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The last month or so of the year offers accrual-basis taxpayers an opportunity to make some timely moves that might enable them to save money on their 2016 tax bill. Record and recognize The key to saving tax as an accrual-basis taxpayer is to properly record and recognize expenses that were incurred this year but won’t be paid until 2017. This will enable you to deduct those expenses on your...
Read moreAccrual-basis taxpayer? One way to save tax is to properly record and recognize expenses that were incurred this year but won’t be paid until 2017 so you can deduct them on your 2016 tax return. Common examples include commissions, salaries, wages, payroll taxes, advertising, interest, utilities, insurance and property taxes. Also review prepaid expense accounts and write off any items that have been used up before the end of the...
Read moreInventory is a prime target for fraud schemes, second only to cash. Retailers, manufacturers and contractors are at risk for theft and misstatement due to inventory scams. If your year-end inventory counts aren’t adding up, don’t just write off the discrepancy as a cost of doing business; investigate why. Sudden changes in inventory ratios, such as the days in inventory and returns (or shipping costs) as a percentage of sales,...
Read moreExtra time to supply Affordable Care Act (ACA) statements. The IRS has extended the ACA information reporting due date to March 2, 2017, for furnishing individuals with 2016 Form 1095-B and Form 1095-C. The extension is automatic, but coverage providers are encouraged to supply forms and file information returns as early as possible. Good-faith penalty transition relief is also extended for 2016 information reporting to coverage providers who make reasonable...
Read moreIs your inventory being stolen by dishonest employees or customers? Inventory is a prime target for fraud schemes, second only to cash. And it doesn’t always involve the physical theft of items. Here are some early warning signs that your inventory has been targeted. Know your risk profile Some companies are more at risk for inventory fraud than others. Obviously, service companies with minimal inventory on hand bear little risk...
Read moreEducational institutions get extended penalty relief for tuition reporting change. The IRS has announced that it is extending previously granted relief from penalties under the tax code for eligible educational institutions required to file Forms 1098-T, “Tuition Statement,” for the 2017 calendar year. No penalties will be imposed if the institution reports the aggregate amount billed for qualified tuition and related expenses on Form 1098-T instead of the aggregate amount...
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