The Joint Committee on Taxation (JCT) is a nonpartisan Congressional committee that, among other things, assists in the analysis and drafting of proposed federal tax legislation and prepares reports that interpret newly enacted federal tax legislation. The JCT recently issued the Overview of the Federal Tax System as in Effect for 2016. Here are some interesting trends  Continue Reading »

The holidays can be a joyous time of year, but also very chaotic. It’s easy to forget to spend any remaining funds in your Flexible Spending Accounts (FSAs) before New Year’s Day while you’re juggling shopping for gifts, decorating your home and planning get-togethers with friends and family. However, if you fail to observe the “use-it-or-lose-it  Continue Reading »

Giving Tuesday, known on social media as #GivingTuesday, was on November 29, 2016. Never heard of it? The Tuesday after Thanksgiving has grown into one of the biggest fundraising drives for the not-for-profit industry. Similar to Cyber Monday, it’s a day when charities encourage people to make year-end donations using their computers and mobile devices. Blackbaud,  Continue Reading »

When valuing a business, there are three approaches: the cost, market and income approaches. In this article, we focus on the market approach, which the International Glossary of Business Valuation Terms defines as: A general way of determining a value indication of a business, business ownership interest, security, or intangible asset by using one or more methods  Continue Reading »

You must comply with complex rules established by the IRS and the Department of Labor when your company sponsors a qualified retirement plan. Your firm could face costly penalties from federal regulators if you ignore the rules, and then you plan participants might sue you for mishandling trust assets. It’s best to not handle this  Continue Reading »

It’s not too late for small Maine businesses to take steps to significantly reduce 2016 business income tax bill and lay the groundwork for tax savings in future years. Here’s a summary of some of the most effective year-end tax-saving moves for small businesses under the existing Internal Revenue Code. The tax laws could change after  Continue Reading »

Here in Maine, what do accounting firms, ski resorts, pumpkin patches and ice cream shops have in common? They’re all seasonal businesses that experience a surge in revenues during their busy seasons that taper off in the slow season. Seasonal peaks and troughs present challenges that require fiscal prudence and creative planning. Understand the Cash  Continue Reading »

The IRS issued new guidance in October targeting strategies that are used to exploit the tax benefits associated with partnerships and limited liability companies (LLCs) that are treated as partnerships for tax purposes. In brief, under the new guidance, property transactions between partners and partnerships are more likely to be classified as disguised sales and, therefore,  Continue Reading »

According to the 2016 Report to the Nations on Occupational Fraud and Abuse published by the Association of Certified Fraud Examiners (ACFE), the average organization loses 5% of its annual revenues to fraud. Bear in mind, that’s the top line of your income statement, not the bottom. So, your company is expected to lose an average of $50,000 to  Continue Reading »

The IRS released new temporary and final Section 752 regulations at the beginning of October 2016. Sec. 752 of the Internal Revenue Code and related regulations explain how to allocate partnership debt among partners for purposes of calculating the basis of their partnership interests. This calculation determines their basis for deducting losses and receiving tax-free distributions,  Continue Reading »