Category: Accounting
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The Accountant’s ‘Come to Jesus Moment’
“We don’t see things as they are, we see things as we are” – a Talmudic saying attributed to Rabbi Shemuel ben Nachmani who lived 1600 years ago. I read an online discussion thread last night among accountants describing a series of talks they are having this week with some of their small business clients. Some…
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The IRS requirement for personal auto mileage records
You drove your car on business trips. You made a report of how many miles you drove for business, the dates, the specific destination and the purpose of the trips. You have all the expense receipts for gas and other out-of-pocket expenses. You submitted the expense documentation to your employer who reimbursed you. This is a…
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The myth of the ‘correct’ tax return
I occasionally have a conversation with a client, a potential client or another accountant on the topic of the accuracy of a tax return and IRS action. The comments might sound something like one of these: “The last two accountants messed this up and it needs to be made right.” “I am very particular about my…
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IRS catches nonprofit accounting cover-up
This week the Washington Post reported that Donald Trump was fined $2,500 by the IRS for filing a false report to the IRS about the activities of his nonprofit foundation. Nonprofit organizations are not supposed to give money to political campaigns. He did, and then covered up the political donation by reporting it to the…
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Higher state taxes for 225,000 in our region
One hundred thousand South Jersey residents working in Philadelphia and 125,000 Pennsylvania residents working in New Jersey will pay higher state wage taxes in 2017. The tax hike is a result of Governor Christie’s election to cancel the PA/NJ state tax reciprocity arrangement. The change was announced yesterday. The cost to the average South Jersey resident taxpayer…
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What do LinkedIn users like to read?
I’ve now published 147 blog posts through the “Pulse” feature of LinkedIn over the past two years (September 1, 2014 to August 31, 2016) to promote my new accounting practice. This seems like a good time to pause take a look back at reader response. Sara Rosenberg, a business adviser, suggested a while ago that I…
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Contemporaneous travel log required
Accountants have generally not done a good job communicating the legal concept of “contemporaneous log”; a term legally required under tax law to take a mileage reimbursement or deduction for business travel on a personally owned automobile. Programs like MileIQ do a great job but I still think that a taxpayer needs to understand the underlying…
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Evaluating the risks and rewards of small business crowdfunding
I’m now loosely tracking 17 activity different US-based small business crowdfunding portals. This excludes all the portals intended for personal or charitable crowdfunding that would bring the total to 31. The number of investment options continues to grow and the field continues to grow more complicated. The risk to investors remains high and grows in…
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The problem with BNI
Five reasons why lead exchange groups won’t work for me Last month I was invited as an observer to a local meeting of Business Networks International (BNI). The accountant who invited me is a great person and an impressive professional. The meeting and individual members made a strong positive impression on me. The individuals I met were…