Tax and Accounting Desk

The Houston Business Journal recently published an article on their website by PKF Texas Director, Danielle Supkis Cheek, who shares insight on selecting the “second-best” controls for fraud prevention.

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Danielle references the 2020 ACFE Report to the Nations as a resource for information and data, which companies can use when finding the best fit for

Your not-for-profit has a board of directors — so why would it need an additional advisory board? There are a few reasons. Some organizations assemble advisory boards to provide expertise for a specific project, such as a fundraising campaign. Other organizations use them to give roles to major donors and prestigious supporters who may not be a good fit for a governing board.

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Here are some other ways to use an advisory board and how to set one up.


Continue Reading How an Advisory Board Complements a Board of Directors

Factors such as wealth level, education and even whether people volunteer, probably will tell you more about potential donors than their generation. But some broad generalizations about age can help not-for-profits target particular groups for support. The newest generation of adults belong to what’s being penned as Generation Z, and it’s possible to draw some conclusions about this otherwise diverse demographic.

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Continue Reading How NFPs Can Gain Support from Generation Z

The Securities and Exchange Commission (SEC) announced on June 29, 2020 that the EDGAR system was upgraded to Release 20.2 and no longer supports the following taxonomies:

  • 2018 US GAAP Financial Reporting Taxonomy,
  • 2018 SEC Reporting Taxonomy,
  • 2012 and 2013 Investment Schedule (INVEST),
  • 2016 Countries (COUNTRY), 2017 Currencies (Currency), and
  • 2018 Exchanges (EXCH).

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Continue Reading EDGAR System Upgrade No Longer Supports 2018 GAAP Taxonomy

The IRS and the U.S. Treasury had disbursed 160.4 million Economic Impact Payments (EIP) as of May 31, 2020, according to a new report. These are the payments being sent to eligible individuals in response to the economic threats caused by COVID-19. The U.S. Government Accountability Office (GAO) reports that $269.3 billion of EIPs have already been sent through a combination of electronic transfers to bank accounts, paper checks and prepaid debit cards.

woman holding hundred dollar bills fanned out; image used for blog post about returning economic impact payments (EIP) during COVID-19 pandemic

Eligible individuals receive $1,200 or $2,400 for a married couple filing a joint return. Individuals may also receive up to an additional $500 for each qualifying child. Those with adjusted gross income over a threshold receive a reduced amount.

However, the IRS says some payments were sent erroneously and should be returned.


Continue Reading You Might Need to Return Your EIP

There are many ways for a not-for-profit organization to lose its tax-exempt status — including participating in lobbying and campaign activities, receiving excessive unrelated business income and allowing board members to financially benefit from their positions. But the most common reason not-for-profits lose their status is failure to file an annual Form 990 or 990-N for three consecutive years.

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If your organization has landed on the IRS’s revocation list for this reason, don’t panic. The process for reinstatement is relatively simple.


Continue Reading Need to Regain Tax-Exempt Status for Your Not-for-Profit?

The 2020 presidential election is fast approaching and your not-for-profit has a stake in its outcome. But that doesn’t mean your organization is free to participate in campaign activities. In general, Section 501(c)(3)s risk losing their tax-exempt status if they participate in campaigning.

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However, there’s more nuance in the rules than you might suspect.


Continue Reading How Not-for-Profits Can Navigate the Election Carefully

Many taxpayers don’t make the grade when it comes to recordkeeping. If you operate a small business, or you’re starting a new one, you probably know you need to keep records of your income and expenses. In particular, you should carefully record your expenses in order to claim the full amount of the tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns if you’re ever audited by the IRS or state tax agencies.

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Certain types of expenses, such as automobile, travel, meals and office-at-home expenses, require special attention because they’re subject to special recordkeeping requirements or limitations on deductibility.

It’s interesting to note that there’s not one way to keep business records. In its publication “Starting a Business and Keeping Records,” the IRS states: “Except in a few cases, the law does not require any specific kind of records. You can choose any recordkeeping system suited to your business that clearly shows your income and expenses.”

Here are three court cases to illustrate some of the issues.


Continue Reading Make Sure You Have Good Recordkeeping