In the COVID-19 era, many parents are hiring nannies and babysitters because their daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations. Keep in mind that the nanny tax may apply to all household workers, including housekeepers, babysitters, gardeners or others who aren’t independent contractors. If you employ someone
Victor Dozzi
Aug 27, 2020
More parents may owe “nanny tax” this year, due to COVID-19
- By Victor Dozzi
- Taxes
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Aug 25, 2020
5 ways to protect your investment accounts from fraud
- By Victor Dozzi
- Fraud
- 0 Comments
Because the average investment account boasts a much larger balance that a typical checking or savings account, cybercriminals are particularly interested in hacking them. Financial institutions are largely responsible for ensuring the security of these accounts, but business customers and consumers also should adopt defensive measures. Here are five recommendations. Select two-step authentication. Most financial
Aug 20, 2020
Are scholarships tax-free or taxable?
- By Victor Dozzi
- Taxes
- 0 Comments
If your child has been awarded a scholarship, congratulations! But be aware that there may be tax implications. Scholarships and fellowships are generally tax-free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to
Aug 18, 2020
Main Street Lending Program now open to nonprofit applicants
- By Victor Dozzi
- Non-Profit
- 0 Comments
Last week, the Federal Reserve announced that not-for-profit organizations now may apply for loans under the $600 billion Main Street Lending Program. Previously open only to for-profit businesses with more than 100 employees, the program offers low-interest loans with relatively relaxed repayment terms. If your organization needs funding to keep operating during this difficult period, a
Aug 12, 2020
Even if no money changes hands, bartering is a taxable transaction
- By Victor Dozzi
- Business
- 0 Comments
During the COVID-19 crisis, many small businesses are strapped for cash. They may find it beneficial to barter for goods and services instead of paying cash for them. If your business engages in bartering, remember that the fair market value of goods you receive is taxable income. And if you exchange services with another business,
Aug 6, 2020
How some “reputable” professionals enable illegal opioid distribution
- By Victor Dozzi
- Fraud
- 0 Comments
It’s not just drug dealers and street gang members who profit from opioid addiction. “Reputable” professionals, including some doctors, are intrinsic to the success of many money laundering schemes related to illegal drug distribution. As one recent case illustrated, crooked doctors may write non-medically necessary prescriptions for illegal narcotics and clinics may deposit drug customer
Aug 4, 2020
Steer clear of the Trust Fund Recovery Penalty
- By Victor Dozzi
- Business
- 0 Comments
If you own or manage a business with employees, you may be at risk for a severe tax penalty. It’s called the “Trust Fund Recovery Penalty” because it applies to the Social Security and income taxes required to be withheld by a business from employees’ wages. Because the taxes are considered government property, the employer
Jul 28, 2020
Why you don’t need high-tech tools to find fraud
- By Victor Dozzi
- Fraud
- 0 Comments
Your business may be able to use common managerial accounting practices to find occupational fraud. Variance analysis, which involves reviewing differences between actual and budgeted performance, can be particularly effective. If, for example, actual wages significantly exceed budgeted wages, the difference could indicate that you have “phantom” employees on the payroll. A dramatically lower-than-usual contribution
Jul 22, 2020
What qualifies as a “coronavirus-related distribution” from a retirement plan?
- By Victor Dozzi
- Retirement
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As you may have heard, the Coronavirus Aid, Relief and Economic Security (CARES) Act allows “qualified” people to take certain “coronavirus-related distributions” from their retirement plans without paying tax. So how do you qualify? In other words, what’s a coronavirus-related distribution? Early distribution basics In general, if you withdraw money from an IRA or eligible
Jul 15, 2020
Fraud in the family business
- By Victor Dozzi
- Fraud
- 0 Comments
Research suggests that family businesses may be more vulnerable to fraud. Prevention efforts can be hampered by loyalty and affection. For example, it can be awkward to exercise authority over one’s family members, which is essential to carrying out most internal controls. Also, even when legal action is an option, families rarely want to pursue