The knowledge you need

When an issue arises with a tax return filing, processing, or other concern, many will turn to the IRS to help with questions, address issues, and resolve outstanding situations. This has been a realistic expectation of the agency, but since the pandemic, it has all changed. The combination of staffing shortages, lack of modern technology, and previously existing backlogs, means it will be some time before the agency is operating normally. However, recent reports suggest the IRS has made notable progress in certain areas.

Fraud is a persistent risk that many business owners and executives need to manage. The unfortunate reality is that employees, vendors, or suppliers, may successfully commit fraud without proper prevention controls. Even then, many organizations have fallen victim to bad actors due to the ability to circumvent or compromise detection. This is especially true when it comes to fraud involving long-time employees or senior executives.

Almost 30 percent of global carbon dioxide emissions can be traced back to building operations. This is a surprising number that reflects the impact certain building systems can have on the environment. Beyond this, older systems are likely to be consuming more resources, and therefore cost more, to operate. That is why so many have decided to leverage renewable energy systems to address the problem.

Supply chain disruptions are nothing new to auto dealerships at this point. Chip shortages and the difficulty obtaining new semiconductors are just two factors that have strained the automotive industry. More than two years after COVID-19 was declared a global pandemic, dealerships using the last-in-first-out (LIFO) inventory method are still hurting, but for a less obvious reason.

Required minimum distributions (RMDs) can be tricky. The IRS mandates that once a person reaches a certain age – currently age 72 – they must make mandatory withdrawals from certain retirement accounts every year. Fail to withdraw the right amount of money, and the individual gets a 50 percent excise tax.

There are many similarities between a 401(k) and 403(b) plan. In fact, they are so alike many often assume the main difference is that one is offered by nonprofits and the other is not. Despite this, there are important differences that illustrate the unique challenges 403(b) plan sponsors face. One prominent example is the universal availability rules. Under this requirement, plans must ensure that when one employee participates in the plan that others have the same opportunity. It often requires that management take a proactive approach to communication.

Before COVID-19, changes to participant elections needed to be done in person with a notary or plan representative. Since March 2020, plan sponsors have had the option of permitting participants to make changes of election remotely. That relief was set to expire on June 30, 2022. However, the IRS recently announced new extended temporary relief for physical presence requirements to December 31, 2022 – and there seems to be talk of making it permanent.

Employer-sponsored retirement plans are one of the best ways to improve recruitment and retention. Concurrently, it is one of the most effective tools for helping employees reach retirement saving goals. Yet cost remains a top issue for small business owners because many plan types can be expensive to operate due to the complex regulatory requirements mandated in the Employee Retirement Income Security Act of 1974 (ERISA). While most of these apply to plans with over 100 participants, even small plans have certain requirements which must be followed. The challenge of managing such costs often prevents many Atlanta small businesses from offering a 401k, or other retirement plan option.  

Many Atlanta families and high net worth individuals invest significant time uncovering strategies designed to limit federal and state income taxes due. Tax planning focuses on reviewing tax law changes, updates to incentives and deductions, and other changes in areas where savings may be present. Although these activities are most common at year-end, many will make it a regular focus throughout the year.

Fraud is an ever-present threat that Atlanta businesses need to carefully guard against to ensure the organization does not lose thousands of dollars to bad actors. Although it can be difficult to believe a manager or employee would commit such activities, the unfortunate reality is that it happens more than most want to admit. To limit the potential for criminal activities, it is essential for organizations to implement anti-fraud controls and conduct periodic reviews to ensure maximum effectiveness.