Author: Tony Novak
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Where have the good investments gone?
“Where have the deals gone?” This was the title of a podcast yesterday looking at layoffs at America’s most powerful investment firms. They don’t expect the economy to generate enough good deals to keep investment bankers busy. The point is that investment management is a lot tougher right now than any time in the past…
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“You said that…”
I notice that my practice is increasingly affected by client beliefs based on outdated information.1 This is especially true of clients who do not have ongoing advisory relationships. The reality is that what I said last year or even three months ago is likely not the best actionable advice now. This is growing into a…
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Misunderstood Pennsylvania Charity Laws
In my observation, this remains one of the most misinterpreted parts of Pennsylvania charity law: PA Act 71, passed in 2017, effective for financial reporting of 2018 filings, increased the annual contribution levels at which a nonprofit must undergo an audit, review or compilation. As with many such laws, the key to understanding is knowing…
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Activism revisited
I became a civic activist in my early 30s, about the same time I became a father. Like the planning for other aspects of my life, I try to approach it with a clear 5 step process: vision, mission, goals, strategy and plan B. Now is a good time to review, clarify and focus on…
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Head’s up to New Jersey small contracting businesses
NJ Department of Revenue ramped up audits of small contracting businesses. This week I’ve seen or heard of more than a dozen audits case notices. The actions started last month. The initial audit notice is for sales tax. But my concern is that sales tax is not the real risk for these businesses. Many of…
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Cumberland County NJ bayshore real estate update
Short term profits and losses in the real estate market are primarily based on inaccurately valued information. Every buyer or seller has the opportunity to value real estate based on their own opinion. Most opinions are inaccurate. This the opportunity for short term profits (and losses). I expressed concern over local pandemic era home purchases…
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Minimum expectations for board members
In casual conversation today I mentioned to a business attorney that a board level project was on hold until I completed minimal due diligence checks on the company in discussion. He asked what I meant. I explained that a CPA is expected to verify certain information about a new business client. He seemed more confused.…
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New nonprofit formations under scrutiny
The nonprofit formation process is under scrutiny. This week’s Kiplinger Tax Letter devoted attention to the topic. It referred to an unnamed 2019 IRS study that concluded that 46% of 1023 EZ filings were erroneously approved. Some lawmakers are calling for an end to the 1023EZ filing. Recent conversations with IRS employees the exempt organization…
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Meet the client where they are: Cloud avoidance syndrome
“I will NOT put my clients information in the cloud!” wrote a bookkeeper, on the cloud, in a forum where we all have our information stored. I still occasionally hear comments like that. But it was surprising coming from a bookkeeper. The bookkeeper went on to say that she had to run her accounting business…
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Noncash charitable donations
A snapshot of #tax issues related to large non-cash charitable deductions: – Taxpayers can avoid paying income tax on up to half of their income by making a donation to a properly registered #charity, so this is an important area of tax practice and dispute – Most taxpayers do not make charitable donations large enough…