Tax Accounting – Berning CPA http://berningcpa.com/ Mon, 03 Oct 2022 19:56:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://berningcpa.com/wp-content/uploads/2021/05/default-150x150.png Tax Accounting – Berning CPA http://berningcpa.com/ 32 32 Weekly Political Compass 10.3.22 | Teneo https://berningcpa.com/weekly-political-compass-10-3-22-teneo/ Mon, 03 Oct 2022 19:56:00 +0000 https://berningcpa.com/weekly-political-compass-10-3-22-teneo/ The new British government has abandoned some of its plans to cut taxes. Brazil is heading for a second round of presidential elections. Indonesia is the first country to approve an mRNA vaccine developed by China. West African states face a political conundrum in the wake of the coup in Burkina Faso. Meanwhile, there is […]]]>

The new British government has abandoned some of its plans to cut taxes. Brazil is heading for a second round of presidential elections. Indonesia is the first country to approve an mRNA vaccine developed by China. West African states face a political conundrum in the wake of the coup in Burkina Faso.

Meanwhile, there is speculation that malaysia the parliament could be dissolved, the formation of the government in Bulgaria will be complicated, the American Secretary of State will go Colombiaand the new board South African the Eskom electricity utility took over.

Chart of the week

After days of market turbulence, the UK government budget plans seem to alienate the conservative base. The latest polls give Labor a substantial lead over the Tories. Two trends are worth highlighting. First, a significant share of those who voted Conservative in the 2019 general election – around 17% – would now vote Labour. This proportion of Conservative switches is similar to that seen in Tony Blair’s landslide victory in 1997. Second, the Conservative party is becoming less hegemonic among Brexiters. In fact, the graph above shows that today as many incumbents would vote Conservative as Labour, suggesting that ‘trusonomics’ – particularly in the context of the cost of living crisis – is not particularly popular among large sections of the population. 2019 Conservative Election Coalition.

What to watch

UK

The government has announced a major reversal of its controversial plan to cut the top tax rate. This follows last week’s market rout and the rise of major opposition among Tory backbenchers. The next panel to watch is whether the government’s decision appeased or emboldened moderate MPs – most of whom voted not for Truss but for Rishi Sunak who had opposed the tax cuts. The internal politics of the Conservatives will in turn depend on the reaction of the market in the coming weeks. More uncertainty is likely, as Truss will constantly have to determine how far she can push the small states agenda she has promised Conservative members.

Brazil

There will be a runoff election on October 30 following a wave of votes for President Jair Bolsonaro at odds with all major pollsters and poll aggregators. Former President Luiz Inacio Lula da Silva won 48.43% of the vote, as expected within the margin of error, against 43.20% for the President, 6-7 percentage points above the poll result the day before the elections. Lula won with more than 6 million votes, the best result ever for a candidate in the first round, but the president did surprisingly well in the crucial Southeast region (43% of the electorate) . The specter of a Lula first-round victory may have stirred strong anti-Workers’ Party sentiment that may have spared Lula, but wreaked havoc on all other major left-wing candidates at the federal and state levels. states. Bolsonaro is expected to set aside his challenge to the electronic voting system in the upcoming second round.

Indonesia/China

Indonesia has become the first country to approve a Chinese-developed mRNA vaccine, even before China itself. Indonesia’s Food and Drug Agency (BPOM) approved Walvax Biotechnology’s vaccine for emergency use on Sept. 30, although the company has yet to release stage trial efficacy data. progress underway in Indonesia, Mexico and China.

West Africa

The Economic Community of West African States (ECOWAS) faces another political conundrum this week following the September 30 coup in Burkina Faso. The West African bloc will have to decide whether to impose new sanctions on the Burkinabè military regime after a dissident faction of the army, led by Captain Ibrahim Traoré, ousted military leader Paul-Henri Damiba, who himself had seized power in a coup by former civilian President Roch Kaboré in January. The latest coup casts a shadow of doubt on the July 1, 2024 timeline previously agreed between ECOWAS and the Damiba-led regime for a return to constitutional order.

on the horizon

ASIA PACIFIC

Malaysia

The 2023 budget will be tabled on October 7 and there is speculation that parliament will be dissolved soon after to allow a snap election to be called in November. Prime Minister Ismail Sabri Yaakob may want elections to be held later, but he has been foiled by factions of his United Malays National Organization (UMNO) party who want this year. Since the monsoon normally intensifies in December, the window for elections is next month. Yaakob said last week he was set to meet the king – although it is unclear when – to discuss possible election dates.

EUROPE

Bulgaria

Another highly fragmented parliament following snap parliamentary elections on October 2 will lead to a complicated government formation process. While the centre-right Citizens for European Development of Bulgaria (GERB) party has won most of the mandates and will have a first chance to form the cabinet, the party of former Prime Minister Boyko Borissov is unlikely to win. to get the majority needed to form a stable government unless it cooperates with the pro-Russian far-right revival. The centrist We Continue the Change (PP) which won second place also lacks potential coalition partners to form a majority government. As noted earlier, the lingering political stalemate could result in a temporary technocratic government or another snap election in the winter. The first option seems more likely as virtually all political parties agree that a stable government is needed to face the multiple challenges over the coming months.

Germany

Voters will head to the polls in Lower Saxony’s regional elections on October 9. During the last regional election of the year, the local branch of the Social Democrats (SPD) of Chancellor Olaf Scholz seems well placed to defend this major state. Such a result would be good news for the Chancellor the day after the presentation of her government’s 200 billion euro economic support plan. However, the fate of Scholz’s smaller coalition partners – especially the Liberals (FDP) – needs to be watched.

Latvia

Asanticipatedthe centrist New Unity (JV) party led by Prime Minister (PM) Krisjanis Karins won most of the mandates (26/100) in the general elections on October 1 and is likely to have a first chance to form a new coalition government. President Egils Levits is expected to appoint Karins as prime minister for the second term, which is backed by JV’s likely coalition partners – the right-wing National Alliance (13 terms) and the United List (15 terms). The three parties – which together would have a narrow majority of 54/100 mandates – could also be joined by the center-left Progressives with ten seats. JV’s top priorities include international and national security, economic competitiveness, and education reform. More generally, the election result reflects strong voter support for the pro-Western reform policies pursued by the Karins government in recent years.

Turkey

Parliament is set to begin its new term with a vote on a new social media bill aimed at curbing dissent. The bill aims to tackle what the government calls “fake news, misinformation, provocation and lynching of justice in social media”. The proposed legislation has been criticized for the use of vague terms and criteria, as well as the risk of abuse by state authorities. The new legislation is the latest effort by President Tayyip Erdogan’s government to put in place a legal mechanism that censors critical posts and videos ahead of the 2023 election.

LATIN AMERICA

Colombia

US Secretary of State Antony Blinken will be in Bogota today, October 3, for a meeting with President Gustavo Petro. As the United States seeks to make sense of Petro’s call for a new approach to the war on drugs, Blinken will seek clarification on Petro’s proposal to rethink extradition, which has been a key tool in US counternarcotics policy. Petro’s decision to unfreeze relations with Venezuela will also no doubt be discussed, as will parallel moves to begin peace talks with the National Liberation Army (ELN) guerrilla group and to bring organized crime groups under the umbrella of Petro’s “total peace” initiative. Additionally, Blinken is likely to sound out Petro about a stronger condemnation of Russia’s recent annexation of four regions of Ukraine ahead of a meeting of the Organization of American States (OAS) General Assembly that will take place. will be held in Lima later this week.

MIDDLE EAST AND AFRICA

South Africa

Electricity company Eskom’s new 13-member board took office on 1 October. Although somewhat enriched with expertise in engineering, energy and accounting, the board will face impossible pressure to improve Eskom’s worsening load shedding and declining energy availability factor (EAF ). Last week, EAF was only reaching 55% of installed capacity, with unplanned outages worth 15,862 MW and planned maintenance worth 5,206 MW. Record outages are fueling calls for the removal of Eskom CEO Andre de Ruyter, even as he grapples with financial and operational legacy issues that are largely the result of policy failures.

The views and opinions expressed in these articles belong solely to the authors and do not necessarily reflect those of Teneo. They are offered to stimulate thought and discussion and not as legal, financial, accounting, tax or other professional advice.

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EY’s audit and advisory division is a victory for investor protection https://berningcpa.com/eys-audit-and-advisory-division-is-a-victory-for-investor-protection/ Fri, 30 Sep 2022 10:15:30 +0000 https://berningcpa.com/eys-audit-and-advisory-division-is-a-victory-for-investor-protection/ Earlier this month, Ernst & Young LLP announced a first spin-off of its audit and advisory functions, dubbed “Project Everest”, a sweeping move that could completely transform the business model of accountancy firms. The split still needs to be approved by EY Partners, with a vote expected later this year. The announcement sparked heated debate […]]]>

Earlier this month, Ernst & Young LLP announced a first spin-off of its audit and advisory functions, dubbed “Project Everest”, a sweeping move that could completely transform the business model of accountancy firms. The split still needs to be approved by EY Partners, with a vote expected later this year.

The announcement sparked heated debate within the global accounting and business community, with many praising EY for its bold spinoff and the potential windfall for EY’s advisory business. Others think Everest might be too ambitious a climb and hurt the EY brand.

If it becomes official, the division will separate EY accountants who audit companies such as Amazon.com Inc., Salesforce.com Inc., Alphabet, Inc. and more from its rapidly growing consulting business. and generally more profitable. The company’s split would also mark the biggest upheaval in the industry since the 2002 collapse of Arthur Andersen, the auditor mired in the Enron scandal and whose downfall reduced the Big Five to the Big Four.

The Big Four accounting firms – EY, Deloitte LLP, KPMG LLP and PricewaterhouseCoopers LLC – have been under regulatory scrutiny for years over concerns that their advisory services could compromise their ability to conduct independent reviews. As reported in The Wall Street Journal in March, the SEC sent letters to them and other accounting firms in late 2021 requesting information about its auditing clients and auditing practices. The UK auditing and accounting regulator, the Financial Reporting Council, went further and asked the Big Four in 2020 to separate auditing as a stand-alone business in Britain by June 2024.

While the details are still being worked out, accounting insiders speculate that the decision to separate the two operations will actually prevent EY’s new hires from continuing to advance cross-practice audit, tax and advice like their more experienced colleagues.

Nonetheless, from an investor protection perspective, this decision should be a big win. Over the years, serious conflicts of interest have arisen due to accounting firms performing both audit and advisory work for the same or related companies. Such disputes frequently lead to corporate misrepresentation, breach of fiduciary duty and, in some cases, fraud, which inevitably erodes investor confidence and leads to securities class actions and regulatory actions. .

By dividing the two companies, these conflicts of interest, and the inevitable problems they cause, could more easily be avoided. For example, EY recently agreed to pay the SEC $10 million for its work with Sealed Air – a packaging company known for its brands, Cryovac food packaging and bubble wrap packaging – linked to charges of auditor independence misconduct perpetrated by multiple partners to secure Sealed Air as a client.

Last April in the UK, EY was sued for $2.5 billion over the negligence of its auditor in NMC Health, which filed for bankruptcy in 2020 after billions of dollars were uncovered. undisclosed debts.

All eyes are watching. As if sending a warning shot to the EY bow, Acting Chief Accountant of the SEC Paul Munter issued a statement in August reminding accounting firms that “it is paramount that the accounting firm fully understands its responsibility to maintain auditor independence and that it discloses these requirements to the non-accounting investors involved” while exploring audit firm restructurings and other complex transactions.

While EY’s proposal continues to spark heated debate across the industry, the move will most likely limit conflicts of interest and better protect investors going forward, which means EY could also avoid future some costly securities litigation and SEC regulatory actions.

EY’s first-mover split is a bold one. Hopefully Deloitte, KPMG and PwC will take note of this as they consider the future of splitting off their own audit and advisory services and keeping their clients’ interests and investor protections in mind. audit.

This article does not necessarily reflect the views of the Bureau of National Affairs, Inc., publisher of Bloomberg Law and Bloomberg Tax, or its owners.

Author Information

Laura H. Posner is a partner of Cohen Milstein Sellers & Toll PLLC in the area of ​​securities litigation and investor protection practice, as well as ethics and fiduciary counsel practice. Prior to joining the firm in 2017, she was a bureau chief for the New Jersey Bureau of Securities.

We would love to hear your smart and original point of view: write for us

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To honor Queen Elizabeth, Charles must end cobweb tax abuse https://berningcpa.com/to-honor-queen-elizabeth-charles-must-end-cobweb-tax-abuse/ Wed, 28 Sep 2022 08:48:04 +0000 https://berningcpa.com/to-honor-queen-elizabeth-charles-must-end-cobweb-tax-abuse/ The estates now subject to King Charles III include a web of tax havens and secrecy jurisdictions which, along with American, Asian and European havens, allow taxpayers to hide $32 trillion in tax. This cross-border tax evasion causes public treasuries around the world to lose $483 billion in tax revenue each year, including $312 billion […]]]>

The estates now subject to King Charles III include a web of tax havens and secrecy jurisdictions which, along with American, Asian and European havens, allow taxpayers to hide $32 trillion in tax. This cross-border tax evasion causes public treasuries around the world to lose $483 billion in tax revenue each year, including $312 billion from multinational corporations and $171 billion from ultra-wealthy individuals.

This devastating drain on public resources, if reversed into a new source of revenue, could significantly contribute to the $7 trillion needed each year to achieve the United Nations Sustainable Development Goals, which constitute “a universal call to end poverty, protect the planet and ensure shared peace and prosperity.

Commendable and outspoken on climate resilience as crown prince, Charles must now use his bullying pulpit to urge Parliament to close ‘the UK spider’s web’. With the financial district known worldwide as the “City of London” at its centre, the spider’s web collects and secretes funds that are vital to advancing the public good and protecting our planet.

Prince Charles, Prince of Wales waves as he attends the Royal Cornwall Show on June 07, 2018 in Wadebridge, United Kingdom.

Photographer: Tim Rooke/WPA Pool/Getty Images

The city and the spider’s web

As Britain’s global empire crumbled in the 20th century, personal affection for Queen Elizabeth slowed the process of decolonization, but financial greed accelerated a remarkable transformation of the City of London. Not to be confused with Greater London, whose population of 9 million is ruled by Mayor Sadiq Khan, the City of London is a semi-independent medieval state within the modern British state. With a population of 9,000, ruled by Lord Mayor Vincent Keaveny, it is commonly referred to as “the city” by financiers across the British Commonwealth.

For centuries, the City has worked “beyond the authority of Parliament, [undermining] all attempts to curb the excesses of finance. The City tapped into the vast financial network of the British Empire. But as the empire shrank, its people turned relations with former colonies into a shadow empire of financial misbehavior.

Investigative journalist Nick Shaxson reveals how the City has transformed into “Wall Street’s giant escape route from the checks and balances of US financial regulation”; provider of “endless loopholes for American financial companies”; operator of a spider’s web of satellite tax havens (“simply booking offices: semi-fictitious way stations on secret routes through accountants’ exercise books”); silver extractor instead of natural resources from former colonies; and allows the “elite to do things – often nasty – that would not be allowed at home”.

King Charles should know about the misdeeds of the City. Almost a decade ago, Queen Elizabeth was warned that “Britain, in partnership with Her Majesty’s Overseas Territories and Crown Dependencies, [is] by far the most important part of the global offshore system of tax havens and secrecy jurisdictions.

The City of London plays an outsized role in catalysing the engagement of businesses and individuals with tax haven countries that are named, humiliated and ranked in the Tax Justice Network’s annual Financial Privacy Index. Top of the list in 2022: the United States of America.

The Spider’s Web and the USA Tax Haven

Tax havens like Britain’s spider web ‘are engaged in economic warfare’ against the United States, late senator Carl Levin has reported following extensive investigations into tax avoidance industry abuses . Treasury Secretary Janet Yellen points out that corruption flows both ways: “The best place to hide and launder ill-gotten gains is actually the United States” because, as Bloomberg reports, “States United are the most complicit nation in helping individuals hide their wealth. .”

The hosts of this economic war are not only national governments. The cannibalistic subnational governments of states including Delaware, Nevada, South Dakota, and Wyoming help make Tax Haven USA the most pernicious secretive jurisdiction in the world.

A float showing corgi dogs holding a crown during the Platinum Jubilee pageant outside Buckingham Palace on June 05, 2022 in London.

Photographer: Alberto Pezzali/WPA Pool/Getty Images

Billionaire King Tax Obligation

Elizabeth is mourned by millions (including me, as my grandfather grew up on the grounds of Windsor Castle Great Park during his grandfather’s reign.) But the Queen has her detractors, as does her son . Tax critics ask whether England’s first billionaire king has to pay inheritance tax on the $950million Duchy of Lancaster, part of the family’s $28billion crown estate royal. (The answer is no.) They asked if he and his late mother had to pay personal income tax. In fact, they brokered a deal. They noted that Charles was charged with tax evasion and that the Panama Papers revealed Elizabeth’s personal use of the spider web.

The more important question, however, is global: will King Charles III meet the moment on climate and corruption?

As the Queen’s loyal subjects and her fickle fanboys go through performative public mourning rituals, her son is expected to honor his mother through action. He is expected to mobilize public opinion to urge the UK Parliament to investigate, expose and close the web of global tax avoidance controlled by corrupt financiers within the City of London, which was shamefully allowed to prosper during the long reign of Charles’ mother.

(Re)think everything

My goal in this new column is to elevate public discourse on the public interest implications of international, U.S. federal, and U.S. state and local tax policy across types of taxes. I will explore corporate and personal income tax, commodity tax, property tax, etc. The three main areas of focus for this column will be: tax justice (crucial topics in tax theory such as gender, race, and wealth); social harms (subjects of taxation of externalities such as climate, public safety and public health); and tax evasion (avoidants, hosts, enablers, their schemes and, close to my heart, the “beneficial ownership transparency” solution). I hope you will join me on this bi-weekly journey to (re)think taxation.

This is a regular column of public interest tax policy analyst Don Griswold, who is also a senior researcher at the Digital Economist. Look for Griswold’s column on Bloomberg Tax and follow him on LinkedIn.

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Kadenia Javis: the accountant goes beyond taxes https://berningcpa.com/kadenia-javis-the-accountant-goes-beyond-taxes/ Thu, 22 Sep 2022 23:37:18 +0000 https://berningcpa.com/kadenia-javis-the-accountant-goes-beyond-taxes/ The founder of Javis Financial Services, Kadenia Javis, pursues her goal of educating the average person on relevant financial matters. Kadenia Javis has always believed in educating her community about reducing her tax liability and is also an advocate for financial literacy. This is the main reason why she founded Javis Financial Services, a company […]]]>

The founder of Javis Financial Services, Kadenia Javis, pursues her goal of educating the average person on relevant financial matters.

Kadenia Javis has always believed in educating her community about reducing her tax liability and is also an advocate for financial literacy. This is the main reason why she founded Javis Financial Services, a company that helps individuals and businesses with their tax problems and questions throughout the year.

At Javis, Kadenia brings with her a wealth of education and experience gained over decades. She earned her BS degree from Limestone College and earned her MBA degree from Strayer University (Magna Cum Laude). His professional experience in banking and finance includes working in the public and private sectors with municipal, state and federal governments. In addition to being a former IRS employee, she holds the title of Authorized Electronic Provider, Registered Tax Return Preparer (RTRP), and Electronic Return Initiator (ERO) with the Internal Revenue Service.

In 2014 Kadenia launched his non-profit “FBLA Jr. Scholarship Foundation” now known as “POWER UP Your Financial IQ!” to hire interns and introduce them to the many facets of business etiquette and provide one-on-one on-the-job training. The organization also awards scholarships each year to graduating high school students to help them with essentials other than tuition and books.

Kadenia’s goal of simplifying finance and accounting for non-financial professionals has won her praise from various quarters. His accounting firm received Columbia’s Neighborhood Award hosted by KISS FM 103.1, The Best Financial Consultants 2021, The Best Accounting Firm 2020, and The Best Tax Consultants 2019 by the Columbia Award Program. She was also named in the inaugural class of SC Black Pages Top 40 under 40, Economic Empowerment Award-National Coalition of Black Woman, Top Woman of Influence, Columbia’s Trailblazer Woman, Midlands Woman On The Move, among others.

Media Contact
Company Name: Javis Financial Services LLC
Contact person: Kadenia Javis
E-mail: Send an email
Call: 8034191001
Country: United States
Website: https://javistax.com/

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EXCLUSIVE: Simplifya brings key tax and accounting data to its cannabis regulatory compliance platform via agreement with CohnReznick https://berningcpa.com/exclusive-simplifya-brings-key-tax-and-accounting-data-to-its-cannabis-regulatory-compliance-platform-via-agreement-with-cohnreznick/ Tue, 20 Sep 2022 09:40:42 +0000 https://berningcpa.com/exclusive-simplifya-brings-key-tax-and-accounting-data-to-its-cannabis-regulatory-compliance-platform-via-agreement-with-cohnreznick/ will simplifya regulatory and operational compliance software platform serving the cannabis industry, has has partnered with CohnReznick to bring key tax and accounting data to its Simplifya Market GuideBenzinga learned exclusively. CohnReznick, which administers major tax and accounting advice to plant contact and ancillary businesses in the cannabis industry, agreed to contribute current tax and […]]]>

will simplifya regulatory and operational compliance software platform serving the cannabis industry, has has partnered with CohnReznick to bring key tax and accounting data to its Simplifya Market GuideBenzinga learned exclusively.

CohnReznick, which administers major tax and accounting advice to plant contact and ancillary businesses in the cannabis industry, agreed to contribute current tax and accounting regulatory guidelines to Simplifya’s RegTech platform that arms both marijuana and marijuana-related businesses with comprehensive, user-friendly regulatory summaries for all 50 states.

“With Market Guide, we are not only helping to dramatically reduce the time and money businesses have to spend on understanding and complying with tax laws, but we are also helping those businesses maintain their licenses and survive,” said said the CEO and co-founder of Simplifya. Marion Mariathasan said.

With the cannabis industry growing day by day, herbal and ancillary businesses regularly face many challenges, CohnReznick Partner Michael HarlowCPA, underlined.

“Proper compliance with tax laws in any highly regulated industry is a challenge, but in the cannabis industry – with its changing and often competing tax requirements from state to state, compounded by federal tax requirements, unscheduled expenses unprecedented deductibles and scrutiny – the challenges facing businesses that affect plants and ancillary businesses are unmatched,” said Harlow.

Meanwhile, Simplifya Market Guide is continually updated with the latest content in real time by a team of regulatory experts and software engineers who monitor changes and state regulatory requirements..

Users can access regulatory snapshots and archived information and receive alerts for any new regulatory changes or updates.

Related News

Photo: Courtesy of Glenn Carstens-Peters on Unsplash

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How to Use Recovery Rebate Credit to Claim a Missing Stimulus Check – Forbes Advisor https://berningcpa.com/how-to-use-recovery-rebate-credit-to-claim-a-missing-stimulus-check-forbes-advisor/ Sat, 17 Sep 2022 14:32:12 +0000 https://berningcpa.com/how-to-use-recovery-rebate-credit-to-claim-a-missing-stimulus-check-forbes-advisor/ Who is eligible for recovery rebate credit and stimulus payments? You are only eligible for the recovery rebate credit if the IRS has not granted you a stimulus payment or if you have received a partial payment. To find out if you missed the money you were entitled to, you can contact the IRS, check […]]]>

Who is eligible for recovery rebate credit and stimulus payments?

You are only eligible for the recovery rebate credit if the IRS has not granted you a stimulus payment or if you have received a partial payment.

To find out if you missed the money you were entitled to, you can contact the IRS, check your IRS online account, or use the tax agency’s Get My Payment tool.

Three rounds of pandemic stimulus checks have been issued in 2020 and 2021. Here is a reminder.

1st and 2nd rounds of stimulus payments

The first two payments were based on your 2018 or 2019 tax information. People were eligible for full stimulus payments if their adjusted gross income (AGI), which is income minus certain deductions, was $75,000 or less ( $150,000 for married couples). The IRS has reduced stimulus payments by $5 for every $100 earned above income thresholds.

The first full stimulus payment was $1,200 for singles, $2,400 for married couples and $500 per qualified dependent. The second full stimulus payment was $600 for singles, $1,200 for married couples and $600 per dependent.

If you earned more than $99,000 ($198,000 for married couples), you did not receive a first stimulus payment. With the second stimulus check, your payment was reduced to $0 once your AGI reached $87,000 for individuals and $174,000 for married couples.

3rd round of stimulus payments

The third stimulus checks were based on your 2019 or 2020 tax information. People were eligible for the full stimulus payment if their AGI was $75,000 or less ($150,000 for married couples). Full payment was $1,400 for singles, $2,800 for married couples, and an additional $1,400 for each dependent.

If you earned more than the threshold but no more than $80,000 ($160,000 for married couples), you received a third partial stimulus payment.

Who might be eligible for the salvage rebate credit?

The income requirements for the stimulus rebate tax credit are the same as for stimulus payments. So if you missed a stimulus check or received a partial payment, you may be eligible for extra money if you file a federal tax return and claim the credit.

Note that if you determine that the IRS issued you a stimulus check but it was lost, you should not claim the recovery rebate credit, but rather ask the tax agency to trace the payment.

Who is not eligible for the salvage rebate credit?

If you received full stimulus payments, you are no longer eligible for more money. And you can’t take the credit if someone else can claim you as a dependant.

Additionally, only U.S. citizens or “resident aliens” are eligible for the salvage rebate credit. If you are a “non-resident alien” – someone who has not passed the green card test – you are not eligible for the credit.

You are also not eligible if you do not have a social security number. But if you’re married and your spouse has an SSN, there are some instances where you might still qualify for the credit even if you’re not in the Social Security system.

How to Claim the Recovery Rebate Credit on a Tax Return

You will need to file your clawback reimbursement worksheet with your 2020 or 2021 federal tax return, as applicable. If you are filing your return using one of the best tax preparation software on the market, the program will guide you through the spreadsheet.

“When you file your 2020 or 2021 tax return, you will need to report any stimulus checks you received along with the recovery refund credit you are entitled to claim,” says Samantha Hawkins, CPA and founder of Hawkins CPA Solutions in Upper Marlboro, Maryland.

You can find the amount of your first stimulus payment on your Notice 1444, which was sent by the IRS. The tax agency followed up with Notice 1444-B for the second round of stimulus and Notice 1444-C for the third.

If you don’t have the notices, you can create an online account with the IRS to verify the payments you received.

If you received less than the full stimulus payment for any of the rounds, the spreadsheet asks you about your earnings. In some cases, you may be entitled to claim an additional stimulus payment.

You can claim missing or partial stimulus payments for rounds one and two only on your 2020 federal tax return. Any missing or partial stimulus payments from round three can only be claimed on your 2021 federal tax return.

If you are late on your returns, you have until September 30 to file your 2020 taxes without penalty. Taxpayers who have been granted extensions to file their 2021 returns must submit them by October 17.

Your dunning checks are not taxable

It is essential to understand that a stimulus payment is not taxable. The IRS has issued guidelines stating that you do not need to include the amount in your gross income or pay taxes on the money.

Yet many people don’t fully understand how stimulus payments affect their taxes.

“The part that I think most don’t necessarily understand is that the payment is technically a prepayable tax credit,” Hawkins says.

The stimulus payments were advance tax credits because the IRS gave you money before you filed your tax return. The salvage rebate credit is considered a refundable credit, which means it can reduce the amount of tax you owe or give you a refund.

One last important point: as a general rule, if you receive more money from the IRS than you are entitled to, you must repay the excess amount. But rebate credit recovery works differently. If you received a stimulus payment based on your previous tax information but are no longer eligible, based on your current tax return, you do not have to repay any stimulus money.

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EXCLUSIVE Goodyear settles labor abuse claims with workers at Malaysian factory https://berningcpa.com/exclusive-goodyear-settles-labor-abuse-claims-with-workers-at-malaysian-factory/ Wed, 14 Sep 2022 06:38:00 +0000 https://berningcpa.com/exclusive-goodyear-settles-labor-abuse-claims-with-workers-at-malaysian-factory/ A general view of the Goodyear factory in Shah Alam, Malaysia May 6, 2021. Picture taken May 6, 2021. REUTERS/Lim Huey Teng/File Photo Join now for FREE unlimited access to Reuters.com Register KUALA LUMPUR, September 14 (Reuters) – Goodyear Tire & Rubber Co has reached an agreement to settle a labor dispute at its Malaysian […]]]>

A general view of the Goodyear factory in Shah Alam, Malaysia May 6, 2021. Picture taken May 6, 2021. REUTERS/Lim Huey Teng/File Photo

Join now for FREE unlimited access to Reuters.com

KUALA LUMPUR, September 14 (Reuters) – Goodyear Tire & Rubber Co has reached an agreement to settle a labor dispute at its Malaysian factory with migrant workers who alleged unpaid wages and benefits, the company and five former workers said workers at Reuters.

Goodyear, one of the world’s largest tire makers, declined to say how much it paid, but workers said settlement agreements signed this year ranged from around 50,000 ringgit ($11,061.95) at 200,000 ringgit ($44,247.79) per worker depending on the length of their employment.

The workers, who requested anonymity because they were not authorized to speak about the settlement, said the net compensation they received was less than this due to taxes and attorney fees.

Join now for FREE unlimited access to Reuters.com

A total of 184 current and former workers from Nepal, India and Myanmar were part of several lawsuits filed against Goodyear in the Malaysian Labor Court since 2019, seeking around 5 million ringgit in compensation. The total settlement payment exceeded this claim.

Separately, the Malaysian labor department also charged Goodyear with wrongful deductions and illegal overtime, for which it fined Goodyear RM41,500 last year.

In an email, Goodyear said the settlement complied with the terms of the court rulings and followed an external accounting analysis of the compensation.

The labor court had ordered Goodyear to reimburse the wages of certain workers and to comply with a collective agreement on compensation. Goodyear had appealed the verdict but then entered into settlement talks.

“The company is pleased to have achieved an outcome that is pleasing to the workers,” Goodyear said, adding that it is committed to human rights and fair labor standards.

The company said it had completed a thorough review of workers’ concerns, including an independent audit of its labor practices. He did not reveal the results of the audit.

Its Malaysian unit also parted ways with a supplier and a human resources manager involved in the case, and strengthened its supplier evaluation process to ensure adherence to its values ​​and policies, Goodyear added.

Along with settling the legal dispute, the workers said they also received 10,000 ringgit each from Goodyear as compensation for recruitment fees they paid to agents in their home country. Goodyear declined to comment.

Activists say the onerous fees usually lead to debt bondage.

Malaysia has been accused by its own human resources ministry and US authorities of labor abuses at its factories, which rely on millions of migrant workers to make everything from palm oil to medical gloves. and iPhone components.

US government investigators questioned workers at Goodyear’s Malaysian operations about their working and living conditions, Reuters reported last year. Homeland Security Investigations, whose officers spoke to the workers, declined to comment on ongoing investigations.

Goodyear is also under investigation by U.S. Customs and Border Protection over its labor practices, according to Liberty Shared, a Hong Kong-based rights group that helps workers and has urged customs to investigate.

US Customs can ban goods they deem to be made from “forced labor”. It has already sanctioned several Malaysian companies.

($1 = 4.5200 ringgit)

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Reporting by Mei Mei Chu and A. Ananthalakshmi. Editing by Gerry Doyle

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Student loan forgiveness – what to do with extra money – Inside INdiana Business https://berningcpa.com/student-loan-forgiveness-what-to-do-with-extra-money-inside-indiana-business/ Mon, 12 Sep 2022 10:30:00 +0000 https://berningcpa.com/student-loan-forgiveness-what-to-do-with-extra-money-inside-indiana-business/ Everyone is talking about the student loan forgiveness plan. And everyone has an opinion on the merits or demerits of debt forgiveness. Whatever your opinion, for those who will benefit from this gift, it would be great to see them take advantage of it by further improving their financial well-being. Student loan forgiveness isn’t the […]]]>

Everyone is talking about the student loan forgiveness plan. And everyone has an opinion on the merits or demerits of debt forgiveness. Whatever your opinion, for those who will benefit from this gift, it would be great to see them take advantage of it by further improving their financial well-being.

Student loan forgiveness isn’t the only way people get unexpected freebies. These financial blessings can take many forms, including gifts from family or inheritance. But, while giving takes many different forms, they present the same opportunities and attractions.

Initial Thoughts Should Lead to Second Thoughts

When people first hear about an unexpected gift, they often think of buying something – a car, upgrading something – like their kitchen, or taking a trip. It might sound great, but now might not be the best time to splurge.

New cars are rare and used cars always command very high prices. We expect this situation to improve, but it may take some time. Contractors overseeing the renovations speak of higher procurement costs and a labor shortage. The pandemic has led to a significant increase in demand for home improvements. As new projects are completed, the backlog should decrease and price and labor shortages should ease.

Finally, travel today is beset by the challenges of flight cancellations, lost luggage, and the uncertainty of what would happen if someone in your party fell ill while abroad.

The lure of doing something with quick gratification is strong. Rather than fall into this trap, there are more productive uses for those dollars.

Pay off the debt

Starting in January, millions of borrowers who haven’t paid their student loans will likely have to start making payments again. The reduced payment amount resulting from debt forgiveness will allow borrowers to pay off other debts now. Look at your most expensive debt and consider paying off those loans beyond the required payments. For example, if debt forgiveness saves you $600 per month, send the $600 to pay off other debts, such as credit card debt or car loans.

Increase monthly savings

Savings from reduced student loan repayments can be directed to automatic savings plans. Increasing your 401(k) or 403(b) contributions is a good thing. If you don’t have either of these options, consider setting up an IRA, Roth IRA, or buying Series I savings bonds. The latter vehicle requires setting up an online account with the US Treasury. Current yields make them attractive although there are some hurdles to overcome.

My favorite action would be to add to a 529 account. If your college loan fees go down, you can redirect the savings to a 529 college savings account. Also, if you plan to attend more colleges or have a child who can, adding a 529 can help you with the costs that will arise later. Additionally, Indiana residents can take advantage of a tax credit of up to $1,000, which will increase to $1,500 next year.

The timing is also good

When you add retirement accounts or 529s, you are buying investments. However, with both stock and bond markets affected, buying is now at prices well below those at the start of the year. Although we never know when prices will rebound, we do know that in the past, buying at a discount has finally paid off.

Don’t try to make a splash

Although it may seem boring to some, paying off loans or increasing your savings are two approaches that can help you now and grow your nest egg for when you need money later. When you receive an unexpected gift, buying that shiny car or getting the modern kitchen that everyone seems to have is tempting. My best advice is to use this opportunity to improve your financial situation. Then later, with less debt and a larger wallet, it will be easier to afford this magical trip to Tahiti.

Bill Wendling is a Senior Portfolio Manager at Bedel Financial Consulting, Inc., an Indianapolis-based wealth management firm. For more information, visit their website at www.bedelfinancial.com or email Bill at bwendling@bedelfinancial.com.

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Georgia Supreme Court revives tax malpractice case against Proskauer law firm https://berningcpa.com/georgia-supreme-court-revives-tax-malpractice-case-against-proskauer-law-firm/ Wed, 07 Sep 2022 21:31:00 +0000 https://berningcpa.com/georgia-supreme-court-revives-tax-malpractice-case-against-proskauer-law-firm/ Signage is seen outside the building where the law firm Proskauer Rose LLP is located in Manhattan, New York, U.S., August 17, 2020. REUTERS/Andrew Kelly Join now for FREE unlimited access to Reuters.com Register (Reuters) – Georgia’s highest state court said on Wednesday that Proskauer Rose faces a malpractice case alleging the company knowingly conspired […]]]>

Signage is seen outside the building where the law firm Proskauer Rose LLP is located in Manhattan, New York, U.S., August 17, 2020. REUTERS/Andrew Kelly

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(Reuters) – Georgia’s highest state court said on Wednesday that Proskauer Rose faces a malpractice case alleging the company knowingly conspired to promote an improper tax shelter scheme.

The Georgia Supreme Court overturned a lower court ruling that a four-year statute of limitations barred the investors who brought the case from suing Proskauer. The trial court erroneously found that the plaintiffs failed to “exercise due diligence” to learn of the law firm’s alleged misconduct sooner, according to the opinion.

Proskauer and two of his outside attorneys did not immediately respond to requests for comment on the ruling. Neither do plaintiffs’ attorneys Douglas Coe and Jacqueline Coe.

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Other major law firms, including Alston & Bird, DLA Piper and King & Spalding, and a group of seven former presidents of the Georgia State Bar have filed briefs supporting Proskauer. A group of Georgia-based accounting firms separately supported Proskauer’s position.

Wednesday’s decision revives a lawsuit by the Coes, who, at the suggestion of their accountants, BDO Seidman, obtained legal advice from Proskauer in 2002 on a BDO-recommended strategy for investing in distressed debt to offset obligations taxes related to the sale of their business, according to the judgment.

Proskauer advised the Coes that the strategy would likely survive an IRS audit without penalties, according to the ruling. The Coes relied on Proskauer’s opinion for their 2001 tax return, which was later audited, leading the Coes to a 2012 settlement with the IRS.

The Coes sued for professional misconduct, negligent misrepresentation and other claims against Proskauer in 2015, alleging that the law firm, BDO and investment adviser Gramercy conspired to promote such evasion schemes tax and shared costs, and that Proskauer and BDO were not independent.

A representative for Gramercy declined to comment. A BDO spokesperson could not immediately be reached.

An appeals court in 2021 upheld a judgment for Proskauer in the case, saying the four-year statute of limitations applied to the claims and started running in 2002. The court said Coes had no not shown that the prosecution time should be delayed – or free of charge. — because they should have been “aware” of their claims based in part on media reports of BDO’s promotion of similar tax shelters that turned out to be illegal.

Several BDO partners pleaded guilty to crimes related to similar tax strategies in 2009.

Georgia’s high court ruled Wednesday that the appeals court should have weighed the allegations of fraud and negligent misrepresentation separately from the malpractice claim when considering the statute of limitations. He also said that although claims of fraud and negligent misrepresentation began to run in 2002, the appeals court erred in concluding that the Coes had failed to “exercise due diligence to uncover the acts allegedly fraudulent Proskauer”.

There is “a real problem[s] of material fact” as to whether Coes was aware of the law firm’s lack of independence from BDO and news reports mentioning Proskauer in connection with the scheme, the court heard.

The case is Coe v. Proskauer Rose LLP, Supreme Court of Georgia, No. S21G1250

For the Coes: Josh Belinfante of Robbins Alloy Belinfante Littlefield; Loewinsohn Deary Simon Ray’s Jeven Sloan; and Harry MacDougald of Caldwell, Carlson, Elliott & DeLoach

For Proskauer: Harold Melton of Troutman Pepper; Mark Trigg of Dentons; and Lisa Blatt of Williams & Connolly

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Our standards: The Thomson Reuters Trust Principles.

Sara Merken

Thomson Reuters

Sara Merken reports on privacy and data security, as well as legal affairs, including legal innovation and key players in the legal services industry. Contact her at sara.merken@thomsonreuters.com

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Federal Court rejects tax official’s appeal against ban https://berningcpa.com/federal-court-rejects-tax-officials-appeal-against-ban/ Mon, 05 Sep 2022 20:50:44 +0000 https://berningcpa.com/federal-court-rejects-tax-officials-appeal-against-ban/ The Federal Court has dismissed a former tax official’s appeal to have his disbarment overturned, with Judge Wendy Abraham saying the petitioner failed to establish a cause of action. The ruling, handed down on August 12, came after Tasmanian Barbara Beckett was convicted and sentenced for falsifying documents and lying to cover up her actions. […]]]>

The Federal Court has dismissed a former tax official’s appeal to have his disbarment overturned, with Judge Wendy Abraham saying the petitioner failed to establish a cause of action.

The ruling, handed down on August 12, came after Tasmanian Barbara Beckett was convicted and sentenced for falsifying documents and lying to cover up her actions.

The TPB welcomed the Federal Court’s rejection and said the “serious convictions” relate to forgery and lying under oath.

The Tax Agent Regulator initially determined Ms Beckett was no longer a fit and proper person to register due to criminal convictions for providing two forged bank checks to the NSW Office of State Revenue.

Ms Beckett also failed to disclose that conviction, along with the adverse professional conduct findings of the Tasmanian Legal Profession Board, to the TPB.

Ms Beckett pleaded guilty to two counts of using a false document to influence the performance of a public duty under the Crimes Act 1900 (NSW) and was sentenced to 20 months and 18 months imprisonment, to be served concurrently. The sentences were suspended when Ms Beckett took out a good behavior bond.

TPB investigations revealed that not only had Ms Beckett falsified documents, but she had also dishonestly attempted to conceal the actions to avoid disclosure. The AAT determined that this misconduct was intended to undermine the tax authority’s efforts to establish the truth.

In reaching its decision to terminate Ms Beckett’s recording, the TPB found that Ms Beckett did not fully appreciate the seriousness of the behavior or did not fully accept responsibility for it.

“This decision reinforces the work we are doing to uphold the integrity of the tax profession and build trust in the services that tax professionals provide,” said TPB Chairman Ian Klug.

“These convictions are serious – the misconduct was multifaceted and calculated – Ms. Beckett forged bank checks and lied under oath.

“This is particularly serious when considered in the context of registration as a tax practitioner. Honesty and integrity are paramount given the responsibilities and obligations of tax practitioners.

“It is imperative that the public be protected against those who lack the proper character and integrity to enjoy the privileges conferred upon them by registration as a tax practitioner.

“The public has a right to know and expect that those who serve as tax practitioners are of high integrity and the public trust cannot be maintained without professional regulation and enforcement.”

Federal Court rejects tax official’s appeal against ban

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Last update: September 05, 2022

Posted: September 06, 2022

Philip King

Philip King

AUTHOR

Philip King is editor of Accountants Daily and SMSF Adviser, the leading sources of news, information and educational content for professionals in the accountancy and SMSF industries.

Philip joined the Securities in March 2022 and brings extensive experience from various roles at Australian daily newspaper The Australian National Broadsheet, most recently as Automotive Editor. His background also includes spells in various consumer and trade magazines.

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