Author: Tony Novak
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IRS Free File service is expanded
IRS is expanding its promotion of free electronic filing this year. Eight providers are participating in the IRS’s Free File program: 1040Now, OLT, FreeTaxUSA, TaxAct, FileYourTaxes.com, TaxSlayer, Free1040taxreturn.com, and eztaxreturn.com. Three other large and better-known tax service providers – TurboTax, H&R Block and Jackson Hewitt – have free offers for tax filing that are not…
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How little we know about the metaverse
Facebook said that the metaverse is its future when it recently renamed its company. Now Microsoft is spending $70 Billion for “a foothold in the metaverse”. Yet it is a challenge to put together a sentence or two to summarize our understanding of the metaverse. I’ll give it a try: In the physical universe, we…
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Is a small business tax crisis looming?
I am increasingly concerned about the possibility of a small business crash ahead. The early warning sign is the difficulty I see in so many small business client in making their last year’s tax payments. This year, more than half of my small business clients than ever before cannot currently meet their 2021 sales tax,…
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Crisis measures in 2022 accounting practice
I was unprepared for the rapid changes in the private practice accounting field that quickly escalated to the largest backlog of work we’ve ever seen. A scan of peer feedback indicates that we are not alone; other private firms report the same current struggle. 2020 and 2021 were difficult but manageable for our practice. 2022…
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Simple overview of tax options for LLCs
If you operate a business as a Limited Liability Company (LLC), the. you have some choice in how to have your business earnings taxed. There are protocols and restrictions that are not covered here in this post. This short post overviews the most common options, advantages and limitations of tax options available to LLCs. Sole…
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Sample accounting services engagement agreement 2022
In our practice, each client service agreement is unique and customized to the specific situation. It helps, however, to have a listing of the best practices based on past experience as the basis for our work agreement. This is a sample only, dated 1/18/2022. Thank you for choosing me to help you with your accounting…
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Best Practices for Setting up an Accounting System for a Charity or Other Nonprofit Organization
There is no single right way or wrong way to set up an accounting system for a nonprofit organization. Every method has its pros and cons. Yet small new nonprofits may find a that simple clear list of best practice recommendations is useful to save time and money and to avoid learning ‘the hard way’.…
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Donation acknowledgment letters from charities
This is the time of year that many smaller charities send donation acknowledgement letters to contributors. IRS requires these letters as documentation of the contributions. It seems that larger charities send these at the time the donation is made while some smaller charities with fewer donor management capabilities wait until year end. This post is…
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Sample Work Plan for tax preparation
This is the beginning of another tax season and I notice already that some independent preparers are struggling with the increasingly messy topic of client communications. As part of my coaching certification program I am now working with more tax accountants on helping them build their business. So this topic came up a few times…
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Audits are expensive, even for small charities!
Update for 2022: Our State of New Jersey recently raised the minimum size requirement for nonprofit audits to $1,000,000 gross receipts. These bullet point comments are meant to introduce the topic of costs associated with financial statement audits of small charities. Financial statement audits are not the only type of audit undertaken by small charities…