Automobile Dealership CPA Firm Archives - Page 18 of 28

Protect Customer Data When Working Virtually

With cyberthieves active during COVID-19, the Internal Revenue Service and its Security Summit partners today urged tax professionals and other business owners to review critical security steps to ensure they protect customer data when working virtually. Many tax professionals and other businesses have expanded telework options this year as firms and other businesses work to keep personnel safe, practice recommended safety guidelines and use technology to serve their clients/customer virtually. (This post is excerpted from IRS Information Release (IR) 2020-167 issued 7/21/20.) During this period, the Department of Homeland Security's Cybersecurity and Infrastructure Security Agency (CISA) have urged organizations to maintain a heightened state of alert as cybercriminals seek to exploit Covid-19 concerns. To assist businesses with the security basics, the IRS, state tax agencies and nation's tax...

23 Aug 2020

Crime Has Adapted to COVID-19

Unlike some legitimate businesses, organized crime enterprises can be expected to weather the current COVID-19 crisis. In fact, with millions of Americans now working from home, organized crime-related cyber fraud — including phishing schemes and ransomware attacks — has grown exponentially. Organized crime has adapted to COVID-19. If you haven’t done so recently, it’s important to review and possibly upgrade your company’s cybersecurity plan now. But how else can you protect your business and employees? Pivot gracefully To adapt to the new environment, many companies are making changes to their business models. If you’re in the process of pivoting, be sure to factor in potential fraud. View your company through the eyes of a criminal. This means that for each proposed change, you should map out processes...

21 Aug 2020

Possible Tax Consequences of PPP Loans

If your business was fortunate enough to have applied for, and received a loan under the Paycheck Protection Program (PPP) in connection with the COVID-19 crisis, you should be aware of the possible tax consequences of PPP loans. PPP basics The Coronavirus Aid, Relief and Economic Security (CARES) Act, which was enacted on March 27, 2020, is designed to provide financial assistance to Americans suffering during the COVID-19 pandemic. The CARES Act authorized up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April, Congress authorized additional PPP funding and it’s possible more relief could be part of another stimulus law. The PPP allows qualifying small businesses and other organizations to receive loans with an interest rate...

20 Aug 2020

What the Payroll Tax Deferral Means for Your Business

What the Payroll Tax Deferral Means for Your Business

On August 8, 2020, President Trump signed four executive actions, including a Presidential Memorandum to defer the employee’s portion of Social Security taxes for some people. These actions were taken in an effort to offer more relief due to the COVID-19 pandemic. The action only defers the taxes, which means they’ll have to be paid in the future. However, the action directs the U.S. Treasury Secretary to “explore avenues, including legislation, to eliminate the obligation to pay the taxes deferred pursuant to the implementation of this memorandum.” Legislative history On March 18, 2020, President Trump signed into law the Families First Coronavirus Response Act. A short time later, President Trump signed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act. Both laws contain economic relief provisions for employers...

08 Aug 2020

IRS Issues Fact Sheet on Reportable >$10,000 Cash Transactions

IRS Issues Fact Sheet on Reportable >$10,000 Cash Transactions

(Image copyright belongs to Serge Averbukh) In Fact Sheet 2020-11, the IRS has presented a series of examples where a person might have to file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. Background Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file a Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business. A "person" is an individual, company, corporation, partnership, association, trust or estate. A person must file Form 8300 if they receive cash of more than $10,000 from the same payer or agent: in one lump sum; in two or more related payments within 24 hours, e.g., a 24-hour period is...

08 Aug 2020

New FAQs Address PPP Loan Forgiveness Issues

New FAWs Address PPP Loan Forgiveness Issues

The U.S. Small Business Administration (SBA), in consultation with the Department of the Treasury, released guidance on 8/4/2020 answering 23 frequently asked questions (FAQs) regarding the forgiveness of Paycheck Protection Program (PPP) loans. The PPP Loan Forgiveness FAQs, published in a new 10-page document, are divided into the following four sections addressing different aspects of the process and on calculations PPP borrowers should use to determine how much of their loan is forgivable. General Loan Forgiveness FAQs Loan Forgiveness Payroll Costs FAQs Loan Forgiveness Non-Payroll Costs FAQs Loan Forgiveness Reductions FAQs Borrowers and lenders may rely on the guidance provided in this document as SBA’s interpretation, in consultation with the Department of the Treasury, of the CARES Act, the Flexibility Act, and the Paycheck Protection Program Interim...

08 Aug 2020

IRS Reveals the “Dirty Dozen” Tax Scams for 2020

IRS Reveals the Dirty Dozen Tax Scams for 2020

(As posted to IRS.gov on 7/16/20) Via IR-2020-160, the Internal Revenue Service today announced its annual "Dirty Dozen" list of tax scams for 2020 with a special emphasis on aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. This year, the Dirty Dozen focuses on scams that target taxpayers. The criminals behind these bogus schemes view everyone as potentially easy prey. The IRS urges everyone to be on guard all the time and look out for others in their lives. "Tax scams tend to rise during tax season or during times of crisis, and scam artists are using pandemic to try stealing money and information from honest taxpayers," said IRS Commissioner Chuck Rettig. "The IRS provides the Dirty Dozen list to help raise awareness...

08 Aug 2020

Skimming Losses Can Be Significant

Skimming isn’t the biggest fraud threat for most businesses. The theft of cash receipts represents only 11% of asset appropriation schemes, according to the Association of Certified Fraud Examiners’ 2020 Report to the Nations. But with a median loss of $47,000, your business will likely feel the pain if it becomes a victim of skimming. That said, skimming losses can be significant. Here’s what you need to know to prevent it. Usual tactics Skimming occurs when an employee steals an incoming payment before it’s recorded. In the most basic skimming scheme, a worker sells goods or services to a customer, collects payment and pockets the money without recording the sale. If the customer receives goods but no sale is recorded, skimming will cause a discrepancy between physical...

08 Aug 2020

Avoiding the Trust Fund Recovery Penalty