IMPORTANT CHANGE TO SCHEDULES C, E AND F

IRS recently released 2011’s form 1040 and its corresponding schedules C, E and F. These schedules are used by sole proprietors to report different kinds of business income. IRS has added questions dealing with 1099 reporting to all three schedules for tax year 2011. The first question asks if the taxpayer has made any payments in 2011 that would require him/her to file Form(s) 1099. If the answer is yes, then the next item asks whether the taxpayer did […]

January 4, 2012 Accounting, Audit, Tax Read more...

MAKE HAY WHILE THE SUN SHINES!

As the on-going battle over the extension of the payroll tax cuts continues in Congress, those of us in the tax professional community are left scratching our heads and trying to advise our clients on what will happen with respect to income and estate taxes over the next few years.  The only thing I can say to my clients with any confidence is that anyone who tries to predict what tax changes may emerge from this Congress is talking […]

December 22, 2011 Accounting, Tax Read more...

Who is a Fiduciary? Current Definitions and a Proposed Update

Larry Beebe, CPA

Fiduciaries have the ultimate responsibility for an employee benefit plan.  A fiduciary is any person who:

Exercises control over plan assets
Provides investment advice to the plan
Has responsibility for the administration of the plan

The Trustees of an employee benefit plan are fiduciaries as is the plan administrator and the plan’s investment advisors.  Professional service advisors such as independent auditors, actuaries and attorneys are normally not fiduciaries.

A fiduciary must:

Act solely in the interest of plan participants […]

December 21, 2011 Accounting, Firm News & Events Read more...

2012 OPTIONAL STANDARD MILEAGE

Last week, the Internal Revenue Service issued the 2012 optional standard mileage rates for taxpayers who choose to use this method in calculating the deductible costs of operating an automobile for business, charitable, medical, or moving purposes.

The rate for business miles driven remains unchanged from the mid-year adjustment on July 1, 2011.  The charitable mileage rate remains unchanged from 2011 as well, while the medical and moving mileage rate is reduced by 0.5 cents per mile.

Beginning on January 1, […]

December 20, 2011 Accounting, Tax Read more...

Bond Beebe Accountant Receives Computer Forensic Investigation Certification

Natalie Burchfiel, CPA

BETHESDA, Maryland (December 20, 2011) – Bond Beebe, a certified public accounting and advisory firm with offices in Bethesda, Maryland and Alexandria, Virginia, announced today that Alex Helfand, an auditor with the Firm, has completed the EnCase® Certified Examiner (EnCE®) program, which recognizes that an individual is a skilled computer forensics examiner.  EnCase® Forensic is the industry-standard computer investigation solution; EnCE® certification is awarded to professionals who have mastered computer forensics investigation methodology, as well as the […]

December 20, 2011 Accounting, Forensic Accounting Read more...

A Guide to Party-in-Interest and Party-in-Interest Transactions

Marcella Pascal, CPA

A party-in-interest is defined by the Employee Retirement Income Security Act of 1974 (ERISA) to include the following:

Any person who provides services to the plan,
Fiduciaries and employees of the plan,
An employer whose employees are covered by the plan,
A person who owns 50 percent or more of such an employer or employee association, and
Relatives of any of the aforementioned individuals.

Certain plan transactions with parties-in-interest are prohibited under ERISA. These transactions are:

A sale, […]

December 19, 2011 Accounting, Benefit Plan Accounting Read more...

Plan Management: Are All Your Enrolled Participants Eligible? Don’t Count on it!

Linh Crider, CPA, CFE

Studies have shown that 5% to 15% of dependents covered under health plans are not eligible per Plan requirements.  Therefore, Plan management should ensure that all participants enrolled are entitled to benefits.  Not only does this control costs, but it fulfills Plan sponsors’ fiduciary obligations as required under ERISA.  As auditors, we frequently observe situations in which dependent eligibility status is questionable.  Often, these dependents are unable to prove their relationship with the Plan members.

The most […]

December 15, 2011 Accounting, Benefit Plan Accounting Read more...

Jon & Kate Plus 8 Minus Jon: What is Wrong with this Equation?

Posting by Joel C. Susco, CPA

What would the producers of Jon & Kate Plus 8 have done if it was Kate who left, and the less-catchy new title would be Jon Plus 8?  Marketing loves rhyming and/or alliteration, so it was crucial the title still had some pop, even if Pop was no longer in the family.  And so it goes, divorce affects not only the family, but sometimes the family business, in ways one can’t even imagine.

The Reality […]

December 15, 2011 Family Owned Businesses Read more...

Reporting Compensation on Form 990

Sherwin Abellera, CPA

Adjusting to new things takes time.  Consider the revised Form 990.  The Form itself was released by the IRS in 2007, but clients and practitioners continue to struggle with its filing requirements.  To assist filers, the IRS has a resource called “Filing Tips for Form 990 (Tax Years 2008 and Later)”.

One of the more confusing requirements deals with compensation.  Compensation can be defined in many different ways by different organizations, thus the question of where, what and […]

December 14, 2011 Accounting, Benefit Plan Accounting, Tax Read more...

IRS CHANGES TO SCHEDULE D AND INTRODUCTION OF NEW FORM 8949

The IRS has introduced a new tax form (Form 8949) for reporting capital gains and losses from stocks, bonds, mutual funds and similar investments.  Starting with the 2011 tax year, investment transactions will be reported on the new Form 8949, Sales and Other Dispositions of Capital Assets.

Brokers 

Starting in 2011, cost basis information for “covered securities” will be included directly on the 1099-B.  Brokers are required to provide cost basis for stock in a corporation acquired on or after January […]

December 13, 2011 Accounting, Tax Read more...