Archives for Industry News

Current Tax Scams to be Aware of in 2024

Tax scams are increasingly sophisticated in 2024, with scammers continually evolving their tactics to deceive taxpayers and tax professionals. Here are some of the most prevalent tax scams this year to be cautious of: Phishing and Smishing: Fraudsters send emails or text messages that appear to be from the IRS, asking recipients to click on a link or provide personal information to claim a refund or resolve an issue. These messages often contain malicious links that can steal personal data or install malware on devices​ (IRS.gov)​​ (CPA Practice Advisor)​. AI-Driven Scams: With the rise of AI tools, scammers are creating
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Categories: Industry News and Newsletter and Updates.

Save On Taxes By Hiring Your Child as an Employee

As a parent and business owner, you’re always looking for ways to optimize your finances while providing opportunities for your family. One savvy tax-saving strategy to consider is hiring your child as an employee in your business. You can pay each child you hire up to $14,600 in 2024 without them owing any federal income tax plus your business can deduct those wages as a business expense. Not only does this arrangement provide valuable work experience for your child, but it also offers significant tax benefits for your family. In this article, we’ll explore the advantages of hiring your child
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Categories: Industry News, Newsletter and Updates, and Uncategorized.

Understanding Section 163(j): A Brief Overview of Business Interest Deductions

Nicole Wiriadi, CPA, MST Tax Director   The Tax Cuts and Jobs Act of 2017 (TCJA) introduced a provision that directly impacted businesses’ ability to deduct interest expenses from their taxable income under Section 163(j) of the Internal Revenue Code. This provision applies to all types of taxpayers, including corporations, partnerships, and individuals, with exceptions. Some of the key provisions of Section 163(j) are as follows: Interest Deductibility Limitation The deduction for business interest expense is generally limited to the sum of 30% of adjusted taxable income (ATI), business interest income, and floor plan financing interest expense. Carryforward of Disallowed
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Categories: Industry News and Newsletter and Updates.

Warning Signs of Aggressive ERC Marketing: A Cautionary Guide for Businesses

As businesses navigate the complexities of economic recovery, government programs like the Employee Retention Credit (ERC) serve as lifelines for financial support. However, with the surge in popularity of these programs, some unscrupulous entities may engage in aggressive marketing practices to exploit businesses seeking assistance. In this article, we will explore the warning signs of aggressive ERC marketing and provide guidance on how businesses can protect themselves from potential pitfalls. Unrealistic Promises: One of the first warning signs of aggressive ERC marketing is the promise of unrealistic benefits. Businesses should be wary of providers claiming to guarantee substantial ERC benefits
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Categories: Industry News and Newsletter and Updates.

The Corporate Transparency Act: New Reporting Requirements

Manny Trelles, CPA Tax Director   In an effort to combat financial crimes, money laundering, and corruption, the Corporate Transparency Act (CTA) was enacted by Congress. This significant piece of legislation brings a new level of transparency to businesses across all industries, especially those that are privately owned. As of January 1, 2024, millions of small businesses must file a Beneficial Ownership Information Report (BOI Report) with the United States Department of Treasury’s Financial Crimes Enforcement Network (FinCEN). The required BOI Report includes information about their beneficial owners or those with “substantial control” over the company. Companies created or registered
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Categories: Industry News and Newsletter and Updates.

The Tax Relief for American Families & Workers Act of 2024 (H.R. 7024)

Andrew Abeyta, CPA Tax Manager   Recently, the Senate approved (via an overwhelmingly favorable vote of 40-3) the “Tax Relief for American Families & Workers Act of 2024” which is now with congress for a tentatively scheduled end of January vote.  Below is an outline of the Business Tax Provisions that are set to change as a result of this bill (pending any additional adjustments by congress). Please note that many of these potential tax provisions will expire on December 31, 2025.   CURRENT LAW PROPOSED CHANGE VIA H.R. 7024 BUSINESS INTEREST LIMITATION      IRC 163(j) Large businesses are
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Categories: Industry News and Newsletter and Updates.

ASU 2016-13 Current Expected Credit Loss Effective for Private Companies in 2023

  Carissa DeLuca, CPA, CFE Audit Manager   ASU 2016-13 Financial Instruments-Credit Losses, which covers the Current Expected Credit Loss model (also known as CECL), is effective for private companies for years beginning after 12/15/2022. The accounting standard is not just applicable to mortgage banks, but can also impact trade receivables, loan receivables and reinsurance receivables and more for companies in all industries. Previously, US GAAP required an “incurred loss” methodology for credit losses and loss recognition once probable. Under the old method, historic loss percentages were a common and appropriate method of measurement of credit losses. CECL will require
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Categories: Company News, Industry News, and Newsletter and Updates.

Decoding the Menu: Navigating Meals Expenses Tax Deductibility in 2023 – 50% vs. 100%

  As 2023 unfolds, it’s crucial for business owners and professionals to understand the ever-evolving landscape of tax regulations, especially when it comes to meal expenses. The deductibility of these expenses can significantly impact your bottom line. In this blog post, we’ll delve into the specifics of meals expenses tax deductibility for 2023, distinguishing between the 50% and 100% deduction rules, and offering insights to help you make informed financial decisions. The 0% Deduction Rule: Treating clients to an entertainment event, such as concert tickets, sports games, etc., are now 0% deductible since this came into effect with the 2018
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Categories: Company News, Industry News, and Newsletter and Updates.

Maximizing Your Finances: Year-End Tax Planning Tips for 2024

As the year draws to a close, it’s time to engage in financial housekeeping to ensure that you’re making the most of your money. Year-end tax planning is a crucial aspect of managing your finances, and with 2024 on the horizon, it’s the perfect time to implement strategic measures to optimize your tax situation. In this blog post, we’ll explore some key tips for year-end tax planning that can help you minimize your tax liability and maximize your financial well-being. Review Your Income and Expenses: Start your year-end tax planning by conducting a thorough review of your income and expenses
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Categories: Industry News and Newsletter and Updates.

Students Falling Victim to Fraud When Applying for Scholarships

  by Carissa DeLuca, CPA, CFE Audit Manager   School is in, and many high school seniors have started the daunting process of looking for scholarships to help with their future college plans. For many, this is an absolute necessity which has made space for opportunistic fraudsters. Here are some fraud red flags students and parents should look out for: Application fees for scholarships, especially paid via Zelle, Venmo or Cash App Upfront fees to guarantee financial aid Emails, texts or letters requiring personal information (including social security number, bank information, etc.) Offers for low interest student loans based on
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Categories: Industry News and Newsletter and Updates.