2014 EXPIRED TAX PROVISIONS

Sean Urbany, CPA

As of December 31, 2013, a number of tax provisions affecting both individuals and businesses expired. Currently, it is unclear whether Congress will retroactively extend any of the provisions, but the possibility remains. A few of the notable expired provisions are outlined below:
Expired Tax Provisions for Individuals

Tax-free IRA distributions to charities
Section 179 expense deduction is now limited to a maximum deduction of $25,000
Income exclusion for debt forgiveness on a principal residence mortgage
Above-the-line deduction […]

January 15, 2014 Accounting, Tax Read more...

Preparing for a Compliance Audit: A Guide for Labor Unions and Employee Benefit Plans

Larry Beebe, CPA

In addition to your financial statement audit, your union and/or benefit plan may be selected for an audit by the Department of Labor (DOL), the Internal Revenue Service (IRS), or the Employee Benefit Security Administration (EBSA). While these audits originate from different governmental departments, they often review and scrutinize many of the same areas.

Before we look at how to prepare for a compliance audit, let’s look at the different types:

Union Compliance Audits
The Office of Labor Management Standards […]

January 9, 2014 Accounting, Audit, Benefit Plan Accounting Read more...

Buy-Sell Agreements: It takes a Team and a Plan!

Every few weeks I am asked to review an existing buy-sell agreement, and the partners want to know if they have enough life insurance. My response is usually something like, “Probably, but are you protected if something other than death happens to you or your partners?” For reasons unknown to me over the course of my career in insurance and specifically in Executive Benefits, buy/sell conversations always revolve around life insurance. That has always struck me as strange because […]

January 8, 2014 Accounting, Wealth Management Read more...

NORTH CAROLINA ADOPTS SALES TAX FOR SERVICE CONTRACTS EFFECTIVE JANUARY 1, 2014

Glenn Bailey, CPA

In July of 2013, North Carolina adopted N.C. Gen. Stat. § 105-164.4(a)(11), which imposes the 4.75% general State and applicable local and transit rates of sales and use tax “to the sales price of a service contract” sold by a retailer on or after January 1, 2014 and sourced to this State.

N.C. Statutes define “service contract” as “a warranty agreement, a maintenance agreement, a repair contract, or a similar agreement or contract by which the seller agrees […]

January 6, 2014 Accounting, Family Owned Businesses, Tax Read more...

Family Business Values: The Key To Your Success

 

Posting by Geoffrey D. Brown, CPA

Research has shown that family businesses are more resilient than non-family firms and often weather economic turmoil better than their counterparts. An oft-cited reason for this phenomenon is that family businesses are better able to take a long-term perspective, focusing on the benefits and the legacy for the next generation. There is another important factor that affects longevity: strongly-held family business values.

For any business, a strong sense of corporate values and a well-defined mission […]

January 6, 2014 Family Owned Businesses Read more...

How to Use Social Media to Support Your Fraud Case

Alex Helfand, ENCE, Computer Forensic Specialist

The invasion of social media continues to complicate litigation. Effective litigation will increasingly include sifting through large amounts of electronically stored information (ESI) and piecing together fragmented social networking activity to substantiate a case. Exactly how does social media play into support for a fraud case and what are the considerations for preserving, obtaining, and using data from social media sites?
Social Media and the Clues Left Behind
While the most common social networking sites include […]

January 6, 2014 Accounting, Forensic Accounting Read more...

2% PAYROLL TAX REDUCTION EXTENDED FOR AT LEAST 2 MONTHS

Congress opted to extend the 2% reduction in Social Security withholding from employees and the similar reduction in self employment tax thru February 29th, setting up another legislative showdown on the subject 2 months from now.

Thru February 29th, the first $110,100 of earnings will be subject to the reduced 4.2% withholding rate. If the reduced rate is not subsequently extended the withholding rate on any wage over $18,350 will be retroactively adjusted to the 6.2% rate or whatever any […]

January 4, 2014 Accounting, Payroll Audit, Tax Read more...

DOL Releases Guidance for Benefit Plans Regarding Same Sex Marriages

Mark Buckberg, CPA, CFE, CFF

The Employee Benefits Security Administration (EBSA) has provided guidance inresponse to the Supreme Court’s ruling in United States v. Windsor that the Defense of Marriage Act is unconstitutional. Technical Release No. 2013-04 states that, in general, the terms “spouse” and “marriage” include same-sex couples legally married in any state or foreign jurisdiction that recognizes these marriages. This is applicable to all laws and regulations within the EBSA’s jurisdiction, which includes Title I of ERISA, as […]

December 26, 2013 Accounting, Benefit Plan Accounting Read more...

IRS ANNOUNCES 2014 STANDARD MILEAGE RATES

Scott Reddersen, CPA

The IRS announced the 2014 optional standard mileage rates this week. They are as follows:

56 cents per mile for business mileage
23.5 cents per mile for medical or moving mileage
14 cents per mile for charitable service mileage

For those keeping track, the rates for business, medical, and moving mileage each decreased by one-half cent from their respective 2013 rates. The charitable mileage rate remains unchanged.

December 12, 2013 Accounting, Tax Read more...

Working with Your Family Business Accountant

Posting by Geoffrey D. Brown, CPA, Principal

Embedded (n): to incorporate or contain as an essential part or characteristic.

The Family Firm Institute recently published a fascinating study that looked at the relationship between family businesses and their accountants. How should a family business interact with its accountant? Many people (especially accountants) would assume that an accountant has an important role to play in the success of a family-owned enterprise.

It turns out that assumption is correct, but not in every circumstance. […]

December 12, 2013 Accounting, Family Owned Businesses Read more...