Article Archives: 2019

Posted by: Troy Rector

Grace periods are history and, by now, not-for-profit organizations (NFPs) administering federal grants subject to the Uniform Guidance must have procurement policies in place and operating in accordance with them. As mentioned in our previous article, the Uniform Guidance contained procurement standards that resulted in significant changes to how many NFPs procure goods and services under federally funded awards. Naturally, this leaves many NFPs wondering – How are the procurements of goods and services subject to requirements of the Uniform Guidance going to be audited as part of the Single Audit, and how can we prepare? To provide insights into these questions,

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The 2019 Washington legislative session has ended, but it was a busy year in terms of tax related bills. The enacted legislation includes business and occupation (“B&O”) tax increases on certain service businesses and financial institutions, changes to the international investment management B&O tax classification, and a move to a graduated real estate excise tax.

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Posted by: Karen Dunn

This is updated from an article that was originally published on 8/1/2017.

It is time again to prepare to file the Form 990. Calendar year returns for 2018 are due May 15 and may be extended to November 15. Even fiscal year organizations can start thinking about it or they may be filing for 2017 now. What is your organization’s review process for the return? Does your board review it before it is filed, as the Form 990, Part VI asks?

If the Board of Directors does not require a board review of the Form 990 filed with the IRS each year,

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As you’ve likely heard, ASU 2016-14, called Presentation of Financial Statements of Not-for-Profit Entities, was issued in August 2016 and is effective for fiscal years beginning after 12/15/17. The standard applies to all organizations, regardless of size. The ASU has changes in five key areas:

  • Net asset classification
  • Disclosures about liquidity and availability of financial assets
  • Reporting expenses by function and nature
  • Reporting investment returns, and
  • The statement of cash flows

There has been much written about the changes themselves from an accounting perspective.

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This article was originally published on AccountingWeb, 12/7/2018.

As the holiday season approaches, your retail clients who offer a layaway option must know to accurately apply sales tax rules of their state to layaway purchases.

While these types of sales may be small, they are an important area of compliance. More importantly, layaways are likely ripe for improved process documentation, employee training and accounting system upgrades to promote consistent and accurate treatment of similar transactions.

When a business invests time and energy in making meaningful improvements in tax compliance processes, people and technology, the result is usually more uniform customer service and less confusion for employees,

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The Key Worldwide Foundation, formed in 2013, now finds itself at the center of the college admissions scandal grabbing headlines the last couple weeks. Over the years, millions of dollars had flowed through the charity as part of the scheme without IRS detection.

Watching the story develop, it was interesting how quickly attention turned to how the IRS should have done more to stop the misdeeds of the scofflaws and how the Form 990 should have uncovered these transgressions. It is important to understand the purpose of the Form 990 and everyone’s role in producing the Form 990.

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This article was originally published on AccountingWeb, 9/10/2018.

There’s little doubt e-commerce businesses will feel the impact of the Wayfair decision, but as the states either introduce or dust off their economic nexus rules for remote sellers, one area where the state rules diverge is their measure of economic thresholds.

Economic nexus allows the states that embrace it to compel vendors from other states to collect their state sales taxes; previously, they could not be similarly compelled under the physical presence standard

The recent U.S. Supreme Court decision in the South Dakota v. Wayfair case opened the door for states to broaden the reach of their sales tax net.

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This article was originally published on AccountingWeb, 10/30/2018.

As the impact of the Supreme Court’s case on Wayfair Inc. continues to play out, some commentary has focused on different aspects of the decision including the fact that in all sales tax states, long-standing laws already compel consumers who make tax-free purchases to self-remit the taxes due.

These self-remit rules are referred to as “consumer’s use tax.” Although the consumer’s use tax rules focus on a purchaser’s duty to self-remit use taxes where no sales taxes are collected, it should be noted that, in some states, a seller may be obligated to collect “seller’s use taxes” on behalf of their purchasers.

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What is Cybersecurity?

Posted by: Steve Vasconcellos

The perception of cybersecurity is one filled with mysterious hackers in their jeans and hoodies, sitting in a dark room, combating one another in digital cyberspace. While this perception may not be entirely untrue, cybersecurity doesn’t have to be that dark, veiled, and incomprehensible. And it’s really not.

Cybersecurity is a business process, not just a technology one.

It is a business process of keeping your assets secure from threats. It is a cost vs. benefit decision on how to optimize – not maximize – security. Large organizations can often afford to throw money at their IT infrastructure just to be secure and comply with laws and regulations.

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Recently, you may have received a notice from out-of-state sellers identifying various online purchases for which you were not charged sales tax.

Here is what you need to know concerning the notice:

A change in state tax law, effective January 1, 2018, requires out-of-state sellers and marketplace facilitators (e.g., Amazon.com) with sales of $10,000 or more to Washington consumers to send annual notices to customers. These notices must detail any taxable purchases made in the preceding calendar year where Washington sales tax was not collected. This information is also required to be sent to the Department of Revenue.

The notice will direct the recipient to the Department of Revenue’s website to file and pay the required use taxes due on the purchase of taxable items.

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