The necessary response to disinformation

Posted Posted in Computers and Internet, Leadership, Social Media, Values

“Information warfare threat to the United States is different from past threats, and it has the potential to destroy reason and reality as a basis for societal discourse, replacing them with rage and fantasy. Perpetual civil war, political extremism, waged in the information sphere and egged on by our adversaries is every bit as much […]

What’s the difference between a tax preparer and a tax adviser?

Posted Posted in Accounting, Tax Planning, Taxes

A tax preparer looks at the facts and tries to determine the appropriate reporting usually at the time of rushing through the tax season preparing multiple client tax returns. A tax adviser looks at the tax theory that most benefits the client and then looks at the facts, regulation and case law history for evidence […]

Recognizing Black CPAs

Posted Posted in Accounting, Values

Yesterday the Journal of Accountancy podcast focused on the journey and accomplishments of black CPAs in the 20th century, featuring the testimony of two CPAs who witnessed black CPA history firsthand: Ruth Harris, the first black female CPA in Virginia, and Frank Ross, one of the founders of the National Association of Black Accountants (NABA). […]

Relief from post-pandemic tax stress

Posted Posted in Accounting, IRS, Taxes

One of the most important concepts in U.S. taxation today is the principle that the government cannot levy against taxpayer assets in the case of economic hardship. Never has this been more important than in this post-pandemic environment. The IRS is dramatically increasing aggressive tax collection practices that, in many cases, are causing stress to […]

What I learned about traffic court today

Posted Posted in Government, Legal, New Jersey

I visited traffic court in Millville, New Jersey today. I haven’t had any interaction with traffic court in at least a few decades so I spent time asking questions and looking for information. I was surprised by a bizarre ticket came in the mail last light that had a court appearance listed for this morning. […]

Ignorance among professionals is a growing problem

Posted Posted in Accounting, Financial Planning, Leadership

Is it just me? I’m increasingly shocked with the collective level of ignorance surrounding us. In my work, naturally, I see it most often among people who call themselves tax and financial professionals. The details of behavior described as the Dunning-Kruger effect make the problem worse. Back in the 1980s and early 90s when professional […]

Five types of tax transcripts (and when to use them)

Posted Posted in Taxes

Tax transcripts are a common tool used to solve tax problems. There are five different types. The type we use depends on the situation. 1) Tax Return Transcript – shows you tax return as filed, including most line items including your adjusted gross income (AGI) from your original Form 1040-series tax return as filed, along […]

Rules for CPAs who handle clients’ PPP loans

Posted Posted in Accounting, crisis management, Ethics

Last year the AICPA issued ethics guidance to CPAs who handle PPP loan application and forgiveness applications for their business clients. This has become a significant issue for me lately. The guidance reminds practitioners that assisting the client in this capacity is considered a nonattest service requiring application of the independence and related rules in […]

Tax accounting for PPP loans in small S corporations

Posted Posted in Small Business, Taxes

Income PPP loans are not taxable income but of course must be recorded in the company’s bookkeeping. The question is how to record these transactions for correct tax treatment. Their isn’t just one ‘correct’ way to do this but actually several options listed by AICPA under IAS20. (My information comes from third party coverage in […]