02 Oct 2019
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Q4 2019 Business Tax Calendar

Roger Rossmeisl, CPA
Small Business Tax Briefs
Q4 2019 Business Tax Calendar

Here are some of the key tax-related deadlines affecting businesses and other employers to add to your Q4 2019 business tax calendar. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact me to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. Q4 2019 BUSINESS TAX CALENDAR October 15 If a calendar-year C corporation that filed an automatic six-month extension: File a 2018 income tax return (Form 1120) and pay any tax, interest and penalties due. Make contributions for 2018 to certain employer-sponsored retirement plans. October 31 Report income tax withholding and FICA taxes for third quarter 2019 (Form 941) and pay any tax due. (See exception below under “November 12.”) November 12 Report...

01 Oct 2019
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Catching Revenue Recognition Fraud

Roger Rossmeisl, CPA
Fraud Briefs
Catching Revenue Recognition Fraud

Early revenue recognition has long accounted for a substantial portion of financial statement fraud. By recording revenue early, a dishonest business seller or an employee under pressure to meet financial benchmarks can significantly distort profits. Fortunately, fraud experts have tools for catching revenue recognition fraud. Multiple methods Early revenue recognition can be accomplished in several ways. A dishonest owner or employee might: Keep the books open past the end of a period to record more sales, Deliver product early, Record revenue before full performance of a contract, Backdate agreements, Ship merchandise to undisclosed warehouses and record the shipments as sales, and Engage in bill-and-hold arrangements. In this last scenario, a customer agrees to buy merchandise but the company holds the goods until shipment is requested. It and any...

29 Sep 2019
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Understanding the Contents of a Will

Roger Rossmeisl, CPA
Estate Planning Briefs
Understanding the Contents of a Will

You probably don’t have to be told about the need for a will. But have you taken the time for understanding the contents of a will?  Do you know what provisions should be included and what’s best to leave out? The answers to those questions depend on your situation and may depend on state law. Understanding the contents of a will: basic provisions Typically, a will begins with an introductory clause, identifying yourself along with where you reside (city, state, county, etc.). It should also state that this is your official will and replaces any previous wills. After the introductory clause, a will generally explains how your debts and funeral expenses are to be paid. The provisions for repaying debt generally reflect applicable state laws. Don’t include specific...

26 Sep 2019
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“Kiddie Tax” Hurts Families More Than Ever

Roger Rossmeisl, CPA
Individual Tax Briefs
Kiddie Tax Hurts Families More Than Ever

Years ago, Congress enacted the “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. And while the tax caused some families pain in the past, it has gotten worse today. That’s because the Tax Cuts and Jobs Act (TCJA) made changes to the tax rate structure.  These changes may mean the "kiddie tax" hurts families more than ever. History of the tax The kiddie tax used to apply only to children under age 14.  This provided families with plenty of opportunity to enjoy significant tax savings from income shifting. In 2006, the tax was expanded to children under age 18. And since 2008, the kiddie tax has generally applied to children under...

26 Sep 2019
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Tax Implications of Gambling Winnings

Roger Rossmeisl, CPA
Individual Tax Briefs
Tax Implications of Gambling Winnings

If you’re lucky enough to be a winner at gambling or the lottery, congratulations! After you celebrate, be ready to deal with the tax consequences of your good fortune.  So, what are the tax implications of gambling winnings? TAX IMPLICATIONS OF GAMBLING WINNINGS: WINNING AT GAMBLING Whether you win at the casino, a bingo hall, or elsewhere, you must report 100% of your winnings as taxable income. They’re reported on the “Other income” line on Schedule 1 of your 1040 tax return. To measure your winnings on a particular wager, use the net gain. For example, if a $30 bet at the race track turns into a $110 win, you’ve won $80, not $110. You must separately keep track of losses. They’re deductible, but only as itemized deductions....

24 Sep 2019
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Fight Fraud Actively for Maximum Effect

Roger Rossmeisl, CPA
Fraud Briefs
Fight Fraud Actively for Maximum Effect

When it comes to reducing fraud loss and duration, companies should fight fraud actively. Active detection methods (such as surprise audits or data monitoring) are far more effective than passive methods (such as confessions or notification by police). This was a major finding of the latest Association of Certified Fraud Examiners (ACFE) Report to the Nations: 2018 Global Study on Occupational Fraud and Abuse. Yet many companies fail to use active methods to their full potential. Active vs. passive detection The ACFE study found that frauds detected using passive methods tend to last longer and produce larger losses than those detected by such active methods as: IT controls, Data monitoring and analysis, Account reconciliation, Internal audit, Surprise audits, Management review, and Document examination. These active methods of detection...

22 Sep 2019
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Plummeting RV Sales Forecast 2020 Recession

Roger Rossmeisl, CPA
Current Events, Economic Concepts
Plummeting RV Sales Forecast 2020 Recession

As posted to the Dent Research affiliated website Economy and Markets on 8/26/19 -- Harry Dent | August 26, 2019 RV sales are crashing at a year-over-year rate of 20% below sales for the same period last year. 2017 was the peak thus far and 2018 sales were 4% lower. Hence, this year's crash is making this look like a clear top.  This article seeks to demonstrate that plummeting RV sales forecast a 2020 recession. RVs are one of our mid-life-to-retirement sectors for Boomers. Sales used to peak at age 63, but the most recent updates to the Consumer Expenditure Survey shows them peaking a bit earlier, at age 59-60. That still makes it a strong growth industry into 2020-2021 for aging Boomers. Hence, there’s no demographic reason for...

20 Sep 2019
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Smartphones Impair the Brain’s Ability to Focus

Roger Rossmeisl, CPA
Technology
Smartphones Impair Our Brains Ability to Focus

As posted to the Wall Street Journal YouTube Channel on 5/20/19 (Run time: 5 min, 17 sec) Our phones give us instant gratification.  But there's a cost: loss of attention and productivity.  Attention is a limited resource.  At any particulary moment you can only have that much of it.  We live in an age of constant distractions.  9-5 is out, and 24/7 is in.  With our smartphone in hand, we now bring our work with us everywhere.  But do our devices make us less attentive? Wall Street Journal's (WSJ's) Daniela Hernandez goes on a quest to understand the science of distractions and what you can do to stay focused and productive. (This is Blog Post #616) Wall Street Journal is a U.S. business-focused, English-language internationaly daily newspaper based in New...

19 Sep 2019
0

IRS is Targeting Virtual Currencies Used in Business Transactions

Roger Rossmeisl, CPA
Small Business Tax Briefs
IRS is Targeting Business Transactions in Virtual Currencies

Bitcoin and other forms of virtual currency are gaining popularity. But many businesses, consumers, employees and investors are still confused about how they work and how to report transactions on their federal tax returns. And it has just been announced that the IRS is targeting virtual currencies that are used in business transactions users in a new “educational letter” campaign. The nuts and bolts Unlike cash or credit cards, small businesses generally don’t accept bitcoin payments for routine transactions. However, a growing number of larger retailers — and online businesses — now accept payments. Businesses can also pay employees or independent contractors with virtual currency. The trend is expected to continue, so more small businesses may soon get on board. Bitcoin has an equivalent value in government issued...

18 Sep 2019
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Two Types of Power of Attorney Used in Estate Planning

Roger Rossmeisl, CPA
Estate Planning Briefs
Two Types of Power of Attorney Used in Estate Planning

When drafting your estate plan, you and your attorney must account for what happens to your children and your assets after you die. But your plan must also spell out your wishes for making financial and medical decisions if you’re unable to make those decisions yourself. A crucial component of this plan are two types of power of attorney (POA). ABCs of a POA A POA appoints a trusted representative to make medical or financial decisions on your behalf in the event an accident or illness renders you unconscious or mentally incapacitated. Without it, your loved ones would have to petition a court for guardianship or conservatorship, a costly process that can delay urgent decisions. Two types of Power of Attorney in action A POA is a document under...

ROGER ROSSMEISL, CPA

Kho & Patel CPAs
160 E. Arrow Highway
San Dimas, CA 91773

(714) 325-0442
roger@khopatel.com

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