March/April, 2011 Newsletter
Preventing and Detecting Occupational Fraud
Written by Andrea Addo, CPA, CFE on April 7, 2011
News of occupational fraud in organizations has been increasing at a very noticeable rate. Though the act of fraud has been around for years, the schemes are getting more sophisticated as technology advances.
The three categories of occupational fraud are:
- Asset misappropriation;
- Corruption; and
- Financial statement fraud.
Asset misappropriation is the most common and least costly fraud. The most common asset misappropriation schemes are theft of cash and fraudulent disbursements. Read the rest of this entry »
2010 Tax Relief Act Creates a 100% Writeoff for Heavy SUVs Used Entirely for Business
Written by Deb Beneke, CPA, MBA on April 7, 2011
Possibly an unintended result, the 2010 Tax Relief Act enacted 100% bonus depreciation allowance for qualified property. This new tax law provision actually allows business owners who buy a new heavy SUV (i.e. qualified property) to write off the entire purchase price in the year that vehicle is placed in service.
What defines a heavy SUV? It has to do with GVW (gross loaded vehicle weight) rating. If the GVW of an SUV is greater than 6,000 pounds, it qualifies for the 100% write off. If not, the SUV is subject to the same bonus depreciation dollar caps as passenger autos which was $11,060 in 2010.
In order to be 100% bonus-depreciation-eligible “qualified property”, the heavy SUV must be placed in service after September 8, 2010 and before January 1, 2012, and acquired by the taxpayer after September 8, 2010 and before January 1, 2012.
For any information regarding bonus depreciation or depreciation in general, please contact Deb Beneke, CPA, MBA, at 952-941-9242.
Minnesota Adopts Federal Law Changes for Individual Returns
Written by Greg Nelson, CPA, MBT on April 7, 2011
In certain situations taxpayers have been in limbo as to filing their Minnesota individual tax return due to pending legislation/lack of adoption to recent federal tax changes. Minnesota has now passed legislation giving taxpayers some guidance as to the preparation of their Minnesota tax return. Read the rest of this entry »
Olsen Thielen/EBITDA Partners Seminar Series
Written by Newsletter Editor on April 7, 2011
We are pleased to announce the next sessions in our seminar series that is held in our St. Paul office:
April 20 – “Back to strategic planning basics”
May 18 – “Getting a business bank loan”
June15 – “Business valuations”
Send an e-mail to events@otcpas.com to register or for more information.
Improving Small Business Outlook for Access to SBA Loans
Written by Mike Bromelkamp, CPA, MBA, CIA on April 7, 2011
The National Association of Development Companies (NADCO) has reported a 20% increase in United States Small Business Administration (SBA) 504 loan approvals during the first quarter of 2011. This represents the second consecutive quarterly increase of 13% or more. This improvement in SBA lending is a bright spot for small businesses at a time when financing has, otherwise, been difficult for them.
This increased level of activity is due to an increase in lending to small and mid-size businesses, in part due to the Small Business Jobs and Credit Act of 2010, enacted last September. The new law increased the size of loans and decreased net worth requirements. However, the increases have been dampened because there has been a delay in releasing program rules by the SBA. In fact, the SBA has continued to restrict access to companies that already have SBA-backed real estate loans or SBA loans that refinanced at unfavorable rates during the “credit crunch.” Read the rest of this entry »
IRS Guidance on Reporting Employer-Sponsored Health Care Costs
Written by Alan Holz, Human Resources Manager on April 7, 2011
The IRS has just issued guidance IRS Notice 2011-28 (http://www.irs.gov/pub/irs-drop/n-11-28.pdf ) on reporting costs of employer-sponsored health plan coverage. The requirement is voluntary for 2011 and required beginning for 2012 W-2 Forms that will be issued in January, 2013.
There is an exception until further guidance is issued for 2012 if an employer files fewer than 250 W-2 Forms the preceding calendar year. This requirement to report the value of health insurance DOES NOT cause the health care cost of coverage to become taxable income.
Employers will be required in 2013 to report the aggregate cost of employer-sponsored health insurance. Aggregate cost is the amount paid by the employer and amount paid by the employee. HSAs, HRAs and FSAs (the latter if the employee’s salary reduction equals or exceeds the health FSA) are not included in the cost of coverage. See the IRS Notice for additional information. Contact Alan Holz, HR Manager at 651-483-4521 for more information.
Dow Jones Industrial Average Original Stocks
Written by Newsletter Editor on April 7, 2011
The Dow Jones Industrial Average was created by Charles Dow in May 1896, with these 12 stocks:
American Cotton Oil
American Sugar Refining Co.
American Tobacco
Chicago Gas
Distilling & Cattle Feeding Co.
General Electric Co.
Laclede Gas Light Co.
National Lead
North American Co.
Tennessee Coal, Iron & Railroad Co.
U.S. Leather
U.S. Rubber Co.
Rental Property Owners Beware–IRS is Increasing Examinations
Written by Newsletter Editor on April 7, 2011
The Internal Revenue Service has agreed with recommendations in a newly released government report urging the agency to increase its examinations of individual tax returns that report losses from rental real estate activity.
The report was conducted by the Treasury Inspector General for Tax Administration as a result of a 2008 Government Accountability Office report that found that at least 53 percent of individual taxpayers with rental real estate activity for tax year 2001 misreported their rental real estate activity.
The Treasury report stated that even a small improvement in the IRS’s examination of returns with rental real estate activity could increase taxpayer compliance and general substantial additional revenue. The complete report can be viewed at
http://www.treasury.gov/tigta/auditreports/2011reports/201130005fr.pdf .
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March/April, 2011 Newsletter
