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3 Steps Experts Follow When Investigating Fraud
When business owners suspect that an employee is stealing assets or manipulating financial results, it’s time to call a fraud expert to investigate. Although the complexity of the incident will determine the investigation’s scope, there are 3 steps experts follow to build a fraud case that can stand up in court. Conducting interviews Fraud interviewers [...]
Payroll Tax Deferral – More Qs Than As
President Trump issued a Presidential Memorandum on 8/8/20 directing the Treasury Secretary to defer certain payroll tax obligations of certain American workers. Employers were immediately faced with the decision of whether to defer taxes, or continue to withhold as usual. The primary reason for the hesitation was the unanswered questions regarding deferral, key among them [...]
Changes to Excess Business Losses
The Coronavirus Aid, Relief and Economic Security (CARES) Act made changes to excess business losses. This includes some changes that are retroactive and there may be opportunities for some businesses to file amended tax returns. If you hold an interest in a business, or may do so in the future, here is more information about [...]
Unmasking Fraud During This Economic Downturn
Fraud tends to flourish during periods of prosperity. The reason is simple: When companies experience fast-growing revenues and rising net profits, they may lack a strong incentive to divert resources to preventing and detecting fraud. Fraud schemes can go undetected for months, even years. Furthermore, the sheer volume of legitimate transactions during thriving economic times [...]
Tax Implications of Working from Home
COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations . . . tax implications of working from home, and collecting unemployment. 1. Working from home Many employees have been told not to come into their workplaces due to the pandemic. [...]
2020 Q4 Tax Calendar: Key Deadlines for Businesses
Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Thursday, October 15 If a calendar-year C corporation that filed an automatic six-month extension: File a 2019 income tax [...]
Are Social Security Benefits Taxed?
If you’re getting close to retirement, you may wonder: Are my Social Security benefits going to be taxed? And if so, how much will you have to pay? It depends on your other income. If you’re taxed, between 50% and 85% of your benefits could be taxed. (This doesn’t mean you pay 85% of your [...]
More Parents May Owe “Nanny Tax” This Year
In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This means that more parents may owe "nanny tax" this year. Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners or others who aren’t independent contractors. If [...]
Journal Entries May Signal Financial Statement Fraud
With a median loss of $954,000, financial statement fraud is the costliest type of white-collar crime, according to the Association of Certified Fraud Examiners. Fortunately, auditors and forensic accountants may be able to detect inflated income and other financial manipulation by testing journal entries. Unearthing suspicious entries Financial statement frauds come in many forms. For [...]
Tax Implications of Employer-Provided Life Insurance
Does your employer provide you with group term life insurance? If so, and if the coverage is higher than $50,000, this employee benefit may create undesirable income tax consequences for you. “Phantom income” The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything [...]
Employers Have Questions About FICA Deferrals
The IRS has provided guidance to employers regarding the recent presidential action to allow employers to defer the withholding, deposit and payment of certain payroll tax obligations. The three-page guidance in Notice 2020-65 was issued to implement President Trump’s executive memorandum signed on August 8. Even with the guidance, employers have questions about FICA deferral, specifically [...]
What Happens When You Can’t Pay Your Taxes?
While you probably don’t have any problems paying your tax bills, you may wonder: What happens in the event you can’t pay your taxes on time? Here’s a look at the options. Most importantly, don’t let the inability to pay your tax liability in full keep you from filing a tax return properly and on [...]
How to Protect Your Investment Accounts from Fraud
Because the average investment account boasts a much larger balance that a typical checking or savings account, cybercriminals are particularly interested in hacking them. Financial institutions are largely responsible for ensuring the security of these accounts, but business customers and consumers also should adopt defensive measures. Here are five recommendations for how to protect your [...]
Filing Cash Transaction Reports for Your Business
Does your business receive large amounts of cash or cash equivalents? You may be required to begin filing cash transaction reports with the IRS to report these transactions. Filing requirements Each person engaged in a trade or business who, in the course of operating, receives more than $10,000 in cash in one transaction, or in [...]
Stepped-Up Basis of Inherited Property
If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Generaly, there is a stepped-up basis of inherited property. Fair market value rules Under the fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis [...]
Disclaimer
This blog is designed to provide competent and reliable information regarding the subject matter covered. However, it is being provided with the understanding that the blogmaster is not engaged in rendering investment advice. Laws and practices often vary from state to state and if investment assistance is required, the services of a licensed investment professional should be sought. The blogmaster resolutely encourages the reader/viewer to do their own research and due diligence before acting on any information contained herein. As such, Roger Rossmeisl specifically disclaims any liability that is incurred from the use or application of the contents of this blog. It should also be noted that the views contained in this blog are not necessarily representative of the opinions/beliefs of the other owners, management and/or employees of Kho & Patel CPAs.
