Archive for January, 2016

Join The Fight Against Identity Theft & Income Tax Fraud

Friday, January 29th, 2016

Income tax identity theft and refund fraud has become a huge problem over the last few years; and while billions of dollars are finding their way into the pockets of fraudsters, the IRS is working hard to shut down these schemes.

The IRS paid roughly $5.8 billion dollars in fraudulent refunds to identity thieves over the course of the 2013 filing season. While that is a huge number, it could have been a lot worse. During the same time period, the amount the IRS successfully prevented or recovered totaled around $24.2 billion. But these statistics only take into consideration the fraud we know about.

Identity theft isn’t just a threat during tax season, scammers are exploiting a lot of cracks in your armor. Listen to episode 12: the great data saver on unsuitable on Rea Radio for insight from Joe Welker, CISA, Rea’s IT Audit Manager

The Unknown Number

While it is nice to know that the IRS is working hard to prevent identity theft and refund fraud, the truth is that we don’t yet have all the information to determine how bad the income tax fraud epidemic really is. This means that we continue to be at risk of becoming a fraud victim again this tax season. Perhaps if we knew how many fraudulent tax returns went on to be processed and how many billions of dollars were paid out to scammers looking to make a quick buck we could finally make some educated assumptions about the likelihood of being defrauded out of your refund check.

I don’t like not having all the necessary information.

Read Also: Ohio Department of Taxation Stops Thieves From Stealing Millions

This year, income tax fraud is expected to be higher than ever. This video, produced by abc6 out of Columbus, Ohio, shines more light on the topic of identity theft in Ohio.

Calling In Reinforcements

The IRS has realized that identity theft and refund fraud are threats that are showing no signs of going away. So the agency has requested help. The Internal Revenue Service, in cooperation with state tax administrators and tax industry leaders, has formed a public-private sector partnership to identify and test more than 20 new data elements on tax return submissions that will be shared with the IRS to detect and prevent fraudulent filings. The software industry is doing its part by putting enhanced identity validation requirements in place to protect customers and their personal information from identity thieves.

As of October 2015, 34 state departments of revenue and 20 tax industry members have signed memorandums of understanding regarding coalition’s roles, responsibilities and information sharing measures. More states are expected to sign on later.

Taxpayers Are Encouraged To Fight Back Against Fraud

Over the last 3 years, the IRS has initiated more than 3,000 fraud investigations. Those investigations have gone forward to convict and sentence close to 2,000 thieves to around 40 months in prison apiece. But there is still much to be done. They are doing their part.  We as taxpayers have to do ours.

In January, the IRS launched the “Taxes. Security. Together.” initiative to educate taxpayers on income tax identity theft and ways they can safeguard their information and protect themselves. According to the agency, there are several ways you can protect yourself from identity theft – especially during tax season:

  • Keep your computer secure
  • Avoid phishing email and malware
  • Protect your personal information

Above all, choose your tax preparer wisely and make sure they take their responsibility to safeguard your information very seriously. A tax preparer can also help if you do encounter a situation in which your information could be compromised.

By Joseph Popp, JD, LLM (Dublin office)

Want to take steps to ensure that you won’t be a fraud victim this year? These articles feature information that can help.

Should I still be concerned about identity theft and tax fraud?

How can you protect yourself from tax fraud

Identity Theft Prevention: Tips To Reduce Your Risk of Becoming a Victim

How To Recover From Identity Theft & Refund Fraud

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Are Your Employees Skimming From The Top?

Friday, January 29th, 2016

Fraud Triangle- Ohio CPA Firm Dear Drebit: As a new business without a cash register, what is the best way (accounting method-wise or other) to protect cash receipts from sales against employee theft or dishonest activity? Thanks, “Ernest”

Dear Ernest: Great question! Segregation of duties is essential when it comes to protecting your business against fraud. Here are some tips to help you protect your business from employee theft or dishonest activity.

5 Ways To Prevent Fraud In Your Small Business

  • Your bank activity and all copies of your cancelled checks should be reviewed by someone other than the individual who collected the cash. Similarly, the person who collected the cash should not be the same person responsible for taking the deposit to the bank.
  • Inventory records should be reviewed by the business owner, who should then compare them with the company’s sales totals/collections. While your number probably won’t be exact, it will help you identify large variances. Start by reviewing how much inventory was sold and identify the sales price. Then review that total with the business’s sales totals.
  • Never use the cash in the register to pay vendors for business expenses. All payables should be processed in such a way to provide you with a paper trail. A check or card payment is ideal.
  • Lead by example. Your employees are watching your behavior, which means if they see you removing cash from the till, they will have an easier time rationalizing their behavior to do the same. It’s up to you to set a good tone at the top.
  • If the person responsible for collecting payment from your customers throughout the day is also responsible for preparing a “daily reconciliation” of monies, their work should be double-checked by another employee as well. Again, because it’s just that important, someone other than the employee who collected the money in the first place should be the one to take the funds to the bank. After the deposit has been made, the employee should return with the validated deposit slip to compare with the day’s sales activity.

While you can never reduce the risk of fraud from occurring to zero, any control you put in place – even the perception of oversight – will help deter fraud.

I recently spoke about this topic on our podcast, unsuitable on Rea Radio. If you get a chance, check out episode 3: trust is not an internal control for more insight, tips and general fraud prevention advice.

If you would like more information on internal controls, email Rea & Associates. You may also find the information provided in this video to be helpful.

By Annie Yoder, CPA, CFE, CFF (New Philadelphia office)

Learn more about the impact of occupational fraud, check out these articles:

Where There’s Smoke, There’s Fire: 5 Internal Control Tips That Can Save Your Business From Fraud

Fraud Hotlines Deter Occupational Fraud

Cost-Effective Ways To Deter Fraud

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Don’t Forget Your Health Coverage

Wednesday, January 27th, 2016

2016 individual mandate penaltiesIt’s getting expensive to not have health insurance and I’m pretty sure there are a lot of people out there who are not prepared to pay the  $700 flat fee for 2016 (or 2.5 percent of your income if greater). The break even is $28,000 income for single, so a great majority of people will likely pay the higher fee based on percentage of income.

If you don’t have insurance, or if you know somebody who has neglected to purchase insurance, time’s running out. The deadline to enroll on healthcare.gov is Jan. 31.

Just look at how much penalties have increased over the years!

2014, 2015 and 2016 Annual Payment Amounts

Year 2014 Year 2015 Year 2016
Percentage amount

1% of income
above filing threshold*

2% of income
above filing threshold*
2.5% of income
above filing threshold*

Flat dollar amount**

$95 per adult
$47.50 per child
$325 per adult
$162.50 per child

$695 per adult
$347.50 per child

Employees: Do you know how the new IRS Form 1095-C filing requirements impact you? Click here to find out.

By Joseph Popp, JD, LLM (Dublin office)

Want to learn more about your healthcare options? Check out these articles:

The Cost Of Reimbursing Employees For Health Care
Obamacare Is Here … Now What?
Know Your Health Insurance Options

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The 2016 Tax Season Is In Full Swing, Are You Ready?

Friday, January 22nd, 2016
Tax Planning - Ohio CPA Firm

Tax season doesn’t have to be the stuff nightmares are made of. Believe it or not, it can be a smooth, uneventful process. Just remember, preparation is the key to tax season success.

Your holiday decorations have been tucked away, subzero temperatures have found their way to your neighborhood and your W-2’s are in the mail … tax season is upon us once again!

This year, don’t let the hunt for tax forms, pay stubs and receipts stress you out. Instead, take a few minutes to brush up on some of our best tax season tips and avoid becoming a victim of the last-minute filing chaos that ultimately ensues in April.

Top 5 Tax Season Planning Tools

  1. File Faster With This Tax Prep ChecklistIt’s that time of year again – time to gather your information and prepare to file your tax return. You may be surprised how fast the entire filing process goes if you spend a little time preparing before you make your appointment with the tax preparer. Get your tax prep checklist here to avoid missing the filing deadline.
  1. From Toddler To Teen And Beyond: Tax Breaks For Families: With parenthood comes many rewarding experiences – and expenses. You hear about how expensive it is to raise a child, but you never really know what to expect until that little bundle of joy enters your life. From diapers, pre-school, extracurricular activities and saving for college, the costs of raising kids adds up fast. Read on to discover what tax breaks are available to families?
  1. How To Win Tax SeasonBy mid-January, statistically, most Americans have already abandoned their New Year’s resolutions – those promises you make to yourself to hit the gym, get more sleep or become more organized. But hopefully, you’re not like most Americans – especially if better organization is the goal. Today I want to urge you not to give up at least not until April 15. Keep reading to find out how you can win tax season with these four tax prep tips.
  1. Taxes Are Like FishingAre you wondering where I’m going with this, wonder no more. You are sure to find a lot of valuable insight in this episode of unsuitable on Rea Radio. Episode 9, Taxes Are Like Fishing, features Melane Howell, CPA, a tax manager at Rea, talking about the importance of strategic preparation, just in time for tax season. Listen now for great insight and sound tax tips that are sure to make this tax season the easiest one yet!
  1. The Truth About Tax ExtensionsWhile the first four months of the year is a busy time for accountants, we know that things don’t always go according to plan. But instead of enduring penalties for filing a late return, you may find that filing a tax extension is a better option. Contrary to popular belief, tax extensions aren’t as bad as you may have heard. Read on to learn the truth about tax extensions, and don’t forget to check out the slideshow.

Tax season doesn’t have to be the stuff nightmares are made of. Believe it or not, it can be a smooth, uneventful process. Just remember, preparation is the key to tax season success.

Need help filing your individual or business tax return? Email Rea & Associates for help. Our team of tax advisors can help you change your perspective of tax season into one that is more positive for everyone.

By Lesley Mast, CPA (Wooster office)

Check out these articles for more helpful tips for individuals:

Cyber Crime: It Can Happen To You

You Can Still Have The Final Say After Death

Debt vs. Taxes: Should You Pay Off Your Loan

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Dude, You’re Getting … Hacked

Wednesday, January 20th, 2016

Could Your Computer Make You A Target For Fraudsters?

Dell Computer Hack | Rea & Associates | Ohio CPA Firm

Learn how to keep your computer safe from this new scam.

There is a new scam making the rounds and if you have a Dell computer you could be at risk.

KnowBe4 recently published a blog informing users of the newest security issue, which has apparently left owners of Dell computers vulnerable to scammers who have been able to capture their computer’s unique tag ID (the unique sticker on your desktop or laptop) from Dell’s database.

Read Also: WARNING: Tis The Season To Practice Safe Online Shopping Habits

Fraudsters proceed to call potential victims and attempt to gain access to their personal computer by claiming that there is a problem with their computer – the stolen information is then used to establish credibility. Once the fraudster convinces their victim to grant them remote access to their desktop or laptop to “fix” the problem, the scam is complete and the security of your personal information has been compromised. In other words, your personal information (such as credit card numbers, banking information, Social Security number, contact information, etc.) is no longer personal.

Dell has said that the company is investigating the issue but, at this time, offers little to no explanation for the alleged breach. Rather, the company is quick to point customers to this October 2, 2015 post advising of tech support phone scams.

According to the KnowBe4 blog post, this scam is similar to a Microsoft tech support scam where fraudsters call PC users with a similar request – to be allowed to gain remote access to a computer to fix an alleged problem.

“End-users gullible enough to give access to their workstations (usually via remote software), are billed hundreds of dollars on their credit card but the scammers, of course, don’t fix anything – in some cases their PC’s are infected with ransomware until they pay up.”

Protect Yourself

This is a great time to educate yourself and your employees about ways to keep your company’s data, computers and other devices safe. For example, if you do get a suspicious call, refrain from providing any information to the caller. Instead, insist that you will call them back. When you do return the call, use a phone number you know to be accurate or visit the company’s website for the phone number. Never call back the number that shows up on your caller ID. Another way to determine if the number is legit is to search the number in Google. This is a fairly accurate way to determine the validity of the call.

Have you been a victim of identity theft? Read on to start recovering today.

It seems that a new scam pops up every week. Fortunately, education and a little common sense is the key to your ensuring your safety.

Would you like help putting controls in place to protect your business from becoming victimized by a opportunistic hacker? Email Rea & Associates and request to speak with a member of our IT audit team. For more tips and insight, take a look at the related articles below,

By Steve Roth, IT Director (New Philadelphia office)

Want more security tips for your business, check out these posts:

Stop Criminals From Hijacking Your Identity With These Top 5 ID Theft Prevention Posts

Then And Now: Data Security In America Since The Target Breach

Who Is That Email Really From?

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Go Green for the Planet and Pocket the Savings

Monday, January 11th, 2016
Think Green To Save Money | Rea & Associates | Ohio CPA Firm

Bright Idea:
Start saving in 2016. If you haven’t already, replace discontinued incandescent light bulbs with LED and other energy-efficient bulb options and save on your electric bill. Read on for more great tips!

It’s always a good time to talk about ways to realize some significant savings, and sometimes all you have to do is go green to save some green. Even though some green initiatives may seem to have a higher upfront cost, the IRS continues to offer a variety of tax saving incentives to help balance the burden as well as to reward you for making a few pro-planet upgrades to your home and/or business property.

Since it’s the beginning of the year and we are already open to the idea of making a few changes, we have another one for you to consider. Because Jan. 10 was national cut your engine cost day, we wanted to give you some ideas to help you celebrate the occasion while investing in the long-term sustainability of both your planet and finances.

For Individuals:

Planning to install a residential fuel cell and micro turbine system in the near future? Through the end of 2016 you may qualify for a tax credit of 30 percent of the cost of the project, up to $500 per 0.5 kilowatt of power capacity.

Looking to purchase a new car soon? Tax credits are available for all electrical cars. You can visit the DOE’s Fuel Economy website to search what cars are eligible. Based on the vehicle’s battery capacity the credit can be between $2,500 to $7,500.

For Business Owners:

If your business has installed solar panels at company properties, then you may be eligible for up to a 30 percent tax credit for installation and project costs. This credit is available until Dec. 31, 2016.

An energy-efficient commercial building tax deduction allows businesses to deduct certain costs related to making a building energy-efficient rather than capitalize those costs over 39 years. Some improvements that might apply include:

  • interior lighting systems
  • HVAC systems
  • hot water systems
  • insulation and exterior windows and doors

But there’s a catch – you have to get a certified licensed engineer to review the project and verify that it meets the IRS’s requirements for a tax deduction. The maximum deduction that can be taken is calculated at $1.80 times the building square footage for property placed into service in 2016.

Finally, if you plan to install a geothermal system, your business may qualify for a 10 percent tax credit.

With rising electric costs, implementing some of these green initiatives can garner you tax savings now and energy cost savings in the future.

Looking to more ways to go green and cut expenses? Email Rea & Associates and ask for more tips.

By Brian Kempf, CPA (Millersburg)

Looking for more ways to improve your business in the new year? Check out these posts:

16 Resolutions For Business Growth In 2016

Easy Year-End Tax Tips For Business Owners

It’s OK To ‘Think Small’

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Anything Can Happen In Cleveland

Friday, January 8th, 2016

“There’s always next year …”

Value of Big Data - Ohio CPA Firm

Paul DePodesta has just been announced as the Cleveland Browns Chief Strategy Officer to assist in rebuilding the team. Can big data help the Browns like it helped the Oakland A’s?

Since 1999 that phrase has been uttered so many times in reference to the Cleveland Browns it should have been declared Ohio’s state motto. Well, it’s now 2016 and it looks as though next year might finally be THE year. Why am I so optimistic? Because the day after the Browns cleaned house, the franchise announced who would step in as the new Chief Strategy Officer to help rebuild the team – Paul DePodesta!

Some of you may have no idea who this guy is. But stay with me here while I explain why the news of the Browns hiring DePodesta may have changed the way I look at a team that has done nothing but bring me heartache and disappointment for more than literally half my life.

Six months back I wrote the post “The Billy Beane Approach To Business Success,” which was inspired by another lackluster sports team. One night, rather than watch the Cleveland Indians withstand another defeat, I chose to watch a baseball story with a much happier ending.

If you’ve seen Moneyball then you know that Billy Beane, the general manager of the Oakland A’s, is famous for abandoning “business as usual” and embracing a data driven approach to team building. In doing so, Beane transformed his team and began delivering results simply by recruiting players based on a single data point – their ability to get on base.

So, what does Beane’s story have to do with the Cleveland Browns and Paul DePodesta? Everything. DePodesta, also known as Beane’s right-hand-man, is the guy who first identified the data that went on to drive the Oakland A’s success!

It looks like the Dawg Pound is scheduled for a renovation after all and that “next year” may finally be here!

Now the question is: what data driver will be the key to turning the Browns into a winning team?

What Drives Your Business’s Success?

Take a play from the Browns’ new strategy, your priority should always be defined by what is driving your business’s success and you can’t afford to let yourself become bogged down by business as usual. If you are finding that you are becoming more and more distracted, it may be time to take a fresh look at your organization and refocus on what’s important. Let go of everything else.

This is something the management team at Rea can speak a lot about. The firm recently rolled out its new strategic plan, which calls for all 200+ employees throughout 11 offices across the state of Ohio to focus on a singular driver. Today, all employees are able to clearly identify how their position impacts the firm’s ability to be successful and, together, we can work to deliver real, measurable results.

Listen to Rea’s CEO talk about the firm’s new strategic plan in episode 4 of unsuitable on Rea Radio: “How To Run With The Big Dogs.”

Are you ready to make a change and develop a winning strategy? We can help. Email Rea & Associates to speak to someone who can help you identify and assess your company’s drivers.

In the meantime, I don’t know about you, but I will be eagerly awaiting the announcement of the Browns’ new GM (general manager.) Maybe it will be Kevin Costner –  he did a great job for the Browns in Draft Day. The Browns do have the number two draft pick of 2016. Anything can happen.

By Katie Snyder (Wooster office)

 

Want more tips to help you improve your business? These posts will help:

How Can A Focus On Inventory Management Help My Business?

Cash Flow Is King: Where Do You Need To Focus?

Getting Back To Business: How Outsourcing May Provide Relief To Your Business

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Egg Nog & Tax Tips: Top 5 Posts In December

Wednesday, January 6th, 2016

December is such an exciting time. Shopping, baking, decorating and spending time with family and friends celebrating keeps a frog busy. But, in-between the office parties and family gatherings, the team and I were still able to address some of your end-of-the-year questions and concerns.

From the updates we received from our pals over on Capital Hill to year-end tax tips, there was certainly a lot to write about this month. These were the top-read posts in December

  1. Easy Year-End Tax Tips For Business Owners: There’s no doubt about it, this time of year is busy! I’m willing to be that sitting down at the computer to research tax deductions is the last thing on your mind. You’re in luck! We’ve done the work for you. Click here for some great tips, deductions and insight that will help you keep more of your hard-earned money in your bank account.
  2. Employers: Are You Ready To Change The Way You Withhold Municipal Tax Payments?:  Ready or not, all Ohio municipalities will be welcoming a slew of new provisions designed to bring about a unified system of income tax reporting. House Bill 5 was signed into law by Gov. Kasich on Dec. 19, 2014. The bill, which was championed by the Ohio Society of CPAs and supporters, helped streamline several key measures that help establish meaningful municipal tax reform. Per the legislation, many key provisions are scheduled went into effect Jan. 1 of this year. Read on for Four facts about the changes you need to know.
  3. Congress Gives Taxpayers An Early Christmas Present: Year after year, Congress promises to address the future of many expired tax provisions, and year after year they fail to make a definitive decision – opting only to pass legislation that extends the provisions for another year. In the meantime, taxpayers are expected to take on the impossible task of navigating the terrain amidst legislative uncertainty. Happily, things are about to change. Read on to learn why.
  4. How Far Back Can The IRS Go For Tax Auditing? – As a CPA I’m frequently asked, “How far back can the IRS look to audit my tax return?” That’s a great question. Can the IRS go back and audit your tax return from five years ago? 10 years ago? 25 years ago? Before you start to panic, rest assured that the IRS has a statute of limitations in place that generally puts a limit on the time allowed to audit you and assess additional tax. Keep reading to find out how far back they can go.
  5. Cyber Crime: It Can Happen To You: Fraudsters don’t take holidays. In fact, they tend to be more active this time of year because they believe we are more likely to let our guards down. I don’t intend on falling for any of their traps, and I encourage you to do the same. Check out what you can do to protect yourself.

Now that December is history, let’s look forward to a great 2016. Stay tuned as we provide you with the latest and greatest news in the business and financial world. While you’re at it, don’t forget subscribe to our blog to receive email reminders when new stories are posted.

You can also ask your own question by filling out the simple form at the top, right side of this page.

Finally, remember that the team at Rea is always available to discuss your specific business issues in more depth. All you have to do is email Rea & Associates and we would be happy to set up a time to talk more.

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Pay more attention to your company’s cash flow for a prosperous 2016

Tuesday, January 5th, 2016

A 13-week rolling cash flow budget lets you harness the past, present and future of your company to arrive at a comprehensive analysis of its overall financial well-being – making you a more effective leader and decision-maker.

An effective cash flow is rooted in your company’s historical trends and considers current initiatives and any internal and external factors that may impact the financial security of your business – including past, present and future billing and payment patterns. In order to dig a little further to gain a little more insight into your company, I recommend:

  • Analyzing your accounts receivable to determine ways to quickly turn them in to cash.
  • Reviewing your current inventory levels to determine what is old or obsolete and what can be used to generate more revenue.
  • Going over your accounts payable to optimize your own financial obligations.
  • Looking at your non-core assets to determine how much money is being spent and whether or not a more lucrative avenue is available.

Finally, don’t forget to update your cash flow regularly. Setting up a cash flow dashboard will take a little extra effort at first, but maintaining it is simple. Then, if done correctly, you will have the ability to accurately estimate your business’s variable costs and expected sales at a moment’s notice – and that is a very powerful tool to have.

To learn more, visit www.reacpa.com/cashflow and listen to my podcast about why $1 million doesn’t matter or, if you have questions, send me an email.

This article was published in the January 2016 issue of Columbus Business First – Ask The Expert.

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16 Resolutions For Business Growth In 2016

Monday, January 4th, 2016
Be Accountable In 2016 | Rea & Associates | Ohio CPA Firm

Might we suggest 16 resolutions to help your company prosper in 2016?

New Year’s resolutions aren’t just great ways to set personal goals; they can help keep us on track professionally as well. This year, instead of worrying about which goal you are going to pick from the New Year’s Resolution menu, why not consider committing your energy and resources into ways that will improve the overall health of your business?

Might we suggest 16 resolutions to help your company prosper in 2016?

1. Celebrate your amazing team.

If you’ve been in business for a while, chances are you wouldn’t be where you are today without your team. Just remember that if you don’t work to retain your top performers, you run the risk of losing them. Start celebrating your human capital.

2. Make a gift, but make sure it’s effective.

When we give a monetary gift to a not-for-profit organization, we want to know that it’s going to be used in the best, most effective way possible. Make sure your money is well spent.

3. Design a better retirement plan.

The way your company’s retirement plan is designed can be a huge motivator for your employees. If your plan has a good plan design, participants will be more willing to invest in it. Work with a retirement plan expert to find a retirement plan design that works for you.

4. Review your will, estate plan and buy-sell agreement.

Legal changes over the last few years may have made updating these documents necessary, not to mention any personal changes that may have taken place. It’s just good practice to make sure this important paperwork gets updated regularly. It could get messy if you forget.

5. Develop a line item in your budget for continuing education.

Investing in yourself and your employees is a good way to engage your workforce. One way is to add dollars to the budget for training and continuing education. Find out what else you can do to promote employee retention.

6. Improve your company’s cash flow.

Easier said than done, right? Just remember that you can’t spend the bottom line profit, but you can use the cash flow to reinvest in your business and community. A sustainable cash flow model will ultimately increase the value of your business.

7. Know what your business is really worth.

Your business is easily your most valuable asset. So, how can you nurture its growth if you don’t know how much it’s worth? Discover why it’s so important to know the value of your business.

8. Develop a wellness program.

Healthcare costs are high and one way companies are taking control is by introducing a wellness program. As with any new plan, several factors will greatly increase your company’s success.  Start planning your wellness program implementation and soon you will be saving money.

9. Upgrades for the business.

It seems like there are always better ways to get things done. Perhaps 2016 is a good time to make a few upgrades. In the process, your purchase could be good for a deduction at tax time.

10. Schedule a family vacation.

A successful business has the understanding and support of your family. Long hours … late suppers … numerous emails and a 24/7 mentality have become just another part of the routine. Reward yourself and your family with a family vacation. A vacation isn’t just good for your peace of mind, it’s good for your business.

11. Save more for retirement.

It’s always a good idea to keep your retirement goals top-of-mind, which is why you should evaluate your current retirement plan situation and determine if you need to make any changes to get further ahead in 2016. Ask your advisor if you are setting aside as much as you could (and should) be.

12. Defend your cyber space.

Hackers and fraudsters are stopping at nothing to get to your data. Whether they have plans to steal your system’s information to sell to other criminals or are trying to make a quick buck by holding your data for ransom, if you don’t have a disaster recovery plan you and your business could be in serious trouble. Make 2016 the year you get your data security plan in place.

13. Meet with all your advisors at least once a year.

You work with a lot of people over the course of your career and it’s important to maintain those relationships – regardless of whether you will need their services or not. Set aside some time to meet with your accounting, legal, estate planning, investment, banking, retirement and other advisors, even if it’s just to chat. An impromptu meeting could reveal opportunities you didn’t know were there.

14. Establish a fraud hotline.

The Association of Certified Fraud Examiners has found fraud hotlines to be the most effective way for detecting and preventing fraud. Don’t let occupational fraud destroy your businesses.

15. Stay organized … for real, this time.

Every year it happens. You promised yourself that this year would be different. Now, once again, you are rushing to your gather receipts, remember how much money you spent at last year’s company retreat, and backtrack through balance sheets. Wouldn’t it be nice not to have this year-end stress anymore? By implementing a few simple procedures, you can avoid another crunch-time crisis.

16. Trim the fat.

If you are really looking for a way to make a significant reduction this year, take a look at your inventory. If you are carrying around some extra weight, chances are your business is feeling the pinch. This simple 3-step program will get you back on track.


Be Accountable In 2016

Have you identified a few resolutions to begin implementing over the course of 2016? Great! Need help holding yourself accountable? Send your list of 2016 New Year’s Resolutions to Rea & Associates and one of our business consultants will work with you to make this your best year in business yet!

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IRS Gives Business Owners The Gift Of More Time

Monday, January 4th, 2016
Form 1095 Deadline Extended - Ohio CPA Firm

Failure to comply with provisions set forth in the ACA can lead to catastrophic penalties, which is why we have actively sought to inform business owners of their responsibility to file Form 1095-C. Unfortunately, we knew that while we could successfully inform many businesses in advance of the original deadline – some were going to be left behind. Time, it seemed, just wasn’t on our side. But the IRS saw this threat and, as 2015 came to a close, took action to delay the 1095-C reporting deadline – (hopefully) keeping many small businesses intact.

While some taxpayers may be rejoicing after learning that the IRS has delayed 1095-C reporting deadline, it’s important to remember that this late Christmas gift may not be as great as it seems – especially when it comes to meeting the deadline to file your individual tax return.

Read Also: Make BIG Changes Or Face BIG Fines

1095-C Reporting Deadline Postponed

As you may already know, failure to comply with provisions set forth in the Affordable Care Act can lead to catastrophic penalties, which is why we have actively sought to inform business owners of their responsibility to file Form 1095-C. Unfortunately, we knew that while we could successfully inform many businesses in advance of the original Jan. 31 deadline – some were going to be left behind. Time, it seemed, just wasn’t on our side. But the IRS saw this threat and, as 2015 came to a close, took action to delay the 1095-C reporting deadline – (hopefully) keeping many small businesses in tact.

Employers now have until March 31 to provide employees with Form 1095-C and the deadline to file the form electronically with the IRS was moved to June 30. The IRS also extended the deadlines for 1095-Bs to these new dates as well.

Remember, all 2014 large employers are required to file these forms, based on 2015 data. Per employee penalties will accrue for those who file late or fail to file. Some businesses may be considered large employers under the ACA, and not even know it; but there are ways to determine your employer status before it’s too late.

That Sounds Great, Except …

Now for the bad news – there will be some individual tax payers who may not get these forms to us until the first week of April. For most taxpayers, this will simply require some additional due diligence with no delay to filing their tax return. However, there will be some individuals who will likely have to file an extension if they do not get their forms in time. Don’t be afraid of tax extensions. As long as you work proactively with your tax advisor, there is absolutely nothing to worry about. In fact, filing a tax extension could be very helpful. Click here to get “The Truth About Tax Extensions”

You Do Not Have Permission To Do Nothing

You’ve been given extra time. Now let’s make the most of it. Rea & Associates is still accepting new clients for 1095-C Form preparation projects, And, as we have previously stated, the top payroll companies are already booked to capacity with wait lists growing by the day. If you haven’t started on this project yet and know that you should, take advantage of this delay and email me for help. My team here at Rea can also help you determine if your business is considered a large employer – which can keep you from being blindsided when the IRS determines that you do, indeed meet the large employer qualifications.

By Joe Popp, JD, LLM (Dublin office)

Want to learn more about your responsibilities under the ACA? These articles will provide you with more insight:

The Cost Of Reimbursing Employees For Health Care

Obamacare: Discrimination Is Not An Option

Secure Form 1095-C Help Now And Avoid Penalties

 

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