Category: Business Practices
Fraud controls may be lacking at smaller organizations
Small organizations, defined as those with fewer than 100 employees, lag significantly behind larger counterparts in adopting formal anti-fraud measures, as revealed by a global survey conducted by the Association of Certified Fraud Examiners (ACFE). Industries most susceptible to fraud...
Are your business assets vulnerable to theft?
Employee dishonesty, particularly when individuals have excessive control over cash and accounting functions simultaneously, poses the greatest risk of theft and fraud. By implementing fundamental internal controls and maintaining vigilant oversight of accounting procedures, business owners can reduce opportunities for...
Changes to partnership audit procedures may prompt the need for review
Congress recently enacted significant changes to partnership audit and adjustment rules, expected to lead to higher audit rates for partnerships. Partners should carefully review and possibly revise their partnership's operating agreement in response to these changes. While these rules generally...
Client Question: What should I do if an employee claims a high number of exemptions?
The IRS advises employers to withhold federal income tax based on the allowances claimed on employees' valid Form W-4s, even if the withholding amount seems incorrect. Employers must inform employees that the IRS may review and adjust withholding if deemed...
How to start a Michigan LLC
Many entrepreneurs in Michigan wonder "How can I legally form my new Michigan business?" We talked about how to choose if you should form an LLC or a Corporation in a previous post, and it's critical you talk to someone like...
IRS Fringe Benefit Guide
The Taxable Fringe Benefits Guide was created by the IRS office of Federal, State and Local Governments (FSLG) to provide governmental entities with a basic reference guide to Federal tax rules relating to employee fringe benefits and reporting. As a supplement...
Audit statute for net operating losses
Did you know that audits of net operating losses (NOLs) and other carryforwards can extend beyond the usual statute of limitations? Certain amounts generated in prior years and carried over to the current year's return can impact taxable income calculations....
Unincorporated business election for married couples
An unincorporated business jointly owned by a married couple is typically treated as a partnership for Federal tax purposes. However, under the Small Business and Work Opportunity Tax Act of 2007 (Public Law 110-28), starting from tax years after December...
A summary of partner distributions and preference payments
A partnership distribution refers to the transfer of cash or property from a partnership to a partner related to their interest in partnership capital or income. Excluded from distributions are loans to partners, payments for services or property use (like...
Proper reporting of embezzled income to the IRS
To properly report embezzled income to the IRS, employers must document the losses for deduction purposes and meet filing requirements under Section 6721 and Section 6722. Reporting the embezzled income on Form 1099-MISC as non-employee compensation is necessary for each...