Younger taxpayers often purchase life insurance to care for family members dependent on them if they were to die; but, elderly taxpayers often purchase life insurance to cover estate tax and other financial obligations they are responsible for if they were to die. Are life insurance proceeds taxable? Yes and no. Life insurance policies are…

Full Article >>

2016 Housekeeping

Now that 2016 is coming to a close,  it is time to start thinking about 2017 and all that comes with the new year.  Below is a summary of housekeeping items to keep in mind for the upcoming year. Filing Requirements for 2016 forms in 2017 Form 1099s – Be sure to review your records…

Full Article >>

At age 70 ½, taxpayers are required to take required minimum distributions (RMD’s) from their IRA accounts: the government wants to collect their taxes from the earning retirees accumulated over the years. Failure to do so could generate penalties as high as 50%! In 2015, Congress made a law permanent allowing RMD’s to be directed…

Full Article >>

Taxpayers can save family income and payroll taxes by putting a taxpayer’s child on the payroll of an owner where the mother or father is the owner (or owners of a partnership), and even make retirement plan contributions for a taxpayer’s child. Here the key considerations: Turning high-taxed income into tax-free or low-taxed income. Parents…

Full Article >>

Any entity receiving more than $750,000 in federal grants or awards is generally required to receive a single audit, which encompasses an audit of the financial statements, as well as an audit of the Schedule of Expenditures of Federal Awards (SEFA). In auditing the SEFA, a few federal awards will be selected for testing. This…

Full Article >>

The short-term highway funding extension that passed during 2015 has modified the due dates for several common tax returns for Tax Year 2016 (Filing due date in 2017).  The due date changes with the most impact will be those changes for partnership tax returns (Form 1065) and C Corporation tax returns.  Essentially those due dates…

Full Article >>

Significant accounting changes are coming for nonprofit organizations under the theme of simplifying the face of the financial statements together with enhancing the footnote disclosures.  Three things you should know include: (1) net assets classifications are reduced from three to two; (2) significant new footnote disclosures will be required; and, (3) several improvements are made…

Full Article >>