This year marks the 95th anniversary of Marvin & Company Certified Public Accountants and Consultants. In reflecting on this recently, our thoughts kept returning to the people who have made a lasting difference at every stage of our evolution and growth—our clients and our people.
Marvin and Company, P.C. provides an easy-to-follow tax comparison chart that includes that most significant tax changes for individuals and business owners.
On December 22, 2017, President Donald J. Trump signed into law "An act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018." The bill is more commonly known as the, “Tax Cuts and Jobs Act,” and provides the most sweeping changes to the tax code since 1986. This alert will highlight the changes that are relevant for individual taxpayers.
The recently enacted Tax Cuts and Jobs Act (the “Act”) has resulted in controversy. The debate has centered around 1) the probable impact on the economy of the changes in corporate and business taxation; and 2) whether the Act will benefit middle-class individual taxpayers or only the wealthiest 1%. The changes specific to and impacting tax-exempt organizations were barely mentioned.
There is nothing quite like the element of surprise when you want to get to the core of an issue. When we’re not expecting something to happen, there’s no time to think about what our response should be, or what we think others want us to do.
The same element of surprise can be quite effective for investigating the actions of a member of your internal accounting department. When it comes to preventing fraud and embezzlement, the element of surprise is a rarely used preemptive tactical advantage. Everyone likes to know what is coming, especially those who may be cooking your books or taking advantage of a company with little oversight and deficient internal controls.
Protection for your company
Naturally, it takes some time to record corporate minutes in a business setting. But it is usually time well spent. Plus, it is now easier to have minutes prepared than it was years ago, due to improvements in computer software.
Distinguishing traditional IRAs from Roths
There are two basic types of IRAs: the traditional IRA and the Roth IRA. With either one, the deadline for contributions for the 2017 tax year is April 17, 2018. There are no extensions for making IRA contributions for 2017, even if you obtain an extension for filing your return.
New law creates retroactive tax break
The Tax Cuts and Jobs Act (TCJA) repeals or cuts back many deductions on personal returns (see “Last Chance for Key Tax Deductions?”), but the medical expense deduction survived the chopping block. In fact, the new law temporarily enhances the deduction, retroactive to the 2017 tax year. In other words, you can benefit from this tax-favored treatment on the 2017 return you file in 2018.
No matter how large and successful an organization may be, almost every nonprofit feels it could use more cash to accomplish its work; in fact, BDO’s recent Nonprofit Benchmarking Survey found that: “Loss of revenue can be devastating for nonprofits, and 40 percent of organizations list it as a concern for their board.
To supplement a potential loss, organizations should maintain adequate operating reserves (liquid unrestricted net assets). The nonprofits surveyed maintain an average of 8.7 months of operating reserves. However, a plurality (40 percent) maintain between one month and less than six months of reserves.”
This article discusses cost-efficient strategies that can produce an overly abundant return on an investment.
It is 6 a.m. and you receive a call from your chief financial officer that your donor data has been stolen. What do you do? Whom do you call? How do you handle this situation? I find that a fair number of our nonprofit clients are unaware of where their data resides, who has access to it, and how it’s protected. So, let’s explore some methods that your organization can employ to better protect the privacy of your donor, employee and volunteer data. This is the first of two articles that will better prepare you to implement a data privacy program.