A July 22, 2016, Accounting Today online post provides great tips on tax advantages available to families dealing with issues like summer camp and tuition payments.
The summer has started and summer camp bills have been paid. Summer camp is a great way to keep our children busy and looked after while we are working. But it comes at a steep price.
Summer camp costs are, on average, about $300 per week. And for our children who are graduating from high school, we are looking at college tuition fees coming due this August ranging from an average of $9,139 (for state residents at public colleges) to $31,231 (private college). There are some tax advantaged ways, though, to help pay these expenses.
When you change jobs and abandon vested amounts in your 401(k), your former employer has to follow IRS rules and plan provisions for dealing with your account balance. Pursuant to these guidelines, the 401(k) plan may have a "force-out" provision. That means when your vested balance is less than $5,000, you can be forced to take your money out of the plan.
The Association of Certified Fraud Examiners' (ACFE) 2014 Global Fraud Study revealed that the typical organization loses a median of 5% of revenues each year due to fraud.
While both large and small organizations fall victim to occupational fraud, the ACFE found that companies with fewer than 100 employees are particularly vulnerable compared to their larger counterparts. Whereas larger companies were more likely to have anti-fraud practices in place—such as hotlines, employee fraud training and internal departmental audits—smaller companies were less likely to implement similar anti-fraud controls that typically detect fraud sooner.
What can you, as a small business owner or executive, do to combat employee fraud? Here are a few suggestions:
According to a 2016 report from the Treasury Inspector General for Tax Administration, the IRS mailed more than 188 million notices and letters to taxpayers during 2014. There's no reason to believe the number of notices will be slowing down anytime soon. If you're on the IRS mailing list, here's what to do.
Scan the heading. The first line, generally printed in bold type and centered beneath your name and address, will tell you why the IRS is contacting you. Questions about missing information, additional taxes owed, or payments due mean you'll want to take prompt action to avoid more notices or assessments of interest and penalties.
Basis is an important tax concept. The most recent reminder of the importance of getting basis right is the 2015 law that requires executors of some estates to report basis information for assets transferred to beneficiaries. Taxable estates that filed an estate return after July 31, 2015, must file a new form, which is due 30 days after the estate return is filed or by June 30, 2016, whichever is later. The beneficiaries, in turn, must use the information to calculate gain or loss when the inherited asset is sold.
From a June 1, 2016, article posted in the AICPA's online Tax Advisor.
For a variety of complex tax, business, and operational purposes, tax-exempt entities may create complex organizational systems similar to their taxable counterparts that contain a variety of related entities: parents, subsidiaries, brothers, and sisters. These systems can contain both tax-exempt and taxable entities with a "parent" entity that coordinates the overall mission and activities of the whole system.
All Sec. 501(c)(3) organizations default to private foundation status unless described in Secs. 509(a)(1)-(4) (i.e., per se charities, publicly supported organizations, supporting organizations, and organizations that test for public safety). Therefore, complications may arise when the parent of a large, multientity system applies for recognition of tax-exempt status as a Sec. 501(c)(3) public charity. Through "derivative exemption" (i.e., carrying out the activities that a related organization could perform directly), the parent generally meets the requirements to be described in Sec. 501(c)(3); however, it must also rely on supporting organization status to qualify as a public charity.
CPA Compass Blog
The IRS recently released an updated version of Publication 4557, Safeguarding Taxpayer Data. Even if you're not in...
Take a look at this new infographic we created showing the tax environment in Illinois.
After years of work, the IRS has finally issued regulations clarifying for the business community when costs...