Client Memo – Common Types of Fraud Schemes
There are two types of fraud, occupational fraud, and financial statement fraud. Of the two, occupational fraud is the most costly to small businesses. The common types of occupational fraud schemes include the following: 1. Asset misappropriation – Skimming. This is the most common form of cash misappropriation. Skimming is stealing incoming cash before it […]
IRS Dirty Dozen
Last Friday, the Internal Revenue Service announced the conclusion of its annual “Dirty Dozen” list of common tax scams. The annual list highlights various schemes that taxpayers may encounter throughout the year, many of which peak during tax-filing season. We urge you to stay alert and use caution when viewing and responding to income tax […]
Client Memo – Big Concern for Small Business
According to various studies conducted by the Association of Certified Fraud Examiners (ACFE, www.cfenet.com), the per-employee losses from fraud in the smallest businesses are 100 times the amount of their largest counterparts. This is mainly due to the fact that small businesses have limited resources to perform adequate employee prescreening and implement sufficient internal controls […]
Did You Repair Your Business Property or Improve It?
Repairs to tangible property, such as buildings, machinery, equipment or vehicles, can providebusinesses a valuable current tax deduction — as long as the so-called repairs weren’tactually “improvements.” The costs of incidental repairs and maintenance can be immediately expensed and deductedon the current year’s income tax return. But costs incurred to improve tangible property mustbe capitalized […]
Cost Segregation Study
Businesses that acquire, construct, or substantially improve a building — or did so in previous years — should consider a cost segregation study. These studies combine accounting and engineering techniques to identify building costs that are properly allocable to the tangible personal property rather than real property. This may allow you to accelerate depreciation deductions, […]
Client Memo – IRS Warns of Phone Scams
We would like to bring to your attention a recent warning issued by the IRS about a phone scam that targets people across the nation. Callers claiming to be from the IRS would tell intended victims that they owe taxes and must pay using a pre-paid debit card or wire transfer. The scammers threaten those […]
Meal, Travel & Entertainment Expenses: Know What’s Deductible & Properly Substantiate
When owners, managers, and salespeople attend trade shows, call on customers or evaluate suppliers, they may incur meal, travel, and entertainment expenses. Many of these expenses may be deductible if they’re properly substantiated, but some of the rules have changed under the Tax Cuts and Jobs Act (TCJA). Entertainment Expenses No Longer Deductible “Entertainment” expenses […]
Independent Contractors
Many employers mistakenly believe that the misclassification of employees as independent contractors doesn’t really matter, so long as the contractors satisfy all of their tax obligations. This couldn’t be further from the truth. Improper classification of workers comes at a high cost, and both federal and state authorities have been cracking down on the practice […]
