Preventing Fraud Must Still Be a Top Priority During Challenging Times
By Lindsay Dean, CPA, Senior Manager, Audit Like their for-profit counterparts, nonprofits were not spared the complex financial and operational challenges presented by the global COVID-19 pandemic. Many have cut back on programming, reduced staff or been forced to rely on reserves to survive. At the same time, a transition to virtual work has resulted…
Are Your Employees Afraid to Return to Work?
If you have employees working from home, and you want to transition them back to the workplace as the economy picks up, you may find it’s harder than you once thought. For some employees, nervousness about remaining health risks is an impediment — especially for those who haven’t been vaccinated. Many Americans clamored to be vaccinated…
Five Ways to Inspire Nonprofit Innovation
Many not-for-profit organizations have been hanging on for dear life for the past year. But the days of survival mode are coming to an end. Now, nonprofit leaders need to be innovative to position their organizations for future growth. In other words, if you’re not moving forward, you’re moving backward. But how do you cultivate a…
New Thresholds and Regulations in 2021 for New York Nonprofits
By Walt Derengowski, CPA, CFE, Partner, Audit Signed into law in 2013, the New York Nonprofit Revitalization Act (NPRA) introduced statutory requirements for nonprofit organizations registered with the Attorney General’s Charities Bureau and those that conduct charitable solicitations in New York, regardless of where they are incorporated. The intent of NPRA is to reduce the…
Accurate Projection of Indirect Rates Ensures Compliance and Profitability
By Paul Calabrese, Principal, Outsourced Accounting & Advisory Services For government contractors, Provisional Billing Rates (PBR) are a mandatory compliance requirement, but many encounter issues managing and projecting their indirect rates. Not only are indirect rates projections required by DCAA for government contractors who hold Cost-Plus-Fixed-Fee (CPFF) contracts, prime contractors and subcontractors who have mostly…
Are You Thinking About Selling Your Business?
The COVID-19 pandemic has put unprecedented stress on private business owners. Some are now considering selling their businesses before Congress has a chance to increase the rates on long-term capital gains. Before putting your business on the market, it’s important to prepare it for sale. Here are six steps to consider: 1. Clean Up the…
Trader Status Offers Significant Tax Benefits
In January 2021, online day traders trapped institutional short sellers in a short squeeze by buying up shares of the video and computer game retailer GameStop. This episode brought attention to a number of issues including the distinction between securities traders vs. investors for federal income tax purposes. Traders are eligible for favorable federal income tax treatment for…
Which Start-Up Costs Are Deductible for Federal Tax Purposes?
Many people started businesses in 2020, and many others plan to launch new ventures in 2021. Entrepreneurs often have questions about whether business expenses for a start-up can be deducted in the year they’re incurred or paid — or whether they must be capitalized and deducted over time. Here’s some guidance. Basic Tax Rules Internal…
EIC: New Law Makes Major Changes
The earned income credit (EIC) has been around for years. But it’s never been worth as much as it will be for 2021 under the new American Rescue Plan Act (ARPA). Some favorable changes are only for the 2021 tax year; others are permanent. Here are the details. Important: Many people report too much income…
Big Changes to the Child Credit for 2021
The American Rescue Plan Act (ARPA) significantly liberalizes the rules for the federal child tax credit, which means more money in the pockets of eligible parents this year. However, the liberalizations are only for the 2021 tax year. Here’s the story. Pre-ARPA Rules Before the ARPA, there was one set of rules for parents who qualified…
