How entangled should your personal and business finances be? Many small-business owners may be put in a precarious situation if they commingle funds and then things go sour during the pandemic and ensuing recession. Paying your business expenses from your personal accounts puts you at risk for possible personal liability. Resist the urge to pay...
The reasonableness of shareholder and employee compensation is an important though often controversial income tax consideration for closely held corporations such as either a C corporation or an S corporation. When excessive amounts of compensation and benefits are provided to an individual, the IRS will treat the excess as dividends. This can result in double...
Were you one of those folks who didn't have enough taxes withheld from their paychecks last year to cover the taxes they owed? To help avoid this problem going forward, the IRS changed the way to determine how much federal income tax an employer must withhold from an employee's paycheck. As part of the fix,...
Not just “An American Band” but now an “American Legend,” Grand Funk Railroad’s drummer, vocalist, writer, and only constant band member, Don Brewer, is celebrating the 50th Anniversary of his band with a celebration tour! A Michigan transplant now living in Jupiter with his wife Sunny Quinn, Don no longer sports his signature afro, but...
FASB’s new revenue recognition standards are now effective, but how well will the new standard prevent fraud and abuse? FASB had many goals in issuing the new Accounting Standards Codification Section 606, “Revenue Recognition from Contracts with Customers.” Concern about fraud was one of the original goals, but FASB also sought to remove inconsistencies in...
