Michael Rosenblatt

𝐂𝐑𝐀 𝐀𝐮𝐝𝐢𝐭 𝐓𝐫𝐞𝐧𝐝𝐬 2024 The CRA continues to prioritize high-net-worth individuals and aggressive tax planning, but several additional areas are drawing attention: 𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬: Increased scrutiny on cross-border business activities and foreign investment reporting. Ensure clients have comprehensive documentation and consider seeking specialist advice if complex foreign dealings are involved. 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐄𝐱𝐩𝐞𝐧𝐬𝐞𝐬: Expect heightened review of deductions for professional fees and other business expenses. Remind clients about strict separation of business and personal expenses for audit preparedness. 𝐑𝐞𝐥𝐚𝐭𝐞𝐝-𝐏𝐚𝐫𝐭𝐲 𝐓𝐫𝐚𝐧𝐬𝐚𝐜𝐭𝐢𝐨𝐧𝐬: Audits focused on high-net-worth individuals are frequently tied to reporting foreign assets and income. Advise clients caught in these audits as they often scrutinize structures and transactions for potential unreported income or benefits. 𝐏𝐥𝐚𝐭𝐟𝐨𝐫𝐦 𝐄𝐜𝐨𝐧𝐨𝐦𝐲: The CRA is targeting rideshare operators, social media influencers, and others in the digital economy. Educate clients within this sector about tax obligations and reporting requirements, as they're prone to audits. 𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞: Recent legislative changes have made real estate a major focus. Anticipate CRA activity around property flips and ensure clients understand how new rules impact their potential tax burden. 𝐍𝐞𝐰 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞 𝐑𝐮𝐥𝐞𝐬: Changes to the general anti-avoidance rule and mandatory disclosure requirements could trigger more audits. Advise clients involved in complex or tax-motivated transactions to proactively consult with tax specialists for compliance. 𝐊𝐞𝐲 𝐓𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬 Staying informed of CRA priorities is essential for proactive client support. Encourage meticulous documentation, seek specialized advice as needed, and ensure ongoing tax compliance to minimize audit risk.

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Sales and use tax compliance can be daunting. Regulations vary by state and jurisdiction making them difficult to navigate, and to make matters even more complex, the rules are ever-changing. For many people, the concept of sales tax is just a charge you see on your receipt. Expanding your knowledge base to understand the compliance side of sales tax is far from your idea of fun, however, it’s an essential aspect of conducting business. The following is a basic outline of compliance, Sales and Use Tax 101, if you will, because, let’s face it, ‘You don’t know what you don’t know.’ What is Sales Tax? Sales tax is a tax imposed on the sale of goods and services, which is generally calculated as a percentage of the sale price. It is generally collected by the seller at the time of purchase and remitted to the state or local government. Sales tax is a jurisdictional tax, which means that each state or jurisdiction has its own set of sales tax rates and rules. The amount of sales tax collected is based on the sales tax rate in the jurisdiction where the sale was made or where the customer is located. There are four types of Sales Tax: Sellers Privilege, Consumer Levy, Gross Receipts, and Transaction Tax, and each type is imposed differently, whether on the Seller or Purchaser or on the transaction itself. What is Use Tax? Use tax is a tax imposed on the use or consumption of goods and services in a state or local jurisdiction where sales tax was not paid. This tax is typically paid by the consumer directly to the state or local government. Keep in mind, businesses are consumers, too, and may owe use tax on purchases intended for use by the business itself. Registration and Remittance Requirements You must register in each state where your company has either physical or economic nexus. Sales and use tax nexus refers to the minimal connection between a business and a state that requires the business to collect and remit sales tax on sales made within that state. Nexus is established when a business has a physical presence in a state, such as a store, office, or warehouse. Nexus can also be established through other means, such as having employees or independent contractors working in the state, making regular deliveries or installations, or engaging in other activities that create a substantial connection with the state. Understanding sales and use tax nexus is important for businesses to ensure compliance with state and local tax laws to avoid potential penalties. Continued here: https://lnkd.in/gDeMDEpg

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If you're a business owner looking to access $100K or $10s of millions in capital on the balance sheet, and your CPA has maxed out your deductions, watch this video. Our 4 Step Framework Executive Bonus Plans are how executives access their corporate capital without paying a distribution or dividend tax, avoid paying a retained earnings tax, AND do so without removing the capital from the balance sheet, continue watching this video. ✅ Schedule Consultation: https://lnkd.in/g_jt5Tk4 There's three key problems majority of business owners face today when it comes to accessing their capital on the balance sheet. You're either going to take the capital out and pay a distribution/dividend tax, you're going to leave the capital on the balance sheet and pay a retained earnings tax. 98% of business owners are stuck writing those big tax checks, and we're on a mission to change that. Good news, there's a very uniquely designed, tax advantaged vehicle that will allow you to take your capital from one pocket, and put it in the other in a very tax advantaged way. Fully IRS compliant, and in fact, used by majority of the Fortune 100 - 1000 executives. Now, you and I can both agree, knowledge is power. The only difference between success and failure, most of the time, is purely knowledge. The difference between the ultra-wealthy you hear about paying no taxes vs 98% of business owners depleting their balance sheets from taxes, is knowledge. This vehicle is not new, it's actually one of the most long standing vehicles for accessing capital in a tax advantaged way. However, majority of CPAs, know nothing about it, because this strategy leverages a very uniquely structured life insurance product, requiring a life insurance license, which most CPAs don't have. We know, because we have 100s of CPA referral partners. We're the #1 producer of these unique tax advantaged vehicles with our carriers in the country, and on track to help businesses access $100,000,000 by end of Q4 2024 in tax advantaged capital. I have put together a Team of experts and specialists ranging from Tax Attorneys, to CPAs and licensed Life Insurance Agents to create unmatched services aimed at helping business owners access their capital while avoiding the large tax hammer, while remaining IRS compliant. executive bonus plan, executive bonus plans, split dollar executive bonus plan, split dollar executive bonus plans, section 162 executive bonus plans, 162 executive bonus plan, retained earnings tax, distribution tax, dividend tax, s corp no salary no distribution, cash liquidation distribution taxable, dividend double taxation, dividend form, dividend tax rate irs, dividend taxes by state, federally tax exempt interest and dividends, liquidating distribution tax treatment, ordinary dividend tax rate, s corp distribution example, section 199a dividends tax rate, state tax exempt dividends, state tax on dividends, supplemental pay tax rate

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Its very important to be transparent and realistic with candidates when speaking about opportunities and expectations, even if that means advising them to stay in their current role. Although one can be a helpful resource when recruiting for various industries and job functions, it is easier to provide advice and insights to candidates when a recruiter is an expert in their field. Thank you again, Dominic Piscopo, CPA for having me on the Big4transparency.com podcast. #recruitment #cpa #accounting

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Elevate your business decision-making with Fusion Accountants' management accounts service. Gain valuable insights into your financial performance and empower your strategic planning. Let us be your trusted financial partner. Contact us to learn more! https://lnkd.in/d-VBnHau #FusionAccountants #ManagementAccounts #FinancialInsights

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Do You Qualify for Employer Retention Credits? For a separate charge unrelated to your Total Accounting Care fee, the Stitely and Karstetter (S&K) team can meet with you to offer guidance on the requirements to qualify, as well as file your tax credit application. Are you confused about Employee Retention Tax Credit? The S&K Tax Division Team can help. The government recently released additional guidance on the requirements to qualify under “Partial Shutdown” rules. This means more clients may qualify than under original rules. Even if your quarterly revenue increased from 2019 to 2020 and/or to 2021, you may still qualify under the new rules. The IRS says if your business has suffered a *full or partial suspension* of operations in any calendar quarter in 2020 or 2021, then you may qualify. What IRS deemed a partial suspension/shutdown has been less than clear in the past. Currently, our federal friends define this as “more than a nominal portion of business operations are suspended by a governmental order.” They then define “nominal” in this new notice as less than 10% of either total gross receipts of the business operations or the total hours of service performed by all employees. What does that mean for you? More businesses may have been indirectly impacted by a governmental order, although they continued to operate. It will depend on whether the portions of your business that were affected by a shutdown order make up more than the “nominal” portion of your business. What should you do next? CONTACT S&K! 1. If S&K evaluated your business in the past and you did not qualify based on revenue, but believe your business was impacted by shutdown orders, please contact S&K to re-evaluate. 2. If you did not think you qualified in the past, but based on this new information, you are not sure, let S&K evaluate this for you. 3. If you have questions and wonder if you will now qualify, give S&K a call or shoot them an email! Here is a quick reminder on the credits: 1. Tax year 2020 – $5k credit per $10k wages per employee per year – Max $5k per employee for the year. 2. Tax year 2021 – $7k credit per $10k wages per employee per QUARTER – Max $28k per employee for the year. We at Total Accounting Care, along with our friends at S&K, are here to help, as these credits are extremely complex and have many other rules to follow. We are rapidly assisting clients with applying for these credits and look forward to speaking with you and seeing if your business may also benefit from this additional guidance. Contact us today: 703-802-2309.

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Do You Qualify for Employer Retention Credits? For a separate charge unrelated to your Total Accounting Care fee, the Stitely and Karstetter (S&K) team can meet with you to offer guidance on the requirements to qualify, as well as file your tax credit application. Are you confused about Employee Retention Tax Credit? The S&K Tax Division Team can help. The government recently released additional guidance on the requirements to qualify under “Partial Shutdown” rules. This means more clients may qualify than under original rules. Even if your quarterly revenue increased from 2019 to 2020 and/or to 2021, you may still qualify under the new rules. The IRS says if your business has suffered a *full or partial suspension* of operations in any calendar quarter in 2020 or 2021, then you may qualify. What IRS deemed a partial suspension/shutdown has been less than clear in the past. Currently, our federal friends define this as “more than a nominal portion of business operations are suspended by a governmental order.” They then define “nominal” in this new notice as less than 10% of either total gross receipts of the business operations or the total hours of service performed by all employees. What does that mean for you? More businesses may have been indirectly impacted by a governmental order, although they continued to operate. It will depend on whether the portions of your business that were affected by a shutdown order make up more than the “nominal” portion of your business. What should you do next? CONTACT S&K! 1. If S&K evaluated your business in the past and you did not qualify based on revenue, but believe your business was impacted by shutdown orders, please contact S&K to re-evaluate. 2. If you did not think you qualified in the past, but based on this new information, you are not sure, let S&K evaluate this for you. 3. If you have questions and wonder if you will now qualify, give S&K a call or shoot them an email! Here is a quick reminder on the credits: 1. Tax year 2020 – $5k credit per $10k wages per employee per year – Max $5k per employee for the year. 2. Tax year 2021 – $7k credit per $10k wages per employee per QUARTER – Max $28k per employee for the year. We at Total Accounting Care, along with our friends at S&K, are here to help, as these credits are extremely complex and have many other rules to follow. We are rapidly assisting clients with applying for these credits and look forward to speaking with you and seeing if your business may also benefit from this additional guidance. Contact us today: 703-802-2309.

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Do You Qualify for Employer Retention Credits? For a separate charge unrelated to your Total Accounting Care fee, the Stitely and Karstetter (S&K) team can meet with you to offer guidance on the requirements to qualify, as well as file your tax credit application. Are you confused about Employee Retention Tax Credit? The S&K Tax Division Team can help. The government recently released additional guidance on the requirements to qualify under “Partial Shutdown” rules. This means more clients may qualify than under original rules. Even if your quarterly revenue increased from 2019 to 2020 and/or to 2021, you may still qualify under the new rules. The IRS says if your business has suffered a *full or partial suspension* of operations in any calendar quarter in 2020 or 2021, then you may qualify. What IRS deemed a partial suspension/shutdown has been less than clear in the past. Currently, our federal friends define this as “more than a nominal portion of business operations are suspended by a governmental order.” They then define “nominal” in this new notice as less than 10% of either total gross receipts of the business operations or the total hours of service performed by all employees. What does that mean for you? More businesses may have been indirectly impacted by a governmental order, although they continued to operate. It will depend on whether the portions of your business that were affected by a shutdown order make up more than the “nominal” portion of your business. What should you do next? CONTACT S&K! 1. If S&K evaluated your business in the past and you did not qualify based on revenue, but believe your business was impacted by shutdown orders, please contact S&K to re-evaluate. 2. If you did not think you qualified in the past, but based on this new information, you are not sure, let S&K evaluate this for you. 3. If you have questions and wonder if you will now qualify, give S&K a call or shoot them an email! Here is a quick reminder on the credits: 1. Tax year 2020 – $5k credit per $10k wages per employee per year – Max $5k per employee for the year. 2. Tax year 2021 – $7k credit per $10k wages per employee per QUARTER – Max $28k per employee for the year. We at Total Accounting Care, along with our friends at S&K, are here to help, as these credits are extremely complex and have many other rules to follow. We are rapidly assisting clients with applying for these credits and look forward to speaking with you and seeing if your business may also benefit from this additional guidance. Contact us today: 703-802-2309.

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The SEC announced today that it has charged audit firm BF Borgers CPA PC and its owner, Benjamin F. Borgers, with deliberate and systemic failures to comply with Public Company Accounting Oversight Board (PCAOB) standards in its audits and reviews incorporated in more than 1,500 SEC filings from January 2021 through June 2023. The SEC also charged the firm and its owner with falsely representing to their clients that the firm’s work would comply with PCAOB standards; fabricating audit documentation to make it appear that the firm’s work did comply with PCAOB standards; and falsely stating in audit reports included in more than 500 public company SEC filings that the firm’s audits complied with PCAOB standards. The firm agreed to pay a $12 million civil penalty and Mr. Borgers agreed to pay a $2 million civil penalty. Both also agreed to permanent suspensions from appearing and practicing before the Commission as accountants, effective immediately. The impact to public companies audited by BF Borgers will be significant, including: ·      Immediately hire new audit firm and probable reaudits ·      Potential restatements for prior periods ·      8-K filings for change in auditors ·      Communications with Audit Committees, Board of Directors   The SEC also released the following statement and guidance to issuers audited by Borgers on disclosure obligations and reminded issuers that they are still obligated to meet filing deadlines applicable to their Exchange Act reports: https://lnkd.in/gu5mEVMh  If this impacts you, Centri can help.  Let’s connect - we’re your trusted advisor to discuss SEC filing requirements, new auditor recommendations, review of financial statements and disclosures as well as how to communicate to Audit Committees and Boards.     #TrustedAdvisor #Centri #SEC #NYSE #Nasdaq #ExpertiseOnDemand #Audit #PublicCompanies

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Ready to take your tax strategy to the next level? Don't settle for one-size-fits-all solutions. We partner with specialty firms that dive deep into niche tax credits—unlocking savings and minimizing audit risks. It's time to empower your business and seize control of your financial destiny! #TaxSavings #SpecialtyFirms #Empowerment"

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The IRS has released final regulations (T.D. 9992) regarding the determination of whether a qualified investment entity (QIE) is domestically controlled. These regulations, effective from April 25, 2024, introduce a transition rule exempting existing QIE structures from the final domestic corporation look-through rule for a ten-year period, subject to specific requirements. Section 897(h)(2) defines that a U.S. real property interest (USRPI) does not encompass an interest in a domestically controlled QIE. Notably, the DC-QIE exception applies to investment vehicles like real estate investment trusts (REITs) and regulated investment companies (RICs that predominantly hold USRPIs. Gain or loss on stock disposition in a domestically controlled QIE is generally not taxable under Section 897(a). For clarity, Section 897(h)(4)(B) dictates that a QIE is domestically controlled if less than 50% of the stock's value is held directly or indirectly by foreign persons during the designated testing period. These regulations offer valuable guidance for QIEs in understanding and navigating domestic control determinations, providing essential insights for stakeholders in these entities.

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Has your CPA ever told you that you have too much profit? It sounds like a good problem to have, but you could be saving thousands by strategically allocating those funds. Find out more on this week's episode of Kaizen Time.

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Has your CPA ever told you that you have too much profit? It sounds like a good problem to have, but you could be saving thousands by strategically allocating those funds. Find out more on this week's episode of Kaizen Time.

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Elevate your tax game with Professionals.😊

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