According to the Association of Certified Fraud Examiners, active detection methods (such as surprise audits or data monitoring) are far more effective than passive methods (such as confessions or notification by police). To reduce the duration of any fraud scheme and lower overall financial losses, companies should use such active detection methods as IT controls,
Ellenbogen
Sep 4, 2019
Sep 3, 2019
Expenses that teachers can and can’t deduct on their tax returns
- By Ellenbogen
- Taxes
- 0 Comments
As teachers head back to school, they often pay expenses for which they don’t receive reimbursement. Fortunately, they may be able to deduct some of them on their tax returns. You don’t have to itemize your deductions to claim this “above-the-line” tax break. For 2019, educators can deduct up to $250 of eligible expenses that
Aug 29, 2019
The tax implications of a company car
- By Ellenbogen
- Business, Deductions, Taxes
- 0 Comments
The use of a company car is a valuable fringe benefit for business owners and key employees. This perk results in tax deductions for the employer and tax breaks for the owners and employees using the cars. (And of course, they get the nontax benefits of driving the cars!) For tax deduction purposes, a business
Aug 28, 2019
Pump-and-dump schemes: Don’t believe the hype
- By Ellenbogen
- Fraud
- 0 Comments
Although “pump-and-dump” fraud perpetrators mostly target inexperienced investors, anyone can fall for this scheme. Typically, a scammer buys shares in a relatively illiquid stock, then hypes it with false or misleading claims to potential investors (usually via phone or email). This drives up the price. When the stock hits a certain level, the fraudster sells,
Aug 27, 2019
Expanded 529 plans offer unique estate planning benefits
- By Ellenbogen
- Estate, Taxes
- 0 Comments
529 plans are unique among estate planning vehicles. Ordinarily, to shield assets from estate taxes, you must permanently relinquish control over them. But contributions to a 529 plan are considered “completed gifts.” This means that the assets are removed from your taxable estate, together with all future earnings on those assets, even though you retain
Aug 22, 2019
Taking distributions from your traditional IRA
- By Ellenbogen
- Retirement, Taxes
- 0 Comments
If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (or a SEP-IRA). It’s critical to carefully plan for withdrawals. For example, if you need to take money out of your traditional IRA before age 59-1/2, the distribution will generally be taxable. In addition, distributions before age
Aug 21, 2019
When the early bird commits the fraud, you need to catch it
- By Ellenbogen
- Fraud
- 0 Comments
Improper revenue recognition has long accounted for a substantial portion of financial statement fraud. By recording revenue early, a dishonest business seller or an employee under pressure to meet financial benchmarks can significantly distort profits. Fortunately, such manipulation leaves traces for fraud experts to find. Probably the most obvious marker is when a company records
Aug 20, 2019
Should you elect S corporation status?
- By Ellenbogen
- Business
- 0 Comments
Operating a business as an S corporation may provide many advantages, including limited liability for owners and no double taxation (at least at the federal level). Self-employed people may also be able to lower their exposure to Social Security and Medicare taxes if they structure their businesses as S corps for federal tax purposes. But
Aug 15, 2019
Accountable plans save taxes for staffers and their nonprofit employers
- By Ellenbogen
- Non-Profit, Taxes
- 0 Comments
If your not-for-profit doesn’t have an accountable plan, you generally must submit employee reimbursement payments on W-2 forms, withhold applicable taxes and pay the employer portion of employment taxes. Why not avoid these steps and save taxes for both staffers and your organization? Accountable plans can be informal. However, expenses covered must have a business
Aug 14, 2019
What to do if your business receives a “no-match” letter
- By Ellenbogen
- Business
- 0 Comments
In recent months, many businesses and employers have received “no-match” letters from the Social Security Administration (SSA). These letters alert employers if employees’ names and Social Security numbers (SSNs) don’t match the data reported on W-2 forms, which are given to employees and filed with the IRS. If you receive a no-match letter, check to