Nonprofits: Are you ready for the new contribution guidance?

January 21, 2020By Smeriglio Associates LLCNews

When the Financial Accounting Standards Board (FASB) updated its rules for recognizing revenue from contracts in 2014, it only added to the confusion that nonprofits already had about accounting for grants and similar contracts. Fortunately, last year, the FASB provided some much-needed clarification with Accounting Standards Update (ASU) No. 2018-08, Not-for-Profit Entities (Topic 958): Clarifying … Read More

IRS: FBAR Verification Filings

January 21, 2020By Smeriglio Associates LLCNews

The IRS has changed the process under which it accepts requests for verification that it has received a filed FBAR. (FBAR is FinCEN Form 114, Report of Foreign Bank and Financial Accounts). Previously, the IRS allowed FBAR filers to call its FBAR hotline to obtain verbal verification of filing for up to five FBARs, at … Read More

IRS: Volunteer Program Audit

January 20, 2020By Smeriglio Associates LLCNews

A recent audit from the Treasury Inspector General for Tax Administration (TIGTA) addresses the safeguarding of taxpayer information at IRS Volunteer Program sites. The Volunteer Program provides no-cost federal tax return preparation and electronic filing to certain individual taxpayers, such as low-income, elderly or disabled taxpayers. One area of concern the audit found was that … Read More

IRS: Whistleblower Award Compensation

January 19, 2020By Smeriglio Associates LLCNews

A whistleblower who provides information to the IRS about another party’s unpaid taxes may be entitled to an award. The information must not be speculative or nonspecific and must be credible. Also, the IRS Whistleblower Office (WBO) must take action against the target and collect proceeds. One whistleblower claimed that a taxpayer had taken tax … Read More

TCJA: Business Traveler Changes

January 18, 2020By Smeriglio Associates LLCNews

The Tax Cuts and Jobs Act (TCJA) resulted in changes for some business travelers. The IRS has issued guidance in Revenue Procedure 2019-48 for these travelers and their employers to clarify the changes. The TCJA suspended the miscellaneous itemized deduction employees could take for unreimbursed expenses, but self-employed persons and certain employees can still use … Read More

IRS: TCJA Federal Gift And Estate Tax

January 17, 2020By Smeriglio Associates LLCNews

Final IRS regulations address the exemption amount allowable when computing federal gift and estate taxes. The Tax Cuts and Jobs Act nearly doubled the gift and estate tax exemption to an inflation-adjusted $10 million beginning after Dec. 31, 2017, and before Jan. 1, 2026. (The exemption will revert to $5 million on Jan. 1, 2026.) … Read More

Year-end accounting recap

January 16, 2020By Smeriglio Associates LLCNews

The Financial Accounting Standards Board (FASB) hasn’t issued any major new accounting rules in 2019. But there have been some important developments to be aware of when preparing annual financial statements under U.S. Generally Accepted Accounting Principles (GAAP). Deferral of major accounting rules Accounting Standards Update (ASU) No. 2019-09 delays the effective date of the … Read More

IRS: Private Debt Collection Agencies

January 16, 2020By Smeriglio Associates LLCNews

In certain cases, the IRS is required to use private debt collection agencies (PCAs) to collect the amounts owed. The IRS wants the public to be aware that, with identity theft heating up, scammers pretending to be from PCAs are placing random calls, demanding payment from unsuspecting taxpayers. Here’s what you need to know: The … Read More