“Fraud in my company? No way.”  If this is what you think when you hear a story about fraud, see a story on T.V., or read about fraud in a journal then you’re thinking exactly the same as most executives and business owners.   The majority of companies have a tendency to believe that they have better controls, more trustworthy employees, and a higher probability to stop fraud than the average company.  In reality, most executives and business owners are all too often unaware of all the frauds that are going on within their company’s walls, which is how the typical fraudster prefers it to stay. 

Occupational fraud is a huge risk to companies, and it unfortunately continues to grow.  By its nature, fraud is hard to find and is most likely committed and hidden by the very employees you deem to be “trustworthy”.  Those employees are the ones responsible for keeping the business running, have access to assets, information, and the ability to cover up fraud.  Read More »

 Occupational fraud continues to have a significant impact on businesses and their bottom line.  Companies invest a lot of trust in their employees, and they should.  Good employees are what keep a business running.  However, the rising number of fraud cases should cause a business owner, CEO, CFO, or other top management to question whether their employees are really as honest as they hope them to be. 

Uncovering employee deception is not as hard as you might think.  People are naturally good at manipulating language to fit a specific situation, so how do we know if they’re lying?  Usually, people want to tell you what they’ve done.  They want to confess to you.  All you have to do is listen.  Professional lie-spotters are trained to know that while each person has a unique way of expressing themselves, there are consistent ways in which liars reveal themselves when they speak.  Knowing just a few of these techniques can help you sort through the lies and deceit.  Read More »

Would you buy a new car if the only vehicle on the market was a BMW?  How often would you go out to eat if the only menu item available was filet mignon?  Thankfully, when it comes to what we drive and where we eat, we have options that fit our needs and our budgets.  When it comes to valuing their business, many owners believe they only have one option, and often times they see this option as representing both more than they need and more than they want to spend.  I have good news.  In certain circumstances, you have options.  The valuation standards allow for two types of engagements, one that results in a conclusion of value, and one that results in a calculation of value.  A valuation expert can help you decide which of these would be best for your situation: Read More »

Cloud and mobile technology have changed and will continue to drive how clients and accounting firms operate, especially in the financial reporting process.  Cloud computing has transformed small businesses back to the thinking of the 1970s where it was more cost effective to outsource certain tasks rather than incur the internal costs.  Cloud computing makes the delivery of financial data faster, easier, mobile, and as current as the client desires. Read More »

The Minnesota Department of Revenue (MN DOR) e-file acceptance software had a glitch starting in mid-February until it was fixed at the beginning of March.  If you filed your return during this time period and your bank routing number starts with a zero, there is a chance that the MN DOR never received your bank information and the electronic transaction will not be made. 

What this means if your bank routing number starts with a zero and you e-filed in that time frame:

• If you indicated Direct Deposit:You may end up getting a check in the mail rather than direct deposit.  Check “Where’s my refund?” on the MN DOR website if you are waiting for a refund.   www.taxes.state.mn.us
• If you indicated Electronic Withdrawal: The payment may not be taken out

  and this means you won’t have paid your balance due on time.  MN DOR is planning to send a letter in the next week or two to those taxpayers who were affected by this with instructions on what to do.  If you think this applies to you and you do not receive a letter you should contact the Minnesota Department of Revenue at 651-296-3781.

The MN DOR said about 400 taxpayers have been affected by this glitch and they are  attempting to contact each affected taxpayer to resolve the problem.

Charles J. Sophy, et al. v. Commissioner, 138 T.C.

TAX LAW BACKGROUND

Currently taxpayers can deduct home mortgage interest consisting of two categories:

1. interest paid on acquisition indebtedness,  or
2. interest paid on home equity indebtedness.

Read More »

What does your tax return say about your financial situation?  The fact is, the paperwork you file each year offers excellent information about how you are managing your money—and about areas where it might be wise to make changes in your financial habits. 

If you have questions about your financial situation, remember that we can help.  Our firm is made up of highly qualified and educated professionals who work with clients like you all year long, serving as trusted business advisors.  So whether you are concerned about budgeting; saving for college, retirement or another goal; understanding your investments; cutting your tax bite; starting a business; or managing your debt, you can turn to us for objective answers to all your tax and financial questions.

Accountants and the Internal Revenue Service aren’t the only ones that are especially busy during this time of year.  Online spammers have also stepped up their efforts and are taking special advantage of the tax filing season.  Today alone I received over 20 emails which appear to have been sent from the IRS claiming that I had filed a fraudulent tax return, or my tax appeal had been denied.  These “phishing” schemes are especially clever and dangerous because they exploit people’s fear of the IRS at a time when they have the greatest chance of striking an authentic chord with the recipients. Read More »

On February 22, 2012, President Obama signed the Middle Class Tax Relief and Job Creation Act of 2012, H.R. 3630 into law.  This Act extends the 2% employee payroll tax cut through the end of the year.  Note that the employer portion of the Social Security tax remains unchanged at 6.2%, up to the taxable wage limit of $110,100 for each worker.  Additionally, both the employee and employer tax rate for Medicare remains at 1.45% with no wage base limit.  Also included in the Act is the extension of Federal unemployment benefits and a delay in the Medicare reimbursement cuts to doctors.

After weeks of uncertainty over whether an agreement could be reached, last Friday the House and Senate passed the Act which provided an extension of the 4.2% Social Security tax rate for employees through the end of 2012.

The provision that stated a 2% additional income tax would apply to wages over $18,350 in the first 2 months of 2012 has been repealed; there is no additional tax for wages over $18,350 up to $110,100 paid prior to March.

The IRS has compiled a list of 10 things you should know before taking an early distribution from your retirement plan.  Click  to see the list.