Category: Accounting
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Nonprofit financial governance FAILS
This weekend I took an informal look at the legal and financial filings of two nonprofit organizations that are associated with potential accounting engagements. In other words, this was my preliminary homework in preparation for my work week ahead. What I found could be described as ‘more of he same’ in substandard governance and public…
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Best practices for the future of small business accounting
I woke today to find an email notice of another five star review from a small business client. I am grateful for the willingness of over 50 clients to share their comments on one of the various online business rating services. It’s pretty humbling, actually, that they are all organic five star reviews that they…
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Significant small business tax news: Alliantgroup
IRS sent subpoenas to CPAs who referred clients to a tax shelter seller Alliantgroup regarding R&D tax credits, cost segregation, and IRC Sec 179D, (all are aggressive tax strategies) taken by their business clients from January 1, 2011 to present. The IRS subpoena reportedly clarifies that Alliantgroup and not the individual business taxpayers who took…
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Abortion statistics for accountants
These notes are from Cloud Accounting Podcast and may be useful to those of us discussing the issue with our clients in regard to employee benefit planning. (Statistics are shared without documentation or explanation and commentary is minimized). Abortion statistics:1 in 4 women have had an abortion.54% of abortions are by women of Christian faith.20%…
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How the change in abortion law affects small business accountants
I’ve spent almost four decades dealing with small business owner resistance and noncompliance with employee benefit tax laws. This makes me think that I can predict the outcome of the recent SCOTUS ruling that has divided the nation; at least it’s result within our industry. Looking back in time, we observed the effect of business…
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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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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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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…