7/15/20 – During these financially challenging times, the creativity of nonprofit organizations is challenged in their efforts to raise adequate revenue to sustain operations. But new activities, however well-intentioned, can lead to tax trouble.
7/14/20 – Businesses across the country are anxious to maximize their loan forgiveness as the economy continues to recover from the effects of the COVID-19 pandemic. This article provides guidance for calculating forgiveness and other considerations to help you make the most of the relief offered to business owners.
7/13/20 – Last Wednesday, July 8, the Senate unanimously passed bipartisan legislation to help nonprofits, state and local governments, and federally recognized Native American Tribes remain financially viable during the COVID-19 pandemic. The legislation ensures these entities receive federal help for unemployment payments upfront, instead of being reimbursed at a later time.
7/10/20 – The impact of the Coronavirus Disease 2019 (COVID-19) pandemic has required businesses to navigate through rapidly changing environments and regulations like never before. Manufacturing and distribution businesses are focusing on maintaining compliance with various state regulations for re-opening as well as the impacts on budgets, supply chains, personnel, etc.
7/9/20 – At some point, we’re all faced with the decision to call an end to our careers. But what will happen to your company when you retire, or when illness or injury keeps you from working for an extended period? Having a succession plan in place is key to ensuring the business will go on.
7/7/20 – We have previously addressed how M&A deals unfold as a result of preparing for due diligence, and now Ely Friedman discusses which “must-have” and “nice-to-have” items to have in place, in preparation for a successful transaction.
7/2/20 – As many nonprofit organizations complete their fiscal year, there is much discussion regarding the proper way to record funding received through the Paycheck Protection Program (PPP). There is no set standard guidance for nonprofits, however, there is a consensus throughout the industry on how to record the revenue under Generally Accepted Accounting Principles.
7/2/20 – On June 23, 2020, the Governmental Audit Quality Center (GAQC) issued Alert 409 which included information about the Office of Management and Budget (OMB) issued Memorandum M-20-26. A summary of that Alert is included in this article.
7/1/20 – The CARES Act was enacted in an attempt to mitigate the economic effects of the COVID-19 pandemic. Among other things, it extends favorable tax treatment to qualified individuals who take so-called “coronavirus-related distributions” (CRDs) from IRAs, 401(k) plans and certain other retirement plans.
6/29/20 – The COVID-19 pandemic has necessitated offsite work. Employers and employees are likely to continue remote working arrangements, leading employers to rethink their traditional in-person onboarding process.
6/29/20 – Ohio has recently updated its FAQs in regard to the inclusion of PPP loans in Ohio Gross Receipts for the purpose of calculating the Ohio Commercial Activity Tax
6/25/20 – As a business owner or benefits manager, you have countless responsibilities to manage and you can easily find yourself overwhelmed. If one of your 401K recipients has become unresponsive or gone missing, the responsibility to track them down falls on you and your company.
6/24/20 – From businesses to individuals, we all feel the strain that taxes can put on us over the course of the year. Taxes squeeze the profit margins of every small business and, if you don’t know how to take advantage of the tax benefits available to you and your business, you could be paying taxes you don’t actually need to pay.
6/22/20 – One of the surest formulas for manufacturing success is to pair advanced technology with highly trained workers. In recent years, finding qualified workers has been challenging for many companies. So, when you find the right people, consider these seven suggestions to maximize their skills — and retain them.
6/19/20 – Many providers have been anxiously awaiting the report form from the Department of Health and Human Services (HHS) for the first report on the COVID-19 related expenses and lost revenues.The HHS posted an FAQ on June 13, 2020 that suspended this reporting requirement for July 10.
6/19/20 – How does a nonprofit say "goodbye" to a departing founder or executive? Though not as much fun as a gift and farewell party, an exit agreement may also be called for.
6/18/20 – As you are aware, the IRS extended key deadlines for the 2019 tax year for making 2020 estimated tax payments until July 15, 2020 due to the COVID-19 pandemic. However, did you know that if your 2019 personal return is still awaiting completion, you may have significant retroactive tax-planning flexibility?
6/17/20 – During the COVID-19 crisis, some key tax deadlines were postponed until July 15, 2020. If your business tax return is still awaiting completion, you may have significant retroactive tax-planning flexibility.
6/15/20 – During these unprecedented times, you may encounter unusual impacts on your institution’s balance sheet that will alter your compliance requirements. As your bank grows, it’s important to prepare for additional requirements that come into effect after you reach $500 million or $1 billion in assets.
6/5/20 – The U.S. Senate has passed the bipartisan Paycheck Protection Program Flexibility Act of 2020, which loosens several of the Paycheck Protection Program’s (PPP’s) more onerous restrictions regarding loan forgiveness.
6/4/20 – The Department of Labor (DOL) announced a new safe harbor rule on May 21, 2020 allowing employers to post retirement plan disclosures online or via e-mail as a default to covered individuals.
6/4/20 – The SBA recently released the long-awaited application to apply for forgiveness of a Paycheck Protection Program (PPP) loan. They also announced they will soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities. VonLehman held several events this week where we walked attendees through the PPP loan forgiveness application process. Coming out of the events we had many questions which we've addressed in the FAQ below and attached. If you missed the event you can download the slides and watch a recording from the virtual event.
6/3/20 – On June 2, the Department of Health and Human Services (HHS) updated the FAQs and provided some important guidance on the scope of COVID-19 related expenses and lost revenues for purposes of the quarterly reporting which begins with the quarter ending June 30, now due July 10, 2020.
5/28/20 – These days, the vast majority of your employees have smartphones. Use of these devices to send and receive work-related emails and other communications, and to access the institution’s files and other network resources, can boost productivity.
5/27/20 – On May 15th, the Small Business Administration (SBA) released the long anticipated Loan Forgiveness Application. The next several weeks will continue to bring more guidance, and many lending organizations will be updating their systems to account for the requirements. The good news is that many outstanding questions have now been answered.
5/19/20 – The U.S. House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions Act (H.R. 6800), or the “HEROES Act,” by a vote of 208-199, last Friday May 15, 2020. This new legislation would allow all 501(c) organizations to participate in the Paycheck Protection Program and other Nonprofit provisions.
5/18/20 – The Small Business Administration (SBA) released its long anticipated Paycheck Protection Program (PPP) Loan Forgiveness Application on May 15th. The application, along with the press release from the SBA and instructions on completing the application, can be found here.
5/18/20 – With the influx of troublesome news in recent weeks, this communication will focus on some of the more positive changes that have been instituted on the state and local tax (SALT) front, as a result of COVID-19. The chart below is an attempt to summarize some of the beneficial updates provided beyond the previously announced due date extensions. Although this is not an exhaustive list – especially with announcements being released daily – we will do our best to keep it updated with new information that might otherwise get lost among the many available due date lists.
5/15/20 – In recent weeks, there has been much activity relative to all of the funding pools that are available to healthcare providers. The Small Business Administration (SBA) issued the popular Paycheck Protection Program (PPP) loans designed to assist businesses in meeting payroll, rent, and utilities expenses during an eight-week period during the immediate COVID-19 crisis.
5/13/20 – Wednesday, May 13, 2020, the Treasury Department and the SBA announced (via Twitter) some very good news regarding the PPP loan certification as it relates to the necessity of a borrower’s loan request.
5/12/20 – Due diligence starts with the first call or meeting with a prospective buyer or investor. You only have one chance at making a good first impression, and how your story is delivered is important. Your ability to effectively deliver that message will invigorate a buyer’s excitement in the opportunity.
5/11/20 – The IRS has issued new guidance addressing a question that has lingered since the launch of the Paycheck Protection Program (PPP) — whether expenses paid for with forgiven, tax-free PPP loan proceeds are deductible business expenses under Section 162 of the Internal Revenue Code (IRC).
5/7/20 – The Small Business Administration (SBA) has extended the repayment deadline for Paycheck Protection Program (PPP) borrowers that wish to take advantage of the “good faith” self-certification of eligibility option. The deadline is now automatically extended from May 7, 2020, to May 14, 2020.
5/6/20 – On April 5, 2020, the Governmental Audit Quality Center (GAQC) issued Alert #404 to provide important updates related to COVID-19. The alert provided a definitive answer regarding the applicability of single audit requirements to Paycheck Protection Program (PPP) Loans and the Economic Injury Disaster Loans (EIDL) obtained by nonprofit entities.
5/5/20 – The Small Business Administration (SBA) provided an update on the second round of funding, as of May 1, 2020. The rate of funding has certainly slowed compared to the first round, and the average loan size is reported to be just $79,000, which is significantly lower than the first round average of $206,000. This indicates the focus of the second round is meeting its intended target.
5/4/20 – Most of the changes to the 2019 Forms 990-T and 990-PF were minor, including clarifications outlined in the instructions. VonLehman's Bryan Pautsch details a few of the more significant changes here.
5/1/20 – The month of April finished in a frenzy over the Paycheck Protection Program (PPP), similar to how it began. On April 3, 2020, banks and other lending institutions started to take applications from small businesses for the PPP and, within a short two weeks, all of the initial funding allocated under the CARES Act was exhausted. Congress moved quickly to fund an additional $310 billion into the program with portions set aside in particular for small lenders and community banks with the hope that the funding would find its way to true small businesses.
5/1/20 – The novel coronavirus is taking its toll on the M&D Industry in the form of supply shortages, fulfillment delays, broken sales and operations plans, and increased prices across the industry.
4/24/20 – The latest legislation in a series of federal measures intended to provide relief in response to the novel coronavirus (COVID-19) pandemic has been approved. The $484 billion legislation, which is being referred to as the Interim Stimulus Plan, amends the Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in late March.
4/22/20 – The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) represents the third phase of Congress’s legislative efforts to address the financial and health care crisis resulting from the coronavirus (COVID-19) pandemic. The CARES Act includes numerous provisions intended to help affected businesses, including payroll tax deferral.
4/20/20 – Funding allocated by the CARES Act to the Small Business Administration’s paycheck protection program was officially exhausted by Thursday, April 17th, less than two weeks after the loan program was launched and banks started taking applications. Congress is expected to approve another $300 billion into to the program, and if so, self-employed individuals should plan ahead to make sure their applications are quickly processed.
4/17/20 – The Federal Reserve announced a $600 billion lending initiative (part of the $2.3 trillion stimulus package) that will be referred to as the Main Street Lending Program or MSLP, which is separate from the Paycheck Protection Program. Here, we'll cover the key differences in the two programs and address some FAQs.
4/16/20 – The Small Business Administration released its latest report on the highly subscribed Paycheck Protection Program or PPP. Approvals through 4/13/2020 account for over $247 billion at an average of $239,152 per loan going to small businesses (defined as under 500 employees with exceptions for certain industries). Through Thursday morning, additional reports show that the allocated funding of $349 billion has been completely exhausted and looming doubt persists over whether or not Secretary Mnuchin will be able to deliver on additional funding from Congress.
4/14/20 – On Friday, April 10, 2020, the Department of Health and Human Services (HHS) began the delivery of the initial funding of the CARES Act Provider Relief Fund, in response to the COVID-19 crisis.
4/14/20 – In June of 2018, the US Supreme Court decided a case, South Dakota vs. Wayfair, Inc., commonly referred to as ‘the Wayfair case.’ The Court’s decision changed the rules that dictate when a taxing jurisdiction can expect a remote seller to collect and remit sales tax. The legislatures of the states, and some cities, have responded to the case by enacting economic nexus standards, which are now clearly enforceable for sales tax purposes.
4/13/20 – The IRS and the U.S. Department of Treasury have announced new relief for federal taxpayers affected by the coronavirus (COVID-19) pandemic. The additional relief, outlined in Notice 2020-23, applies to a wider variety of tax filers. The IRS also has announced new tools for taxpayers expecting Economic Impact Payments (also known as “recovery rebates”).
4/10/20 – Under the Families First Coronavirus Relief Act (FFCRA), eligible employers are entitled to refundable tax credits for the full amount of wages that qualify under Paid Emergency Sick Leave (ESL) or Paid Emergency Family Medical Leave (EFMLA). In addition to credit for paid wages for the qualified leave, the credit is increased by qualified health plan expenses and the employer’s share of Medicare tax. Eligible employers seeking federal tax credits must retain records and documentation related to and supporting each employee’s leave.
4/8/20 – The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (S. 748) became law on March 27, 2020, providing significant funding for businesses, hospitals, schools, and nonprofit organizations, among many other things. The programs discussed in this article are all open and available right now. The following content highlights the key sections for tax-exempt organizations, both small and large, to consider.
4/7/20 – The United States has been operating under a presidentially declared emergency since March 13, 2020 and, despite being identified as an essential industry, financial institutions and their customers have been faced with a number of challenges as a result of COVID-19.
4/6/20 – On April 3, 2020, the request forms were changed by the MACs and posted to their websites. Since the old forms were released, CMS has modified the process as they have calculated the maximum payment amount for each provider.
4/6/20 – There is relief for businesses who have employees working from home or remote work sites as a result of the COVID-19 restrictions. Ohio recently suspended the 20-day rule stating an employee’s principal place of work does not change while Ohio is under a State of Emergency, or within 30 days after the emergency period ends. This provision became effective upon the signature of H.B. 197. Consequently, there is no need to track an employee’s work location, for the purposes of applying the 20-day rule, from Wednesday, 3/25, until 30 days after the emergency ends.
4/2/20 – Businesses have been claiming the Research & Development (“R&D”) Tax Credit since the 80s, but there continues to be much uncertainty as to which industries and companies truly qualify for this potentially lucrative annual tax benefit.
4/1/20 – The $2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is intended to shore up the country on multiple fronts and includes several components aimed at individuals.
4/1/20 – Last week the U.S. Department of Labor (DOL) provided additional guidance on H.R. 6201: Families First Coronavirus Response Act (FFCRA), which goes into effect April 1, 2020. The CARES Act makes some critical modifications to the Families First Coronavirus Response Act, which was signed into law on March 18.
3/31/20 – In addition to providing relief to individuals and mustering forces to shore up the medical response, the CARES Act includes numerous provisions intended to help affected businesses, including eligible self-employed individuals, weather the crisis.
3/30/20 – On March 28, 2020, the Centers for Medicare and Medicaid Services (CMS) issued a release announcing an expansion of its accelerated program for Medicare participating health care providers and suppliers. CMS recognizes that providers need resources to combat the coronavirus.
3/27/20 – On Thursday, March 26, the U.S. Senate momentarily tabled its zealous partisanship to pass the $2 trillion emergency relief bill, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). Meanwhile, news simultaneously broke announcing the U.S. as the global leader in confirmed COVID-19 cases. In a brief review of the freshly passed bill, it is overwhelmingly clear why every eligible small business should contact a qualified participating SBA lender and apply for a covered loan under the CARES Act.
3/26/20 – Situation: "Coronavirus Aid, Relief, and Economic Security Act" (the CARES Act), follows days of bi-partisan wrangling. The estimated impact is approximately $2 trillion, and includes funding for: a) extraordinary public health spending, b) immediate cash relief for individual citizens, c) broad lending program for small businesses, and d) directed financial aid for industries that have been severely impacted.
3/26/20 – If you own or manage a business of any size, you know HR becomes increasingly important with each incremental growth. From recruiting top-level employees to managing difficult and oftentimes sensitive interpersonal issues, an elite HR specialist can help your business take that elusive step to the next level.
3/26/20 – After extensive negotiations between the U.S. House of Representatives, the U.S. Senate and the White House, an agreement has been reached on a massive stimulus bill to address the financial and health care crisis resulting from the coronavirus (COVID-19) pandemic.
3/24/20 – The novel Coronavirus (COVID-19) outbreak was designated as a disaster under the Stafford Act on March 13, 2020. This action of classifying the pandemic as federal disaster also allows for relief (separate from the relief of the federal and state governments) to disaster victims through several ways.
3/23/20 – President Trump signed into law H.R. 6201: Families First Coronavirus Response Act on March 18, 2020. Among other things, the new law temporarily requires certain employers to provide expanded paid sick and family leave for employees affected by the coronavirus (COVID-19) pandemic.
3/20/20 – After weeks of speculation surrounding COVID-19’s impact on this year’s tax filing deadline, the U.S. Treasury has provided an official statement. Earlier today, Friday, March 20, U.S. Treasury Secretary, Steve Mnuchin, formally announced the extension of the IRS tax filing deadline from April 15 to July 15.
3/20/20 – The funding programs recently announced by the current administration (as part of the Coronavirus Preparedness and Response Supplemental Appropriations Act) have triggered numerous questions and clarifications from the general public. These programs are vital and are intended to help all businesses that are facing an economic crisis in response to the recent unprecedented events.
3/20/20 – The updated Form I-9 was officially released on January 31, 2020, leaving employers with an April 30, 2020 deadline to transition their processes and procedures as they relate to the new requirements.
3/19/20 – The IRS released guidance on March 18, which outlines details for relief from tax deadlines for taxpayers adversely affected by the coronavirus (COVID-19) pandemic. Federal income tax payments due on April 15, 2020 are considered timely paid and not subject to interest and penalties if paid by July 15, 2020.
3/19/20 – As policies and regulations continue to evolve in response to the spread of COVID-19, our experts will keep you up-to-date on the latest modifications affecting our clients. With millions of Americans currently out of work due to national prevention orders, the government is amending existing policies to allow for quicker access to unemployment insurance. The following article provides guidance and resources for the states of Ohio, Kentucky, and Indiana, in respect to unemployment insurance.
3/12/20 – Providing your employees with factual information from health officials and assuring employees that their health and safety is paramount, can help to prepare and educate employees without causing panic. With coronavirus still continuing to spread across the world, now is the time to formulate best practices your company and human resources departments should follow to help your employees stay healthy and infection-free.
3/9/20 – In addition to other IRS updates, the 2019 form 990 incurred several changes you should be aware of this filing season.
3/6/20 – The evidence speaks for itself. A recent report from the Association of Certified Fraud Examiners (ACFE) suggests the answer is abundantly clear, “yes” — your institution should have a fraud hotline.
3/5/20 – The IRS has released proposed regulations addressing the deductibility of meal and entertainment expenses in tax years beginning after December 31, 2017. Among other things, the proposed regs clear up lingering confusion regarding whether meals are considered entertainment and, therefore, generally nondeductible.
3/3/20 – With the intention of making retirement plans more accessible to the masses, the Setting Every Community Up for Retirement (SECURE) Act provides an incentive-based program for small businesses who adopt retirement plans.
3/2/20 – The construction industry is notoriously taxing on its workers. From falling debris to malfunctioning power tools, a countless number of accidents can end up causing a site thousands of dollars, time, and even threaten a worker’s life. One of the most overlooked issues in the construction industry is mental health. Needless to say, protecting your employees is of the utmost importance.
3/2/20 – The Centers for Medicare Services (“CMS”) originally issued a proposed rule on April 16, 2019, to change the Medicare cost report form set for home health agencies. This notice provided for an original 60 day comment period. On February 24, 2020, the CMS issued a revised notice of proposed home health cost report forms and provides for a second 30 day comment period.
2/26/20 – Employee use of organization credit cards for personal expenses is a very real scenario that many organizations encounter. Here, VonLehman's Colleen Swanson explains how management can prevent these charges, whether they are accidental or intentional.
2/20/20 – In June of 2018, the US Supreme Court decided a case, South Dakota vs. Wayfair, Inc., commonly referred to as ‘the Wayfair case.’ The Court’s decision changed the rules that dictate when a taxing jurisdiction can expect a remote seller to collect and remit sales tax.
2/19/20 – Rights of Return: As nonpublic companies are analyzing their contracts to ensure compliance with ASC 606 Revenue from Contracts with Customers, the internal accounting departments at these entities are having to gain a better understanding of what promises the sales departments are making to customers. One of these promises might be a right of return.
2/17/20 – As we explained in our recent article, What’s in Store for 2020 M&A Activity?, VonLehman believes there are a number of positive trends that should support a robust 2020 M&A environment, one which will once again favor sellers. Full-year 2019 data has now begun to finalize, so we wanted to share those trends and statistics to give everyone perspective on what ‘higher than’ or ‘on par with’ actually means.
2/15/20 – In late 2019, the first substantial legislation related to retirement savings since 2006 became law. The Setting Every Community Up for Retirement Enhancement (SECURE) Act brings numerous changes to the retirement and estate planning landscape, and some of them should prompt careful review of your existing plans to ensure they’ll accomplish the desired outcomes, including minimizing taxes.
2/11/20 – As part of an ongoing effort to improve service, efficiency and quality for tax-exempt organizations, the IRS has made revisions to Form 1023 (Rev Jan 2020). Beginning January 31, 2020, the revised Form 1023 must be filed electronically.
2/10/20 – While there’s no specific regulatory requirement that financial institutions create a succession plan, community financial institutions can’t afford to be without one, and regulators generally view a formal plan as best practice.
1/31/20 – With several provisions in the 2017 TCJA deterring charitable giving, nonprofits should take action to minimize the negative impact on their bottom lines. Stephanie Allgeyer explains some of the possible disincentives for giving, and offers four ideas for combating them.
1/27/20 – With many of the provisions of the SECURE Act now in effect, do you know how they might affect your business? Here are some of the most important developments for employers, many of which took effect on January 1, 2020.
1/23/20 – To help you make sure you don’t miss any important 2020 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due.
1/21/20 – Requirements related to internal controls over compliance are becoming increasingly essential for nonprofit and governmental entities. Having effective internal controls over compliance in place will ensure the organization is ready to meet single audit requirements.
1/20/20 – The past year was a difficult one for the US manufacturing industry. Even still, indicators point to the likelihood of a contraction in coming years despite continued expansion of the US economy, our longest in history.
1/13/20 – In most cases, general contractors have strong relationships with their subcontractors, but fraud happens in every industry — and construction is no exception. Here, we examine some of the typical schemes associated with subcontractor fraud and suggest a variety of measures to stop it.
1/10/20 – As we start the New Year, there is more than enough uncertainty for business owners, management teams, advisors, and others to ponder. Issues about the longevity of the current prosperous economic cycle (for most industries), the upcoming election, which Democratic candidate will win the nomination in July (conservative or moderate), trade wars, impeachment outcomes, rising geopolitical instability, and more combine to leave even the most clear-headed person uncertain regarding what to expect this year and beyond.
1/9/20 – The IRS recently released the final version of the 2020 Form W-4, renamed Employee’s Withholding Certificate. The IRS’s objective with the redesign of the form was to reduce the form’s complexity and make income tax withholding easier to navigate for employees.
1/8/20 – Before its winter recess, one of the most notable agreements Congress reached is a massive government wide spending package. Titled, Further Consolidated Appropriations Act, 2020, the agreement includes extensions of income tax provisions, along with the new retirement account provisions.
1/7/20 – Congress traditionally passes so-called “extenders” annually, but it neglected to do so for 2018. As a result, several popular breaks for both individuals and businesses expired at the end of 2017. The new legislation extends certain income tax provisions that had expired, as well as some that were due to expire at the end of 2019.
12/30/19 – When it comes to technology, one thing is certain: Community Financial Institutions (FI), who fail to deliver the digital products and services their customers demand, will be left behind.
12/30/19 – Once signed, the repeal of the "Parking Tax" is retroactive to the original date of enactment. Taxpayers should be able to file amended Form 990-T to claim a refund for any UBIT paid related to providing qualified transportation benefits to their employees after December 31, 2017.
12/17/19 – Although the Tax Cuts and Jobs Act (TCJA) was signed into law more than a year ago, its impact continues to reverberate. Just one example of this is that, because of changes wrought by the law, many construction companies can now choose from a wider variety of accounting methods for tax purposes.
12/16/19 – Given that the end-of-year and beginning-of-year time frames lend to personal and professional reflection for many business owners, the following list identifies five factors owners and their advisors should account for when considering the potential sale of their business.
12/13/19 – Qualified retirement plan sponsors are subject to many disclosure requirements. Let’s take a look at a “top ten” list of key required, defined contribution plan disclosure documents from the Department of Labor, intended to reinforce a general understanding of those requirements.
12/12/19 – When two nonprofits merge — as in any alliance that blends two staffs and sets of operations — challenges arise. Knowing where the pitfalls lie is half the battle. Here, VonLehman's Stephanie Allgeyer discusses specific challenges that should be anticipated and managed, particularly as they pertain to constituent concerns, layoffs, employee morale, and standardization of operations, policies and procedures.
12/10/19 – The per diem rules themselves haven’t significantly changed. Primarily, guidance for taxpayers who were allowed to deduct certain unreimbursed business travel expenses before the TCJA, has been deleted. Here’s a refresher on what changed under the TCJA and the rules for using per diem rates.
12/3/19 – From greedy employees and hidden accounts, to the notorious wire transfer, commercial fraud has become a mainstay among nightly news agendas. In 2017 alone, it was estimated that over $1 billion was lost in wire fraud attacks. It is critical that you do everything possible to mitigate potential losses, as your insurance will only go so far in recovering these assets.
11/18/19 – ASC 606 Revenue from Contracts with Customers introduced a five-step-approach to recognizing revenue from contracts with customers. The approach includes 5 specific actions; once these steps have been completed, you must next determine what the accounting looks like. Here, we're observing the perspective of a distributor applying the five-step-approach in a real-world situation.
11/13/19 – Manufacturers face a barrage of cyber security threats today, and half of companies have fallen victim to at least one data breach during the past 12 months, according to the 2019 Manufacturing and Distribution Report. Until an attack takes place, most organizations feel they have done everything they need to do, but later realize it wasn’t sufficient.
11/12/19 – The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2020.
11/11/19 – The IRS recently issued its 2020 cost-of-living adjustments. With inflation remaining largely in check, many amounts increased slightly, and some stayed at 2019 levels. If you’re working on your year-end tax plan, you’d be wise to take these 2020 cost-of-living amounts into consideration.
11/4/19 – To help you make sure you don’t miss any important 2019 deadlines, we’ve provided this summary of when various tax-related forms, payments, and other actions are due. Also included are deadlines into 2020 and a schedule of monthly payments.
10/31/19 – Most institutions use the dot-com extension at the ends of their website addresses, also known as the top-level domain (TLD). But the dot-bank and dot-creditunion TLD offers several advantages, including enhanced security, which is of critical importance to financial institution customers today.
10/31/19 – The first tax-filing season under the Tax Cuts and Jobs Act (TCJA) was a time of uncertainty for many businesses as they struggled with the implications of the law’s sweeping changes for their bottom lines. With the next filing season on the horizon, you can incorporate the lessons learned into your year-end tax planning.
10/28/19 – Accounting for contributions and grants has often proven complicated for nonprofits, especially when they come with donor-imposed conditions, restrictions, or both. New revenue recognition standards released by the Financial Accounting Standards Board (FASB) in 2014 only muddied the issues for some organizations.
10/25/19 – Fall is in the air and that means it’s time to turn your attention to year-end tax planning. While several clear strategies and tactics emerged during the first tax filing season under the Tax Cuts and Jobs Act (TCJA), 2019 and subsequent years bring potential twists that must be considered, too. Let’s take a closer look at year-end tax planning strategies that can reduce your 2019 income tax liability.
10/15/19 – Private business owners often loan money to and from their businesses. The IRS looks closely at such transactions to determine whether they are truly loans, or actually compensation, dividends, or contributions to equity. This article explains how informal shareholder loans may lead to adverse tax consequences and how the U.S. Tax Court determines that a shareholder loan is bona fide debt.
10/11/19 – The U.S. Department of Labor (DOL) has released the finalized rule on overtime exemptions for white-collar workers under the Fair Labor Standards Act. The rule, which is scheduled to take effect on January 1, 2020, updates the standard salary levels for the first time since 2004.
10/2/19 – The Financial Accounting Standards Board (FASB) has voted to delay implementation of the lease accounting standards for non-public business entities. The proposed implementation date for private companies will now be January 1, 2021 (still subject to final approval).
9/30/19 – The IRS has released final regulations and another round of proposed regs for the first-year 100% bonus depreciation deduction. The Tax Cuts and Jobs Act (TCJA) expanded the deduction to 100% if the qualified property is placed in service through 2022, with the amount dropping each subsequent year by 20%, until it sunsets in 2027.
9/23/19 – Can your board spot these 5 financial warning signs? When a nonprofit is having trouble meeting payroll obligations, defaulting on loans, or losing key donors, it’s easy for the board to tell that they’re in financial crisis. Often, though, the board could have avoided these financial disasters if it had recognized some of the earlier and less obvious signs of distress.
9/18/19 – Unless you’re a small nonprofit with no outside audit, it’s likely that your organization has an audit committee. No matter how long it’s been up and running, the board of directors should monitor the committee’s performance.
9/17/19 – The revenue recognition guidelines under ASU 2014-09, Revenue from Contracts with Customers, replace nearly 180 pieces of industry-specific guidance in GAAP with a broad, principles-based method for most businesses to recognize revenue. This approach to revenue recognition is more closely aligned with international financial reporting rules.
9/9/19 – Given the current positive market conditions, there's a new phenomenon where more sellers are enamored with “testing” the market instead of truly dedicating themselves to selling their businesses. They want to test value and see whether the valuation “bonanza” that they have been reading and hearing about is real. They pursue market testing in hopes of finding sky-high valuations and they dream of buyers willing to overpay.
8/30/19 – The ever-changing environment of the Healthcare Industry is impacting physicians and Physician Groups more than ever before, causing them to re-evaluate the future of the industry. Many are considering Mergers and Acquisitions (M&A) a viable option. Even if a physician group is performing well and, the majority of physicians within the practice are content, the group owes it to themselves to at least study, explore, and understand various strategic M&A options.
8/14/19 – Is your Form I-9 compliant? Immigration worksite enforcement surged in 2018 and shows no signs of slowing down. In 2018, the federal government announced their intentions to step up a nationwide efforts and to increase I-9 audits by the Immigration and Customs Enforcement (ICE) arm of U.S. Citizenship and Immigration Services.
8/6/19 – Before you sell equipment or patent rights to a company affiliate, think twice about the price. The IRS recently announced the launch of their “Inbound Distributor Campaign,” which is one of thirteen issue-based examinations and compliance campaigns.
7/31/19 – As you may know, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule on April 16, 2019 for a new cost report form set for home health agencies, Form CMS 1728-19.
7/24/19 – Passage of the federal income tax law in late December 2017 brought into reality a variety of concerns that nonprofits raised as the bill worked its way through Congress. In addition to the increased standard deduction that's expected to depress charitable giving, the final Tax Cuts and Jobs Act (TCJA) includes several other provisions that prompted objections from charities.
7/22/19 – The process of preparing an estate is a crucial but often times uncomfortable and overwhelming task. However, a fundamental understanding of this process can go a long way in subduing your fears.
7/17/19 – Due to recent legislative changes, the Kentucky Department of Revenue (DOR) has updated the Resale Certificate (Form 51A105) to include the services that are now exempt for resale, effective July 1, 2019.
7/16/19 – It’s been five years since we first heard of the impending revenue recognition update, and the time has finally come for companies to implement the new standards. While there are still uncertainties as to how much this may affect contractors and how they have recognized revenue under the old standards, every company is required to implement for years ending after December 31, 2019 and interim periods starting in 2020.
7/15/19 – Does your company construct, acquire, or substantially improve buildings? If so, a cost segregation study can help reduce taxes. Continue reading to find out how!
7/11/19 – The AICPA Auditing Standards Board (ASB) recently issued Statement on Auditing Standards (SAS) No. 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA. SAS No. 136 is the result of an effort to enhance the communicative value and transparency of the auditor’s report for ERISA plan financial statements, and to include performance requirements specific to auditing ERISA plans.
7/10/19 – Your board members should have an understanding of the various financial reports your nonprofit is required to prepare. (See “Nonprofits: Best Practices for Board Fiscal Responsibilities” to learn more). In addition, board members should be familiar with these three key metrics.
7/9/19 – Even if new board members are enthusiastic, wise or skillful, they may not fully understand their fiduciary responsibility to be good stewards of the public’s money, have a working knowledge of finances — or even be good with numbers. In this article, VonLehman’s Stephanie Allgeyer shows how a board can assure fiscal responsibility by having strong operating procedures, the right committee structures and appropriate training.
6/27/19 – Business owners regularly use valuations for their businesses, but not all businesses are valued under the same method. Construction related companies, in particular, have their own set of challenges.
6/26/19 – The TCJA has yielded several tax-saving opportunities for the manufacturing and distribution industry. Due to the time value of money, it’s critical that business owners capitalize on these occurrences with a sense of urgency.
6/11/19 – In June of 2018, the world of sales tax nexus was changed forever by the United States Supreme Court’s decision in South Dakota v. Wayfair. The standardization efforts of a group of states under the Streamlined Sales Tax Project were rewarded, and the long established, physical presence standard was no longer the law of the land.
6/10/19 – Choosing the right plan for your business can be confusing. This infographic illustrates the differences in 3 types of plans to help you decide which route to take.
5/15/19 – Construction accounting is unique and complex. Each of your projects serves as an individual profit center with its own revenue, expenses and payroll. When looking to upgrade accounting software, focus on industry-specific features.
4/26/19 – Cloud computing is the wave of the future. Some manufacturers and distributors haven’t yet moved to the cloud, possibly because their staff resources and IT expertise are limited. Others have moved to the cloud, but they’re dissatisfied with their current service provider. Here, Randy Marksberry highlights the advantages of cloud computing, along with some key considerations to help evaluate prospective cloud computing service providers.
4/18/19 – In 2006 through 2008, with the Construction Industry reaching its highest performance marks in decades, contractors and related industry businesses were confounded by the rapid formation of the ensuing economic superstorm. By the time the winds had settled, the total value of construction work completed fell nearly 40 percent, and 150,000 industry businesses were forced to close their doors.
4/17/19 – The Centers for Medicare Services (CMS) issued a proposed rule on April 16, 2019, to change the Medicare cost report form set for home health agencies. The new forms will be known as the CMS Form 1728-19. The Notice appeared in the April 16, 2019 Federal Register with a 60 day comment period. Comments are due by June 17, 2019.
4/2/19 – Effective March 26, 2019, sales of admissions and tangible property sales at fundraising events by all nonprofit groups and governmental organizations are now exempt from Kentucky sales tax. Therefore, they should discontinue charging sales tax to their customers and benefactors on these transactions immediately.
3/13/19 – A nonprofit’s growth stage — beginning two or three years after formation and continuing until maturity at around age 7 — isn’t without challenges. But this period also comes with a sense of accomplishment and the opportunity to refine and expand the organization. VonLehman's Micki Siner explores some of the issues facing a nonprofit at this stage, including possible mission adjustment, strategic planning, and staff expansion.
2/28/19 – Many manufacturers are concerned about the lack of skilled workers. In this article, our expert explains some cost-effective training and recruiting solutions, including practical guidance for paying interns.
2/22/19 – Depending on complexity of operations, in-house expertise, and stakeholders' needs, the level of assurance you should request will vary.
2/21/19 – Nonprofits that solicit funds online — or use other fundraising methods that cross state boundaries — may need to register in multiple jurisdictions. If this is news to you, read on.
2/18/19 – In recent years, report accuracy has declined. Many providers have placed a lower emphasis on the cost report since there is no direct settlement impact. Medicare Cost Reports still play a vital role for home health agencies.
2/13/19 – As a result of the many responsibilities they occupy, professionals in the M&D industry are regularly faced with a multitude of challenges. There is an abundance of accounting and tax hot topics currently impacting manufacturing and distribution businesses. This article evaluates some of the more impactful challenges for manufacturers in 2019.
2/11/19 – Like most business owners, you have probably followed the news closely as Congress passed major tax legislation and the president signed it into law. The Tax Cuts and Jobs Act (TCJA) contains a variety of significant provisions affecting contractors.
2/7/19 – The official tax season opened on January 28. Assuming you have your W-2s and 1099s, you can file your 2018 return now. And the earlier the better if you want to cash in on these 5 benefits.
2/6/19 – As a reflection of your organization’s culture and values, the employee handbook, when maintained properly, serves as an invaluable tool for your organization. Here, VonLehman's Erin Young discusses the keys to maintaining your handbook and emphasizes those policies that demand careful observation, including those affected by recent regulatory and legislative actions and trends.
2/1/19 – As of January 1, 2019, Home Health Agencies (HHA) nationwide were subject to new billing requirements relating to the new Home Health Rural Add-on payment differential. The percentage add-on is now based on three different percentages determined by the classification of the county.
2/1/19 – Home Health Agencies are embarking on a period of significant change. The year 2020 will see the implementation of the new Patient Driven Grouping Model (PDGM), and CMS is converting the 60-day payment episode model to a 30-day model.
1/30/19 – A large sampling of U.S.-based M&A and private equity professionals expect the average number of deals they close to increase over the next year, and that the size of those transactions will be larger than the ones transacted in 2018. Several catalysts that existed in 2018 will continue accelerating M&A activity into 2019. Read on for Keith Carlson's expectations for the M&A market in 2019.
1/29/19 – What happens to the mergers and acquisitions (M&A) market if a recession starts? What happens to purchase price multiples during a recession? If we do enter a slowdown, should I hold off on selling my business? Find answers to these questions and more in this helpful article.
1/28/19 – When President Trump signed into law the Tax Cuts and Jobs Act (TCJA) in December 2017, much was made of the dramatic cut in corporate tax rates. But the TCJA also includes a generous deduction for smaller businesses that operate as pass-through entities, with income that is “passed through” to owners and taxed as individual income.
1/18/19 – The IRS has some good news for certain taxpayers — it’s waiving underpayment penalties for those whose 2018 federal income tax withholding and estimated tax payments came in under their actual tax liabilities for the year.
1/9/19 – The IRS has announced that it will begin accepting paper and electronic tax returns for the 2018 tax year on January 28, but much remains to be seen about how the ongoing shutdown of the federal government will affect this year’s filings.
1/7/19 – The median fraud loss among manufacturers was almost double the median loss for all industries, according to the 2018 Report to the Nations published by the Association of Certified Fraud Examiners (ACFE). Internal controls are a company’s first line of defense in preventing and detecting fraudulent activity. Here, we identify five questions proactive managers should consider when evaluating the strength of their company’s internal controls.
1/1/19 – To prevent budget deficits, nonprofits need to improve cash management, particularly when it comes to billing, receipts and disbursements. Here, Yvonne de Calonne offers such tips as moving fundraising calendars ahead, correcting billing errors quickly, and prioritizing disbursements.
12/11/18 – The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2019, and there are a lot of changes that will help your employees save more. In this article, VonLehman's Alex Baker compares retirement plan limits for 2018 versus the new limits for 2019 in a helpful chart.
11/26/18 – The IRS has announced its 2019 cost-of-living adjustments to tax items that might affect you. Many of the amounts increased to account for inflation, but some remained at 2018 levels. As you implement 2018 year-end tax planning strategies, be sure to take these 2019 adjustments into account in your planning.
11/26/18 – Communication breakdowns between a nonprofit organization’s development and accounting departments can lead to confusion, embarrassment and, worse yet, financial problems. Nonprofits, therefore, must take proactive steps to facilitate collaboration between these two critical functions. Here, we've outlined how to get the ball rolling in the right direction.
11/6/18 – Whether or not a nonprofit chooses to employ external auditors, it can utilize audit techniques, including year-to-year trends and benchmarking against other nonprofits, to get a better view of the organization’s revenue. Here, we assess key pieces of the revenue picture, such as individual contributions, grants, and fees for services.
11/1/18 – There’s a fine line between employee and independent contractor. In this article, VonLehman's Adam Davey provides an overview of this issue and the characteristics that distinguish employees from contractors. This distinction may take on even greater importance under the new tax law.
10/31/18 – The Tax Cuts and Jobs Act (TCJA) created more than 100 new tax provisions — a staggering thought as you begin to prepare for the next filing season. The good news is that these and some of the surviving provisions create a wealth of year-end planning opportunities. Act now to cut your 2018 tax bill.
10/31/18 – The Tax Cuts and Jobs Act (TCJA) doubled the child tax credit to $2,000 per child under the age of 17. It also makes the credit available to more families thanks to increased income phaseout ranges. This handy infographic breaks down the eligibility requirements and modified AGI phaseout ranges.
10/30/18 – In a nutshell, the TCJA creates a new section of the Internal Revenue Code, Section 1400Z, that establishes Opportunity Zones within low-income communities. The provision allows taxpayers to defer tax on capital gains by investing in such Opportunity Zones. And now the IRS has released proposed regulations for this tax incentive.
10/18/18 – The passage of the Tax Cuts and Jobs Act (TCJA) in late 2017 brought significant changes to the tax landscape. As the first tax season under the law looms on the horizon, new year-end tax planning strategies are emerging. Meanwhile, some of the old tried-and-true strategies have changed and others remain viable.
10/18/18 – While the TCJA eliminated the AMT for businesses, the new law keeps a modified version of the tax in place for individuals. Get the details in this handy infographic.
10/8/18 – The Tax Cuts and Jobs Act (TCJA) was packed with goodies for businesses, but it also seemed to eliminate the popular meal expense deduction in some situations. Now, the IRS has issued transitional guidance — while it works on proposed regulations — that confirms the deduction remains allowable in certain circumstances and clarifies when businesses can claim it.
10/2/18 – Just when you thought accounting rules couldn’t get more complicated --- especially after the Revenue Recognition changes required for closely-held businesses in 2019 --- the Financial Accounting Standards Board (FASB) has changed how we account for leases beginning in 2020.
9/24/18 – Missing filing deadlines for Form 5500 (Annual Return/Report of Employee Benefit Plan) for retirement and health and welfare plans can be extremely costly. The best way to avoid trouble is to ensure that meeting filing deadlines never falls between the cracks.
9/21/18 – Why is cost reporting important? In this presentation, you'll learn why, plus how to identify changes in data elements for proper completion of the cost report, find problem areas and changes needed for the future, and outline the steps that need to be taken now to prepare the cost report forms. Download your copy here.
9/17/18 – Every organization — whether for-profit or nonprofit — is at risk of falling victim to costly acts of fraud. Nonprofits, though, have some common characteristics that can make them particularly susceptible to such schemes. Fortunately, you can help combat the risks at your nonprofit by implementing some simple controls.
9/10/18 – In response to the Federal Government’s Tax Cuts and Jobs Act, the Kentucky General Assembly issued House Bill 487 (HB 487), passed in April of this year. For months, the measure of the bill’s impact on Kentucky’s manufacturing and distribution industry was uncertain. However, the State has since released a flurry of provisions expounding the bill’s reach. The provisions summarize the income tax laws implemented by the State of Kentucky as a result of HB 487.
8/31/18 – As mentioned in Part 1 of the series, this segment will analyze some of the less common terms associated with mergers and acquisitions and share how and why they are so important in negotiating the purchase or sale of a business.
8/30/18 – Some business owners are accustomed to running the whole show. But as your company grows, you’ll need to start sharing responsibility for major decisions. Whether you’ve recruited experienced managers or developed “home grown” talent, empower these employees with the tools and authority they need to be effective leaders.
8/29/18 – News of commercial database hacking incidents involving millions of people’s personal information seems commonplace. While many of these stories focus on bank and credit card accounts, many plan sponsors and participants don’t realize that 401(k) plan assets may be at risk — which can be a problem not only for participants, but sponsors as well.
8/21/18 – The IRS recently released highly anticipated regulations addressing the deduction for up to 20% of qualified business income (QBI) from pass-through entities. The deduction was a major component of the Tax Cuts and Jobs Act, which became law late last year.
8/13/18 – The Tax Cuts and Jobs Act (TCJA) significantly expands bonus depreciation under Section 168(k) of the Internal Revenue Code for both regular tax and alternative minimum tax (AMT) purposes. Now, the IRS has released proposed regulations that clarify the requirements that businesses must satisfy to claim bonus depreciation deductions.
8/10/18 – Preparing for and accommodating an independent audit can be stressful for nonprofit staffers. But, understanding the process and making the right records available can help ensure that everyone is comfortable with the audit and its results.
8/9/18 – In Part 1 of our 3-part series, Ely Friedman dives into common M&A terms are and explains how they can be used as part of the negotiation process of buying and selling a business.
7/26/18 – Republican lawmakers currently are considering a second round of tax reform legislation as a follow-up to last year’s Tax Cuts and Jobs Act (TCJA).
7/16/18 – At some point, a nonprofit might consider outsourcing the functions that fall under its accounting and financial umbrella. But, as this article explains, it’s important to weigh the pros and cons before making this important decision.
7/12/18 – VonLehman’s Director of M&A Advisory Services, Keith Carlson, recently participated in an industry panel to discuss market analysis, sales techniques, and a breakdown of the sale process, among other topics. Keith's insights are summarized here.
7/10/18 – How should you handle an offer to purchase your business when you haven’t expressed an interest to sell? How much value should you put into unsolicited offers? The potential could be huge if you manage the process correctly, know how far to take the conversation, and when to call some experts for help.
7/1/18 – If you were a peach farmer, would you rather harvest and sell your fruit at the same time as all the other peach farmers in the country, or (assuming you could control this) when peaches are scarcer? Hopefully you’d prefer to sell in a scarce market, where you could be more of a price-setter than a price-taker.
6/26/18 – Although retirement plan fiduciaries take their jobs seriously, it can be hard to cover all the bases. That’s understandable, considering the broad scope of fiduciary responsibility as well as the dynamic nature of the retirement plan designs, investment management and legal interpretations of fiduciary duty.
6/21/18 – It has been a big day in the world of sales tax! The U.S. Supreme Court issued a ruling in the case South Dakota v. Wayfair that changes the standard for when a state can require sales tax to be collected.
6/19/18 – The Ohio Bureau of Workers’ Compensation (OBWC) has initiated a Safety Intervention Grant Program, providing Ohio manufacturing and distribution employers with a rare opportunity to be compensated for equipment purchased to reduce injuries or illness in the workplace.
6/5/18 – The new federal procurement standards significantly alter the way governments and nonprofits handle purchasing. With some upfront planning and implementing the right steps ahead of time, you can avoid running afoul of the federal procurement guidelines.
6/3/18 – You’ve decided to explore the sale of your business. Now what? The five recommendations listed below are more than worth your time, investment, and consideration.
5/30/18 – The construction and real estate industry is closely tied to the American entrepreneurial spirit. While success and financial reward come at a cost, the opportunity to control your own destiny, through hard work and long hours, is a dream many prospective business owners are obsessed with making a reality.
5/22/18 – It takes a dedicated professional to lead critical human resources initiatives; a professional that many organizations do not have the luxury of employing in-house. If your HR needs are keeping you from advancing your mission, you might consider outsourcing some or all of your human resources functions.
5/17/18 – For the first time in Kentucky state history, a sales and use tax was imposed on labor or services for maintenance, repair, and installation, of “tangible personal property, digital property, or service sold” impacting the Kentucky manufacturing industry.
5/4/18 – A nonprofit’s financial integrity is simply too important to leave to an unpaid, and possibly inexperienced bookkeeper. This article provides tips on hiring a bookkeeper, including determining the position’s responsibilities. Nonprofits are advised to look for an individual who’s familiar with accounting principles and experience and relevant software.
5/1/18 – Without solid due diligence, an M&A deal can be fraught with disaster. A merger or an acquisition can be a long — and delicate — process, and there’s plenty that can go wrong before it’s over. To better the chances that your M&A will be a success, up-front and persistent due diligence work is a must.
4/27/18 – The new tax law will have a major impact on how much income taxes manufacturers and distributors will pay in 2018. And there’s good news: In addition to lowering business tax rates, the new law significantly expands the tax breaks for capital expenditures.
4/26/18 – Beyond the tax reform headlines, there are some major changes to federal estate taxes. Here are three key ways the TCJA will impact your estate plan.
4/26/18 – A business plan is like a road map. It can help you get where you’re going. It also can tell you that it may not be a good idea to begin the journey.
4/23/18 – While the U.S. economy continues to improve, construction contractors must carefully watch their bottom lines. This means keeping track of just how increases — or decreases — in profitability can affect your construction company.
4/20/18 – Plan sponsors have more flexibility than they may realize when it comes to setting eligibility rules for 401(k) plan participants. Even though ERISA sets many rules for eligibility, plan sponsors have leeway to meet the demands of the employment market. Here are some thoughts for plan sponsors to consider when determining plan enrollment.
4/16/18 – Moving away from original ink signatures, the Centers for Medicare and Medicaid Services (CMS) has adopted a new policy to allow for electronic signatures on Medicare Cost Reports, which should reduce processing time for everyone.
4/5/18 – While the branches of The Tax Cut and Jobs Act of 2017 (TCJA) are far reaching, one leaf you can’t afford to overlook is that of business expense reimbursables. This article offers a succinct interpretation of meal and entertainment reimbursement revisions set forth in the TCJA.