Why some small businesses are switching to tax-basis reporting
July 11, 2023 Knowledge Center
Why some small businesses are switching to tax-basis reporting

Accrual-basis financial statements are considered by many to be the gold standard in financial reporting. But with the increasing cost and complexity of today’s accounting rules — in particular, the updated lease guidance that went into effect last year — some private companies are seeking a simpler alternative to U.S. Generally Accepted Accounting Principles (GAAP). […]

Prepare for an uncertain federal gift and estate tax exemption amount with a SLAT
July 7, 2023 Knowledge Center
Prepare for an uncertain federal gift and estate tax exemption amount with a SLAT

For 2023, the federal gift and estate tax exemption amount stands at $12.92 million ($25.84 million for married couples). But without action from Congress, on January 1, 2026, it’s scheduled to drop to only $5 million ($10 million for married couples). Based on current estimates, those figures are expected to be adjusted for inflation to a little over $6 million […]

How the pros use public data to value private businesses
July 7, 2023 Knowledge Center
How the pros use public data to value private businesses

Business valuation professionals often use public stock market data to value private businesses — even though there are critical differences between closely held and publicly traded companies. Here’s an overview of how valuators modify their analyses to take advantage of objective, market-based indicators of value. Recognizing key differences Public companies differ from private ones in […]

Avoid succession drama with a buy-sell agreement
July 6, 2023 Knowledge Center
Avoid succession drama with a buy-sell agreement

Recently, the critically acclaimed television show “Succession” aired its final episode. If the series accomplished anything, it was depicting the chaos and uncertainty that can take place if a long-time business owner fails to establish a clearly written and communicated succession plan. While there are many aspects to succession planning, one way to put some clear […]

Virtual currency lands in the IRS’s crosshairs
July 3, 2023 Knowledge Center
Virtual currency lands in the IRS’s crosshairs

While the value of virtual currency continues to fluctuate, the IRS’s interest in it has only increased. In 2021, for example, the agency launched Operation Hidden Treasure to root out taxpayers who don’t report income from cryptocurrency transactions on their federal income tax returns. Moreover, the Inflation Reduction Act, enacted in 2022, allocated $80 billion to the […]

Consider the finer points of Roth 401(k) contributions
June 29, 2023 Knowledge Center
Consider the finer points of Roth 401(k) contributions

Many people are familiar with Roth IRAs. These popular retirement accounts feature tax-free withdrawals as long as certain conditions are met. But did you know that employers can offer designated Roth contributions as part of the 401(k) plans they sponsor for employees? Indeed, it is possible — but you’ll want to familiarize yourself with the […]

Strengthening cybersecurity: safeguarding employee benefit plans
June 28, 2023 Knowledge Center
Strengthening cybersecurity: safeguarding employee benefit plans

by David Lam, CISSP, CPP In today’s interconnected world, where digital technologies are an integral part of our professional and personal lives, safeguarding our digital assets and data has become the utmost priority, especially for employee benefit plan fiduciaries. Implementing a strong cybersecurity framework is crucial in protecting sensitive information, ensuring business continuity, and preserving […]

Reclaiming Tax-Exempt Status: Reinstatement Fundamentals
June 27, 2023 Knowledge Center
Reclaiming Tax-Exempt Status: Reinstatement Fundamentals

by Qiva Dinuri, J.D., LL.M. Taxation Tax exemption is a valuable privilege granted to certain organizations, such as nonprofit entities, charities, and religious institutions. Maintaining this status, however, requires compliance with specific rules and regulations set forth by the IRS and tax authorities—meaning, it is possible to lose your organization’s tax-exempt status. Here are some step-by-step […]

Social Security’s future: The problem and the proposals
June 22, 2023 Knowledge Center
Social Security’s future: The problem and the proposals

Recent reports have raised anew concerns about the impending insolvency of the Social Security program, absent congressional action. Social Security reform has long been considered a “third rail” of American politics and understandably so — the options for heading off insolvency will inevitably cause pain for significant segments of the population. Yet some in Congress […]

4 tax challenges you may encounter if you’re retiring soon
June 20, 2023 Knowledge Center
4 tax challenges you may encounter if you’re retiring soon

Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Taking required minimum distributions. These are the minimum amounts you must withdraw from your […]

Overview of discontinued operations reporting
June 19, 2023 Knowledge Center
Overview of discontinued operations reporting

Traditional business models in many sectors have been disrupted by the COVID-19 pandemic, geopolitical uncertainty, rising costs and falling consumer confidence. If your company is planning a major strategic shift this year, management may need to comply with the updated accounting rules for reporting discontinued operations that went into effect in 2015. Discontinued operations typically […]

Benefits of a living trust for your estate
June 16, 2023 Knowledge Center
Benefits of a living trust for your estate

You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to […]