Author: admin-hsc

Posted on April 24, 2014

Changes to FBAR reporting (formerly Form TD F 90-22.1)

Posted on April 24, 2014

Taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2013 must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts (FBAR). This form replaces FBAR form TD F 90-22.1. It is due to the Treasury Department by June 30, 2014, must be filed electronically and is available online through the BSA E-Filing System website.

For questions on this topic, contact Michael Vogel, CPA or John Rittichier, CPA at 800.880.7800.

An Inside Look at the Construction Project Management Life Cycle

(Published in CFMA Building Profits, March/April 2014)
The basics of project management build on one another throughout a project and make up what is known as the construction project management cycle.

Taken from nearly two decades of working with some of the most profitable and successful contractors and their PMs, this article identifies best practices within each phase of the project management life cycle – initiation (or pre-bid), project planning, controlling the project, executing the project, and closeout.

Click here to read the article in its entirety.

IRS Warns of New Email Phishing Scheme Falsely Claiming to be from the Taxpayer Advocate Service

Posted on March 28, 2014

UPDATED December 20, 21019:

As the tax-filing season approaches, it is always a good idea to be aware of current scams and phishing tactics used by hackers to steal personal identification information. Remember that the IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information.

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The Internal Revenue Service today warned consumers to be on the lookout for a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service and include a bogus case number.

The fake emails may include the following message: “Your reported 2013 income is flagged for review due to a document processing error. Your case has been forwarded to the Taxpayer Advocate Service for resolution assistance. To avoid delays processing your 2013 filing contact the Taxpayer Advocate Service for resolution assistance.”

Recipients are directed to click on links that supposedly provide information about the “advocate” assigned to their case or that let them “review reported income.” The links lead to web pages that solicit personal information.

Taxpayers who get these messages should not respond to the email or click on the links. Instead, they should forward the scam emails to the IRS at phishing@irs.gov. For more information, visit the IRS’s Report Phishing web page.

The Taxpayer Advocate Service is a legitimate IRS organization that helps taxpayers resolve federal tax issues that have not been resolved through the normal IRS channels. The IRS, including TAS, does not initiate contact with taxpayers by email, texting or any social media.

For more on scams to guard against, see the “Dirty Dozen” list on IRS.gov.

FAQ: Does tax return identity theft spike at the start of the filing season?

Posted on March 14, 2014

Yes. Identity theft is a growing problem, and the start of the return filing season is one of the peak times for identity thieves filing fraudulent returns. Criminals file false returns early to get refunds and unsuspecting taxpayers are unaware their identities have been stolen until they file their returns. Individuals who believe they have been victims of identity theft should immediately alert their tax professional and the IRS. The IRS has a number of programs in place to assist victims of identity theft.

Identity theft

Identity theft has been the number one consumer complaint to the Federal Tax Commission for 13 consecutive years, and tax identity theft has been an increasing share of the FTC’s identity theft complaints. In 2010, tax identity theft accounted for 15 percent of the FTC’s identity theft complaints from consumers, while in 2011 it made up 24 percent of the overall identity theft complaints. In 2012, tax identity theft accounted for more than 43 percent of the identity theft complaints, making it the largest category of identity theft complaints. The IRS has reported similar growth in this troubling problem.

Identity theft occurs when a criminal uses the personal information of another to commit fraud or other crimes. Personal information includes an individual’s name, date of birth, Social Security number, bank account numbers, credit card numbers, personal identification numbers, and other identifying information.

In tax identity theft, a criminal typically uses a taxpayer’s identity to fraudulently file a tax return and claim a refund. The identity thief has obtained the taxpayer’s Social Security Number and other personal information. As mentioned, identity thieves attempt to get a refund early in the filing season. The taxpayer discovers that a false return has been filed when he or she files a genuine return.

IRS actions

The IRS has set up a special Identity Theft Protection Specialized Unit. These employees are the first responders in assisting taxpayers whose identities have been stolen. The IRS will take a report, and request that the victim complete a special form (IRS ID Theft Affidavit Form 14039). This special form requires the taxpayer to briefly describe the events giving rise to the identity theft. The taxpayer also must provide proof of his or her identity by submitting photocopies of identifying documents, such as a passport, driver’s license or other valid federal or state government-issued identification.

The IRS is assigning special identity protection personal identification numbers (IP PINs) to victims of identity theft to use when filing their returns. An IP PIN is a unique six-digit number and is assigned annually to victims of identity theft. During the 2014 filing season, the IRS reported that it expects to provide more than 1.2 million identity theft victims with an IP PIN, up from more than 770,000 in 2013.

Additionally, the IRS has overhauled its identity theft screening filters to spot suspected fraudulent returns before they are processed. After a suspected fraudulent return is flagged, the IRS will hold the return for further processing until the agency verifies it is a true return. If you receive a notice from the IRS, please contact our office immediately.

If you have any questions about protecting yourself from identity theft or the IRS’s activities to curb tax return identity theft, please contact our office.

If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.

Find out how advisory boards can help businesses
Posted on February 28, 2014 by Scott Olinger, CPA, CGMA

(Published in Business First, February 7, 2014)
As a certified public accountant, I find myself in the very rewarding position of being a trusted adviser to many highly successful business owners.

The level of trust in these relationships generally results in having conversations around areas that often transcend traditional accounting, tax, operational and transactional advice.

These situations provide opportunities to introduce clients to experts in other fields who are in my network. Continue reading “Find out how advisory boards can help businesses” →

McGladrey Launches 2014 Manufacturing & Distributon Monitor Survey

Posted on February 18, 2014

We are excited to partner once again with McGladrey, LLP as they launch the 2014 McGladrey Manufacturing & Distribution Monitor survey today, February 18th.

Since 2006, the McGladrey Manufacturing & Distribution Monitor has helped companies address operational efficiencies, growth strategies, exporting best practices and more. Monitor results and analysis are shared with media, industry associations and government policymakers to help these groups understand the challenges and concerns facing our industry today. We encourage you to weigh in on issues that affect the success of your business.

In order to reflect the increasingly global nature of business for middle-market manufacturers and distributors, the 2014 Monitor is expanding participation to include companies based outside the U.S., in countries including Mexico and Brazil. Through your participation in the survey, Harding, Shymanski & Company, P.S.C., will be able to provide you:

  • A customized benchmark report comparing your responses to those of your peers across the country, as well as to groupings of companies similar to your own.
  • Data to help you plan and execute your strategic objectives.
  • An industry advocate who will provide insights to congressional and administrative representatives on your behalf.

Please complete the questionnaire to the best of your ability, based on conditions at your company. Submit your completed survey by March 7th so your responses can be incorporated into the final analysis. It should take approximately 15 minutes to complete the survey.

Please click here to take the survey.

If you have any questions or need assistance with the survey, please contact Brant Kennedy, CPA at 800.880.7800 ext. 1425.

Note that your individual and company information is kept confidential. McGladrey LLP will only share identifiable data internally and with vendors assisting in the creation of the study. Responses will be reported out to third parties only in the aggregate through McGladrey reports and articles, benchmark reports and presentations.

BEAM Kentucky Export Promotion Grant, provided by a generous donation from the JPMorgan Chase Foundation

Posted on February 12, 2014

The BEAM Kentucky Export Promotion Grant, provided by a generous donation from the JPMorgan Chase Foundation offers grant awards of up to $4,500 to qualifying small companies to help them increase their export capacity and activity.

Does your small company need business development assistance to prepare for exporting activity? Is your company already exporting, but needs support to explore new market opportunities?

Future Exporters – Grant funds help qualified future exporters purchase business development services to prepare them for the international marketplace.

Current Exporters – Grant funds help current exporters to identify and execute new international sales opportunities. Awards can be used for market research, business to business matchmaking services, strategic planning assistance, financial and cash flow analysis and planning, improvement of web presence, education, translations, trade shows and more.

BEAM Partner Providers – BEAM partner provider organizations are members of the Kentucky Export Initiative and represent the state’s leading business and export development organizations.

Thinking of applying? Click here to learn if your company is eligible.

APPLY NOW

Harding, Shymanski & Company, P.S.C. Joins AICPA Governmental Audit Quality Center

Posted on February 6, 2014

Harding, Shymanski & Company, P.S.C. has joined the American Institute of Certified Public Accountants’ (AICPA) Governmental Audit Quality Center for CPA firms. The Center is a national community of CPA firms that demonstrate a commitment to governmental audit quality and raise awareness about the importance of governmental audits. The Center provides members with best practices, guidelines, and tools CPAs need to perform quality governmental audits and better serve their clients.

Members of the Center demonstrate their commitment by voluntarily agreeing to adhere to Center membership requirements, including designating a partner responsible for its governmental audit practice, establishing quality control programs, performing annual internal inspection procedures, and making the firm’s peer review report findings publicly available.

 

IRS Warns of Tax-time Scams

Posted on January 30, 2014

The Internal Revenue Service (IRS) released a list of warnings to protect the public from tax season scams.

  • Be vigilant of any unexpected communication purportedly from the IRS at the start of tax season (January 31).
  • Don’t fall for phone and phishing email scams that use the IRS as a lure. Thieves often pose as the IRS using a bogus refund scheme or warnings to pay past-due taxes.
  • The IRS doesn’t initiate contact with taxpayers by email to request personal or financial information. This includes any type of e-communication, such as text messages and social media channels.
  • The IRS doesn’t ask for PINs, passwords or similar confidential information for credit card, bank or other accounts.
  • If you get an unexpected email, don’t open any attachments or click on any links contained in the message. Instead, forward the email to phishing@irs.gov. For more about how to report phishing scams involving the IRS visit the genuine IRS website, IRS.gov.