Goodwill: Personal or Business — and Why Does It Matter?
You can’t touch goodwill, but it’s one of the most valuable assets for many businesses. Commonly associated with professional service firms, goodwill can also exist among manufacturers, retailers, contractors and other types of businesses. Valuing intangible assets, including goodwill, requires the use of a business valuation professional to get it done right. Different Types of…
Be Careful to Document Hardship Distributions and Plan Loans
The IRS cautions plan administrators that they must document and keep necessary records of all employees’ hardship distributions and plan loans. The result of noncompliance could be a qualification failure for the plan. Hardship Distributions Basic information. In general, a retirement plan can make a hardship distribution only: If the plan permits such distributions; and…
Be on High Alert for Ransomware Attacks
The FBI has warned of a staggering increase in ransomware attacks against nonprofits and businesses since the start of the COVID-19 pandemic. Here’s what leaders should know about these attacks to help prevent them — and manage an attack if preventive measures fall short. Cybercrime Crisis Cybercrime reports to the FBI have quadrupled in 2020….
Should Your Nonprofit Adopt Remote Work Permanently?
If your not-for-profit’s staffers can work from home during the COVID-19 pandemic, they probably are. But what about when the crisis ends? As workers have become accustomed to remote work, many now prefer it. In fact, several recent surveys have found that approximately half of U.S. employees would rather work from home. This is particularly…
How to Nudge Employees in an Ethical Direction
Nonprofits and businesses victimized by occupational fraud can experience significant financial losses, bad PR and reduced employee morale. Therefore, you must use every tool at your disposal to prevent and detect criminal activity in your organization. This starts with robust internal controls, including a confidential reporting hotline or other reporting mechanism. And, if it becomes…
How to Save Taxes in 2020 and Beyond
Gaming the Standard Deduction The Tax Cuts and Jobs Act (TCJA) almost doubled the standard deduction amounts. For 2020, the standard deduction allowances are: $12,400 for single people and married couples who file separate returns, $18,650 for people who use the head-of-household filing status, and $24,800 for married couples who file joint tax returns. If…
2020 Year-End Tax Planning Ideas for Small Businesses
Small business owners still have time to make tax planning moves to lower their 2020 federal income tax bills — and possibly lay the groundwork to save taxes in future years. Here are 10 ideas for small businesses to consider. 1. Claim Bonus Depreciation for 2020 Asset Additions Thanks to the Tax Cuts and Jobs…
Fraud Alert: Have You Heard About New Vishing Attacks?
For years, businesses and individuals have had to worry about so-called “phishing” scams sent via email or text. These cyberattacks are designed to hook unsuspecting victims into revealing sensitive information. Now there’s a new twist aimed largely at small businesses: Voice phishing scams (also known as “vishing” using social engineering). A recent alert from the Cybersecurity…
Year-End Moves for Charitable Donations
‘Tis almost the season for charitable giving. Besides helping a worthy cause, your donations may qualify for a festive write-off on your 2020 tax return if you qualify. Here are five ways to boost your deduction for charitable contributions if you itemize. 1. Bunch Contributions Under the Tax Cuts and Jobs Act (TCJA), for 2018…
COVID-19 Relief Credits for Government Contractors
Every Federal Government contractor seeking to receive forgiveness for Paycheck Protection Program (PPP) loans under the CARES Act must consider Federal Acquisition Regulation (FAR) 31.201-5 Credits. Members of Congress have expressed their concern that Federal Government contractors may “double dip[1];” however, the credits clause effectively addresses Congress’s concerns. It states: “The applicable portion of any…