MCB Accounting Blog

May 15th - 990s Due

Tue, 15 May 2012 23:59:00 -0400

May 15th is the deadline for all calendar year exempt organizations file Forms 990, 990-PF and 990-T.

Before you mail any check to the Internal Revenue Service, be sure to complete the following:

"Note the reason for the payment, the form number and the year of the return for which the check is being sent. For example, "balance due on Form 1040 for 2009."
"Include your social security number or your employer identification number if you operate as a business.
"Make all checks payable to the U.S. Treasury.

You may file a five month extension.

Active Legislative Week on ADA Pool and Spa Lift Issue

Fri, 11 May 2012 13:43:00 -0400

The May 21, 2012 compliance deadline for pool and spa lifts is less than two weeks away and there is no indication from the Department of Justice (DOJ) that it will extend the deadline. The American Hotel and Lodging Association (AH&LA) has filed a letter with DOJ urging an immediate response and noting that its members need clarity on what types of lifts are acceptable and time to comply.

On Thursday, May 10, 2012, the House of Representatives passed the Commerce, Justice, Science Appropriations Bill, which includes an AH&LA-supported amendment prohibiting DOJ from enforcing permanent pool lift restrictions for one year. The legislation needs to pass the Senate and be signed by the President.

Meanwhile, Senator Lindsay Graham (R-S.C.) recently introduced S. 2390, the Pool SAFE Act, which would allow portable lifts as an acceptable means of providing pool and spa entry, sharing of lifts between multiple pools at a facility and a one-year compliance deadline. The House companion bill, H.R. 4256, was introduced by Congressman Mick Mulvaney (R.-S.C.).

MCB has over 35 years of hospitality accounting experience providing audit, tax, accounting, due diligence and employee benefit plan audit services. Contact an MCB Adviser today at info@mcb-cpa.com or call 703.218.3600 to discuss your hotel accounting and tax needs or to receive a proposal for your next financial statement audit.

May 10th - 1Q Form 941 Due

Thu, 10 May 2012 23:59:00 -0400

File Form 941 for the first quarter of 2012. This due date applies for calendar year taxpayers and only if you deposited the tax for the quarter in full and on time.
Note: If you are a Fiscal Year Taxpayer, you should calculate your quarterly due dates based on your fiscal year end date.

Obama Administration Releases National Travel and Tourism Strategy

Thu, 10 May 2012 13:49:00 -0400

The Obama administration has released the National Travel and Tourism Strategy from the Task Force on Travel and Competetiveness, marking the first time a President has made travel and tourism a national priority. The Strategy expands the government's efforts to market the United States as a destination; sets a goal of increasing American jobs by attracting and welcoming 100 million international visitors annually by the end of 2021, more than a 50 percent increase over the number expected in 2012; and expanding the Visa Waiver Program, improving visa processing, expanding the trusted traveler program and improving screening processes at airports and using grants to improve transportation infrastructure.

Click here to view the complete National Travel and Tourism Strategy.

Seven Tax-Free Benefits for Employees

Mon, 07 May 2012 11:35:00 -0400

Here are seven tax-free benefits that keep cash in employees' pockets and may provide attractive deductibles for employers.

Frequent flyer miles. Employees who fly on business can earn miles tax-free when they pay with a personal credit card for reimbursed corporate travel. When used as a rebate, the IRS permits employees to exclude frequent flyer benefits from taxable compensation.
Non-cash awards and prizes. The IRS allows employees to exclude three types of non-cash awards from employers. Certain employee achievement awards that are a part of a "meaningful presentation" are tax-free as long as the gift does not appear to be disguised wages. Certain prizes or awards transferred to charities are tax-exempt, as are "de minimis awards and prizes," which are not cash or cash equivalent, of nominal value and provided infrequently.
Cell phones. Tax-free treatment of cell phones is applicable in cases where employers provide cell phones to employees or where employers reimburse their employees for the business use of personal cell phones without burdensome recordkeeping requirements.
Meals and lodging on employer premises. Meals are excludable from employee wages if they are provided on an employer's business premises and for the employer's convenience. Lodging also can be tax-free for employees if it is provided at the worksite, for the employer's convenience and is a condition of employment.
Commuter benefits and free parking. Employers can contribute $125 per month tax-free for public transportation, $240 per month for qualified parking or $365 per month for both public transportation and qualified parking.
Dependent care assistance. Generally, an employee can exclude from gross income up to $5,000 of benefits received under a dependent care assistance program each year. The exclusion cannot be more than the smaller of the earned income of either the employee or the employee's spouse.
Qualified educational assistance. Tuition or educational expenses paid by an employer for an employee under an educational assistance plan are excludable from employee wages if certain IRS requirements are met. An employee cannot receive more than $5,250 per calendar year from his or her employer.

Click here to view the complete AccountingToday.com article.

Contact an MCB Tax Adviser at 703.218.3600 and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

Best and Worst Tax States for Entrepreneurs

Fri, 27 Apr 2012 13:49:00 -0400

If you are starting a business and don't have your heart set on a particular state for personal or business reasons, taxes may be a consideration. They also can make or break a deal for some entrepreneurs.

The Small Business and Entrepreneurship Council recently unveiled its Business Tax Index, which identifies state tax systems best and least suited for small businesses. The ranking looks at 18 different tax measures and combines those into a single score for comparison. Among the taxes included are income, capital gains, property, death /inheritance, unemployment, and various consumption-based taxes, including state tax and diesel levies.

The top 15 tax-friendly states for starting a small business are as follows: 1. South Dakota, 2. Texas, 3. Nevada, 4. Wyoming, 5. Washington, 6. Florida, 7. Alaska, 8. Alabama, 9. Ohio, 10. Colorado, 11. Mississippi, 12. Michigan, 13. South Carolina, 14. Tennessee, and 15. Missouri.

The 15 worst state tax systems are: 37. Nebraska, 38. North Carolina, 39. Illinois, 40. Oregon, 41. Rhode Island, 42. Connecticut, 43. Hawaii, 44. Vermont, 45. California, 46. Maine, 47. Iowa, 48. New York, 49. New Jersey, 50. Minnesota, and 51. District of Columbia.

Click here to view the complete Portfolio.com article.

Contact an MCB Tax Adviser at 703.218.3600 and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

Hotel Market Mix Has Changed from That in 2007, Hyatt VP Says

Fri, 27 Apr 2012 10:54:00 -0400

Hoteliers are finding difficulty controlling rates because they face a different market mix than that of 2007, when profits were peaking, according to Greg Cross, Hyatt Hotels' senior vice president of revenue management, in a recent HotelNewsNow.com article.

Cross has been tasked with taking the hotel ownership, management and franchising company's revenue management strategies to the next level. He has said that revenue management is simply an evolution of "what hoteliers called 'hotel management' 30 years ago--finding the balance of occupancy and rate."

Cross said technology can help revenue managers see opportunities further in advance and pull together myriad reports and data quicker than ever before.

Cross also addressed a number of hot-button issues affecting hotel revenue managers:

Occupancy or Rate? Occupancy has returned, but pricing power has not returned to all markets. The market mix is different now than it was in 2007, when profits were at their peak. In addition, wholesale businesses continue to diminish pricing power.
Shifting Channel Mix: Cross said Hyatt uses technology to better understand where demand is coming from at any particular time. This helps them place inventory. High-quality data makes forecasting easier and improves decision making.
New OTA Sites: New online travel agencies do not yet play a role in Hyatt's distribution strategy. Some of the more recently introduced channels such as Groupon were tested, but they do not play much of a role either.
Corporate Directives: Over the past few years, Hyatt has changed its corporate revenue management structure. While there used to be more directives from corporate, executives now understand that revenue management processes belong at the hotel level.

Click here to view the complete HotelNewsNow.com article.

MCB has over 35 years of Hotel Accounting experience. Contact an MCB Adviser today at info@mcb-cpa.com or call 703.218.3600 to discuss your hotel accounting and tax needs or to receive a proposal for your next financial statement audit. Join us at the 1st Annual BisNow Lodging Investment Summit May 9-10 in Washington, DC.

House Passes Republicans' Small Business Tax Cut Bill

Mon, 23 Apr 2012 17:40:00 -0400

The House has approved Republican-backed legislation to provide a tax cut of up to 20% for one year to businesses with fewer than 500 employees. While the bill is aimed at small businesses, Democratic lawmakers have complained that most of the benefits would go to much larger companies. The bill is not expected to go far in the Democratic-controlled Senated.

Under the legislation, which is known as the Small Business Tax Cut Act, businesses with fewer than 500 employees would be eligible for a 20% deduction on their domestic business activities income, restricted to half of the amount of wages paid to employees.

Democratic lawmakers are backing an alternative that extends a tax break on equipment purchases for another year, but that was defeated by a vote of 236-175. Democrats also plan to schedule a vote on a bill combining the bonus depreciation extension with a tax break for new hires in the coming weeks.

Click here to view the complete WebCPA.com article

Contact us today with your audit, accounting and tax needs at 703.218.3600 or email info@mcb-cpa.com and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

10 Tips to Avoid a Wage & Hour Investigation

Tue, 17 Apr 2012 15:41:00 -0400

Believe it or not, the federal Department of Labor (DOL) does not require that an investigator announce the scheduling of a wage & hour investigation. An investigator has sufficient latitude to initiate unannounced wage & hour investigations to directly observe normal business operations and obtain information.

The following are some strategies to prevent such an investigation:

Avoid unfair compensation practices. Compensate employees consistently. If pay practices are consistent, complaints are less likely to arise, and you will be in a better position if DOL does launch a wage & hour investigation.
Understand the regulations. Understand the Fair Labor Standards Act (FLSA). It is the law, and failing to follow it could subject you to litigation or a DOL audit.
Train managers thoroughly. Managers should understand the FLSA and follow it.
Analyze both state and federal law. Determine whether your state's wage & hour laws conflict with the federal law, then follow the law that is the most beneficial to the employee.
Pay past overtime due. If it is determined that an employee is wrongly classified as exempt, you should determine how many overtime hours the employee has worked in the past two years , then pay him or her the overtime due. You should have the employee sign a release freeing you from further liability.
Follow child labor laws. You must determine a minor's age and set his or her job duties and work schedules accordingly. You must also file the minor's age certificate and keep it as long as the minor is employed.
Pay interns, unless they meet a strict test. Internship in the for-profit, private sector will most often be viewed as employment by the DOL, unless a strict test is met. Interns who qualify as employees rather than trainees must be paid at least the minimum wage and overtime for hours worked over 40 in a workweek.
Respond to internal complaints quickly. If an employee files a wage & hour complaint internally, you should take it seriously. You may be able to prevent an investigation by addressing an employee's initial internal complaint.
Seek compliance assistance from DOL. Compliance tools and information are available on DOL's website.
Conduct a self-audit. Hire an attorney to audit your company or do it yourself before DOL initiates an investigation. An audit can help ensure compliance. Review job descriptions to make sure they are accurate and reflect the jobs performed and the skills needed. Review actual job duties to ensure that they still fall within the administrative, executive, professional, computer, or outside sales exemptions. Make sure overtime for nonexempt employees has been properly calculated. Make sure the required posters have been hung in the appropriate places.

In addition, be sure that records are complete, accurate and unambiguous. Pay records for every employee for each pay period should be maintained for three years.

If violations are found, you may owe back pay, face penalties and be instructed by DOL to make changes in your employment practices.

Click here to view the complete HRnewsWatch.com article.

Bisnow Lodging Investment Summit: May 9-10, 2012, The Ritz-Carlton, Tysons Corner

Tue, 17 Apr 2012 04:09:00 -0400

MCB is a proud Sponsor of The 1st Annual Bisnow Lodging Investment Summit, May 9-10, 2012, at the Ritz-Carlton, Tysons Corner:

Washington, DC is fast becoming the hotel investment capital of the world, boasting headquarters of Marriott, Hilton, Choice, LaSalle, DiamondRock, Pebblebrook, Crestline, RLJ, Savills US and many others.

Join us in our nation's capital to hear from these industry giants as well as top political and economic insiders as they reflect on the challenges of 2011 and project changes to come in 2012.

MCB has over 35 years of experience serving Real Estate Developers and Hoteliers with accounting, tax, audit, due diligence and consulting services. Contact Jim Keating at 703.218.3600 to start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

C-SPAN Washington Journal: Federal Tax Advice Featuring MCB Principal, Bob Baldassari

Tue, 17 Apr 2012 03:30:00 -0400

On April 7, 2012, C-SPAN's Washington Journal, featured MCB Tax Expert, Bob Baldassari and Kevin McCormally, the Editorial Director of Kiplinger, on their popular program providing federal tax preparation advice.

View the video link below:

Bob is a recognized tax expert. He has more than 30 years of experience, and has in-depth experience in taxation and has taught advanced federal taxation courses at two universities. Baldassari also taught advanced tax courses for CPAs in Maryland, D.C. and Virginia, has published numerous tax articles and has appeared on television and radio as an expert tax advisor. He is listed in "Who's Who in Finance and Industry" and was listed in Washingtonian magazine's "Who's Who" among financial experts. Baldassari was also selected by his peers as being one of the "Super CPAs" in Virginia through Virginia Business Magazine. He was also selected by his peers as a "SmartCPA" by the Washington SmartCEO magazine.

MCB has over 60 years of experience serving clients as a full service assurance, tax and consulting firm. Contact us today with your audit, accounting and tax needs at 703.218.3600 or email info@mcb-cpa.com and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

April 15th: It's Tax Deadline Day

Sun, 15 Apr 2012 23:59:00 -0400

Individuals: File 2012 Form 1040, 1040A, or 1040EZ. For automatic 6-month extension file Form 4868 and deposit estimated tax. Pay the first installment of 2013 estimated tax.

Household Employers: File Schedule H with Form 1040 if you paid $1,700 or more to a household employee.

Partnerships: File 2012 Form 1065 and furnish a copy of Sch. K-1 to each partner.

Electing Large Partnerships: File 2012 Form 1065 calendar year return.

Corporations: Deposit the first installment of your estimated tax for 2013.

Employers: Deposit payroll tax for March if the monthly deposit rule applies.

Congress Introduces Bill to Provide Tax Relief for Mortgage Foreclosure Victims

Mon, 09 Apr 2012 12:36:00 -0400

Congressional Democrats have introduced a bill that would provide tax relief to homeowners who were wrongfully foreclosed upon and receive money from the recent mortgage foreclosure settlement. The bill would protect homeowners from extra tax on debt forgiveness and settlement payments received.

State attorneys general across the country successfully sued five of the major banks that were accused of using so-called "robo-signing" and other dubious methods to expedite illegal foreclosures. The $25 billion settlement will allow hundreds of thousands of distressed homeowners to stay in their homes through enhanced loan modifications and principal reduction and provide payments to victims of unfair foreclosure practices.

However, under current law, those settlement payments would subject the homeowners who receive them to additional tax. Homeowners receiving relief in the form of mortgage debt forgiveness and cash payments for wrongful foreclosure could be subject to federal income tax. In addition, extra taxes would be owed on payments received by servicemembers who were wrongfully foreclosed upon while deployed overseas.

The Homeowners Tax Fairness Act would protect homeowners and service members who were wrongfully foreclosed on from additional tax burdens by extending the exclusion for debt forgiveness on a primary residence throughout the terms of the settlement agreement and exclude the relief payments from income. The bill also denies the banks who wrongfully foreclosed on or overcharged mortgage interest on servicemembers the ability to deduct these payments from their federal income taxes.

Click here to view the complete Accounting Today article.

Contact an MCB Tax Adviser at 703.218.3600 and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

Obama Signs JOBS Act for Small Businesses into Law

Sun, 08 Apr 2012 19:49:00 -0400

President Obama has signed into law the Jumpstart Our Business Startups (JOBS) Act. The Act lowers regulatory and auditing barriers for companies to seek funding and enter capital markets. Congress passed the bill in late March with strong bipartisan support despite opposition from several investor groups and accounting organizations, who warned that the bill would weaken auditing safeguards and investor protections.

The bill aims to reduce the cost of going public by giving companies a temporary reprieve from certain Securities and Exchange Commission (SEC) regulations. It phases in the regulations over five years to allow smaller companies to go public sooner. The bill also creates a new category of issuers called emerging growth companies, which would retain that status for five years or until they reach or exceed $1 billion in annual gross revenue or become large accelerated filers.

It also removes an SEC regulatory ban preventing small businesses from using advertisements to solicit investors and eliminates SEC restrictions on "crowdfunding" so entrepreneurs can raise equity capital from a large pool of small investors who may or may not be considered "accredited" by the SEC. Companies would be able to pool up to $1 million from investors without registering with the SEC, or up to $2 million if the company provides the SEC with audited financial statements.

Other provisions also make it easier for small businesses to go public. The bill increases the offering threshold for companies exempted from SEC registration for $5 million to $50 million and raises the shareholder registration requirement threshold from 500 to 1,000.

Click here to view the complete Accounting Today article.

Contact an MCB Tax Adviser at 703.218.3600 and start building a relationship with a CPA firm who strives to earn your RESPECT and CONFIDENCE as a TRUSTED business adviser.

Tune Into C-SPAN Saturday, April 7th: Federal Tax Advice Featuring MCB's Bob Baldassari

Fri, 06 Apr 2012 11:58:00 -0400

C-SPAN, April 7th, 8:30 to 10 am: MCB is proud to announce that Bob Baldassari, MCB Principal and Tax Expert, has been invited as an expert guest to appear on C-SPAN's Washington Journal program offering viewers advice for preparing their federal taxes. The show will feature two Washington tax experts who will take questions via phone calls, tweets and emails.

One guest is Kevin McCormally from Kiplinger and the other is Matthews, Carter & Boyce's very own Tax Expert, Bob Baldassari. The segment will air from 8:30 to 10 a.m. this coming Saturday, April 7. The host will be Robb Harleston. MCB will post a video link of the show on our blog next week.

MCB has over 60 years of experience serving clients as a full service accounting firm. Contact us today with your audit, accounting and tax needs at 703.218.3600 or email info@mcb-cpa.com.