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Blogging Beyond the Numbers

Books
Posted by: Jolene Giese 10 hours ago
Year end has come and gone.  Your auditor is contacting you about the upcoming audit.  Are you ready and anticipating the audit or do you dread it?  You probably feel like you are back in school and prepping for an exam.  Read on to make sure you make the grade. Coursework The day to day transactions, internal control documentation, and filing of supporting documents are the material you will be teste...
Gift Tax Return
Posted by: Mike Scholz 5 days ago
Last year you may have made significant gifts to your children, grandchildren or other heirs as part of your estate planning strategy. Or perhaps you just wanted to provide loved ones with some helpful financial support. Regardless of the reason for making a gift, it’s important to know under what circumstances you’re required to file a gift tax return. Some transfers require a return even if y...
Tax Deadline
Posted by: Bruce Mayer 5 days ago
The Internal Revenue Service has changed the due dates for a number of returns relevant to cooperatives. The primary driver for this was moving up the partnership due date so that K-1s are made available to individuals in time to file their 1040 without extensions. A secondary issue was moving back the corporation due date one month. Most corporations extend their returns so the initial due date is less imp...
Exchange Transaction vs Contribution
Posted by: Danielle Moyer 1 week ago
Although grants are one of the most common revenue sources for non-profit organizations, the term "grant" has no accounting definition and is used interchangeably with both of the accounting terms "exchange transaction" and "contribution". It is important for organizations to determine whether their grant is an exchange transaction or a contribution, as the classification will determine the accou...
Unlucky 13
Posted by: Mike Scholz 1 week ago
The IRS’s Large Business and International Division has identified 13 “campaigns,” or issues it will target in examinations, in the coming year. While the list targets large businesses, don’t be surprised if the issues trickle down to mid-sized and smaller businesses, too. The IRS is turning to an issue approach to audits and is focusing on those compliance issues that present the greatest ...
ISOs
Posted by: Mike Scholz 2 weeks ago
Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock’s fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they’re then trading for. However, complex tax rules apply to this type of compensation. Current tax treatment ISOs must comply with many rules but receive tax-favored treatment...
Calculator
Posted by: Brian Dahlk 2 weeks ago
When co-ops acquire new long-term debt, they often incur costs in conjunction with the process. These costs are commonly known as debt issuance costs. Such costs of obtaining financing – such as bank fees, accounting fees to prepare prospective presentations, and legal fees to draft the necessary documents – should not be expensed. In the past these costs have usually been capitalized as an asset accoun...
Calendar
Posted by: Bruce Mayer 2 weeks ago
Cooperatives sometimes consider changing their year end to a new month or to a 52-53 week year ending on the same month. Most cooperatives seem to start up with a December year end. Larger food cooperatives gravitate to a June year end. One general guideline on choosing a year end is that the year should end on the strongest quarter or begin on the weakest quarter. Beginning on a weaker qu...
Foreign Bank Accounts
Posted by: Swati Jain 2 weeks ago
During the past year(s), did you have a foreign bank account or a financial interest/signature authority in any foreign account? If so, be aware…the IRS wants to know about it. If the combined aggregate value of all those foreign bank accounts exceeded $10,000 at any time during the calendar year, even if just for 1 day, you are required to file FinCEN Form 114, Foreign Bank Account Report (FBAR) with ...
Manufacturers-Deduction
Posted by: Mike Scholz 3 weeks ago
The Section 199 deduction is intended to encourage domestic manufacturing. In fact, it’s often referred to as the “manufacturers’ deduction.” But this potentially valuable tax break can be used by many other types of businesses besides manufacturing companies. Sec. 199 deduction 101 The Sec. 199 deduction, also called the “domestic production activities deduction,” is 9% of ...