Any employer reimbursing its employees for business-related expenses should consider whether the reimbursement arrangement meets the IRS’s requirements for an “accountable plan.” Meeting these requirements avoids the need to include the expense payments in employees’ gross income and avoids the employer’s share of any payroll taxes that otherwise would be due on the payments.
An accountabl... more
Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why is this important? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses are deductible only against passive income, with the excess being carried forward.
To qualify as a real estate professional, you must annually perform:
More than... more
U.S. persons, including citizens, residents and entities, that have financial interest in or signature authority over a foreign financial account with assets exceeding $10,000 are required to file a Report of Foreign Bank and Financial Accounts (FBAR) electronically with the U.S. Treasury by June 30, 2015, or face significant penalties.
The international tax accountants at Doeren Mayhew and our international affiliate,... more
Incentive stock options (ISOs) allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for.
ISOs must comply with many rules but receive tax-favored treatment:
You owe no tax when ISOs are granted.
You owe no regular income tax when you exerci... more
by Bill Leary, International Tax Director, Doeren Mayhew
House Speaker John Boehner said that a long-sought overhaul of U.S. corporate tax law hardly has a chance of being enacted by Congress this year, though both chambers are under Republican control. The Ohio Republican cited a “50-50 chance at best” during a recent interview with Bloomberg.
As we begin to move toward a presidential election year, reform ... more
As part of its simplification initiative to reduce cost and complexity of existing guidance, the Financial Accounting Standards Board (FASB) issued a new Accounting Standard Update (ASU) on April 15 related to defined benefit plans.
Defined Benefit Plan
The new ASU 2015-04 (Compensation—Retirement Benefits) only applies to employers with fiscal year ends not coinciding with a calendar month end. It allows employers to... more
Financial Accounting Standards Board (FASB) issued a new Accounting Standard Update (ASU) on April 15 related to cloud computing arrangements.
Cloud Computing Arrangements
Aimed at providing explicit guidance about customer’s accounting for fees paid in connection with cloud computing contracts, ASU 2015-05 (Intangibles—Goodwill and Other—Internal-Use Software) explains the key is determining if a software license... more
As a business owner of a mid-sized company, should I consider having an advisory board?
Whether large or small, companies are constantly challenged by the operational and financial facets of navigating their business. Establishing a strong board of advisors can create a powerful tool that can make a huge difference in seeking objective advice, understanding the marketplace, gauging future needs, seeking strategic posit... more
by John Scollin, Shareholder, Business Advisory Group
If you waited to file your tax return until April 15, you may have been shocked to learn the IRS rejected your return because it was already filed. As panic set in you began to wonder how this could have happened and what can be done in order to correct the situation.
If this happens to you, you’re not alone. According to the Federal Trade Commission, 2014 mar... more
From insurance scams, to financial statement manipulation, to fudged expense reimbursement reports, fraud victimizes businesses of every size and in every industry. Even when owners suspect fraud, they may not know how to gather the evidence to confirm it.
Forensic accounting experts can help with such data mining. By analyzing a company’s own records, experts may be able to spot fraud before it causes significant fi... more