Risk Assessment and Internal Controls: Key Elements to Prevent Fraud

John Merchant, CPA

Is your organization safe from fraud? The answer to that question will depend on your answers to a number of other important questions:Risk Assessment Internal Controls

Are the internal controls of your organization sufficient to prevent fraud? 
Did you perform a risk assessment prior to implementation of those controls? 
Do you monitor the effectiveness of the system of controls?

These are some of the questions that you and those charged with the governance of your company should constantly […]

December 6, 2013 Accounting, Forensic Accounting Read more...

Trusts, Estates, and the Net Investment Income Tax

Posting by Geoffrey D. Brown, CPA, Principal

When the Patient Protection and Affordable Care Act (healthcare reform) was passed in 2010, it included a tax increase that went into effect for this tax year: a 3.8% tax on net investment income.  This increase will affect individuals, estates and trusts on the lesser of the taxpayer’s net investment income for the year or the excess of his/her modified adjusted gross income (AGI) at the following thresholds:

Individuals

Over $250,000 AGI for taxpayers […]

December 5, 2013 Accounting, Tax Read more...

GETTING ACTIVE: ACTIVE VS. PASSIVE INCOME AND THE NIIT

Billy Thomas,  CPA

In our previous post, we outlined the basics for those individuals who are subject to the 3.8% Net Investment Income Tax (NIIT) for 2013. In summary, portfolio and passive income are two categories of income subject to the NIIT. It would then seem intuitive that to avoid this additional surtax of 3.8% on net investment income, you would simply need to have income derived from a business, since income derived from a business is neither passive nor portfolio. […]

November 26, 2013 Accounting, Tax Read more...

2013 NET INVESTMENT INCOME TAX FOR INDIVIDUALS, TRUSTS AND ESTATES

Sean Urbany, CPA

In addition to the various tax increases enacted on January 1st of this year as part of the American Taxpayer Relief Act of 2012 (which averted the so-called fiscal cliff), taxpayers should note one other tax change for 2013: the 3.8% tax on net investment income. While it was actually put in place way back in 2010 as part of the health-care law, it went into effect for this year and will apply to individual returns […]

November 18, 2013 Accounting, Tax, Wealth Management Read more...

Erroneous Form 5500 Late-Filing Penalty Notices

Sue Weaver

The IRS has sent erroneous Form 5500 late-filing penalty notices as a result of an internal service programming error.

Businesses that filed their Form 5558, Application for Extension of Time to File Certain Employee Benefit Plan Returns, and then filed their Form 5500 before the IRS posted the Form 5558 received erroneous penalty notices.

The IRS has proposed changes in order to correct this timing error in its processing. In the meantime, the IRS has issued an alert to its […]

November 18, 2013 Accounting, Benefit Plan Accounting Read more...

ACA Update: Transitional Reinsurance Program Fee

Sue Weaver

One of the many provisions of the Affordable Care Act is the Transitional Reinsurance Program (TRP). The program is an attempt to stabilize health insurance premiums in the individual market place. Many insurers are concerned that the influx of new enrollees will have higher than average claim costs. In order to smooth negative experience and maintain reasonable premium rates, this program provides reinsurance to health plans that cover high cost enrollees. The program is in effect for a […]

November 7, 2013 Accounting, Benefit Plan Accounting Read more...

Measuring Investment Performance: Understanding Market Indices

Larry Beebe, CPA

New trustees for multiemployer benefit plans can be overwhelmed by the investment knowledge that must be quickly acquired to function effectively in their new roles.  This series provides in-depth information about plan investments to assist new trustees in their fiduciary duty of managing plan assets.

Understanding market indices is essential for properly evaluating your plan’s investments and investment strategy. There are a number of indices you can reference, and understanding their underlying frameworks will help you select the correct […]

November 4, 2013 Accounting, Audit Read more...

Considerations for a Family Business Franchise

Posting by Geoffrey D. Brown, CPA

There are many reasons to start a family business. Sometimes it’s just to provide a forum for family members to work together no matter what the product or service is. In the case of a franchise, there are some compelling arguments for a family to opt for this type of business model.

What is a franchise? A franchise is the agreement or license between two legally independent parties which gives:

A person (franchisee) or group […]

October 30, 2013 Accounting, Family Owned Businesses Read more...

Business Cybersecurity Basics: Protecting Your Company from Hackers

Alex Helfand, ENCE, Computer Forensic Specialist

As an executive, what keeps you up at night? Many leaders fret about revenue growth, client retention, and, increasingly, the possibility of fraud or cyberattacks. If you are worried about your business’s cybersecurity, you’re not alone: a recent survey (PDF) by the National Small Business Association (NSBA) shows that 94% of business owners are worried about this issue.

Unfortunately, these fears are not baseless. Nearly half of the survey respondents reported that their businesses were […]

October 25, 2013 Accounting, Forensic Accounting, Human Resources Read more...

Common Estate Planning Mistakes

Posting by Geoffrey D. Brown, CPA

October 21 – 27 is National Estate Planning Awareness Week, which is designed to raise awareness and provide education around this important financial issue. I’ve had the opportunity to help many families and family businesses preserve their legacies over the past thirty years, and, unfortunately, there are some common estate planning mistakes and misconceptions that seem to come up time and time again.

Think your assets are not significant enough to necessitate a plan? Think […]

October 24, 2013 Accounting, Tax, Wealth Management Read more...