We’ve brought together the latest news, commentary, and information to keep you informed about topics affecting you and the industries we serve. Our videos on tax, accounting, and audit issues are designed to provide insights that individuals and businesses should keep top-of-mind. Our tips can be implemented to improve your tax planning strategy, estate planning efforts, and audit preparation.
In this video, Assurance Senior Melissa Castro discusses the improvements to employee share-based payment accounting, which applies to all entities which issue share-based payment awards to their employees. Find out how the improvements affect income taxes and what restrictions regarding the determination of an award’s equity classification on the company’s balance sheet from watching this video.
This video discusses what partnership profits interests are and how both vested and unvested profits interests are taxed. Essentially if you receive profits interest you receive the right to a percentage of profits in the future and appreciation of the partnership. You will have no right to any current capital.
When receiving partnership interests in exchange for services rendered, there are two types of interests to consider. They are capital interests and profits interests. There are several factors to consider when determining which type of interest is appropriate.
An unvested capital interest is an interest that’s restricted and is either non-transferable or subject to a substantial risk of forfeiture. If the employee chooses not to make this type of election, he or she doesn’t recognize any income until the capital interest vests.
This video discusses two tax-advantaged vehicles to transfer your wealth, tax free gifting and an irrevocable life insurance trust. No one likes to think the wealth they’ve worked too hard to amass might eventually end up in Uncle Sam’s pockets as much or more than in their own family members’. But with a little well thought out wealth planning, this scenario can easily be prevented. Using one or more specific tax-advantaged vehicles can be very effective in helping you accomplish your succession planning goals.
When transferring wealth to your heirs, you don’t want to be required to pay additional taxes on the wealth you have worked hard to amass. Tax free gifting is a way to transfer your wealth on a yearly basis as an effective and easy-to-execute strategy to transfer your wealth.
An Irrevocable Life Insurance Trust – or ILIT – is a trust established expressly for the purpose of holding a life insurance policy. When it comes to transferring wealth, an ILIT is a tax-advantaged vehicle worth considering. They can be very effective in helping you accomplish your succession planning goals.
In part two, we discuss when a grantor retained annuity trust (GRAT), a type of irrevocable trust, is appropriate to help you retain more of your inherited wealth keeping your tax consequences to a minimum. When setting up a GRAT, the grantor specifies a term then transfers specific assets into the trust. The grantor then receives fixed, annual annuity payments for the term of the GRAT set at a rate in accordance with IRS guidelines. When the term expires, whatever assets remain in the grantor retained annuity trust are distributed to the trust beneficiaries.
It’s extremely important to have controls established to protect your company’s assets. The three factors outlined in this video create the perfect opportunity for cyber criminals to target assets. Watch the next two videos to learn what you need to look for fraudulent requests and how to implement controls to prevent wire transfer fraud.
Wire transfer fraud my be happening to you when fraudsters pose as someone within your organization. There are a few wire transfer fraud warning signs to be aware of. If a request seems to be unusual or urgent, make sure you follow the three simple steps outlined in the video above to check and see if the request is fraudulent.
Learn how implementing these controls can help prevent wire transfer fraud from happening to you. Be sure to have internal controls set and check with your bank to ensure they have a control process in place when it comes to wire transfers.
A compilation report is the most basic level of reporting an accountant can provide. Its purpose is for the accountant to help management package the necessary information into the standard financial statement reporting format. A compilation report does not provide any assurance or opinion as to whether the financial statements are materially misstated or whether they are in conformity with the reporting framework that is used.
Deciding between a financial review or an audit? If your company is able to provide its stakeholders a report that includes a limited degree of assurance but doesn’t need something as exhaustive as an audit, a review can be preformed. A review is most commonly used by private companies that need to provide at least limited assurance on their financial statements to outside parties such as lendors, creditors, or potential buyers, but don’t need to provide audited statements.
Is an accountant’s compilation report necessary? Sometimes a compilation report is not needed. When there’s no in-house accountant and there’s no required reliance on an accountant’s report, an external accountant may be retained to provide bookkeeping services and prepare the company’s financial statements, including the balance sheet and P&L, without a report.
As a foreign partnership that needs to file U.S. tax returns, there is a lot to consider when it comes to converting financial statements for tax reporting purposes. Untracht Early Tax Senior Maria Scala discusses the importance of converting financial statements for a trading fund’s tax reporting purposes as the IRS will only accept returns expressed in U.S. dollars. This video will tell you when a currency conversion needs to be considered, what parts of a financial statement might need to be converted, how a balance sheet should be treated and what rate is used to convert an income statement.
Some commonly overlooked tax deductions and credits that can be used to maximize your tax savings include contributing the maximum amount to your retirement savings, leveraging the alternative motor vehicle credit, taking mortgage interest deductions which can be used on second and vacation homes, and more.
Several tax deductions and credits High Net Worth Individuals shouldn’t overlook that could add up to a significant tax savings include wealth transfers, paying another’s tuition expenses and/or medical expenses, making charitable contributions, and more.
Untracht Early Assurance Senior Kyle Drost and Tax Senior Olga Lavrinenko sat down with WRRC the Bronc at September 27th’s Rider University Career Fair. Listen to their accounting interview to learn more about our firm, its culture, what we look for in candidates, and some of the current opportunities that are available.
Changes to financial statements preparation requirements provide benefits to those needing the service alongside a greatly improved level of service from preparers. Most significantly, these changes will save your accountant time and you money by eliminating unneeded reports.
This video will provide ways to protect against individual tax identity theft. Tax identify theft for individuals happens when someone uses a stolen social security number to file a tax return claiming a fraudulent refund. You may not know you’ve been a victim until you try to file a return and learn that one’s already been filed in your name.
How can business tax identity theft happen? Business Tax Identity Theft happens when employees’ or customers’ social security numbers
and/or business Employer Identification Numbers, also known as EINs, are stolen. This video outlines what to be aware of and what you can do to help in safeguarding against business tax identity theft.
In this Next Up Video, tax supervisor, Matthew Milwicz, discusses potential tax deductible expenses volunteer charitable board members incur out-of-pocket while serving on a board. Find out what expenses can be deducted and which expenses do not qualify in this video.
Tax Supervisor, Matthew Milwicz, offers you insight into the tax deductible expense exceptions for volunteer charitable board members. View the requirements for out-of-pocket expenditures in excess of $250 in this video.
Tax Supervisor, Matthew Milwicz, discusses why charitable volunteer board member expense deductions may be denied in this video. View how out-of-pocket expenses must be incurred in order to qualify as a deduction.
Family Office Services manager, Sandra Repetti, offers insights into the factors you should consider in choosing a family office service provider and how to navigate the service and specialty options available, in this video.
Trust, Gift and Estate Specialist, Rebecca Alicea, discusses how effective estate planning differs from other types of financial planning. This video will explain how the higher 2016 exemption can affect your estate plan, how often to review your estate plan, and a few other things to watch for.
Senior Assurance Managers, Rich Fuchs and Dennis Murtha discuss some tips you need to consider when preparing for a financial statement audit. This video provides you with five key tips you should follow to ensure you will have faster, more seamless financial statement audit.
Senior Assurance Manager Adam Doctor discusses some important Accounting Standard Updates (ASU’s) that should be implemented soon. This video offers insights on how new Accounting Standard Updates impacting corporations will simplify reporting for them and when they will go into effect.
Senior Tax Manager Paul J. Alampi, CPA discusses a few important tax considerations when moving from one state to another. This video will provide you with five tips on how to establish your new permanent home and clear and convincing evidence you have changed your domicile for tax purposes.
Untracht Early Executive Director Angela Garofalo gives some great advice on getting your personal and financial affairs in order, including where to begin, as well as helpful checklists of personal, legal, and financial information to ensure you’re well prepared.
In this video, Senior Assurance Manager Dennis Murtha discusses when a 401k audit is required. View who’s an eligible participant for a 401k plan and the main areas auditors review when performing audits.