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The “FICA Tip Credit” Equals Major Tax Savings for Restaurant Owners
If you are a restaurant owner and you have employees that receive tips from customers on a regular basis, you…
New Acronym Alert: PCC (Private Company Council) established to define GAAP for private companies
On May 23, the Financial Accounting Foundation (FAF) voted to create the Private Company Council (PCC), whose main purpose will…
International Tax Series: Be Aware of the Form 5471 Filing Requirement if a U.S. Person Owns Stock in a Foreign Corporation
The Form 5471 may need to be filed if a U.S. person owns an interest in a foreign corporation. A…
Proposed Lease Accounting Changes May Negatively Impact Financial Ratios of Government Contractors
Government contractors should be sensitive to the changes that are happening with leases as these changes will increase the complexity…
International Tax Series: Know the Basics of Entity Classification and Check-the-Box when Forming or Acquiring a Foreign Company
A U.S. person who plans to form or acquire an ownership interest in a foreign company should be aware of…
Attention NAVSEA Service Contractors: Beware of New Tripwires!
NAVSEA has issued new approval requirements for numerous contracting actions associated with service contracts. Among other ramifications, these new “tripwires”…
Maryland Increases Personal Income Tax Rates
Maryland Governor Martin O’Malley has just signed legislation that, effective for tax years beginning after December 31, 2011, increases personal…
Work Opportunity Tax Credit for Tax-Exempt Nonprofits
Recent changes to the Work Opportunity Tax Credit (WOTC) have made incentives for hiring eligible veterans available to tax-exempt nonprofit…
Approval of Journal Entries (avoiding management letter comments, part 6)
One part of a good system of internal controls is having all general journal entries reviewed. This is also a…
Recent DCAA Guidance (MRD) Part 2: New DCAA Audit Guidance on the Business Systems Rule
On March 28, 2012 the Defense Contract Audit Agency (DCAA) issued Memorandum for Regional Directors (MRD) related to revising audit…
Social Security Numbers on Form 990 = Identity Theft Risk
A recent study published by Identity Finder, a security and privacy software company, revealed that nearly half a million social…
NIH/USAID Contractors Feel the Impact of Contractor Employee Salary Caps
The National Institutes of Health has lowered the salary cap for government contractor employees from $199,700 to $179,700 for contracts…
Employee or Independent Contractor? That’s the Question in California and Everywhere Else
A business owner’s hiring of a worker as an employee has real costs beyond the wages paid to the employee….
Erroneous 990 Penalty Notices
The Journal of Accountancy is reporting that some tax-exempt organizations have received penalty notices for late filings even though they…
Simple Ways to Create Segregation of Duties (and Avoid a Management Letter Comment)
There are four categories of potential management letter comments: material weakness, significant deficiency, control deficiency and “other comment.” We want…
Section 83(b) Election: Standardization Realized
What is it? What’s new? And how do you make it work for you? By Mitchell Kopelman, partner-in-charge of Tax,…
AIA Architecture Billing Index Led By Commercial Construction
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) has now seen 4 consecutive months of scores…
What the (bleep) does Escheat mean? (what you need to know about unclaimed property)
Escheat is defined as a state’s rights to claim the title for unclaimed property. Before you dismiss this as N/A…
EITF 12-B: Interpreted As Dramatic Narrative
Emerging Issues Task Force (EITF) – Issue 12-B has the same dynamic tension as the narrative in The Hunger Games…
AIA Architecture Billing Index Turns Negative in April
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) has turned negative for the first time in…
“Temporarily Restricted” is a Binding Legal Concept (Garth Brooks v. Oklahoma Hospital)
As highlighted in Garth Brooks’s lawsuit against the Oklahoma hospital, a donor’s restrictions are a legally binding agreement. On January…
AIA Architecture Billing Index Continues Positive Trend
The Architecture Billings Index (ABI) by the American Institute of Architects (AIA) has seen 3 consecutive months of positive scores…
Over-stated Value of Donated Medicine Gets Charity in Big Trouble with the IRS
In an IRS report that Forbes qualifies as “blistering”, Food for the Hungry, an Arizona based nonprofit, is accused of…
Final FAPIIS Rule Adds Protection for Contractors
The final regulations implementing the Federal Awardee Performance and Integrity Information System (FAPIIS) has now been issued. FAPIIS is a…
AICPA Opposed to Mandatory Audit Firm Rotation
The PCAOB released a proposal requiring mandatory rotation of audit firms (as opposed to just audit partners) for public companies…
Do You Know the 18 Criteria for an “Adequate” Accounting System?
Here is a quick overview: DFARS 252.242-7006 Accounting System Administration The Contractor shall establish and maintain an acceptable accounting system….
Good Reasons to Scrutinize Expense Reimbursements
Accounting Today has a slide-show of the most unusual items submitted on employee expense reports. The cojones of people to…
Cost Accounting Standards Pension Harmonization
Cost Accounting Standard (“CAS”) 412, Composition and Measurement of Pension Cost and CAS 413, Adjustment and Allocation of Pension Cost,…
GAO Report on DCAA Access to Company Internal Audit Reports
The Government Accountability Office (“GAO”) released a report on December 8, 2011 titled “DEFENSE CONTRACT AUDITS: Actions Needed to Improve…
HUBZone Concerns Lose Program Eligibility As Many Qualified HUBZone Areas Expire
In October 2011, the Census Bureau released data from the 2010 Decennial Census that may immediately impact the HUBZone eligibility…
ACP advises Project Management Services, Inc. (PMSI) on its sale to KS International, a portfolio company of D.C. Capital Partners
Washington, DC – September 8, 2011 – KS International, LLC (“KSI”), a DC Capital Partners, LLC portfolio company, announced today…
ABC Suggests Several Changes on the 3% Withholding Tax
The 3% Withholding Tax is a proposed tax that will be levied against all payments for goods or services from…
AIA Architecture Billing Index Continues to Slide Downward
For the third consecutive month the American Institute of Architects (AIA) Architecture Billing Index (ABI) decreased. This trend is concerning…
501(c)(4) Lobbying and Political Activity Puts Donors On the Hook
The IRS is leaping into the political fray by notifying donors that their contributions to 501(c)(4)’s may be retroactively subject…
What You Need to Know About 457 Plans
Does your organization have a 457 eligible deferred compensation plan? Are you recognizing unrealized gains and loss for the change…
Talking about Financing Options for Nonprofits
We spoke with Kevin Quinn of the Wye River Group about financing options for nonprofits. Based in Annapolis, Maryland, Wye…
UPDATE: “Outlandish Expenditures” at Madonna’s Malawi Project
UPDATE: Newsweek has an article on the Raising Malawi issues in which they report that “only 27% of girls attend…
UPDATED: New SCA Wage Determinations Incorporated into Several Major GSA Schedules
UPDATE (2/25/11): Since this post was originally published, additional GSA solicitation refreshes have been released incorporating new SCA wage determinations…
So What Type of Supporting Organization Are You?
All 501(c)(3) charities are classified as either a public charity or a private foundation. Classification as a public charity is…
The Home Office Deduction: Nothing Personal But Exclusive Use Means Exclusive Use!
While it is a common practice for sole proprietors to run their business out of a personal residence, that does…
Should We Accrue Sabbatical Leave?
Vested rights are those that accumulate over time as earned but not yet used and are to be redeemed at…
Revenue Recognition – Milestone Method
Does your business provide research and development services using a milestone arrangement? The new FASB standards in ASU 2010-17 provides…
Updated FASB Guidance for Revenue Arrangements That Include Software Elements
Does your business sell a product that includes a software component that is essential to the product’s overall functionality? If…
DOD Acquisition Policy – Better Buying Power or a Shift in Power?
The Department of Defense issued a memorandum on January 4, 2011, the subject: Better Buying Power: Guidance for Obtaining Greater…
Survival Tactic #3 Be Prepared to Report Subcontractor Data & Executive Compensation
Whether you like it or not reporting accurate and timely subcontractor and executive compensation information will be critical to your…
Reminder – Incentive Stock Option Reporting Required on 2011 Taxes
By Mitchell Kopelman, partner-in-charge of Tax, and Jeff Weinkle, tax manager Beginning last year, any corporation that transfers shares due…
Using Personal Guaranty Companies to Limit Exposure
If you are a real estate developer with personal guarantees, there may be better ways to secure financing while protecting…
Taxation of Political Action Committee and IRS Filing Requirements
Taxation of Political Organization Taxable Income A political organization is subject to tax on its “political organization taxable income”. I.R.C….