JEFFREY B. TRAVIS | 847-267-0300 | 740 Waukegan Rd, Deerfield, IL 60015 | jeff travis cpa: PENALTY ABATEMENT OVERVIEW | jeffrey b travis cpa
JEFFREY B. TRAVIS | 847-267-0300 | 740 Waukegan Rd, Deerfield, IL 60015 | jeff travis cpa: PENALTY ABATEMENT OVERVIEW | jeffrey b travis cpa: PENALTY ABATEMENT OVERVIEW | Jeffrey B. Travis CPA For a CPA firm, penalty abatement can be challenging. Between IRS notices as well as sta...
PENALTY ABATEMENT OVERVIEW | jeffrey b travis cpa
PENALTY ABATEMENT OVERVIEW | Jeffrey B. Travis CPA
For a CPA firm, penalty abatement can be challenging. Between IRS notices as well as state and local agency correspondence, you can spend quite a bit of time answering penalty notices for late filing, late payment, failure to file, etc.
The number of penalty provisions continues to grow:
1) In 1955, there were 14 provisions
2) Now, there are more than 100
3) Penalty provisions continue to grow
Penalty provisions are designed to encourage compliance
1) But may cause liability to increase substantially
Penalties range across every type of tax. The most common penalties are:
1) Estimated tax penalty
2) Collection related
3) Accuracy related
Estimated tax penalty is:
1) Treated more like interest
2) Rate of this is same as current interest rate
3) Underpayment of tax current rate is 3% in 2015
Collection related penalties are:
1) Failure to file
2) Failure to pay
3) Failure to deposit
4) Trust fund recovery penalty
Accuracy related penalties are:
1) Commonly imposed as a result of an IRS audit or notice of underreporting income
2) Substantial understatement of income
For a CPA firm, penalty abatement can be challenging. Between IRS notices as well as state and local agency correspondence, you can spend quite a bit of time answering penalty notices for late filing, late payment, failure to file, etc.
The number of penalty provisions continues to grow:
1) In 1955, there were 14 provisions
2) Now, there are more than 100
3) Penalty provisions continue to grow
Penalty provisions are designed to encourage compliance
1) But may cause liability to increase substantially
Penalties range across every type of tax. The most common penalties are:
1) Estimated tax penalty
2) Collection related
3) Accuracy related
Estimated tax penalty is:
1) Treated more like interest
2) Rate of this is same as current interest rate
3) Underpayment of tax current rate is 3% in 2015
Collection related penalties are:
1) Failure to file
2) Failure to pay
3) Failure to deposit
4) Trust fund recovery penalty
Accuracy related penalties are:
1) Commonly imposed as a result of an IRS audit or notice of underreporting income
2) Substantial understatement of income
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: Jeffrey B. Travis | JEFF TRAVIS, CPA | jeffreybtra...
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: Jeffrey B. Travis | JEFF TRAVIS, CPA | jeffreybtra...: Jeffrey B. Travis | JEFF TRAVIS, CPA | jeffreybtraviscpa.com | 847-267-0300: CHANGING YOUR RESIDENCY : jeffreybtraviscpa.com ...
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GENERAL AUDITING CONSIDERATIONS FOR NON-FOR-PROFIT ENTITIES
GENERAL AUDITING CONSIDERATIONS FOR NON-FOR-PROFIT ENTITIES | Jeffrey B. Travis, CPA
The AICPA has published its audit and accounting guide for audits of non-for-profit entities.
This guide references the Clarified Auditing Standards:
1) Overview of the auditing standards
2) Compliance auditing under Government Auditing Standards
3) Risk Assessment Procedures, including NFP specific characteristics
4) Planning Materiality
5) Performance Materiality
6) Communications with those charged with governance
7) Completing the audit
8) Related Party Transactions
9) Compliance with Laws and Regulations
10) Going concern considerations
11) Fraud considerations
Non-for-profit entities are presumed to be supported by the general public if contributions are 20% to 30% or more of the total revenue and support include cash and “in kind” (e.g. free services or goods).
The AICPA has published its audit and accounting guide for audits of non-for-profit entities.
This guide references the Clarified Auditing Standards:
1) Overview of the auditing standards
2) Compliance auditing under Government Auditing Standards
3) Risk Assessment Procedures, including NFP specific characteristics
4) Planning Materiality
5) Performance Materiality
6) Communications with those charged with governance
7) Completing the audit
8) Related Party Transactions
9) Compliance with Laws and Regulations
10) Going concern considerations
11) Fraud considerations
Non-for-profit entities are presumed to be supported by the general public if contributions are 20% to 30% or more of the total revenue and support include cash and “in kind” (e.g. free services or goods).
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: Jeffrey B. Travis | JEFF TRAVIS, CPA | jeffreybtra...
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: Jeffrey B. Travis | JEFF TRAVIS, CPA | jeffreybtra...: Jeffrey B. Travis | JEFF TRAVIS, CPA | jeffreybtraviscpa.com | 847-267-0300: CHANGING YOUR RESIDENCY
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: WORKER CLASSIFICATIONEMPLOYEE OR INDEPENDENT CONT...
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: WORKER CLASSIFICATION
EMPLOYEE OR INDEPENDENT CONT...: WORKER CLASSIFICATION EMPLOYEE OR INDEPENDENT CONTRACTOR Worker classification determinations are made on a case by case basis, depending on...
EMPLOYEE OR INDEPENDENT CONT...: WORKER CLASSIFICATION EMPLOYEE OR INDEPENDENT CONTRACTOR Worker classification determinations are made on a case by case basis, depending on...
ENHANCED DEPRECIATION DEDUCTIONS-UPDATE
ENHANCED DEPRECIATION DEDUCTIONS-UPDATE
Business may immediately elect to deduct up to $500,000 of the cost of qualifying asset acquisitions and is indexed to inflation
These assets apply to purchases of:
1) Computer software
2) Qualified leasehold improvements
3) Retail improvements
4) Restaurant improvements
These assets do not apply to purchases of:
1) Vehicles
2) Buildings-residential and commercial
3) Land
After applying this large depreciation deduction, if there is any undepreciated balance, bonus depreciation rules are then applied at:
1) 50% for property placed in service in 2015, 2016 and 2017.
2) 40% for 2018 and 30% for 2019
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: Deerfield, IL 60015 | CPA Firms
JEFF TRAVIS, CPA | JEFFREY B TRAVIS CPA | jeffbtravis.com | Jeffrey B. Travis, CPA: Deerfield, IL 60015 | CPA Firms: Deerfield, IL 60015 | CPA Firms List of Certified Public Accountants in Deerfield, IL 60015 Travis & Warzala, Ltd.; FGMK, LLC; Mann, We...
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