Uncover Bogus Résumé Claims

Job applicants aren’t always honest on their résumés. As such, it's critical that you uncover bogus résumé claims.  If you don’t investigate suspicious claims, you might end up hiring an unqualified and unethical employee — which could lead to financial, productivity and legal liability issues. The résumé fibber might also be more likely to commit occupational fraud. But how to uncover bogus résumé claims?  Here are the three most common résumé falsifications. (1) Deceptive dates Whether to gloss over a termination, a period of job hopping or time spent out of the workforce, some job seekers “adjust” dates to make their employment history seem more consistent. Look closely at résumés that state employment dates in years, not months. Say an applicant claims she worked at her last job...

Tax Savings for Electric Vehicles

While the number of plug-in electric vehicles (EVs) is still small compared with other cars on the road, it’s growing.  This is especially true in certain parts of the country. If you’re interested in purchasing an electric or hybrid vehicle, you may be eligible for tax savings for electric vehicles.  A federal income tax credit is available of up to $7,500. (Depending on where you live, there may also be state tax breaks and other incentives.) However, the federal tax credit is subject to a complex phaseout rule that may reduce or eliminate the tax break.  The phaseout is based on how many sales are made by a given manufacturer. The vehicles of two manufacturers have already begun to be phased out.  That means they now...

Employee vs Independent Contractor

Employee vs Independent Contractor is an age old question.  Many employers prefer to classify workers as independent contractors to lower costs, even if it means having less control over a worker’s day-to-day activities. But the government is on the lookout for businesses that classify workers as independent contractors simply to reduce taxes or avoid their employee benefit obligations. Why it matters When your business classifies a worker as an employee, you generally must withhold federal income tax and the employee’s share of Social Security and Medicare taxes from his or her wages. Your business must then pay the employer’s share of these taxes, pay federal unemployment tax, file federal payroll tax returns and follow other burdensome IRS and U.S. Department of Labor rules. You may also have to...

4 Types of Life Insurance Owners

Life insurance has long provided a source of liquidity to pay estate taxes and other expenses. But, with the estate tax exemption currently set at an inflation-adjusted $10 million ($11.40 million for 2019), estate taxes are no longer a concern for many families. Nonetheless, life insurance offers many benefits for nontaxable estates. But who should own the policy?  There are 4 types of life insurance owners. If you own life insurance policies at your death, the proceeds will be included in your taxable estate. Ownership is usually determined by several factors, including who has the right to name the beneficiaries of the proceeds. If estate taxes are a concern, the way around this problem is to not own the policies when you die. However, don’t automatically...

Millennial Money; Robert Kiyosaki Doesn't Pay Taxes

 Robert Kiyosaki doesn't pay taxes during his life Robert Kiyosaki doesn't pay taxes during his life.  In this installment of Millennial Money, Robert put forth his opinion that the self-employed are working for tips.  A real estate agent gets 6% . . . Robert tips his waiter 20%.  Who’s more valuable he asks? By investing in real estate with other people’s money, you have no money in the deal so you are making an infinite return . . . and paying no taxes due to depreciation and other related expenses. . . . or after he dies either Robert Kiyosaki doesn't pay taxes after he dies either.  Robert's assets are held in a Charitable Remainder Trust (CRT).  A CRT is  an irrevocable trust that generates an income stream for...

Checking on Your Tax Refund

It’s that time of year when many people who filed their tax returns in April are looking at their mail, bank accounts, and or otherwise checking on their tax refund status to see if their refunds have landed. According to the IRS, most refunds are issued in less than 21 calendar days. However, it may take longer — and in rare cases, refunds might not come at all. Your tax refund status If you’re curious about your tax refund status, you can use the IRS “Where’s My Refund?” tool. Go to https://bit.ly/2cl5MZo and click “Check My Refund Status.” You’ll need your Social Security number, your filing status (single, married joint filer, etc.) and your exact refund amount. In some cases, taxpayers who are expecting a refund may be...

The Forensic Accountants Role in Litigation

When people hear the term “forensic science,” they usually think “CSI.” What comes to mind when you hear the term “forensic accounting”? Similar to forensic scientists offering opinions about scientific matters, forensic accountants may be called on to investigate and serve as financial experts in commercial litigation. Here’s how. Who forensic accountants are Forensic accountants specialize in conducting fraud audits and investigations to detect irregularities and troubling trends, looking for both telltale and subtle signs of white collar crime. Certified fraud examiners (CFEs) are specially trained in fraud discovery, recognition, documentation and prevention. They’re also generally knowledgeable about human behavioral factors and motivations that contribute to the commission of fraud, such as the ability to rationalize fraudulent conduct. Often, forensic accountants are retained to detect misrepresentations of financial...

TCJA Limits Casualty Loss Deductions

Unforeseen disasters happen all the time and they may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are new restrictions that make these casualty loss deductions much more difficult to take. What’s considered a casualty for tax purposes? It’s a sudden, unexpected or unusual event, such as a hurricane, tornado, flood, earthquake, or fire; an accident or act of vandalism; or even a terrorist attack. Unfavorable changes for casualty loss deductions TCJA made changes for losses incurred in 2018 through 2025.  Generally eliminated are personal casualty loss deductions, except for losses due to federally declared disasters. During 2019, there were presidential declarations of major disasters in...

Preventing Fraud in Auto Dealerships

Preventing fraud in auto dealerships requires a strong internal control system.  This will serve to prevent occupational fraud from cutting into your auto dealership’s profits and generating negative publicity. And effective controls start with current and accurate financial statements. Preventing fraud in auto dealerships starts in accounting One sign of weak internal controls is an accounting department that fails to generate financials until two or more weeks after month’s end. Accounting should post transactions daily, including new and used vehicle sales, repair orders, invoice payments, payroll and cash receipts. By 1 p.m. on any given day, you should have access to real-time checkbook balances and other accounting information effective as of 5 p.m. the day before. That way, you might be able to catch the first signs of...

Tax Treatment of New Business Expenses

Have you recently started a new business? Or are you contemplating starting one? Launching a new venture is a hectic, exciting time. Before you even open the doors, you generally have to spend a lot of money on new business expenses. You may have to train workers and pay for rent, utilities, marketing and more. Entrepreneurs are often unaware that many expenses incurred by start-ups can’t be deducted right away. The way you handle some of your initial expenses can make a large difference in your tax bill. Key points on how new business expenses are handled When starting or planning a new enterprise, keep these factors in mind: Start-up costs include those incurred or paid while creating an active trade or business — or investigating the creation...