National Estate Planning Awareness Week is finally here, offering the perfect opportunity to reflect upon some of the increasingly important topics- such as the impact proper estate planning can have on your income tax bill. As the gift tax...
Understanding U.S. Tax Implications and Filing Obligations Introduction The F Visa is a non-immigrant student visa that allows international students to pursue academic studies and language training programs in the United States. Individuals holding F Visa and F Visa...
In continuing our observation of NEPAW, I think it’s important to examine the increasingly effective, but often complex, area of tax basis planning. As discussed in my previous blog, the heightened importance of income taxes while planning one’s estate...
When it comes to retirement planning, you did exactly what you were supposed to do; maximized contributions to your retirement plan, maximized your employer’s contribution to your plan, and then let it grow unfettered until retirement. For many, your...
More and more, Americans are becoming interested in cryptocurrency, and the IRS has taken note. Your 2021 tax return now asks a new question: “At any time during 2021, did you receive, sell, exchange or otherwise dispose of any...
Cash flow issues can frequently arise when a company is growing very rapidly. Growth in sales results in more accounts receivable and potentially increased inventories and overhead costs. All of these items require the deployment of cash. The company’s...
One of the most effective estate planning tools is also one of its most rewarding – charitable giving. If you happen to be charitably inclined, there are a plethora of techniques to choose from. The challenge is matching your...
Year-end tax planning for businesses often focuses on acquiring equipment, machinery, vehicles, or other qualifying assets to take advantage of enhanced depreciation tax breaks. Unfortunately, two “classic” depreciation breaks expired on December 31, 2014. Enhanced §179 expensing election- Before...
The Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed by the President on December 18, 2015. One of the most significant provisions of the law was to make the Research and Development tax credit permanent. Although...
The PATH Act of 2015, recently signed into legislation by the President, reaches more than just small businesses and their owners; there are provisions made permanent by this act that will affect individual taxpayers, too. What is the IRA...
If your business completes minor repairs by December 31, you can deduct those costs on your 2023 tax return. But different tax rules apply to improvements. As opposed to repairs, improvements are capital expenditures that must be written off...
For much of this year, uncertainty surrounded whether Congress would extend relief in the area of depreciation-related tax breaks. On December 18, clarity finally arrived with the passage of the Protecting Americans from Tax Hikes Act of 2015 (the...
Patrick Lencioni has continued his series of leadership fables by focusing on four impactful leadership principles the successful executive should have ingrained into everything that he or she does. He focuses on the CEO of a technology consulting firm,...
What type of plan should you invest in? When should you start taking distributions? What are the tax consequences? Whether you’re just starting to think about retirement planning, are retired already, or are somewhere in between, addressing the relevant...
Although the money was meant to act as a lifeline for struggling businesses, the Employee Retention Credit (ERC) has become a hotspot for fraud as pop-up firms take advantage of business owners. Despite the IRS’s warnings and recent convictions,...
I was recently asked to contribute to a survey of CPA Managing Partners by summarizing three unique practices that Mowery & Schoenfeld has used to hire, develop, and retain a great staff. It did not take me long to...
On Friday, October 7, 2022, the IRS issued Notice 2022-53 to reaffirm guidance for defined contribution (DC) plans on required minimum distributions (RMDs). In response to complaints and questions from beneficiaries subject to the 10-year rule plus the annual...
As promised, we have been following developments in proposed tax changes and we are committed to keeping you updated. The House Ways and Means Committee has released a new bill containing tax hikes for individuals and businesses. We have...
As the 2024 tax season approaches, many individuals might find themselves scrambling to organize their financial information. But by starting preparation for this year’s tax season early, you can help ensure your tax return and refund don’t face delays....
This fall, the IRS announced inflation adjustments for tax year 2023, including tax rate schedules, the standard deduction, and more than 60 other provisions. While this list is not exhaustive, we wanted to highlight the changes that will most...
Running a business can be stressful—but filing your tax return doesn’t have to be. Taking steps to prepare early will make the process run more smoothly and avoid any surprises when it’s time to file. Keep thorough records—all year...
Compensation may take several forms, including salary, fringe benefits and bonuses. If you’re an executive or other key employee, you might receive stock-based compensation, such as restricted stock, restricted stock units (RSUs) or stock options (either incentive or nonqualified)....
McCullough joins Mowery & Schoenfeld with experience, expertise, and unfailing client dedication. For the past 15 years, McCullough has served in leadership roles, most recently Senior Vice President Wealth Advisor and head of the Lake Forest office of a...
Private equity is a crucial aspect of modern finance, driving significant changes in the business world through investing in privately held companies to spur growth and generate returns. Understanding how it works is essential for investors and entrepreneurs alike....
For taxpayers looking to pay their taxes online, the Department of the Treasury allows federal taxes to be paid via the Electronic Federal Tax Payment System (EFTPS). However, in late 2023, security around the electronic payment system tightened, and...
Authored Content by Michael Kidd At Mowery & Schoenfeld, our team has been an active member in the Entrepreneurship Through Acquisition (ETA) community for more than a decade. Our methodology is one of partnership. We focus on providing thoughtful...
Before your bags are packed, take some time to understand the intricacies of expat taxes, including key concepts, deadlines, exclusions, credits, reporting requirements, tax treaties, tax equalization, and some of the most common mistakes.
For business owners, many succession plans ultimately lead to the sale of their business. How this looks can depend on your business structure, entity type, and ownership. Although preparing for the sale of a business can be a complex...
With corporate buyers hoarding record amounts of cash and interest rates at historic lows, the current market conditions are perfect for turning your business into your retirement plan. If you feel ready to sell, you want to make sure...
Authored Content by Matt Schoenholtz, Client Advisory Services Partner As the group responsible for the financial health of the company, an accounting department—whether it’s a single bookkeeper or a CFO—is vital to every organization. The accounting team is responsible...
Over the past 12 weeks, mortgage rates have had their largest jump since the ’90s. As of this week, the average 30-year fixed mortgage rate stood at 4.42%—up from 3.11% in December. Although the housing market has not slowed...
If you have a parent entering a nursing home, there may be more things on your mind than how it will affect your taxes. Assisted living costs are expensive, and those costs are continuing to rise every year—but some...
Following the release of a new interim final rule by the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN), there are significant changes to the Beneficial Ownership Information (BOI) reporting requirements under the Corporate Transparency Act (CTA). The new...
Because the Tax Cuts and Jobs Act (TCJA) has put estate, gift, and generation-skipping transfer (GST) tax exemptions at record-high levels, far fewer taxpayers are worrying about these taxes—but the high exemptions are only temporary. So, whether or not...
Saving for retirement is a critical financial goal for every individual. Traditional Individual Retirement Accounts (IRAs) have long been popular choices, but Roth IRAs and conversions offer unique advantages that can significantly benefit taxpayers and their heirs. The major...
A permanent establishment (PE) is an international tax treaty concept important for any business undertaking activities in foreign countries to understand. Ultimately, whenever a company has a PE in a different country, it effectively creates a taxable presence in...
The IRS recently released guidance providing the 2023 inflation-adjusted amounts for Health Savings Accounts (HSAs). High inflation rates will result in next year’s amounts being increased more than they have been in recent years. HSA Basics A Health Savings...
U.S. residential and commercial real estate has been a popular source of investment for foreign persons for decades and easily exceeds $100 billion dollars on an annual basis. Because of the unique way that the U.S. taxes nonresident individuals...
Considering the global nature of businesses and the large and diversified U.S. market, foreign businesses have successfully penetrated the U.S. market with their goods and services. A fair amount of these successful foreign businesses sell to U.S. customers through...
For many employers, the struggle to find and hire good workers is real. So real, in fact, that some employers aren’t looking only at new faces, they’re keeping in touch with familiar ones as well. Sure, you could add...
No matter the size of your business, a business budget is vital to planning and guiding your business’s growth. By understanding the fixed expenses of a company and accounting for the ebb and flow of work, a proper business...
If, like many people, your traditional IRA holds a mixture of deductible (after-tax) and nondeductible (pretax) contributions, it’s important to track your contributions carefully to avoid double taxation of distributions. Why? Because the IRS treats distributions as a blend...
For business owners, sports can highlight important lessons about profitability. One in particular is that you and your coaches must learn from your mistakes and adjust your game plan accordingly to have a winning year. Spot the fumbles More...
In its 2018 decision in South Dakota v. Wayfair, the U.S. Supreme Court upheld South Dakota’s “economic nexus” statute, expanding the power of states to collect sales tax from remote sellers. Today, nearly every state with a sales tax...
Imagine giving your company’s retirement plan a report card. Would it earn straight A’s in preparing your participants for their golden years? Or is it more of a C student who could really use some extra help after school?...
Tax laws change frequently and increasing complexity can make it hard for high-income earners and high-net-worth individuals to stay on top of the latest tax strategies. The “trick” to minimizing your federal income tax liability is understanding the rules...
The IRS has issued final regulations that should provide comfort to taxpayers interested in making large gifts under the current gift and estate tax regime. The final regs generally adopt, with some revisions, proposed regs that the IRS released...
Time flies when you’re having fun — and running a business. Although it’s probably too early to start chilling a bottle of bubbly for New Year’s Eve, it’s certainly not too early for business owners to start doing some...
Many companies are eligible for tax write-offs for certain equipment purchases and building improvements. These write-offs can do wonders for a business’s cash flow, but whether to claim them isn’t always an easy decision. In some cases, there are...
The Tax Cuts and Jobs Act created a new program to encourage investment in economically distressed areas through generous tax incentives. The Qualified Opportunity Zone (QOZ) program relies on investments in Qualified Opportunity Funds (QOFs) — funds that can...
The EPAct 179D Tax Deduction was introduced in 2005 with the intention to drive commercial building owners and designers of tax-exempt buildings to reduce their energy use. By enabling building owners to claim a tax deduction for installing qualifying...
Nonqualified deferred compensation (NQDC) plans pay executives or other key employees at some time in the future for services to be currently performed. If your organization offers one or is considering offering one, it’s critical to be aware of...
While you were celebrating the holidays, you may not have noticed that Congress passed a law with a grab bag of provisions that provide tax relief to businesses and employers. The “Further Consolidated Appropriations Act, 2020” was signed into...
There are good reasons why estate planning advisors recommend you revisit and, if necessary, revise your estate plan periodically: changing circumstances, including family situations and new tax laws. While it’s relatively simple to change a beneficiary, what if an...
Update 12/26/2024:: Mowery & Schoenfeld is following the recent legal developments regarding the Corporate Transparency Act (CTA) and its impact on the FinCEN’s filing of beneficial ownership information. Please see this article for the most up-to-date information. What Businesses...
When participants request hardship distributions from a 401(k) plan, employers must collect and store documents showing that the participant had an immediate and heavy financial need to permit such a distribution. In today’s digital age, you might wonder whether...
“Situational awareness” is a term used in the military and elsewhere to describe an individual’s ability to stay fully alert of all potential threats and resources in his or her surroundings. It’s a good skill for employers to use...
Update 12/27/2024:: Mowery & Schoenfeld is following the recent legal developments regarding the Corporate Transparency Act (CTA) and its impact on the FinCEN’s filing of beneficial ownership information. Please see this article for the most up-to-date information. In...
Are you charitably minded and have a significant amount of money in an IRA? If you’re age 70½ or older, and don’t need the money from required minimum distributions, you may benefit by giving these amounts to charity. IRA...
At many companies, a wide gap exists between the budgeting process and risk management. Failing to consider major threats could leave you vulnerable to high-impact hits to your budget if one or more of these dangers materialize. Here are...
Business owners are urged to create succession plans for the good of their families and their employees. But there’s someone else who holds a key interest in the longevity of your company: Your lender. If you want to maintain...
Do you own commercial or investment real estate that has substantially increased in value? If you sell the property, you may be hit with a huge capital gain tax liability. A possible solution may be to consider a Section...
The Tax Cuts and Jobs Act (TCJA) made only one change to the federal gift and estate tax regime, but it was a big one. It more than doubled the combined gift and estate tax exemption, as well as...
“Company culture” is a buzzword that’s been around for a while, but your culture may never have mattered as much as it does in today’s transparency-driven business arena. Customers, potential partners and investors, and job candidates are paying more...
Mowery & Schoenfeld, LLC is proud to announce Michael Deering, Tax Partner and Director of Tax, was named one of the Crain’s 2022 Notable Gen X Leaders in Accounting, Consulting and Law. This award recognizes the top Chicago area...
Here are some of the key tax-related deadlines affecting businesses and other employers during the first quarter of 2020. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us...
Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the...
In many industries, market conditions move fast. Businesses that don’t have their ears to the ground can quickly get left behind. That’s just one reason why some of today’s savviest companies are establishing so-called “shadow” (or “mirror”) boards composed...
HSAs are now a key feature of many health-insurance plans, both for employees and individual buyers. For 2023, the maximum HSA contribution is $7,750 for a family and $3,850 for an individual, plus $1,000 for participants age 55 and...
Like many employers, you may allow employees to carry over unused vacation pay from one year to the next. With the year winding down, and gift-giving on the minds of many, certain staff members might inquire about donating their...
Cloud computing — storing data and accessing apps via the Internet — has been widely adopted by businesses across industry and size. Like many technological advances, though, new derivatives continue to emerge — including so-called multicloud computing. Under this...
If you are considering buying or selling a business — or are in the process of a merger or acquisition — it is important that both parties report the transaction to the IRS in the same way. Otherwise, you may increase your...
Extending credit to business customers can be an effective way to build goodwill and nurture long-term buyers. If you extend customer credit, however, it also brings sizable financial risk to your business, as cash flow could grind to a...
The Employee Retention Credit was part of the CARES Act designed to encourage businesses to retain employees. The credit is fully refundable against payroll taxes for those businesses “significantly impacted by COVID-19.” Previously there were several limitations based on...
Under the Families First Coronavirus Response Act (FFCRA), employers may be entitled to tax credits for wages paid to employees who took leave related to the COVID–19 pandemic—including time away for personal illness, the care of others, or vaccine...
In the latest report by National Alliance for Caregiving, it was revealed family caregivers now encompass more than one in five Americans. As the demands for caregiving rise in the US, more burden has been falling on working family...
Fewer people currently are subject to transfer taxes than ever before. But gift, estate and generation-skipping transfer (GST) taxes continue to place a burden on families with significant amounts of wealth tied up in illiquid closely held businesses, including...
Audited financial statements come with a special bonus: a “management letter” that recommends ways to improve your business. This means free advice from financial pros who have seen hundreds of businesses at their best (and worst) and who know which...
A primary estate planning goal for most people is to hold on to as much of their wealth as possible to pass on to their children and other loved ones. To achieve this, you must limit estate tax liability...
The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) finalized a rule last month to extend the deadline for companies created or registered in 2024 to file their initial beneficial ownership information reports. The rule will require most U.S. corporations,...
Many business owners reach a point where managing the financial side of the enterprise becomes overwhelming. Usually, this is a good thing — the company has grown to a point where simple bookkeeping and basic financial reporting just do...
Is your organization looking to hire new employees? Join the club. The U.S. unemployment rate hit a historic low this year, according to a Bureau of Labor Statistics household survey. It fell to 3.6%, the lowest rate since December...
By now, most employers have read up on, hired and gotten to know Millennials. Well, guess what? A whole new demographic is here: Generation Z. Whereas Millennials are those who came of age around the Millennium, Gen Z are regarded as...
Many businesses struggle to turn abstract strategic-planning ideas into concrete, actionable plans. One reason why is simple: ineffective meetings. The ideas are there, lurking in the minds of management and key employees, but the process for hashing them out...
When you retire, you may consider moving to another state — say, for the weather or to be closer to your loved ones. While it is not at the top of the list when preparing for a move, do...
If you’re thinking about selling your home, it’s important to determine whether you qualify for the home sale gain exclusion. The exclusion is one of the most generous tax breaks in the tax code, so be sure to review...
Like most businesses, yours probably has a variety of physical assets, such as production equipment, office furnishings and a plethora of technological devices. But the largest physical asset in your portfolio may be your real estate holdings — that...
Cost segregation is a strategic tax planning tool that allows businesses to accelerate the depreciation of certain assets, resulting in significant tax savings. By classifying assets into shorter recovery periods, businesses can deduct larger portions of their investments in...
More and more employers are contributing dollars toward the cost of health club memberships for employees. Some are even building their own on-site fitness centers. If your organization is considering either approach, you might wonder: Are health club memberships...
Written by: Michael Szewc, Senior State & Local Tax Manager In the midst of managing day-to-day operations, sales and use taxes often slip under the radar for business owners and management. However, overlooking these tax obligations can lead to...
The standard for valuing certain assets and liabilities under U.S. Generally Accepted Accounting Principles (GAAP) is “fair value.” This differs from other valuation standards that may apply when valuing a security or business interest in a litigation or mergers...
The Setting Every Community Up for Retirement Enhancement (SECURE) Act 2.0 was passed by Congress on December 23, 2022 and signed by President Biden on December 29, 2022. The SECURE Act 2.0 is an expansion of the original SECURE...
A Charitable Lead Trust (CLT) is a great option for affluent families who wish to give to charity while minimizing gift and estate taxes. These trusts are most effective in a low-interest-rate environment, so conditions for taking advantage of...
You may be spending considerable time and resources training and upskilling sales staff on cross-selling and expanding existing customer relationships. And this is, no doubt, a critical task. But don’t overlook the vast pool of prospects that want to...
What makes Roth IRAs so appealing? Primarily, it’s the ability to withdraw money from them tax-free. But to enjoy this benefit, there are a few rules you must follow, including the widely misunderstood five-year rule. Three types of withdrawals...
Turn on your computer or mobile device, scroll through Facebook or Twitter, or skim a business-oriented website, and you’ll likely come across the term “emerging technologies.” It has become so ubiquitous that you might be tempted to ignore it...
With summer upon us, vacations are at the top of everyone’s mind. If you’re self-employed or a business owner, you have a golden opportunity to combine a business trip with a few extra days of vacation and offset some...
If you’re a business owner, there are tax breaks (and other nontax benefits) on the table if you hire your children or grandchildren this summer. They can gain on-the-job experience, save for college and learn how to manage money. And you...
It’s common for you to associate your CPA with historical financial data and performance; after all, audits and tax returns typically report what has already happened. But don’t forget you can hire one to help predict how a company will...
With summer racing by in a whirlwind of vacations, BBQ’s, and celebrations, it is easy to let tax deadlines slip to the bottom of our to-do lists. Here are some of the key tax-related deadlines affecting businesses and other...
We’ve seen supply chain issues ebb and flow since the beginning of 2020. Sometimes, that meant shipments arrived later. Other times, they never arrived at all. Supply chain disruptions have caused uncertain times and increased prices for businesses and...
If you have a parent entering a nursing home, taxes are probably the last thing on your mind. But you should know that several tax breaks may be available to help offset some of the costs. Medical expense deductions...
As the global economy continues to expand, navigating international tax regulations is paramount for both businesses and individuals alike. One such regulation that has significant implications for financial institutions, multinational corporations, and even individual taxpayers is the Foreign Account...
Few businesses today can afford to let potential buyers slip through the cracks. Customer relationship management (CRM) software can help you build long-term relationships with those most likely to buy your products or services. But CRM software is not...
Russia’s invasion of Ukraine entered its second week with Russian military forces increasing attacks on the civilian areas of Ukraine’s largest cities. The loss of life is a tragedy, and the displacement of more than a million people is...
What makes Roth IRAs so appealing? Primarily, it’s the ability to withdraw money from them tax-free. But to enjoy this benefit, there are a few rules you must follow, including the widely misunderstood five-year rule. Three types of withdrawals...
If a prime objective of your estate plan is to leave a lasting legacy, a dynasty trust may be the right estate planning vehicle for you. And, thanks to the substantially increased generation-skipping transfer (GST) tax exemption amount established...
One of the most popular fringe benefits for employees at many organizations isn’t an insurance plan or a health club membership; it’s shiny chrome and steel — a vehicle. Providing a car, van or truck that an employee can...
U.S. taxpayers are required to report cryptocurrency sales, trades, payments, and income to the IRS. But with cryptocurrency still relatively new to being a mainstream part of personal finance, you may be wondering if or how it’s going to...
Roth 401(k) accounts have been around for 13 years now, and they are gaining popularity as more employers are offering them each year. A recent study by the Plan Sponsor Council of America (PSCA) found that Roth 401(k)s are now...
The 3.8% net investment income tax (NIIT) is an additional tax that applies to some higher-income taxpayers on top of capital gains tax or ordinary income tax. Fortunately, there are strategies you can use to soften the blow of...
The IRS continues to report a rise in scams as imposters prod taxpayers to reveal personal identifiable information and make hasty payments to avoid prison time. For a lot of people, hearing from the IRS causes panic. But before...
There are many ways for employers to conduct annual performance reviews. So many, in fact, that owners of small to midsize businesses may find the prospect of implementing a state-of-the-art review process overwhelming. The simple truth is that a...
Lincolnshire, IL – Mowery & Schoenfeld is proud to announce Jeffery L. Mowery, Mowery & Schoenfeld’s Managing Partner, has been chosen as one of the 2023 Managing Partner Elite by Accounting Today. The Managing Partner (MP) Elite report, presented...
Planning your estate around specific assets is risky and, in most cases, should be avoided. If you leave specific assets — such as homes, cars or stock — to specific people, you may inadvertently disinherit them. Illustrating the problem...
Health Savings Accounts—commonly referred to as HSAs—are triple-tax advantage accounts offered by HSA-eligible health plans. In most cases, all deposits are tax-deductible, all growth is tax-deferred, and all withdrawals used on qualifying expenses are tax-free. Although most often recognized...
Spring and summer are the optimum seasons for selling a home. And interest rates are currently attractive, so buyers may be out in full force in your area. Freddie Mac reports that the average 30-year fixed mortgage rate was...
Wednesday, March 15, 2023 marks the filing deadline for S Corporations and Partnerships. This year’s tax deadline for individuals, trusts, estates, gift, and C corporations will be Tuesday, April 18, 2023. Do I have to pay if I plan...
Each day we are faced with choices: paper or plastic, chocolate or vanilla, regular or decaf. For businesses, a common conundrum is buy or lease. You’ve probably faced this decision when considering office space or a location for your...
If you read the Internal Revenue Code (and you probably don’t want to!), you may be surprised to find that most business deductions aren’t specifically listed. For example, nowehre does the Code explicitly state that you can deduct office...
The IRS has released its plans to have 2021 tax returns due on April 18, 2022, for most individual filers. This marks the first time since the pandemic began that filing deadlines will return to historical norms. Although Americans...
Authored Content by Matt Schoenholtz, Client Accounting Services Partner In working with clients, I like to use the term “The ART of Accounting” to explain to them exactly why having an accounting partner is so important. If you are...
Standard cost accounting doesn’t necessarily work for lean operations. A simplified reporting alternative that generates more timely, relevant financial data, lean accounting could be the answer for you. But it’s not right for every situation. What’s lean manufacturing? Lean manufacturers...
Estate planning isn’t just about what happens to your assets after you die; more importantly, its about protecting yourself and your loved ones. This includes having a plan for making critical medical decisions in the event you’re unable to make...
With the year underway, your business probably has a strategic plan in place for the months ahead. Or maybe you’ve created a general outline but haven’t quite put the finishing touches on it yet. In either case, there’s a...
You have all heard the terms “bull market” and “bear market.” These two states of the market are named as such because the attack patterns of these predators match the trends for which they represent: bulls attack upwards with...
Content provided by Derek Morgan, Senior International Tax Services Manager For immigrants coming to the U.S.—whether they are here for temporary employment, permanent residency, or other similar situations—understanding the intricacies of the U.S. tax and social security systems is...
An independent quality of earnings (QOE) report can be a valuable tool in mergers and acquisitions. It’s important for both buyers and sellers to look beyond the quantitative information provided by the selling company’s financial statements. Quality matters There’s...
Many businesses have a life cycle that, as life cycles tend to do, concludes with a period of decline and failure. Often, the demise of a company is driven by internal factors — such as weak financial oversight, lack...
For many filers, tax season can be a time of stress and confusion. Navigating 1040s can be daunting, especially with the constant flux of rules and regulations governing the process. However, with a keen eye for detail and a...
In the broadest sense, strategic planning comprises two primary tasks: establishing goals and achieving them. Many business owners would probably say the first part, coming up with objectives, is relatively easy. It’s that second part — accomplishing those goals...
As an individual, you’ve no doubt been urged to regularly check your credit score. Most people nowadays know that, with a subpar personal credit score, they’ll have trouble buying a home or car, or just getting a reasonable-rate credit...
As a newly appointed CEO stepping into an operator role post-acquisition, there is already enough on your plate. However, this is a critical phase moving from search fund to operating company where finding the right financial reporting and advisory...
While absenteeism has been a long-standing thorn in the side of many companies, the other end of the spectrum is just as damaging; “presenteeism,” when employees come in unwell or put in excessive overtime, can be a prickly thorn...
It’s every business owner’s nightmare. Should hackers gain access to your customers’ or employees’ sensitive data, the very reputation of your company could be compromised. And lawsuits might soon follow. No business owner wants to think about such a...
As companies increase their investments in social media marketing, many are seeking ways to make it simpler and more cost-effective. Here are some ways to take a measured approach. Pick your battles Many marketers have realized that their companies...
Schedule K-1 is a tax form required to be filed by pass-through entities (partnerships and S corporations) to report each investor’s share of income, deductions, credits, and other tax-relevant items. Since these entities generally don’t pay income taxes at...
A good marketing plan should be like a network of well-paved, clearly marked roads shooting out into the world and leading back to your company. But, all too easily, a business can get stuck in the mud while trying...
You have countless options when it comes to choosing a charitable organization to donate to. You may choose from a variety of donation options, too; you may wish to give cash or to contribute noncash items such as stock,...
Since 1992, the United States and Russia have enjoyed a mutual Income Tax Treaty designed to prevent double taxation and fiscal evasion regarding taxes on income, commonly called the U.S. Russia Tax Treaty. However, two weeks ago (August 16,...
For several years now, cloud computing has been touted as the perfect way for companies large and small to meet their software and data storage needs. But, when it comes to choosing and deploying a solution, one size doesn’t...
Ask many entrepreneurs and small business owners to show you their financial statements and you’ll likely get a glimpse at their bookkeeping software. Although tracking transactions is critical, ledger detail is not a financial statement. In short, financial statements...
Today’s business technology is both powerful and restrictive. No matter how “feature rich” a software solution or hardware asset may be, there’s always another upgrade around the corner. In other words, it’s just a matter of time before your...
As the old saying goes, “Knowledge is power.” This certainly rings true in business, as those who best understand their industries and markets tend to have a knack for staying on top. If that person is the owner, however,...
Recessions—defined as two consecutive quarters of economic decline—are often caused by unexpected economic shifts. And in the past few years, we have had a lot of them: the global COVID-19 pandemic, the war in Ukraine, the Great Resignation, and...
“I could sell water to a whale” While many salespeople have an abundance of confidence (it’s really a prerequisite for the job, right?), the sales department still needs support just like any other part of a company. And we’re...
Nowadays, data drives everything – including the very buildings in which companies operate. If your business is considering upgrading its current facility, or moving to or constructing a new one, it’s important to be aware of “smart” buildings. A...
One thing in plentiful supply in today’s business world is help. Orbiting every industry are providers, consultancies, and independent contractors offering a wide array of support services. Simply put, it’s never been easier to outsource certain business functions so...
As promised, we have been following developments in proposed tax changes and we are committed to keeping you updated. Previously, we covered the ways the bill proposed by the House Ways and Means Committee affects you, your business and...
Effective January 1, 2022, mobile money apps like Venmo, PayPal, and CashApp must report annual commercial transactions totaling $600 or more to the IRS. This change comes as a part of the 2021 American Rescue Plan. Previously, the threshold...
Do you make nondeductible contributions to a traditional IRA? If so, it is important to understand the tax treatment of distributions to ensure you’re not taxed twice on the same income. Justify your strategy There are several reasons you...
This year, we are learning to navigate a changing environment full of surprises and challenges – especially when it comes to running your business. As the saying goes, we are not in Kansas anymore. How do you budget for...
It’s easy to understand why more and more businesses are taking a “bring your own device” (BYOD) approach to the smartphones, tablets, and laptops many employees rely on to do their jobs. BYOD can boost employee efficiency and satisfaction,...
IT consultants are many things – experts in their field, champion of the workaround, and, generally, the “people persons” of the tech field. But they’re not magicians who, with the wave of a smartphone, can solve any dilemma you...
By and large, today’s employees expect employers to offer a tax-advantaged retirement plan. A 401(k) is an obvious choice to consider, but you may not be aware that there are a variety of types to choose from. Let’s check...
Written by: Fernando Lopez, Partner, International Tax Intellectual Property As a Driver of Revenue Let’s consider a set of U.S. based businesses that are currently going through their initial formative period. Each business offers a promising product or service...
Funny thing about customers: They can keep you in business – but they can also put you out of it. The latter circumstance often arises when a company overly relies on a few customers that abuse their credit to...
Many business owners use a calendar year as their company’s tax year. It’s intuitive and aligns with most owners’ personal returns, making it about as simple as anything involving taxes can be. Not all businesses are able to fit their primary...
When a business is launched, its owners typically welcome every customer through the door with a sigh of relief. But after the company has established itself, those same owners might start looking at their buying constituency a little more...
You’ve no doubt heard the old business cliche “cash is king.” And it’s true: A company in a strong cash position stands a much better chance of securing financing, attracting investors, and executing on its own strategic plans. One...
In today’s world, technology is constantly changing and becoming more important to our day to day lives, both in and out of the office. This unfortunately also means the cybercrime business is constantly changing and growing. There are many types...
With the new year just beginning, now is the perfect time to start organizing your tax records. Granted, it may not be something you relish doing, but tacking this now can save you a multitude of headaches later. Tax...
Businesses that acquire, construct, or substantially improve a building – or did so in previous years – should consider a cost segregation study. These studies combine accounting and engineering techniques to identify building costs that are properly allocable to...
The Tax Cuts and Jobs Act (TCJA) affects more than just income taxes. It’s brought great changes to estate planning and, in doing so, bolstered the potential value of dynasty trusts. Exemption changes Let’s start with the TCJA. It...
Most business owners want to grow their companies. And one surefire sign of growth is when ownership believes the company can expand its operations to a second location. If your business has reached this point, or is nearing it,...
If you are a partner in a business, you may have come across a situation that’s puzzling: in a given year, you may be taxed on more partnership income than was distributed to you from the partnership in which...
Late summer and early fall, when so many families have members returning to educational facilities of all shapes and sizes, is also a good time for businesses to creatively step up their business development efforts, whether it’s launching a...
On one level, every company’s inventory is a carefully curated collection of inanimate objects ready for sale. But, on another, it can be a confounding, slippery and unpredictable creature that can shrink too small or grow too big –...
After weeks of negotiations, the Inflation Reduction Act (IRA) was passed in the Senate. The effects of this bill are aimed at reducing some of the burden of inflation in the longer-term. The bill hopes to achieve this with...
Strategic planning is key to ensuring every company’s long-term viability, and goal setting is an indispensable step toward fulfilling those plans. Unfortunately, businesses often don’t accomplish their overall strategic plans because they’re unable to fully reach the various goals...
In our era of ever-increasing globalization of commerce, businesses enjoy substantial opportunities to reach new markets and customers beyond their domestic borders. Buying a foreign business presents a promising avenue for expansion, offering access to new markets, diverse customer...
As a business grows, one of many challenges it faces is identifying a competitive yet manageable compensation structure. After all, offer too little and you likely won’t have much success in hiring. Offer too much and you may compromise...
At Mowery & Schoenfeld, our Transaction Advisory Services practice focuses on deals in the lower middle-market, which we define as companies between $1M and $10M of EBITDA. About 80% of our engagements support buyers of these businesses by providing...
Technology is tricky. Much of today’s software is engineered so well that it will perform adequately for years. But new and better features are being created all the time. And if you’re not getting as much out of your...
When businesses first began using websites, getting noticed was the name of the game. Remember pop-up ads? Text scrolling up the screen? How about those mesmerizing rotating banners? Yes, there were – and remain – a variety of comical...
The new lease standard is coming. Let’s make sure you are ready! Read on for the first of our four-part series. Please note, if applicable, your M&S Advisor will reach out soon to ensure the implementation of this standard...
Some business owners – particularly those who founded their companies – may find it hard to give up control to a successor. Maybe you just can’t identify the right person internally to fill your shoes. While retirement may not be in your...
“That’s just the cost of doing business.” You’ve probably heard this expression many times. It’s true that, to invoke another cliche, you’ve got to spend money to make money. But that doesn’t mean you have to take rising operational...
Part 2: The new least standard is coming. Learn how this will impact your Operating Leases. Please note, if applicable, your M&S Advisor will reach out soon to ensure the implementation of this new standard. The New Lease Standard…...
This fall, Illinois residents could see checks in the mail or deposits in their bank accounts thanks to Gov. JB Pritzker’s Illinois Family Relief Plan. Both Individual Income Tax Rebates and Property Tax Rebates are scheduled to begin Monday,...
“Blockchain” may sound like something that goes on a vehicle’s tires in icy weather or that perhaps is part of that vehicle’s engine. Indeed it is a type of technology that is predicted to help drive business worldwide (and...
Part 3: ASC 842 is coming. Read on to learn about how to calculate your lease liability under the new standard. Please note, if applicable, your M&S Advisor will reach out soon to ensure the implementation of this standard. ...
Every year is a journey for a business. You begin with a set of objectives for the months ahead, probably encounter a few bumps along the way, and hopefully reach your destination with some success and a few lessons...
For some business owners, succession planning is a complex and delicate matter involving family members and a long, gradual transition out of the company. Others simply sell the business and move on. There are many variations in between, of...
Companies hoping to reduce their tax bills or increase their refunds shouldn’t overlook the fuel tax credit. It’s available for federal tax paid on fuel used for nontaxable purposes. When does the federal fuel tax apply? The federal fuel...
When business people speak of innovation, the focus is usually on a pioneering product or state-of-the-art service that will “revolutionize the industry.” But innovation can apply to any aspect of your company – including customer service. Many business owners...
Social media can be an inexpensive, but effective, way to market a company’s products or services. Like most businesses today, you’ve probably at least dipped your toe into its waters. Or perhaps you have a full-blown, ongoing social media...
On August 16, 2022, President Biden signed the Inflation Reduction Act. The effects of this bill are aimed at reducing some of the burden of inflation in the longer-term, supporting small businesses, and impacting climate change. Below is a...
The attitudes and behaviors of your people managers play a critical role in your company’s success. When your managers are putting forth their best effort, the more likely it is that you’ll, in turn, get the best performances out of...
Part 4: ASC 842 is coming. In this last of our four-part series, we will discuss financial statement disclosure associated with the new standard. Please note, if applicable, your M&S Advisor will reach out soon to ensure the implementation...
What could stop your company from operating for a day, a month, or a year? A flood or fire? Perhaps a key supplier shuts down? Or maybe a hacker or technical glitch crashes your website? And you suddenly lose...
Concentration risks are a threat to your supply chain. These occur when a company relies on a customer or supplier for 10% or more of its revenue or materials, or on several customers or suppliers located in the same...
Making the leap from employee to business owner is an exciting milestone, but it comes with its own set of tax implications you’ll need to be prepared for.
Adequate insurance coverage is, in many cases, a legal requirement for a business. Even if it’s not for your company, proper coverage remains a risk management imperative. But that doesn’t mean you have to take high insurance costs sitting...
Is business going so well that you’re thinking about adding another location? If this is the case, congratulations! But before you start planning the ribbon cutting ceremony, take a step back and ask yourself some tough questions about whether...
You’ve probably heard the term and wondered if it could happen to your company. Maybe it already has. We’re referring to “digital disruption” – when new technologies and business models affect the value proposition of existing goods and services....
When it comes time to transition your role as business leader to someone else, you’ll face many changes. One of them is becoming a mentor. As such, you’ll have to communicate clearly, show some patience, and have a clear...
Hiring a Certified Professional Accountant (CPA) is a strategic move that brings numerous benefits when navigating tax laws and regulations. In this comprehensive guide, we'll explore the role of a CPA, the circumstances that warrant their expertise, the cost...
With so much data flying around these days, it’s easy for a company of any size to get overwhelmed. If something falls through the cracks, say a contract renewal or outstanding bill, your financial standing and reputation could suffer....
Over the last several years, unprecedented supply chain disruptions caused by both the pandemic and geopolitical stress have affected the global availability of raw materials, finished goods, labor, and talent. These issues have increased prices for businesses and consumers...
“Sorry, we don’t carry that item.” Or perhaps, “No, that’s not a part of our service package.” How many times a year do your salespeople utter these words or ones like them? The specific number is critical because if...
In business, and in life, among the most important ways to manage risk is through insurance. For certain types of companies – particularly start-ups and small businesses – one major threat is the sudden loss of an owner or...
Exciting Illinois tax news: A bill that could save small businesses in Illinois significant money, is now on the books! The law will allow owners of partnerships, LLCs, and S-corporations to avoid the $10,000 cap on the state and...
No business owner wants to send out spam emails. Even the term “email blast,” the practice of launching a flurry of targeted messages at customers and prospects, has mixed connotations these days. Yet email remains a viable and even...
Many companies take an ad hoc approach to technology. If you’re among them, it’s understandable; you probably had to automate some tasks before others, your technology needs have likely evolved over time, and technology itself is always changing. Unfortunately,...
An old business adage says, “Sales is a numbers game.” In other words, the more potential buyers you face, the better your chances of making sales. This isn’t completely true, of course; success also depends on execution. Nonetheless, when...
Many succession plans ultimately lead to a transaction, usually in the form of selling your business. How this looks can depend on your business structure, entity type and ownership. From preparing through executing the sale, join us as we...
With the release of a reconciled version of the Tax Cuts and Jobs Act (TCJA) from the House-Senate Conference Committee, we now have a better idea of how the final tax reform provisions will look. As promised, here are...
NOTE: The information contained in this blog post may no longer be applicable. An update can be found here. Tax Reform proposals in the House and Senate have been changing rapidly as Congress looks to complete a comprehensive tax...
If you are looking to hire, you should be aware of a valuable tax credit for employers hiring individuals from one or more targeted groups. The Work Opportunity Tax Credit (WOTC) is generally worth $2,400 for each eligible employee...
I am attending a conference in December where the keynote speaker is Marcus Buckingham. I reviewed and read his book StandOut 2.0. Marcus had previously published “First, Break All the Rules,” and “Now, Discover Your Strengths.” These books helped...
Like many business owners, you may find yourself accustomed to running the show. But I’ve found that as our company has grown, I am better off sharing responsibility for major decisions. Whether it’s with experienced managers that we’ve recruited...
Many companies reach a point in their development where they could benefit from an advisory board. It’s all too easy in today’s complex business world to get caught up in an “echo chamber” of ideas and perspectives that only...
After numerous attempts to caution taxpayers about the fraud surrounding the Employee Retention Credit (ERC), the IRS declared a moratorium on all new ERC claims until at least December 31, 2023. Any existing claims submitted prior to the moratorium...
A good basketball team is at its best when its top players are on the floor. Similarly, a company is the most productive, efficient, and innovative when its best employees are in the right positions, doing great work. Unfortunately,...
Authored by: Fernando Lopez, International Tax Partner Over the last several years, unprecedented supply chain disruptions caused by both the pandemic and geopolitical stress affected the global availability of raw materials, finished goods, labor, and talent. These issues severely...
In popular culture, the word “spinoff” usually refers to a television show whose main characters originated from an already established show (think Trapper John M.D.). But the word applies to the business world, too. Here it describes a division...
Content Provided by Damian Stanislaw Ponicki, Senior International Tax Associate In an increasingly globalized world, international business transactions have become the norm rather than the exception. For businesses in the United States engaged in cross-border commerce, understanding the nuances...
We live and work in the information age. As such, the opportunity to gather knowledge about your company’s competitors and industry as a whole has never been better. This practice – commonly known as “competitive intelligence” – can help...
A successful family business can provide long-term financial security for you as its owner, as well as for your loved ones. To improve the chances that your company will continue to benefit your heirs after you’re gone, take steps...
The year isn’t over yet, but if your Company is off to a rough start, know that a silver lining may exist in the net operating loss (NOL) deduction. The rules A net operating loss occurs when a business’s...
Anyone who owns a closely held business with at least one other partner needs to take certain steps to guard against business disruption. If one partner departs suddenly, or becomes disabled or dies, serious confusion and conflicts can ensue....
“I’m taking a sick day!” This familiar refrain is usually uttered with just cause, but not always. What if there were no sick days? No, we’re not suggesting employees be forced to work when they’re under the weather. Rather,...
With busy season over (for now), employee reviews here, and recruiting season right around the corner, compensation is a hot topic around our office. If employees here are talking about it, it seems safe to say that employees at your...
I recently attended the Geneva Group International (GGI) European Conference in Brussels, Belgium where I had the opportunity to interact with accountants and attorneys from across Europe and North America. Our membership in GGI gives us the opportunity to...
As an avid follower of History and Geography (my best categories on Trivial Pursuit), I really enjoyed “How the States Got Their Shapes” by Mark Stein. The book begins with the history of American expansion from sea to shining...
Although many American taxpayers may worry about being subject to an IRS audit, they’re often unsure about why an account gets flagged. Below, we’ll take a look at what an audit entails as well as common reasons why Americans...
Many companies, especially smaller ones, minimize in-house training to cut costs. But the current business environment – with its hard-to-predict changes, external threats, and regulatory demands – is causing some owners to rethink this strategy. A strong training program can not...
On August 24th, 2022, a notice released by the IRS indicated penalty relief to most people and businesses who filed certain 2019 or 2020 returns late. This notice also provides an opportunity to certain parties to avoid penalties if...
For many of today’s companies, going global seems like a quick and trouble-free growth strategy. Technological advances and expansive supply chains make doing so easier than ever. But if you make this move impetuously, you may soon find yourself...
Could your company’s benefits package use a bit of an upgrade? If so, one idea to consider is adding an option for employees to convert their regular 401(k)s to Roth 401(k)s. Under a Roth 401(k), participants make after-tax contributions to...
Business owners get to make executive decisions. It’s one of the perks of the job. However, acting unilaterally when buying software can be a risky move. Because new technology affects the entire team, the entire team (or at least...
Most businesses are wrapping up their year-end books and generating their annual financial statements. This makes it a great time to settle in by a roaring fire (or enjoy a beautiful 60 degree February day in Chicago!) and catch up on...
As a small business owner, you may assume it is unlikely you would be a cybercriminal target, thinking they would target larger organizations. Unfortunately, that way of thinking is inaccurate and small businesses are just as (if not more)...
Next Tuesday, April 18, is Tax Day. If you have not yet given us your information, please do so as soon as possible. Although we cannot guarantee anything that has come in after March 8 will be filed without...
Our long standing clients John and Shara Weaver sold their business, Aspen Valley Landscape Supply, Inc. , to SiteOne Landscaping last week. The Weavers have operated the business for the last 30 years and build a very valuable enterprise...
Welcome to Part 2 of our series evaluating the possible impact proposed legislation may have on your tax situation. Today we are going to explore the potential impact on estate and gift planning. Proposals under review with Congress...
On November 15, 2022, President Biden signed the Infrastructure Investment and Jobs Act. Currently, the larger tax bill—the Build Back Better Act—is still pending in the US Senate. We will keep you informed if anything changes or passes. Although...
The IRS is making a major shift in how tax refunds and payments are handled: paper checks are soon to be a thing of the past. This move is part of a broader plan to update federal financial processes...
As we approach the end of the year, tax planning becomes increasingly important. Many times, you and your business can identify tax advantageous ways to spend or distribute any excess cash reserves. As such, you begin to focus on...
As we approach the end of the year, it’s time to start thinking about (and talking to your employees about) retirement planning and the tax savings that are still available. Employers who offer retirement savings plans are already helping...
Welcome to Part 1 of our series looking at the results potential legislation and Biden’s proposals may have on your tax situation. Today we are going to explore the potential impact to individuals and businesses. Stay tuned for an...
As we approach the end of the year and the end of the tax planning season for 2016, there’s a lot of speculation surrounding the possible changes in tax law for 2017. Tax reform is a common goal of...
Wayfair may bring to mind peppy commercials filled with bright throw pillows. But, it is also a complex and changing tax topic, relevant to nearly all businesses today. A little legal background In 1992, the U.S. Supreme...
Nearly every business owner wants to grow his or her company, but with growth comes risk, and that can keep you from taking the steps necessary to move forward. Yet if you don’t think be enough to develop a...
On January 12, the New York Times reported inflation is rising at its highest rate since 1982—something everyone has experienced as prices for essentials such as gas and food soar while supply chains remain unable to keep up with production due to...
There is a great deal of speculation about the potential tax changes that will come from the Trump administration. The current proposals are, of course, subject to the legislative process and potential negotiation. The most recent proposals are summarized...
Many retirement plan sponsors consider converting to new providers starting with the new plan year. For calendar year plans, that means January 1. If this is the case for your company, now is a good time to evaluate your...
Update 12/27/2024:: Mowery & Schoenfeld is following the recent legal developments regarding the Corporate Transparency Act (CTA) and its impact on the FinCEN’s filing of beneficial ownership information. Please see this article for the most up-to-date information. What...
Many business owners launch their enterprises with a business plan – the written document that outlines key strategic objectives and practical means of accomplishing them. Likewise, many of these business owners apply the same methodology to the succession plan,...
Today, November 7th, 2016, we are excited to celebrate the 20th anniversary of the founding of Mowery & Schoenfeld. Over the past 20 years, we have become a leading local firm in the Chicago market. We have been privileged...
During the week of October 17, I attended the 2016 World Converence and the 2016 Asia-Pacific Regional Conference for Geneva Group International (GGI), our international association. The conference was held in Bangkok, Thailand. GGI is a leading association of...
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s employee retention credit. Navigating and interpreting the complicated details of the legislation is necessary to determine eligibility and calculate an accurate ERC. However, the requirements...
As you begin to compile your information for the 2022 tax filing season, consider some of the following steps you can take to ensure your tax return and refund don’t face delays. Organize your tax docs early Getting your...
When I arrived for my recent trip to Bangkok, I found the nation in mourning over the death of King Bhumibol. He had reigned for over 70 years and was the longest reigning monarch in the world. Although he...
In 1943, psychologist Abraham Maslow set out his “hierarchy of needs.” This theory suggested that human behavior is a response to a variety of needs ranging from physical survival to self-actualization. At this point, you may be wondering, “what...
Many businesses (including Mowery & Schoenfeld) start out very small and somewhat simple. At least, it seems that way now. As we have grown, we have found the need for a stronger company infrastructure and increased operational sophistication. In...
I hate to say it, but most business owners tend to believe that expense accounts are padded. It is fairly common in business. The question then becomes whether the abuse extends beyond the threshold of tolerance. In order to prevent...
As tax planning season rolls around once more, many of our clients are taking advantage of provisions in the tax law relating to equipment purchases in order to enhance their operations while reducing their annual tax liability. In recent...
Years of hard work have paid off, and you have built a business that stands the test of time. There comes a bittersweet moment when you pause to celebrate the empire you have built, but also start planning for...
In today’s interconnected world, small businesses have unprecedented access to fast growing global markets. From opening up new revenue streams and sources of supply to reducing operational and tax costs, expanding into international markets has never been easier and...
In case you haven’t heard, the IRS has released a new form, and it is due in just 7 days. June 30, 2016 is the filing deadline for the newest member of the expansive family of IRS forms, Form...
I recently attended the 2016 European Conference for Geneva Group International in Warsaw, Poland. I was accompanied by my friend and colleague, Jed Ang, Tax Manager at M&S. The conference consisted of 200 member delegates from countries throughout Europe...
We work with many successful companies across a wide variety of industries, providing financial leadership and advice. One thing that we do is look at common factors that help companies reach their goals. While every business needs solid internal...
By: Guest Blogger Ian Hanke, Senior Tax Associate at Mowery & Schoenfeld On August 11, 2015 the Ninth Circuit Court of Appeals reversed the tax court decision in the Voss case, now allowing two unmarried taxpayers who co-own a...
I’m a certified public accountant, a lawyer, a certified financial planner, a father, a husband and a managing partner – you never know which hat(s) I may be wearing as I start writing my weekly blog posts. Although it...
There seems to be quite a bit of momentum behind the reduction in corporate tax rates. This is one thing both the White House and Congress seem to agree on. This may happen in 2014 even though big changes...
Leverage Your Playing Field A business’ playing field can be as small as a town or as large as the globe. The playing field is the area in which a business serves clients, faces competition, and in which it...
Last year, I attended a presentation by Stephanie Shippers on Neuro-Linguistic Programming which provided an insight into various learning styles. At Mowery & Schoenfeld, we spend a great deal of time with our young staff on learning and development....
I recently wrote a letter to clients regarding the IRS issuing long-awaited Regulations on the tax treatment of amounts paid to acquire, produce, or improve tangible property. The Regulations explain when payments can be deducted, which payments confer an...
Mowery & Schoenfeld is very unique among CPA firms as 28 of the 55 people in our firm were born after 1980. Many traditional CPA firms are dealing with succession planning issues as their partners near retirement age. Our...
When starting a business, one critical decision every entrepreneur must make is choosing the most suitable entity structure. The entity structure you choose will not only lay the foundation for legal and operational aspects, but it will also play...
Significant changes to tax rates and deductions are on the horizon due to the expiration of the provisions in the Tax Cuts and Jobs Act (TCJA). Most of the changes to the tax code introduced by the bill went...
In my career as a CPA, I have seen many successful organizations. All of these prospering companies have one thing in common – they are continually seeking growth and improvement. They are driven by leaders who want to be...
According to an AICPA study, there are more people entering the field of accounting than ever. For many years, there were about 50,000 accounting degrees awarded per year. Beginning in 2002, these numbers fell drastically to about 35,000 in...
As part of the CARES Act, the Paycheck Protection Program (PPP) was a loan created to provide economic assistance to small businesses during the COVID-19 pandemic. Under the PPP, U.S. Congress authorized the Small Business Administration (SBA) to fund...
Gary Keller is the chairman of Keller Williams which is the largest real estate company in the United States. Gary and his colleague Jay Papasan have written The One Thing which is about focusing on the one most important...
As you begin to compile your information for the 2023 tax filing season, consider some of the following steps you can take to ensure your tax return and refund don’t face delays. Organize your tax docs early Getting your...
Every organization no matter how big or small has moments of truth. Moments of truth are often felt when core values are challenged – usually by external forces. How a business reacts during these moments speaks volumes about the...
On Friday, November 19th, the House passed President Biden’s $1.7 trillion Build Back Better Act. As of now, the Build Back Better Act and the provision within it are not yet final. We anticipate changes to the bill before...
April 15 – It means many different things to so many people. Some happily await their refunds while others begrudgingly write their checks. Then there is always the race to the post office at the last minute. At Mowery...
Yesterday, we explored your options for entity choice in forming your family business and the general tax issues of each structure. Today, we will dig into each of these a little deeper and explore the applicable accounting and tax...
The increase in Illinois tax rates was supposed to be temporary but now it appears headed towards permanence. There are proposals to change Illinois tax rates to graduated tax rates instead of the current flat tax rate system. An...
Maybe you are considering starting a family business or preparing to transfer one you started to the next generation. You may also be learning to manage a business your great-great-grandfather started long before you were born. Whatever the case,...
The United States enjoys a huge competitive advantage among other nations due to our transportation system. No country in the world has a system like that of the United States which combines geography and constructed assets. The Mississippi River...
From capital gains taxes to the 3.8% Net Investment Income Tax (NIIT), the tax implications of a home sale can be significant and impact the bottom line. But with the right knowledge and planning, homeowners can make the most...
As the managing partner of an accounting firm, leading a business through ebbs and flows ranks very high on my priority list – EVERY year. January through April are unmistakably exciting times in a CPA firm and a key...
When foreign business owners and investors plan to move to the United States, one crucial aspect of their financial strategy should be pre-immigration tax planning. This planning can significantly impact their tax liabilities and overall financial health once they...
“Start With Why: How Great Leaders Inspire Everyone to Take Action” was Simon Sinek’s first effort and was written in 2009. I recently discovered it and thought it would be helpful for entrepreneurs. This book is based on what...
Mowery & Schoenfeld has merged/acquired three certified public accounting (CPA) firms in the last five years. We are very happy with our decisions. Our industry is in the midst of a wave of consolidation. So why do CPA firms...
A “lost” client is often a misnomer applied when a client or customer is no longer using you or your services. You didn’t “lose” the client – they are not like a towel you left at the beach. You...
Every business faces “The Big Squeeze.” It is a phrase I use to describe a condition that affects virtually every business. The net income of a business is continually challenged. Maintaining and increasing revenue is critical to long-term success....
This week my blog includes two articles written by Michael Deering, our Director of Taxes at Mowery & Schoenfeld. The articles cover information regarding two important deadlines in 2014. The first article covers the estate tax return extension to...
Before jumping into the vacation rental market, it’s important for homeowners to understand the tax implications of renting out their vacation home. From rental income to deductions and depreciation, the tax effects of renting out a vacation home can...
It’s an unfortunate truth; many business owners worry their employees may be stealing from the business. With this thought, two questions tend to linger: “How much are they stealing?” and “What, if anything, should I do about it?” Generally...
I recently returned from the longest vacation I’ve taken since we started the firm 18 years ago. I was gone two full weeks traveling to Italy, Greece and Turkey. It was amazing! I’m one of those vacationers that generally...
Character Harry Callahan, played by Clint Eastwood in the movie Magnum Force, so famously said, “A man’s got to know his limitations.” After reading the book StrengthsFinder by Tom Rath, supported by The Gallup Organization, I’d like to modify...
In an era of escalating healthcare costs and ever-changing insurance landscapes, Americans are increasingly turning to Health Savings Accounts (HSAs) as a powerful tool to take control of their medical expenses. The IRS recently released guidance providing the 2024...
In my experience, too many people seem down about the future; worried about things not being as good as they have been in the past. At Mowery & Schoenfeld, with more than half of our staff born after 1980,...
I’m honored and humbled to announce Mowery & Schoenfeld was recently named as one of the 2014 Accounting Today’s Best Accounting Firms to Work for. This is the fourth year in a row Mowery & Schoenfeld has received this...
“At times, the high-performing firm appears dysfunctional and in constant chaos, but this is part of their continual commitment to improve at greatness,” Allan Koltin, Koltin Consulting Group. This quote immediately resonated with me. A little chaos goes a...
When it comes time to retire, there’s a lot to consider. Do you want to move closer to your children and grandchildren? Or do you want to move to a state where you can navigate winter without needing to...
Mergers and acquisitions are pivotal events in the business world, shaping the landscape of industries and companies. Understanding the nuances between these terms is crucial for anyone involved in strategic business decisions.
Mowery & Schoenfeld is a member of Geneva Group International (GGI), the 6th largest worldwide alliance of well-established and experienced accounting, consulting and law firms. Our membership gives us, and our clients, access to resources and talent worldwide as...
Beginning October 19, 2023, US taxpayers must use multifactor authentication (MFA) in order to access the Electronic Federal Tax Payment System (EFTPS), which primarily facilitates the payment of federal taxes, including income, employment, and excise taxes, by both individuals...
Update 12/27/24: On December 26, 2024, the Fifth Circuit Court of Appeals reversed its own stay on the District Court’s preliminary injunction, which had blocked enforcement of the January 1, 2025 compliance reporting deadline under the Corporate Transparency Act...
Although I typically write book reviews, I recently read an article that resonated with me, as a leader, on Forbes.com. The article, “10 Traits of Great Business Leaders” by Micha Kaufman, gives relevant examples and insight into certain characteristics...
At the most recent Federal Open Market Committee (FOMC) meeting, the U.S. Federal Reserve raised its federal target funds for the first time since December 2018. The Fed has increased the target funds rate by 0.25%, bringing current rates...
Today’s blog post is a simple reminder that small words can make a big difference to your entire business. As a leader, I often cringe when I hear “I” vs. “we” or “work for” vs. “work with.” This may...
Tax credits are far more valuable than tax deductions. Unlike a deduction, which reduces a business’s taxable income, a credit reduces the business’s tax liability dollar for dollar. Tax credits aren’t unlimited, however. For businesses, the aggregate value of...
Chartered Global Management Accountant (CGMA) is a new designation I recently earned. The designation recognizes the role of combining accounting and financial expertise with strategic insight to guide better business decisions. Why did I pursue the CGMA? I’m now...
Our long standing client and friend Albert H. Wohlers recently passed away at the age of 97. Al was a classic American success story. He grew up in Chicago and went to the University of Illinois with $200 in...
On August 23, 2021, a ruling was made by the Tax Court that may have a significant impact on how entrepreneurs treat expenses incurred during the search phase. An Examination of Estate of Morgan v. Comm’r of Internal Revenue...
“It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the...
Private foundations can be highly effective, but they’re expensive to set up and operate. DAFs are popular alternatives, but they also have potential drawbacks.
Roz Chast is a cartoonist who has written and drawn a personal memoir about the challenges of dealing with her aging parents. The book weaves in narrative, drawings and photos and puts forth a universal of theme of role...
For those organizations with more than 120 eligible employees, an audit of your employee benefit plan is required each year. Starting this year, these audits will operate differently. In an effort to strengthen the quality of the employee benefit...
I often find that we operate in the world of the lowest common denominator. We hesitate to recognize excellence. We try to keep things equal and on an even keel by operating at a low level and wind up...
My colleague Jonathan Sniegowski provided the following summary on the very recent announcement of the IRS concerning the implementation of the tangible personal property regulations. We have been actively addressing compliance with these regulations with our clients: On Friday,...
On February 18, 2015, the IRS issued Notice 2015-17 provides transition relief from the assessment of excise tax under section 4980D for small employers (in particular, employers who are not applicable large employers) who reimburse or pay a premium...
Last week, President Biden signed the Infrastructure Investment and Jobs Act (not to be confused with the Build Back Better Act currently in the Senate), which authorizes $550 billion in new funding on infrastructure projects such as public transportation,...
We completed our 19th busy season on April 15. That date marks the end of a nearly four month effort to help our clients meet their financial reporting commitments and tax obligations. This was once again a challenging time,...
No matter their income level, most Americans have felt the effects inflation is having on the cost of living. Despite predictions to the contrary, the annual inflation rate in August was 8.3% — down only slightly from the month...
I recently attended the European Regional Conference of Geneva Group International (GGI) in Lausanne, Switzerland. GGI is an international association of accounting, consulting and law firms. It has members in over 150 countries. Our Firm became a member of...
In September of 2022, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a new beneficial owner reporting requirement for certain U.S. entities in an effort to clamp down on illicit finance and money laundering, pursuant to Congress’ Corporate...
Our Firm has traditionally been very lean in the administrative department. We started our Firm at about the same time that technology transformed the accounting workplace. Our approach was to not have dedicated administrative assistants for partners; instead, we...
If you have a parent entering a nursing home, there may be more things on your mind than how it will affect your taxes. Assisted living costs are expensive, and prices are continuing to rise every year—but some of...
Every business owner should have an exit strategy that helps recoup the maximum amount for their investment. Understanding the tax implications of a business sale will help you plan for—and, in some cases, reduce—the tax impact. One option is...
As of February 17, 2025, the U.S. District Court for the Eastern District of Texas has ruled that the Corporate Transparency Act’s (CTA) beneficial ownership information (BOI) reporting requirements are back in effect. The Department of the Treasury understands...
I recently received a free copy of The 27 Challenges Managers Face by Bruce Tulgan. The book is great and something I would have gladly paid for considering the insights I gleaned from it. The book analyzes 27 particular...
I have a friend that was recently discussing her job with me. Although she has just started, she has found that it is a toxic environment. The owner/CEO rules the company in a very authoritative and controlling way. He...
You may be familiar with the rule that permits a business to deduct employee bonuses this year if it pays them within 2½ months after the end of the tax year. It’s an attractive year-end planning technique that benefits...
In attending various tax conferences that discuss this topic in detail, I have compiled the following list of “issues” that might trigger a tax audit: Making a lot of money or large fluctuations of income Making sure you are...
In recent months, we have seen in increase in bad or inadequate actors soliciting work related to the Employee Retention Credit. Due to the lack of IRS guidance on the subject, some are taking a very liberal interpretation or...
Matt Ridley’s The Rational Optimist is a history of progress from the Stone Age to current times. The book is based on the premise that man evolved from cave dwellers through specialization and exchanging tools and ideas. He suggests...
The final goal of the 2015 Stanley Cup Playoffs was a memorable example of teamwork. After a change in possession, the Blackhawks’ winger Brandon Saad shot up the ice, drawing the attention of the Lightning’s defenseman and goalie. Saad...
You have spent years building, managing and operating your business. Yet, owners often forget one very important task: succession planning. Whatever your long-term goals may be, it is vital to begin planning well ahead of your target retirement, since...
Some entrepreneurs might disregard compiling a comprehensive business plan when starting their businesses, but it’s an absolute imperative when running a company. Why? Because your business plan can predict the future. When we started Mowery & Schoenfeld nearly 19...
Vacation homes can serve as a central hub for you and your family to meet at every summer. But when you’re not using your vacation home, have you considered renting it out? As with any type of income, your...
Penalties for late filing can be steep, and interest rates are climbing ever higher. Take the standard penalty for failing to file your annual tax return on time, for example, which costs you 5% of the amount due for...
As retirement approaches, there’s a lot to consider. Many individuals contemplate a change of scenery and want to move to a different state in pursuit of a more relaxed and fulfilling lifestyle. While the allure of a new location...
If your company wants to acquire another business, you will need to anticipate many challenges. To improve your chances of success, it is important to devote resources to intensive tax planning before your transaction closes. During the purchase negotiations,...
On January 1, 2023, the Electric Vehicle Tax Credits will be distributed under new rules. With the passage of the Inflation Reduction Act (IRA), more than $300 billion will be invested in energy and climate reform, making it the...
A recent U.S. Tax Court ruling has significant implications for U.S. taxpayers who have been assessed penalties for late or omitted U.S. international tax filings or are currently delinquent with respect to such international tax filings. Case background The...
Many businesses outsource one or more of their IT functions with the goal of saving money. Yet if you don’t mitigate the risks involved, you could end up both losing out financially and failing to get the most from...
If you have money invested in the stock market, you’re well aware of potential volatility which can affect your net worth—thus affecting your lifestyle. Something you might not think about is the potential effect on your estate tax liability....
It’s tough for anyone who runs a business to remain completely objective. You have so much invested (time, energy, money), and you’re so close to so many minute details, that a sizable amount of subjectivity is bound to enter...
Navigating the complexities of transfer pricing is a critical aspect of managing a multinational business. This practice involves determining the prices at which goods, services, and intellectual property are exchanged between affiliated entities within the same company. In this...
Can you remember all of your online passwords off the top of your head? Or do you have a list saved on your computer, which is of course password protected? Better yet, are your passwords “organized” in a clutter...
Content Provided by Damian Stanislaw Ponicki, Senior International Tax Associate The globalized nature of modern finance has led to the U.S. government’s increased push for transparency and oversight when it comes to foreign financial interests held by U.S. taxpayers....
A business can offer many things as fringe benefits, so it’s a good idea to occasionally review the possibilities to see whether you might be missing something that could help you attract and retain the best employees. Many discussions...
Many businesses are focused on succession planning, which involves transitioning the ownership from or reducing the involvement of the founders of the company in anticipation of their retirement. One strategy is to transfer business to the next generation of...
Whether you're looking to buy or sell a business, the insights gained from a professional QoE report can assist in making informed decisions and navigate the transaction with confidence.
