is nothing unfair about requiring companies that avail themselves of the States’ benefits to bear an equal share of the burden of tax collection.  The judgement will impact sellers in every state across the nation and is estimated to generate between $8 billion and $23 billion a year in additional sales tax revenues. This ruling overturns the 1992 decision in Quill v. North Dakota, which had set a precedent to protect retailers’ out-of-state transactions from sales tax levies.

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    Be aware of tax related identity theft scams all year long

    Posted by Jonathan Ciccotelli on Jun 21, 2018 10:50:27 AM

    Topics: Tax Planning & Strategies

    With the filing date for 2017 in the rearview mirror for most businesses and individuals, the last thing you want to think about is income taxes. Unfortunately, though, criminals who commit tax-related identity theft don’t work seasonally — they’re constantly devising and unleashing new schemes.

    And even though the IRS has taken successful steps to reduce tax-related identity theft in 2017, it cautions taxpayers to stay alert for scams year round.

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    How High Are We?

    Posted by Lloyd Bell on Jun 6, 2018 2:48:50 PM

    Topics: Accounting & Auditing, Corporate Finance

    GF Data Resources began its latest quarterly report with the statement, “High valuations and abundant use of debt continued to mark completed deal activity in the first quarter of 2018.” Let’s dig deeper and get a better understanding of “high.”

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    Cybersecurity: Employee Benefit Plan Edition

    Posted by Brian Dunfee on May 22, 2018 8:44:00 AM

    Topics: Accounting & Auditing, Benefit Plan Advising & Auditing

    The threat of cybersecurity is nothing new these days.  However, the threat continues to promulgate itself into more and more aspects of our daily life.  From GPS systems to automobile computer systems to social media platforms, cybersecurity threats are continuing to evolve and will continue to inflict harm on the unprepared.  And, employee benefit plans are no exception.

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    Identifying and Combating Construction Change Order Fraud

    Posted by Aaron T. Cook on May 8, 2018 3:40:56 PM

    Topics: Accounting & Auditing, Construction

    In part I of our series, How to Spot Construction Change Order Fraud, we highlighted examples of change order abuse. In this post, we will dig deeper into ways to identify threatening behavior ahead of time and ways to prevent change fraud.

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    Accounting for Merger and Acquisition Transaction Costs

    Posted by John Nicklas on Apr 25, 2018 11:33:37 AM

    Topics: Accounting & Auditing

    Prior to 2009, merger and acquisition (M&A) transaction costs were capitalized and recorded as part of the purchase price of a business combination. But with the issuance of FASB 141-Revised (which became effective in late 2008 or 2009), things changed dramatically. Under the revised Generally Accepted Accounting Principles (GAAP) guidelines, direct M&A transaction costs now needed to be treated separately from the business combination and expensed as occurred. This was a big change and a big topic of conversation almost 20 years ago. It also had a significant impact on the bottom line of many company’s P&Ls. Even today, many CPAs and acquisition teams struggle with the accounting and tax treatment of acquisition costs. Below we will discuss the various types of costs and the general accounting and tax treatment.

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    Court Rejects Compensation Expert’s “Result Oriented” Approach

    Posted by Meaden & Moore on Apr 23, 2018 8:56:24 AM

    Topics: Investigative and Forensic Accounting

    Perceived independence is critical when it comes to the effectiveness of expert witness testimony. This article discusses a recent case in which the U.S. Tax Court rejected an expert’s testimony on the reasonableness of compensation paid to shareholder-employees, because he’d failed to provide an “independent and objective analysis.”

    Transupport, Inc. v. Commissioner, T.C. Memo 2016-216 (November 23, 2016)

    Transupport, Inc. v. Commissioner

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    Are settlement proceeds taxable?

    Posted by Meaden & Moore on Apr 20, 2018 8:47:08 AM

    Topics: Investigative and Forensic Accounting

    The federal tax code specifically excludes damages received for personal physical injuries or physical illness from taxable gross income. But sometimes it’s hard to determine the nature of settlement proceeds. This article summarizes a recent U.S. Tax Court decision that illustrates the importance of using the “right” wording in settlement agreements to minimize unfavorable tax consequences.

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    IRS Provides Temporary Guidance on New Limit on Business Interest Expense Deductions

    Posted by Jonathan Ciccotelli on Apr 19, 2018 5:07:32 PM

    Topics: Tax Planning & Strategies

     

    The Tax Cuts and Jobs Act (TCJA) imposes a limit on deductions for business interest for taxable years beginning in 2018.  The limit, like other aspects of the law, has raised some questions for taxpayers.

    In response, the IRS has issued temporary guidance in Notice 2018-28 that taxpayers can rely on until it releases regulations. While the guidance provides some valuable information, it also leaves some questions unanswered.

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    Using Data Analytics to Help Prevent and Detect Fraud

    Posted by Meaden & Moore on Apr 18, 2018 2:15:50 PM

    Topics: Investigative and Forensic Accounting

    Organizations that use proactive data monitoring can reduce their fraud losses by an average of 54% and detect scams in half the time, according to the Association of Certified Fraud Examiners’ 2016 Report to the Nations. Here’s insight into how forensic accountants can use data analytics technology to detect patterns and uncover anomalies that may help unearth fraud in real time. A sidebar highlights three real-world examples of how data analytics can be used to detect and prevent fraud.

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