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This section includes all KraftCPAs news. For service or industy-specific articles please see left sidebar links.

DOL's final overtime rule brings sweeping changes
May 24, 2016
The U.S. Department of Labor (DOL) has released a final rule that makes dramatic changes to the determination of which executive, administrative and professional employees — otherwise known as "white-collar workers" — are entitled to overtime pay under the Fair Labor Standards Act (FLSA). The rule will make it more difficult for employers to classify employees as exempt from overtime requirements. In fact, the DOL estimates that 4.1 million salaried workers will become eligible for overtime when they work more than 40 hours in a week.
Alexander receives prestigious Business with Purpose award
May 23, 2016
Congratulations to Vic Alexander, chief manager of KraftCPAs, who recently received the 2016 Business with Purpose Award in the "leader with purpose" category. The Business with Purpose awards are presented by the Hilton & Sallie Dean Institute for Corporate Governance & Integrity at Lipscomb University. The institute's mission is to assist companies in creating cultures of high integrity and in employing best practices of good corporate governance.
Large estates face new basis reporting requirements with deadline looming for some
May 23, 2016
The executors of some estates now have a new filing requirement. Form 8971, Information Regarding Beneficiaries Acquiring Property From a Decedent, was developed to satisfy the new basis consistency provisions enacted on July 31, 2015. The purpose of this new form is to notify the IRS and the estate beneficiaries what the date-of-death value (or alternate value, if used) is for each asset passing to a beneficiary. Under the new consistency provisions, the beneficiary's basis in any asset acquired from a decedent should be no higher than the value claimed on the estate tax return. This new form ensures that all interested parties have been made aware of that value. Beneficiaries will no longer be able to contend that the fair market value of an asset on the date of death was actually higher than the value used for estate tax purposes.
Good news for businesses on the Tennessee tax front
May 23, 2016
Tennessee has made several taxpayer-friendly law changes related to franchise and excise estimated tax payments.
Hall tax to be repealed
May 23, 2016
On Friday, May 20, Governor Haslam signed into law Senate Bill 47 which will reduce and eventually eliminate Tennessee's Hall investment income tax on some dividends and interest. Under this law, the Hall income tax rate will decrease from 6 percent to 5 percent for tax year 2016, affecting tax returns due next April. The law "establishes the legislative intent" that the Hall income tax be eliminated on or before Jan. 2, 2021, through annual reductions of one percent per year.
Why it's time to start tax planning for 2016
May 4, 2016
Now that the April 18 income tax filing deadline has passed, it may be tempting to set aside any thought of taxes until year end is approaching. But don't succumb. For maximum tax savings, now is the time to start tax planning for 2016.
Unexpected retirement plan disqualification can trigger serious tax problems
May 2, 2016
It's not unusual for the IRS to conduct audits of qualified employee benefit plans, including 401(k)s. Plan sponsors are expected to stay in compliance with numerous, frequently changing federal laws and regulations.
Risk, return, and the Louisiana Purchase
April 15, 2016
In 1802, President Thomas Jefferson sent Robert Livingston to Paris to negotiate the purchase of the city of New Orleans and its surrounding area from France. Entering the negotiation, they were prepared to spend $10 million for this acquisition. On April 11, 1803, France's Treasury Minister Franηois de Barbι-Marbois offered Livingston the entire Louisiana Territory for $15 million, a territory comprised of 827,000 square miles. The price in today's dollars was approximately $230 million or 41 cents per acre.
Valuation is key to succession planning
April 15, 2016
Most business owners spend a lifetime building their business. And when it comes to succession, they face the difficult decision of whether to sell, dissolve or transfer their business to family members. A business transfer involves several complicated issues, such as how to divvy up the family business into logical pieces, allocate value and tackle complex tax issues.
What's the value of my manufacturing business?
April 15, 2016
The value of your manufacturing company depends on a variety of factors, such as what products it manufactures, how it's expected to perform, where it's located and why you're appraising it. Let's take a closer look at the current merger and acquisition (M&A) market and how appraisers use three techniques to value manufacturers.
Save money and improve risk management: Co-source the internal audit function
April 13, 2016
As you look for opportunities to cut costs and improve profit, the question of where you can reduce salaries may arise. Co-sourcing internal audit and information technology functions may be an easy way for you to save money and improve your business's risk management at the same time.
How does industry risk impact business valuation?
April 13, 2016
There's a trade-off between risk and return in business valuation. Investors expect to receive a higher return as the company exposes them to greater risk. Industry-specific risk is an important consideration when estimating an investor's expected return. Here's how business valuators measure industry risks and factor them into their analyses.
How to add documents in QuickBooks
April 13, 2016
Your computer's storage space may be well organized, but you can still waste time trying to hunt down the document you want — right when you want it. If you're using QuickBooks, the Doc Center can minimize your search time and ensure that important documentation is at hand.
Don't miss April 1 deadline for required minimum distributions
March 22, 2016
Taxpayers who attained age 70½ in 2015 have until April 1, 2016, to begin taking required minimum distributions (RMDs) from their traditional IRAs. Lifetime distributions are not required to be taken from Roth IRAs at any age.
New accounting standard brings big changes to lease reporting on financial statements
March 22, 2016
The Financial Accounting Standards Board (FASB) has issued its long-awaited update revising the proper treatment of leases under U.S. Generally Accepted Accounting Principles (GAAP). Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), will affect companies that lease real estate, vehicles, construction and manufacturing equipment, and other assets. The standard requires these businesses to recognize most leases on their balance sheets, potentially inflating their reported assets and liabilities.
IRS offers guidance to employers who plan to claim the Work Opportunity Tax Credit
March 22, 2016
The IRS has recently granted "transitional relief" to eligible employers who are planning to claim the Work Opportunity Tax Credit (WOTC). The relief outlined in IRS Notice 2016-22 comes in the form of an extended deadline — until June 29, 2016 — to file a form necessary to claim the credit for certain eligible workers.
Is an audit in your partnership's future?
March 22, 2016
In addition to raising the federal debt ceiling and lifting some mandatory spending caps, the Bipartisan Budget Act of 2015, signed into law in November, also includes tax provisions that revise partnership audit rules. The end result of the revised rules is that audits of master limited partnerships, investment funds and other business entities organized as partnerships are likely to increase.
It's not too late for some taxpayers to reduce 2015 taxes
March 22, 2016
If you're eligible, you may make tax deductible contributions to IRAs by April 18, 2016, and still reduce your 2015 tax liability. You may contribute up to $5,500 if single, or $11,000 if married. Note: modified adjusted gross income phase-out ranges apply to the deductibility of contributions if the taxpayer (or his or her spouse) participates in an employer-sponsored retirement plan.
Regulators scrutinize lender compensation
March 11, 2016
With the Consumer Financial Protection Bureau (CFPB) cracking down on improper lender compensation plans, banks should anticipate increased scrutiny in this area from their primary regulator.
Deduct home office expenses – if you're eligible
March 7, 2016
Today it's becoming increasingly common to work from home. But just because you have a home office space doesn't mean you can deduct expenses associated with it.
IRS' Dirty Dozen
March 7, 2016
Identity theft topped this year's list of the IRS's "Dirty Dozen" tax scams with phone scams and phishing schemes also getting special mention.
Don't miss March 31 deadline for ACA information reporting
Sep. 30, 2015
In an effort to help employers subject to the Affordable Care Act's (ACA's) information reporting requirements, the IRS extended two important deadlines. Employers now have until May 31, 2016, to file information returns (Form 1094-C and 1095-C) with the IRS (until June 30, 2016, if filing electronically). However, they must furnish the employee statements (Forms 1095-B and 1095-C) no later than March 31, 2016.
How to max out education-related tax breaks
March 7, 2016
If there was a college student in your family last year, you may be eligible for some valuable tax breaks on your 2015 return. To max out your education-related breaks, you need to see which ones you're eligible for and then claim the one(s) that will provide the greatest benefit. In most cases you can take only one break per student, and, for some breaks, only one per tax return.
On the road with Kraft Healthcare Consulting
Feb. 22, 2016
Kraft Healthcare Consulting, LLC (KHC) is once again involved in planning a healthcare focused trade mission – this time to China. In collaboration with the JC Partnership Forum, KHC is organizing a trip for healthcare executives and providers to Beijing and Shanghai. The trip is scheduled for September 23 through October 1.
Significant change to Social Security affects some taxpayers
Feb. 22, 2016
The Bipartisan Budget Act of 2015 included several significant changes to how Social Security benefits can be claimed, but certain individuals still have a small window of opportunity to maximize their benefits.
What's on the FASB's technical agenda for 2016?
Feb. 15, 2016
The Financial Accounting Standards Board (FASB) establishes the standards for public and private companies to follow when they issue financial statements in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Here's an overview of what the FASB is currently working on.
Fraud myth busters: Decipher fact from fiction
Feb. 15, 2016
Whether reading a local business journal or a nationally syndicated publication, there's no denying that fraud is a major concern facing business owners. According to the Association of Certified Fraud Examiners (ACFE) 2014 Report to the Nation on Occupational Fraud and Abuse, occupation fraud is a $3.7 trillion worldwide problem. The severity and pervasiveness varies between businesses and situations, but business owners can take proactive steps to reduce the impact that fraud could have on their companies. Although organizations can't completely eliminate the risk of fraud, here are five myths that people need to stop believing to help create a fraud resistant environment.
The hidden goal of the smartest business owners
Feb. 10, 2016
What are your business goals for the year? If you're like most owners, you have a profit goal you want to hit. You may also have a top line revenue number that's important to you. While those goals are important, there is another objective that may have an even bigger payoff: building a sellable business.
PATH Act reduces tax for many individuals on their 2015 return and beyond
Feb. 12, 2016
Congress passed the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) in December, creating opportunities for many individuals to reduce their personal tax liability. The new law is more significant than some tax "extenders" legislation in recent years because, in addition to extending relief, the PATH Act makes quite a few tax breaks permanent and also enhances some breaks. Let's take a look at some of the breaks that may help you save tax on your individual return in 2015 and beyond.
Why pay legacy ERP maintenance fees?
Jan. 29, 2016
Many legacy enterprise resource planning (ERP) products like Sage, Epicor, Oracle, and Microsoft Dynamics require expensive maintenance fees ranging from 16-24 percent of the full product price. Support and the right to future software releases are generally included in these fees. However, most legacy ERP systems have been customized, which translates into a centralized support representative who does not know how your system is configured or setup.
2016 Tax Calendar
Jan. 29, 2016
To help you make sure you don't miss any important 2016 deadlines, we've provided this summary of when various tax-related forms, payments and other actions are due.
File early to avoid tax identity theft
Jan. 27, 2016
If you're like many Americans, you may not start thinking about filing your tax return until the April 15 deadline (this year, April 18) is just a few weeks — or perhaps even just a few days — away. But there's another date you should keep in mind: January 19. That's the date the IRS began accepting 2015 returns, and filing as close to that date as possible could protect you from tax identity theft.
Why investing in small-business stock may make more tax sense than ever
Jan. 25, 2016
By purchasing stock in certain small businesses, you can not only diversify your portfolio but also enjoy preferential tax treatment. And under a provision of the tax extenders act signed into law this past December (the PATH Act), such stock is now even more attractive from a tax perspective.
Two extended credits can save businesses taxes on their 2015 returns
Jan. 13, 2016
The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) extended a wide variety of tax breaks, in some cases making them permanent. Extended breaks include many tax credits — which are particularly valuable because they reduce taxes dollar-for-dollar (compared to deductions, for example, which reduce only the amount of income that's taxed).
New law hikes penalties for tax information reporting failures, errors and omissions
Jan. 13, 2016
Making mistakes on W-2s or 1099s could cost you more this year than in the past. A new law passed in 2015 (the Trade Preferences Extension Act of 2015) included a provision that will greatly increase the penalties on taxpayers who fail to file (or make errors on) information reporting returns such as Form W-2 and 1099, as well as certain forms required by the Affordable Care Act (ACA). Section 806 of the act increases by as much as 150 percent the potential penalties.
IRS issues deadline extensions for ACA information reporting
Jan. 13, 2016
In an effort to help employers subject to the Affordable Care Act's (ACA's) information reporting requirements meet those obligations, the IRS has extended two important deadlines. Employers now have an additional two months to provide employees Form 1095-B, "Health Coverage," and Form 1095-C, "Employer-Provided Health Insurance Offer and Coverage."
IRS raises tangible property expensing threshold for small businesses
Jan. 13, 2016
The Internal Revenue Service (IRS) recently announced that it has simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items. The change takes effect starting with tax year 2016 and affects only those businesses that do not prepare audited financial statements.
Business owners: Find your sell-by date
Jan. 4, 2016
Selling a business often takes years and a lot of planning, so it pays to start planning sooner rather than later. Here's how to backdate your exit.
FASB proceeds with final standard on leases
Jan. 4, 2016
The Financial Accounting Standards Board (FASB) voted in November to proceed with a new accounting standard that would require companies and other organizations to include lease obligations on their balance sheets. The final Accounting Standards Update (AS)) is expected to be published in early 2016, giving financial statement preparers ample time to review and prepare for the changes by the effective dates.
FASB simplifies inventory measurement
Jan. 4, 2016
The Financial Accounting Standards Board (FASB) recently issued an Accounting Standards Update (ASU) that streamlines the subsequent measurement of inventory, requiring that inventory be measured at the lower of cost and net realizable value. This guidance is a part of the FASB's simplification initiative and, while not the goal of FASB, will more closely align with International Financial Reporting Standards (IFRS).
KraftCPAs Turnaround & Restructuring Group admits new shareholders
Jan. 4, 2016
Jessica Scouten and Samantha Boyd have become shareholders in KraftCPAs Turnaround & Restructuring Group, PLLC, (KTRG), which is an affiliate of KraftCPAs PLLC. KTRG provides turnaround management, restructuring of debt and equity, bankruptcy/ assistance, forensic accounting and litigation support.
Feb. 1 tax deadline approaches – with tougher penalties for missing it
Jan. 4, 2016
Employers have several tax forms to submit by Feb. 1, 2016. The due date for these forms, which is typically 
Jan. 31, will be Feb. 1 this coming year because Jan. 31 falls on a Sunday. Below are a few items you'll want to 
be sure you have submitted by that date.
IRS announces 2016 standard mileage rates
Jan. 4, 2016
The Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
No changes to retirement plan contributions for 2016
Jan. 4, 2016
Retirement plan contribution limits are indexed for inflation, but with inflation remaining low, the limits remain unchanged for 2016:
Employees vs. independent contractors
Dec. 29, 2015
An employer must generally withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment taxes on wages paid to an employee. An employer does not generally have to withhold or pay any taxes on payments to independent contractors.
2015/2016 payroll tax reminders
Dec. 29, 2015
With 2016 right around the corner, employers need to be aware of payroll tax changes that are about to take effect. Below is an overview of some of the changes, prepared by Jackie Cook, a senior manager in or entrepreneurial services group. Please contact your KraftCPAs advisor if you have questions or need additional information.
The PATH Act provides tax relief for 2015 and beyond
Dec. 24, 2015
On December 18, the Senate passed — and the President signed into law — the Protecting Americans from Tax Hikes Act of 2015 (PATH Act), which the House had passed on December 17. The act extends certain tax relief provisions that expired at the end of 2014. In many cases, it makes the breaks permanent.
Latest extenders law boosts tax benefits for businesses
Dec. 22, 2015
On December 18, President Obama signed into law the bipartisan Protecting Americans from Tax Hikes Act of 2015 (the PATH Act). It makes many popular tax breaks — including some highly valued by businesses — permanent, while extending others through 2016 or 2019. The PATH Act also enhances certain breaks and puts a moratorium on some of the Affordable Care Act's (ACA's) controversial taxes.
2015 extenders legislation does more than just extend tax breaks
Dec. 18, 2015
On December 18, the Senate passed the PATH Act, which the House had passed on December 17. Many popular tax breaks had expired December 31, 2014, so, for them to be available for 2015, Congress had to pass legislation extending them. But the PATH Act does more than that. This article provides a quick rundown of some of the key breaks that have been extended or made permanent that may benefit individual and business taxpayers.
Kraft participates in annual Habitat build
Dec. 11, 2015
Last month, 25 Kraft team members took part in the company's annual Habitat for Humanity home-building project. The endeavor is one Kraft believes in and champions each year because it allows them to "live the legacy" of community service established and passed down by the founding partners.
Defined benefit pension plan changes included in 2015 budget act
Dec. 11, 2015
The headlines generated from the Bipartisan Budget Act of 2015 generally focused on how the legislation raises the debt ceiling through 2017, sets federal spending through the 2016 and 2017 fiscal years, and eases strict caps on spending. But, importantly for many employers, the act also includes a number of changes related to defined benefit pension plans.
Don't miss your opportunity to make 2015 annual exclusion gifts
Dec. 11, 2015
Recently, the IRS released the 2016 annually adjusted amount for the unified gift and estate tax exemption and the generation-skipping transfer (GST) tax exemption: $5.45 million (up from $5.43 million in 2015). But even with the rising exemptions, annual exclusion gifts offer a valuable tax-saving opportunity.
Avoid a 50 percent penalty: Take retirement plan RMDs by Dec. 31
Dec. 11, 2015
After you reach age 70½, you must take annual required minimum distributions (RMDs) from your IRAs (except Roth IRAs) and, generally, from your defined contribution plans (such as 401(k) plans). You also could be required to take RMDs if you inherited a retirement plan (including Roth IRAs).
Reduce taxes on your investments with these year-end strategies
Dec. 11, 2015
While tax consequences should never drive investment decisions, it's critical that they be considered — especially by higher-income taxpayers who may be facing the 39.6 percent short-term capital gains rate, the 20 percent long-term capital gains rate and the 3.8 percent net investment income tax (NIIT).
Correction methods for missed deferrals are now easier
Nov. 23, 2015
You have the best of intentions, but still it happens: You have failed to properly withhold 401(k) or 403(b) deferrals from an employee's pay. What do you do?
Tips on deducting charitable contributions
Nov. 23, 2015
Giving to charity may make you feel good and help you lower your tax bill. The IRS offers these tips to help ensure your contributions pay off on your tax return.
Current Expected Credit Losses (CECL) Update
Nov. 20, 2015
On Nov. 11, 2015, the Financial Accounting Standards Board (FASB) decided that large banks that file with the SEC would apply the new CECL standard in annual and interim periods beginning after Dec. 15, 2018, which will mean the first quarter 2019 and year end 2019 filings. Community banks that do not submit SEC filings would apply the new standard for annual statements after Dec. 15, 2019 and interim reporting periods within fiscal years beginning after Dec. 15, 2020.
Protect yourself from identity theft
Nov. 6, 2015
The IRS defines tax-related identity theft as an occurrence when someone uses your stolen Social Security number to file a tax return and claim a fraudulent refund. Tax-related identity theft will typically occur early in the year in order to file a false tax return before the victim is aware that his/her personal information has been compromised.
KraftCPAs PLLC admits Michael Davis to membership in the firm
Nov. 6, 2015
KraftCPAs PLLC is pleased to announce that Michael Davis became a member in the firm on Nov. 1, 2015.
Be mindful of the ACA's information reporting deadlines
Nov. 6, 2015
Something else to think about on the tax front as we approach year end is the upcoming deadline for the Affordable Care Act's information reporting provisions for applicable large employers (ALEs). ALEs — generally those with at least 50 full-time employees or the equivalent — must report to the IRS information about what health care coverage, if any, they offered to full-time employees.
The 529 savings plan: A tax-smart way to fund college expenses
Nov. 6, 2015
If you're saving for college expenses, consider a Section 529 plan. Although contributions aren't deductible for federal purposes, plan assets can grow tax-deferred. Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes.
Uncertainty over expired tax breaks once again complicates year-end tax planning
Nov. 6, 2015
Year-end tax planning this year will be just as complicated as it was last year because of uncertainty surrounding many expired tax breaks for individuals and businesses. Tax legislation signed into law last December extended several expired breaks, but only through the end of 2014.
Over 70 1/2? Don't forget to take required minimum distributions
Oct. 28, 2015
Take required minimum distributions (RMDs) from your IRA or 401(k) plan (or other employer-sponsored retirement plan) if you have reached age 70½.
Maximize retirement plans options to reduce 2015 taxes
Oct. 23, 2015
Retirement plans continue to be one of the best income tax deferral techniques available, providing the joint benefits of a current tax deduction and deferred tax on investment income in the plan.
Proper planning can save you time and money on your year-end audit
Oct. 15, 2015
Nothing makes a CFO or controller happier than preparing for the year-end audit; right? Joking aside, the annual audit should provide a valuable opportunity for management to reflect on past performance and plan for the future. It should be a collaborative effort between management, the board of directors (as applicable) and the CPA firm.
So, you may have been the victim of tax-related identity theft....
Oct. 14, 2015
As the incidence of tax-related identity theft continues to increase, the IRS procedures for addressing the problem evolves. The IRS has come under criticism lately from the Treasurer Inspector General for Tax Administration (TIGTA), among others, for the amount of time that it takes to resolve identity theft accounts. The IRS has responded by increasing its measures to flag suspicious returns, prevent the issuance of fraudulent refunds and accelerate identity theft case processing. As a result of these changes, case resolution has been reduced from 312 days to an average of 278 days (as reported for cases resolved during the period between Aug. 1, 2011 and July 31, 2012). The IRS has stated that the resolution time has dropped to 120 days for cases resolved during the 2013 filing season.
ACA reporting required for 2015. Are you prepared to file?
Sep. 30, 2015
The Affordable Care Act includes new reporting requirements for employers for 2015. You may think this reporting only applies to organizations subject to the Employer Mandate (otherwise known as Applicable Large Employers) – those with more than 50 full-time-equivalent employees. But that's not necessarily the case. Even small employers may have to comply with these reporting requirements if their group health plan is self-insured.
Why you should contribute more to your 401(k) in 2015
Sep. 23, 2015
Contributing to a traditional employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, offers many benefits:
When will Congress pass extenders legislation to revive expired tax breaks for 2015?
Sep. 9, 2015
With Congress returning from its August recess, this is the question on tax-savvy Americans' minds. Many valuable tax breaks aren't permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the last minute to do so.
All income investments aren't alike when it comes to taxes
Sep. 9, 2015
The tax treatment of investment income varies, and not just based on whether the income is in the form of dividends or interest. Qualified dividends are taxed at the favorable long-term capital gains tax rate (generally 15 percent or 20 percent) rather than at the applicable ordinary-income tax rate (which might be as high as 39.6 percent). Interest income generally is taxed at ordinary-income rates. So stocks that pay qualified dividends may be more attractive tax-wise than other income investments, such as CDs and taxable bonds.
Memorizing transactions in QuickBooks: Why and how?
Aug. 26, 2015
QuickBooks saves time in countless ways, one of which is its ability to memorize transactions. Are you taking advantage of this feature?
DOL proposes increase in exempt salaries
Aug. 26, 2015
In June, President Obama announced his intention to raise the salary level of executive, administrative and professional (EAP) employees as a requirement of exempt status under the Fair Labor Standards Act. The change could have a major impact on businesses if and when it takes effect.
Treasury expected to propose new regulation affecting estate and gift discounts
Aug. 25, 2015
Estate planners often use family limited partnerships (FLPs) and limited liability companies (LLC) to consolidate a family's wealth management, protect assets against creditors and reduce gift and estate taxes. FLPs and LLCs reduce taxes via valuation discounts for lack of control and marketability that are subtracted from the net asset value of the entity's holdings.
Teens in your family with jobs? Set up IRAs for them!
Aug. 19, 2015
For most teenagers, saving for retirement is probably not on the radar. But investing in IRAs can be perfect for teens precisely because they'll likely have many years to let their accounts grow tax-deferred or tax-free.
Highway funding law brings important tax law changes
Aug. 7, 2015
"The Surface Transportation and Veterans Health Care Choice Improvement Act of 2015" is a somewhat misleading name. The new law, signed by the President on July 31, is about more than transportation funding and veterans' health care services. It will also result in noteworthy changes to the income tax obligations and reporting requirements for business owners and individuals.
Act soon if you want to help your child buy a home
Aug. 5, 2015
Mortgage interest rates are still at historically low levels, but they're expected to go up by year end. So if you've been thinking about helping your child — or grandchild — buy a home, consider acting soon. There also are some favorable tax factors that will help:
Make your preferences known in QuickBooks
Aug. 3, 2015
QuickBooks is ready to use when you install it. But you can change its settings to make it work the way your company needs it to.
New trade law hikes penalties for tax information reporting failures, errors and omissions
Aug. 3, 2015
When the TPEA was signed into law, much ado was made about the so-called fast-track trade authority the act gives the President. Little attention was paid to Section 806 of the act, which increases by as much as 150 percent the potential penalties for taxpayers who err in their information reporting to the IRS or payees. This article details Sec. 806 of the TPEA and explains how taxpayers can reduce the risk of penalties.
Small businesses can get IRS penalty relief for unfiled retirement plan returns
July 22, 2015
The Internal Revenue Service encouraged eligible small businesses that did not file certain retirement plan returns to take advantage of a low-cost penalty relief program enabling them to quickly come back into compliance.
Multilevel valuation discounts: Handle with care
July 22, 2015
Estate planners often use family limited partnerships (FLPs) and family limited liability companies (FLLCs) to consolidate a family's wealth management, protect assets against creditors, and reduce gift and estate taxes. FLPs and FLLCs reduce taxes via valuation discounts for lack of control and marketability that are subtracted from the net asset value of the entity's holdings.
Minority shareholder disputes: Don't always count on stock-purchase agreements
July 22, 2015
Business owners enter into stock-purchase agreements to facilitate buyouts upon certain triggering events, such as a shareholder's death or divorce. But sometimes courts disregard these agreements, leaving shareholders vulnerable to paying (or receiving) an amount mandated by a judge who may not be familiar with the parties' preferences or financial conditions.
Creating item records in QuickBooks
July 22, 2015
Accurate, thorough item records inform your customers and help you track inventory levels correctly.
Business use of personal automobiles can result in valuable tax deduction
July 20, 2015
If you own or lease an automobile that you use, at least partly, for business purposes, you are entitled to take a deduction for the business use of that vehicle.
Four traps to avoid when selling your company
July 15, 2015
Business owners have been known to refer to due diligence as "the entrepreneur's proctology exam." It's a crude analogy but a good representation of what it feels like when a stranger pokes, prods and looks inside every inch of your business.
FASB proposes change in accounting for leases
July 15, 2015
Current accounting standards require that leases reported in financial statements of lessees be classified as either capital or operating leases.
Don't miss out on Tennessee franchise/excise tax credits
July 15, 2015
Is your company missing out on Tennessee tax credits? Many companies overlook or are simply unaware of these significant tax-saving credits. The two most common tax credits in Tennessee are the Jobs Tax Credit (JTC) and the Industrial Machinery Credit (IMC).
The FASB delays landmark revenue recognition standard
July 13, 2015
On July 9, 2015, the Financial Accounting Standards Board (FASB) officially deferred implementation of the landmark global revenue recognition accounting standard by one year. The International Accounting Standards Board (IASB) is expected to follow suit, despite fewer complaints about the new guidance from companies that follow International Financial Reporting Standards (IFRS).
Kraft has seven among Nashville's accounting industry Power Leaders
July 13, 2015
The Nashville Business Journal (NBJ) recently announced its 2015 list of the accounting industry's "Power Leaders," and Kraft has seven professionals on the list. Vic Alexander, Lucy Carter, Kevin Crumbo, Myles MacDonald, Scott Mertie, Gina Pruitt and Ken Youngstead are on the list of 39 area accountants.
Supreme Court upholds premium tax credits for coverage purchased on federal exchanges
June 29, 2015
On June 25, the U.S. Supreme Court, in a much-anticipated ruling, essentially again upheld the Affordable Care Act (ACA), this time by upholding premium tax credits for qualifying taxpayers whether they purchase coverage through a federal or a state exchange.
Health insurance coverage reporting required for employers takes effect for 2015
June 29, 2015
The Affordable Care Act (ACA) created two significant IRS reporting obligations that commence in early 2016 – Internal Revenue Code Section 6055 and Internal Revenue Code Section 6056. The instructions for filing forms were finalized in February 2015. Employers must accumulate information in 2015 to comply with the applicable reporting obligations.
Why the details matter when selling investments
June 26, 2015
If you don't pay attention to the details, the tax consequences of a sale may be different from what you expect. For example, if you bought the same security at different times and prices and want to sell high-tax-basis shares to reduce gain or increase a loss to offset other gains, be sure to specifically identify which block of shares is being sold.
Multistate taxation: U.S. Supreme Court strikes down double-tax structure
June 26, 2015
Many taxpayers earn income in states other than the one where they reside, which can lead to tax liability in multiple jurisdictions. With laws differing from state to state, determining how much tax is owed in each jurisdiction can be complicated. In a highly anticipated decision, the U.S. Supreme Court addressed how one state taxes its residents' out-of-state income.
New exemption certificates issued to purchase tangible personal property and taxable services tax-free
June 24, 2015
The Department of Revenue has completed a periodic review of all registered nonprofit organizations eligible to purchase tangible personal property and taxable services tax-free. These entities have been issued new exemption certificates with an effective date of July 1, 2015. This new certificate is valid through June 30, 2019.
Opening the back door to a Roth IRA
June 24, 2015
A potential downside of tax-deferred saving through a traditional retirement plan is that you'll have to pay taxes when you make withdrawals at retirement. Roth plans, on the other hand, allow tax-free distributions; the tradeoff is that contributions to these plans don't reduce your current-year taxable income.
TDEC announces rebates for buyers, lessees of qualifying electric vehicles
June 24, 2015
Limited-time offer will be available for purchases or leases made after June 15.
Lucy Carter and team join KraftCPAs
June 3, 2015
The members of KraftCPAs are pleased to announce that Lucy R. Carter, CPA, and the team of Carter Lankford, CPAs, P.C., will join our firm effective July 1.
Revenue Modernization Act set to take effect in Tennessee
June 1, 2015
On May 20, Governor Haslam signed into law the Revenue Modernization Act (RMA), which amends Tennessee's business tax, franchise and excise tax and sales and use tax laws. Below is a summary of the expected changes.
QuickBooks' custom fields can provide better business insight
June 1, 2015
QuickBooks' customizability makes it flexible enough for countless business types. Custom fields are a big part of that flexibility.
Additional 0.9 percent Medicare tax may catch taxpayers off-guard
May 29, 2015
The additional 0.9 percent Medicare tax applies to FICA wages and self-employment income exceeding $200,000 per year ($250,000 for married filing jointly and $125,000 for married filing separately). Unfortunately, the withholding rules have tripped up some taxpayers, causing them to face an unexpected tax bill Showing results for — plus interest and penalties — when they filed their returns.
Before donating a vehicle, find out the charity's intent
May 29, 2015
If you donate your vehicle, the value of your deduction can vary greatly depending on what the charity does with it. You can deduct the vehicle's fair market value (FMV) if the charity:
A net operating loss on your 2014 tax return isn't all bad news
May 21, 2015
When a company's deductible expenses exceed its income, generally a net operating loss (NOL) occurs (though of course the specific rules are more complex). If when filing your 2014 income tax return you've found that your business had an NOL, there is an upside: tax benefits.
Society of Actuaries releases new mortality tables
May 20, 2015
Are we living longer? The Society of Actuaries (SOA) thinks so. In October 2014, SOA issued updated mortality tables for plan sponsors and their actuaries to consider in determining a plan sponsor's pension obligation for private pension plans. The new tables, the RP-2014 Mortality Tables (RP-2014), replace the existing RP-2000 Mortality Tables. SOA also issued new mortality improvement scales -- MP-2014 (MP-2014).
Subsequent events must be considered in financial statement preparation
May 18, 2015
In the hustle and bustle to collect information to prepare financial statements, we sometimes get narrowed in on the transactions and events that occurred during the period that's being presented.
Take advantage of current low interest rates for gift and estate planning purposes before it's too late
May 18, 2015
The Federal Reserve recently announced that it had downgraded its view of the U.S. economy and suggested that it would wait until at least the third quarter of 2015 to begin raising interest rates (which would be the first increase in interest rates since June 2006). This announcement suggests that the next few months may be your last chance to take advantage of low interest rates for gift and estate tax planning before interests rates rise.
You're a real estate investor, but are you a "professional"?
May 15, 2015
Income and losses from investment real estate or rental property are passive by definition — unless you're a real estate professional. Why is this important? Passive income may be subject to the 3.8 percent net investment income tax (NIIT), and passive losses are deductible only against passive income, with the excess being carried forward.
Lost and found: DOL guidance for finding missing plan participants
May 8, 2015
Many defined contribution plans include participants who are no longer employees, but a problem arises when former employees can't be located or contacted. These "missing (or lost) participants" can have a significant financial impact on both terminated and active plans because related administrative costs and professional fees are often incurred.
June 2 deadline looming on IRS penalty relief program for late retirement plan returns
May 8, 2015
Last year, the IRS announced the launch of a one-year temporary pilot program to help small businesses that have failed to file certain retirement plan returns in a timely manner. Now the deadline for seeking relief is right around the corner. Small businesses that qualify for the relief and file their late returns by June 2 stand to preempt steep penalties of as much as $15,000 per return. Businesses that aren't eligible for the pilot program may qualify for relief under another program offered by the U.S. Department of Labor (DOL).
Now's the time to begin your 2015 tax planning
May 6, 2015
Whether you filed your 2014 income tax return by the April 15 deadline or filed for an extension, you may think that it's a good time to take a break from thinking about taxes. But doing so could be costly. Now is actually the time you should begin your 2015 tax planning — if you haven't already.
100 percent deduction for certain M&E expenses!
May 6, 2015
Generally, businesses are limited to deducting 50% of allowable meal and entertainment (M&E) expenses. But certain expenses are 100 percent deductible, including expenses:
Got ISOs? You need to understand their tax treatment
May 6, 2015
Incentive stock options allow you to buy company stock in the future at a fixed price equal to or greater than the stock's fair market value on the grant date. If the stock appreciates, you can buy shares at a price below what they're trading for then.
$2 billion in penalties assessed for violating BSA
April 10, 2015
In 2014 alone, the Financial Crimes Enforcement Network (FinCEN) and regulatory agencies assessed over $2 billion in penalties for violating the Bank Secrecy Act (BSA.) So while lending and deposit regulations have garnered a lot of attention recently, don't let your team become lax about BSA compliance.
Should we outsource our internal audit function?
April 8, 2015
As you look for opportunities to cut costs and improve profit, the question of what functions you should outsource may arise. Outsourcing internal audit and information technology functions may be an easy way for you to save money and improve your business's risk management at the same time.
ICD-10: Take 3
April 6, 2015
Consolidation among healthcare providers has increased over the past few years, in part because physician practices experience lower reimbursement rates from Medicare and Medicaid, and they lack the bargaining power to drive up reimbursement rates from their commercial payers. When a hospital purchases a physician practice, the hospital gains additional outpatient revenue streams, and the physician practice is relieved of the lower reimbursement rates -- yielding a win for both parties.
Provider-based clinic classification: Impact on the bottom line
April 6, 2015
Consolidation among healthcare providers has increased over the past few years, in part because physician practices experience lower reimbursement rates from Medicare and Medicaid, and they lack the bargaining power to drive up reimbursement rates from their commercial payers. When a hospital purchases a physician practice, the hospital gains additional outpatient revenue streams, and the physician practice is relieved of the lower reimbursement rates -- yielding a win for both parties.
Yes, there's still time to make a 2014 IRA contribution!
March 27, 2015
The deadline for 2014 IRA contributions is April 15, 2015. The limit for total contributions to all IRAs generally is $5,500 ($6,500 if you were age 50 or older on Dec. 31, 2014).
When is a gift tax return required?
March 18, 2015
Generally you must file a gift tax return whenever you give more than the annual exclusion amount ($14,000 for 2014 and 2015) to any particular person during the year. Taxpayers can reach this threshold fairly quickly if they are paying rent and other household expenses for an adult child or if they are assisting an elderly parent with living expenses or medical bills.
Should you forgo a personal exemption so your child can take the American Opportunity credit?
March 16, 2015
If you have a child in college, you may not qualify for the American Opportunity credit on your 2014 income tax return because your income is too high (modified adjusted gross income phase-out range of $80,000–$90,000; $160,000–$180,000 for joint filers), but your child might. The maximum credit, per student, is $2,500 per year for the first four years of postsecondary education.
Compliance issues plague small pension plans, and penalties can be severe
March 16, 2015
We've seen it happen all too often. When plan administrators missed the "red flags," and the client's plan took the hit. Overlooking a detail can potentially result in huge fines (as much as 10 percent of plan assets) levied at the plan sponsor level or disqualification of your plan. Failure to file the required reports or noncompliance issues can cost thousands of dollars -- not to mention the potential for lawsuits by employees and negative publicity.
Stay vigilant against bogus IRS phone calls and emails
March 16, 2015
Tax scams take many different forms. Recently, the most common scams are phone calls and emails from thieves who pretend to be from the IRS. They use the IRS name, logo or a fake website to try to steal your money. They may try to steal your identity too. Here are several tips from the IRS to help you avoid being a victim of these tax scams:
Integrated mortgage disclosures take effect October 3
March 6, 2015
The regulatory environment continues to evolve in 2015 with new disclosure requirements taking effect Oct. 3, 2015. As in January of 2010 when we learned how to complete a new Good Faith Estimate and HUD Settlement Statement, we are embarking on similar challenges in 2015. This time it's the new integration of the Good Faith Estimate with the initial Truth in Lending disclosure, and the HUD Settlement Statement with the final Truth in Lending disclosure. There are new fields and new timing requirements as well.
FFIEC allows PCC accounting alternatives for call reports of private banks
March 6, 2015
On Oct. 2, 2014, the Federal Financial Institutions Examinations Council (FFIEC) released Financial Institution Letter 50-2014 (FIL-50-2014) -- providing some good news for private banks. In part, this FIL documents the banking agencies' approval of the use of the Private Company Council (PCC) accounting alternatives, issued by the Financial Accounting Standards Board (FASB), for the preparation of call reports for 2014. One of the alternatives allowed by the private company accounting alternatives permits a bank to elect to amortize goodwill on a straightline basis over a period of 10 years (or less than 10 years if more appropriate) and apply the simplified impairment model to goodwill.
How to reduce the risk of cybersecurity threats in your bank
March 6, 2015
At a recent banking conference, it became clear that the topic keeping CEOs and CFOs up at night is cybersecurity. Boards and their audit committees are also troubled about cybersecurity with good reason. With all the breaches, from Target to Home Depot, banks have been significantly affected. Banks are taking a financial beating due to use of bank credit and debit cards in these breaches, and some examiners believe hackers will target community banks increasingly because their controls seemingly are weaker than those of large banks.
Not-for-profit mergers: When joining forces is the answer
March 2, 2015
If your organization is dealing with a lack of either financial or human resources, you need to start looking for solutions — fast. Joining forces with another not-for-profit is one strategy to consider. When researched and executed carefully, a merger can make both organizations stronger.
What's the magic of the $2 million mark?
March 2, 2015
If you're wondering when the right time to sell your business is, you may want to wait until your company is generating $2 million in earnings before interest, taxes, depreciation and amortization (EBITDA).
IRS makes it easier for small businesses to apply repair regulations to 2014 and future years
March 2, 2015
The Internal Revenue Service (IRS) has made it easier for small business owners to comply with the final tangible property regulations.
Make sure you have proper 
substantiation for your 2014 donations
Feb. 25, 2015
If you don't meet IRS substantiation requirements, your charitable deductions could be denied. To comply, generally you must obtain a contemporaneous written acknowledgment from the charity stating the amount of the donation, whether you received any goods or services in consideration for the donation, and if so, the value of any such goods or services.
FASB proposes simplified accounting for deferred taxes
Feb. 25, 2015
In an effort to reduce the complexity of accounting standards, the Financial Accounting Standards Board (FASB) has issued for public comment an exposure draft titled, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. The proposed changes would simplify balance sheet presentation and make the presentation of deferred tax liabilities and assets consistent with International Financial Reporting Standards.
Caution! Employee reimbursements for health insurance may be subject to steep penalties
Feb. 18, 2015
The IRS has issued a notice to taxpayers explaining that employee reimbursement arrangements for health insurance premiums are considered to be group health plans that do not meet the market reforms required under the Affordable Care Act.
The research and experimentation tax credit… still available for 2014
Feb. 13, 2015
In late December 2014, Congress passed legislation to extend all of the tax provisions that expired at the end of 2013, one of those being the research and experimentation (R&D) credit. This extension will allow taxpayers to claim the R&D credit on their 2014 returns.
The end is near for Windows Server 2003: are you ready?
Feb. 11, 2015
On July 14, 2015, Microsoft will end support for a mainstay server operating system, Windows Server 2003. All software products have a lifecycle, and the time has arrived for this tried and true system to be retired. If your business is still using this product, time is running out to make plans to replace these systems.
Innovative ideas for the modern manufacturer
Jan. 23, 2015
Manufacturing has been returning to the U.S. in a big way over the past five years. In a recent Wall Street Journal article, it is noted that not only are companies considering it patriotic to stamp "Made in the USA" on their products, but they can make more money doing so. Also, many companies believe intellectual property concerns associated with overseas manufacturing create enough risk to keep things in the United States.
Treasury provides rules for the application of the research credit to internal use software R&E costs
Jan. 23, 2015
On Jan. 16, the U.S. Department of the Treasury and Internal Revenue Service (IRS) released proposed regulations that provide guidance on credit eligibility for research and experimentation (R&E) on computer software that is developed by the taxpayer primarily for its own internal use (internal use software).
Have you had your annual estate plan checkup?
Jan. 21, 2015
An annual estate plan checkup is critical to the health of your estate plan. Because various exclusion, exemption and deduction amounts are adjusted for inflation, they can change from year to year, impacting your plan:
IRS tangible property regulations' impact on businesses
Jan. 21, 2015
By now taxpayers are implementing the tangible property regulations that were released in September 2013 and are effective for tax years beginning on or after Jan. 1, 2014. The regulations provide guidance in determining deductibility versus capitalization of expenditures incurred for materials and supplies and to acquire, produce or improve tangible property, while allowing deductions for incidental repairs and maintenance. Since these regulations affect all businesses that own or lease buildings and/or tangible property, it is possible that a taxpayer may be required to file Form 3115, Application of Change in Accounting Method, with their income tax return to conform to these regulations.
Beware the deal-killing valuation gap
Jan. 16, 2015
Perhaps you've heard the expression "time kills all deals." While that may be true, it appears that valuation gaps — differing deal pricing expectations between buyers and sellers — are the most common deal-killing culprit. The 2014 Pepperdine Private Capital Markets Report was recently issued and included information from debt capital providers, equity investors, investment bankers and business brokers regarding 2013 activity. Let's take a closer look at survey results from business brokers and investment bankers regarding sources of deal failure.
Afforadble Care Act reporting deadline - March 31
Jan. 13, 2016
The Protecting Americans from Tax Hikes Act of 2015 (PATH Act) extended a wide variety of tax breaks, in some cases making them permanent. Extended breaks include many tax credits — which are particularly valuable because they reduce taxes dollar-for-dollar (compared to deductions, for example, which reduce only the amount of income that's taxed).
Three extended tax breaks to act on by Dec. 31
Dec. 29, 2014
On Dec. 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA), which the House had passed on Dec. 3. TIPA extended many valuable tax breaks that expired at the end of 2013 — but only through Dec. 31, 2014.
Businesses, individuals benefit from latest tax relief extender law
Dec. 17, 2014
On Dec. 16, the Senate passed the Tax Increase Prevention Act of 2014 (TIPA) – the latest "extender" package -- which the House had passed earlier this month. President Obama signed the legislation into law on Dec. 17. TIPA is a stopgap measure that retroactively extends through Dec. 31, 2014, certain tax relief provisions that expired at the end of 2013. It was drafted after the collapse of negotiations over a bill that would have made some of the provisions permanent, while extending others for two years.
You have two more weeks to use your 2014 gift tax exclusions.
Dec. 17, 2014
The 2014 gift tax annual exclusion allows you to give up to $14,000 per recipient, tax-free, without using up any of your lifetime exemption. If you and your spouse elect to "split" the gift, you can give up to $28,000 per recipient. A gift tax return must be filed in order to make the election for gift splitting.
Is the party over?
Dec. 15, 2014
When I told a longstanding client that my practice group is moving out of the KraftCPAs headquarters in Metro Center to new office space in downtown Nashville, he quipped, "Wow, the prosperity party must be over if the corporate restructuring team is moving in. What a buzz kill!"
How much time is left to make donations you can deduct on your 2014 return?
Dec. 12, 2014
To take a 2014 charitable donation deduction, the gift must be made by Dec. 31, 2014. According to the IRS, a donation generally is "made" at the time of its "unconditional delivery." But what does this mean? Is it the date you, for example, write a check or make an online gift via your credit card? Or is it the date the charity actually receives the funds — or perhaps the date of the charity's acknowledgment of your gift?
Alexander named as a Most Admired CEO by the Nashville Business Journal
Dec. 10, 2014
Congratulations to KraftCPAs' chief manager Vic Alexander, who was named to the Nashville Business Journal's list of 2014 Most Admired CEOs and Their Companies.
New accounting standard tackles disclosures about business continuity
Nov. 21, 2014
The Financial Accounting Standards Board (FASB) has updated U.S. Generally Accepted Accounting Principles (GAAP) to eliminate a critical gap in existing standards. The new guidance, found in Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements -- Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, clarifies the disclosures management must make in the organization's financial statement footnotes when management has substantial doubt about its ability to continue as a "going concern." The guidance applies to all companies.
Accelerating deductions to save taxes
Nov. 19, 2014
Smart timing of deductible expenses can reduce your tax liability, and poor timing can unnecessarily increase it. When you don't expect to be subject to the alternative minimum tax (AMT) in the current year, accelerating deductible expenses into the current year typically is a good idea. Why? Because it will defer tax, which usually is beneficial.
Will the lame-duck Congress revive expired tax breaks for 2014?
Nov. 19, 2014
With the midterm elections now behind us and control of the U.S. Senate set to shift parties in January, it's time to revisit the valuable tax breaks that expired at the end of 2013. Will the lame-duck 113th Congress revive any of them for 2014? Or will nothing happen until the 114th Congress goes into session after the new year begins?
How higher-bracket taxpayers can take advantage of the 0 percent long-term capital gains rate
Nov. 19, 2014
The long-term capital gains rate is 0% for gain that would be taxed at 10% or 15% based on the taxpayer's ordinary-income rate. If you have loved ones in the 0% bracket, you may be able to take advantage of it by transferring appreciated assets to them. The recipients can then sell the assets at no federal tax cost.
Basel Committee issues new guidelines to enhance bank governance
Nov. 14, 2014
As I think about the past six years in the banking industry, I'm reminded of a long-running musical at the Opryland Theme Park that featured a "New Year's Eve Party." It depicted our economy's expansion in the 1920's and then likened the next decade to the whole country waking up with a hangover. In many ways, community banks, their management and directors may feel as if they are waking up with a business hangover. Being a director in a highly regulated industry has always been somewhat stressful, but add the strain of a distressed economy, and many directors are now understandably fatigued by all the demands of the position.
Kraft Healthcare Consulting explores Cuba
Nov. 3, 2014
Throughout the years, Scott Mertie, president of Kraft Healthcare Consulting, LLC (KHC), has attended healthcare delegations to China and multiple European countries that have government-run healthcare systems. While Scott was visiting the Republic of Cuba on a personal excursion earlier this year, he envisioned a trip where the activities would allow him to explore the country's national healthcare system.
New regulations impact businesses with tangible property
Nov. 3, 2014
All businesses that own or lease tangible property will be affected by new IRS regulations which take effect for calendar year 2014 and beyond. Taxpayers should be aware that these mandatory regulations are complicated and will require dedicated time and resources in order to comply.
Eight ways to know if you have a job or own a business
Oct. 31, 2014
The ultimate test of your business can be found in a simple question: would someone want to buy your company?
Small employers should not overlook the health care tax credit
Oct. 31, 2014
New and existing small employers who do not yet benefit from the Small Business Health Care Tax Credit should look into whether the credit can help them provide insurance to their employees.
Billing for time in QuickBooks — an overview
Oct. 29, 2014
If your small business sells products, you know how precisely you must track your starting stock numbers, ongoing inventory levels, and your reorder points. QuickBooks provides tools to help with this process, but human factors can sometimes throw off your careful counts.
AMT triggers could boost your tax bill if you're not careful
Oct. 21, 2014
A fundamental tax planning strategy is to accelerate deductible expenses into the current year. This typically will defer — and in some cases permanently reduce — your taxes. But there are exceptions. One is if the additional deductions this year trigger the alternative minimum tax (AMT). This is a separate tax system that limits some deductions and doesn't permit others. Here are some deductions that can be AMT triggers:
Donating appreciated stock can offer substantial tax benefits
Oct. 17, 2014
Are you planning to make charitable donations before year end? Do you own appreciated stock that you'd like to sell, but you're concerned about the tax hit? Then consider donating it to charity rather than making a cash gift.
Efforts underway to make tax incentives permanent
Oct. 17, 2014
When the President signed the Pension Protection Act of 2006, it included a tremendous expansion of the tax incentives for the conservation easement donation. These incentives applied to "qualified conservation contributions" made after Dec. 31, 2005, and before Jan. 1, 2014, which means they expired at the end of 2013. Efforts are underway to make these enhanced tax incentives a permanent part of the tax code.
Business-travel per diem rates updated for 2015
Oct. 6, 2014
Effective Oct. 1, IRS Notice 2014-57, 2014–2015 Special Per Diem Rates, updates the per diem rates that can be used for reimbursement of ordinary and normal business expenses incurred while employees travel away from home. It also revises the list of high-cost localities for use in the high-low substantiation method. The per diem rates, which are established by the General Services Administration (GSA), are updated before the end of the federal government's fiscal year. Some employers elect to use these rates to simplify recordkeeping.
Watch out for the wash sale rule
Oct. 1, 2014
If you've cashed in some big gains this year, consider looking for unrealized losses in your portfolio and selling those investments before year end to offset your gains. This can reduce your 2014 tax liability.
Careful tax planning critical for RSUs — and other stock-based compensation
Oct. 1, 2014
If you're an executive or other key employee, you might be compensated with more than just salary, fringe benefits and bonuses: You might also be awarded stock-based compensation, such as restricted stock or stock options. Another form that's becoming more common is restricted stock units (RSUs).
CMS releases four subsets to modifier -59
Sep. 22, 2014
Modifier -59, Distinct Procedural Service – "the go-to," "catch-all," "covers everything" modifier, has finally received a much needed update. This catch-all modifier (-59) is widely used due to vague instructions in CPT, which states "modifier -59 should not be used when a more descriptive modifier is available." The broad use of this modifier, combined with the lack of research for a more descriptive modifier, has brought -59 to the forefront of Centers for Medicare and Medicaid Services (CMS). CMS has just released four subset modifiers in Healthcare Common Procedural Coding System (HCPCS) to remedy the widespread use of -59. This addition of new subset modifiers should help to distinguish fraud and abuse, as the subset modifiers are more clearly defined.
KraftCPAs named one of the Best Accounting Firms to Work for by Accounting Today
Sep. 15, 2014
Nashville-based KraftCPAs PLLC was recently named one of the "Best Accounting Firms to Work for" in the United States – the firm's sixth appearance on the list since the award began in 2008. Of the 100 honorees, KraftCPAs is the only company in Tennessee to be recognized.
How to protect yourself from underpayment penalties
Sep. 12, 2014
You can be subject to penalties if you don't pay enough tax during the year through estimated tax payments and withholding. Here are some strategies to protect yourself:
Is your business ready for play-or-pay?
Sep. 12, 2014
If you're a "large" employer, time is running out to prepare for the Affordable Care Act's (ACA's) shared responsibility provision, commonly referred to as "play-or-pay." It's scheduled to go into effect in 2015.
Grandchild in college this fall? Paying tuition could save gift and estate taxes
Sep. 12, 2014
Now's the time of year when many young adults are about to head back to college — or to enter their first year of higher education. If you have a grandchild who'll be in college this fall and you're concerned about gift and estate taxes, you may want to consider paying some of his or her tuition.
Bunch miscellaneous itemized deductions to reduce your tax bill
Aug. 20, 2014
Many expenses that may qualify as miscellaneous itemized deductions are deductible for regular tax purposes only to the extent they exceed, in aggregate, 2% of your adjusted gross income (AGI). Bunching these expenses into a single year may allow you to exceed this "floor."
Claiming home-office deduction takes planning and precision
Aug. 20, 2014
Taxpayers who use space in their home regularly and exclusively for business purposes may be able to deduct a portion of the related expenses against their income. Taxpayers can choose either the simplified method, which does not require completion of another form, or the not-so-simple method, which requires the filing of Form 8829.
Installment sales offer both pluses and minuses
Aug. 18, 2014
A taxable sale of a business might be structured as an installment sale if the buyer lacks sufficient cash or pays a contingent amount based on the business's performance. An installment sale also may make sense if the seller wishes to spread the gain over a number of years — which could be especially beneficial if it would allow the seller to stay under the thresholds for triggering the 3.8% net investment income tax or the 20% long-term capital gains rate.
How to increase the value of your business by 71 percent
Aug. 18, 2014
How much did your home increase in value last year? Depending on where you live, it may have gone up by 5 to 10 percent or more.
Give and receive with a charitable remainder trust
Aug. 11, 2014
Would you like to benefit charity while reducing the size of your taxable estate yet maintain an income stream for yourself? Would you also like to divest yourself of highly appreciated assets and diversify your portfolio with minimal tax consequences? Then consider a CRT.
Deadline for ICD-10 allows health care industry ample time to prepare for change
Aug. 1, 2014
The U.S. Department of Health and Human Services (HHS) issued a rule yesterday finalizing Oct. 1, 2015 as the new compliance date for health care providers, health plans, and health care clearinghouses to transition to ICD-10, the tenth revision of the International Classification of Diseases. This deadline allows providers, insurance companies and others in the health care industry time to ramp up their operations to ensure their systems and business processes are ready to go on Oct. 1, 2015.
Ramona Fox named a KraftCPAs member
July 30, 2014
KraftCPAs PLLC is pleased to announce that Ramona E. Fox, CPA, will become a member (owner) in the firm, effective Aug. 1, 2014. Ramona, who was most recently a member in Fox & Kolb Associates, PLLC, has more than 20 years of accounting experience. Prior to co-founding Fox & Kolb in 2007, she practiced with Crowe Horwath LLP and Kruse & Associates.
Kraft Healthcare Consulting prepares for delegation to Cuba
July 25, 2014
Scott Mertie, president of Kraft Healthcare Consulting, LLC (KHC), and his team are preparing to lead a healthcare delegation to Cuba on Oct. 9-12. This trip is custom-crafted for attendees to learn about the challenges and opportunities facing the medical industry in a country with one of the highest life expectancy rates in the Americas.
New Form 1023-EZ makes applying for 501(c)(3) tax-exempt status easier for small organizations
July 23, 2014
The Internal Revenue Service (IRS) has a new, shorter application form to help small charities apply for 501(c)(3) tax-exempt status more easily.
Six ways to profit from your vacation this summer
July 23, 2014
Summer is almost over, but there's still time to take that vacation and increase the value of your company at the same time.
Change to simplified R&D credit could benefit your business
July 23, 2014
The Treasury and the IRS announced in regulations recently issued (TD 9666) that businesses will now be able to use the Research and Development Alternative Simplified Credit (ASC) when filing amended tax returns.
What qualifies as R&D?
July 23, 2014
Generally, qualified research is an activity or project undertaken that includes all of the separate and distinct elements of the four-part test outlined below:
Rules surrounding IRA rollovers become less friendly to taxpayers
June 30, 2014
Taxpayers with multiple IRAs will have to be much more careful when making rollovers, in light of a recent Tax Court decision. Earlier this year, the U.S. Tax Court made a controversial ruling regarding IRA rollovers that contradicted an IRS publication designed to explain the law to taxpayers. In Bobrow v. Commissioner, the court ruled that the one-rollover-per-year rule applies to all of a taxpayer's IRAs in aggregate, rather than on an account-by-account basis.
If you've put your home on the market, you need to know the tax consequences of a sale
June 27, 2014
Summer is a common time to put a home on the market. If you're among those who are following this trend, it's important to be aware of the tax consequences.
Are your information systems secure?
June 25, 2014
In March 2014, just months after Target and Neiman Marcus fell victim to cyber attacks, another threat to data privacy was discovered: the "Heartbleed" bug. This vulnerability is essentially a hole in the prevalently used OpenSSL library, which is responsible for the encryption of Internet data (including usernames, passwords and credit card information). In fact, reportedly two-thirds of all websites use the OpenSSL software for their online communication.
FSA carryovers disqualify employees from HSA participation
June 25, 2014
In late 2013, the IRS relaxed their long-standing rules governing flexible spending accounts (FSAs). Under the new ruling, a maximum of $500 remaining in an FSA can be rolled over to the following plan year.
Cost segregation saves clients thousands in taxes
June 25, 2014
If your company has purchased, constructed or renovated a building (or plans to in the future), KraftCPAs can help you get the maximum return on your investment. Our comprehensive cost segregation service can maximize your tax savings and increase the cash flow on your current, future or past real estate investments.
IC-DISC can provide considerable tax savings to exporters
June 25, 2014
If your closely held company earns significant income from exporting -- or from engineering or architectural services on foreign construction projects -- consider forming an interest charge domestic international sales corporation (IC-DISC). An IC-DISC is relatively inexpensive to set up and operate, and it can reduce your tax rate on qualifying sales by up to approximately 20 percentage points.
Have you reviewed your estate plan this year? It's not too late!
June 25, 2014
If you haven't done so yet this year, add an estate plan checkup to your to-do list. Various exclusion, exemption and deduction amounts are adjusted for inflation and can change from year to year. It's a good idea to examine your estate plan every year to see if these adjustments warrant any updates to your plan. While we typically suggest performing a checkup earlier in the year, it's not too late to make the necessary adjustments now.
Long-awaited FASB, IASB guidance significantly changes revenue recognition in financial statements
June 6, 2014
The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) have issued new joint guidance that addresses one of the most important measures investors use when assessing a company's performance and prospects — revenue. FASB's version, communicated in Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers, standardizes and simplifies the revenue recognition process for customer contracts across different industries and geographic locations. It also requires more comprehensive footnote disclosures for all types of public and private companies.
What is a network vulnerability assessment and who needs one?
June 6, 2014
A string of recent, major cyber security breaches has left many executives and IT departments scrambling to bolster their security measures and safeguard their sensitive information. There are a multitude of defense mechanisms that work to prevent hackers' access to an organization's systems. However, as the world was forced to realize when the Heartbleed bug was discovered, an organization may be completely unaware of vulnerabilities in its network or a third-party IT process provider.
Material participation now allowed for trusts that own a trade or business
June 6, 2014
For investors and business owners, the rules of material participation have long been a confusing and frustrating issue. According to the IRS, income from a trade or business activity is considered "passive" unless the taxpayer "materially participates" in said activity. Qualifying for material participation determines whether or not – and the extent to which – 1) business losses can be deducted and 2) whether or not such income is subject to the new "Net Investment Income Tax" (NIIT).
What to do with your old retirement plan when you change jobs
June 6, 2014
First and foremost, don't take a lump-sum distribution from your old employer's retirement plan. It generally will be taxable and, if you're under age 59½, subject to a 10% early-withdrawal penalty.
Failure to plan for ICD-10 will be reflected on your bottom line
June 1, 2014
On Oct. 1, 2014, ICD-10 will be the mandatory reporting nomenclature per the Health Information and Portability Act (HIPAA). This change is the largest the healthcare industry has experienced in three decades. This change is time consuming, and can be viewed as overwhelming at times.
Don't lose tax benefits when combining business travel with vacation pleasure
May 7, 2014
Are you thinking about turning a business trip into a family vacation this summer? This can be a great way to fund a portion of your vacation costs. But if you're not careful, you could lose the tax benefits of business travel.
Softening the blow of higher taxes on trust income
April 30, 2014
This year, trusts are subject to the 39.6 percent ordinary-income rate and the 20 percent capital gains rate to the extent their taxable income exceeds $12,150. And the 3.8 percent net investment income tax applies to undistributed net investment income to the extent that a trust's adjusted gross income exceeds $12,150.
IRS releases final rules on large employer ACA reporting
April 25, 2014
The IRS has released final regulations implementing the Affordable Care Act's (ACA's) information reporting provision for large employers. The new rules – which begin to phase in in 2015 – significantly streamline the required reporting and should make it easier for covered employers to comply with these ACA requirements.
5 strategic ways to sell your company
April 15, 2014
Did you see the news that Facebook has acquired Internet messaging service WhatsApp for $19 billion? It represents the largest-ever acquisition of an Internet company in history.
TN Department of Revenue extends filing and payment deadline
April 16, 2014
The Tennessee Department of Revenue has extended the deadline for the filing of various state tax returns this year.
Could you be affected by the HeartBleed Bug?
April 16, 2014
The Heartbleed Bug is a serious vulnerability in the OpenSSL software used by many websites to encrypt sensitive data. Any system that is protected by the vulnerable versions of OpenSSL can be exploited to uncover encryption keys, names and passwords, credit card information, etc. without leaving a trace.
Fair lending comes under the microscope
April 16, 2014
The complexity of the regulatory environment is a challenge for community banks, and Fair Lending compliance is increasingly garnering the attention of regulators and the Department of Justice. Many compliance officers in financial institutions admit to feeling overwhelmed by the tidal wave of new regulations. While you need to comply with all the rules and regulations, special attention should be given to areas that are high risk. Fair lending is one such area.
IRS warns of new email phishing scheme
April 9, 2014
The Internal Revenue Service is warning consumers to be on the lookout for a new email phishing scam. The emails appear to be from the IRS Taxpayer Advocate Service (TAS) and include a bogus case number.
Can I claim my elderly parent as a dependent?
April 2, 2014
For you to deduct up to $3,900 on your 2013 tax return under the adult-dependent exemption, in most cases the parent must have less gross income for the tax year than the exemption amount. Generally Social Security is excluded, but payments from dividends, interest and retirement plans are included.
FASB provides private company VIE alternative for leases
March 31, 2014
The Financial Accounting Standards Board (FASB) has issued new guidance that permits private companies following Generally Accepted Accounting Principles (GAAP) to, in some circumstances, elect not to consolidate the financial reporting from variable interest entities (VIEs) that lease property to them. The guidance, Accounting Standards Update (ASU) 2014-07, Consolidation (Topic 810): Applying Variable Interest Entities Guidance to Common Control Leasing Arrangements, may apply in situations where an owner of a private company is also an owner of a second business entity that leases property to the company.
It's not too late to make a 2013 contribution to an IRA
March 26, 2014
Tax-advantaged retirement plans allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. But annual contributions are limited by tax law, and any unused limit can't be carried forward to make larger contributions in future years. So it's a good idea to use up as much of your annual limits as possible.
KraftCPAs named one of the Best Places to Work for the ninth year
March 14, 2014
KraftCPAs was recognized by the Nashville Business Journal as a "Best Places to Work" for the eighth year.
Don't overlook reinvested dividends
March 5, 2014
One of the most common mistakes investors make is forgetting to increase their basis in mutual funds to reflect reinvested dividends. Many mutual fund investors automatically reinvest dividends in additional shares of the fund. These reinvestments increase tax basis in the fund, which reduces capital gain (or increases capital loss) when the shares are sold.
Short-term ACA relief now available for midsize and large employers
Feb. 25, 2014
Recently released IRS final regulations for the Affordable Care Act's (ACA's) employer shared-responsibility provision provide some short-term relief for midsize and large employers.
FASB moves forward with expected impairment proposal, but nonaccrual guidance is off the table
Feb. 25, 2014
On Feb. 19, 2014, FASB met to continue working on its expected impairment proposal. The session resulted in three major items: 1) the removal of guidance on accounting for "nonaccrual" loans from the draft 2) a change in the accounting for the discount on purchased credit-impaired (PCI) assets 3) ongoing discussions related to Troubled Debt Restructurings (TORs).
There's still time to get substantiation for 2013 donations
Feb. 21, 2014
To support a charitable deduction, you need to comply with IRS substantiation requirements. This generally includes obtaining a contemporaneous written acknowledgment from the charity stating the amount of the donation, whether you received any goods or services in consideration for the donation, and the value of any such goods or services.
COSO updates internal control framework
Feb. 21, 2014
In May 2013, the Committee of Sponsoring Organizations of the Treadway Commission (COSO) updated the framework used for internal control testing and reporting by public companies to accommodate a more complex business environment and the increased use of technology. The Securities and Exchange Commission (SEC) has not stated a required implementation date, saying instead that entities should transition to the new framework in their applications and related documentation as soon as possible. The transition period will run until Dec. 15, 2014, at which time COSO will consider the older model to be superseded by the 2013 framework.
IRS issues new revenue procedure on change of accounting method
Feb. 21, 2014
On Jan. 24, 2014, the Internal Revenue Service (IRS) published Revenue Procedure 2014-16. This revenue procedure provides guidance for changes in accounting method resulting from the so-called repair regulations, and to expense acquisition and holding costs related to Other Real Estate Owned (OREO) property.
Treasury releases last substantial rules package to combat offshore tax evasion
Feb. 21, 2014
On February 20, The U.S. Department of the Treasury and Internal Revenue Service (IRS) released the last substantial package of regulations necessary to implement the Foreign Account Tax Compliance Act (FATCA).
Lynn Edwards wins Women of Influence "Trailblazer" award
Feb. 19, 2014
Lynn Edwards, member-in-charge of the employee benefits practice at KraftCPAs PLLC, has been distinguished as the winner in the "Trailblazer" category in the Nashville Business Journal's 2014 Women of Influence awards.
The Big Payback
Feb. 19, 2014
Not-for-profit organizations play an essential role in our region. In today's economic environment, these organizations need to accomplish much more with much less. To celebrate Middle Tennessee's spirit of generosity and support the work of not-for-profits, The Community Foundation of Middle Tennessee is hosting The Big Payback.
FASB provides alternatives for private companies on accounting for goodwill, interest rate swaps
Feb. 11, 2014
The Financial Accounting Standards Board (FASB) has issued two updates to Generally Accepted Accounting Principles (GAAP) that are intended to reduce the cost and complexity of preparing financial statements for private companies. The alternative standards* streamline the method for goodwill impairment and make it easier for certain interest rate swaps to qualify for hedge accounting.
How the U.S. war on tax evasion affects taxpayers
Feb. 11, 2014
The Internal Revenue Service (IRS) and the U.S. Department of the Treasury are waging an increasingly aggressive war on offshore tax evasion. Historically, U.S. taxpayers have had the responsibility of voluntarily reporting foreign accounts and other offshore assets on their tax returns.
Getting your small-scale deal right
Feb. 10, 2014
Size does matter. Mergers between small-capitalized, privately held companies are different animals from larger-cap and public company combinations. Small deals can run more smoothly than large ones, but they also can get bogged down in issues that neither party could ever foresee.
Six little things that make a big difference to the value of your company
Feb. 10, 2014
The winter Olympic Games made me reflect once again on the sports/business analogy and how critical preparation and timing are to both endeavors.
Not-for-profit organizations should keep an eye on UBI
Feb. 10, 2014
If an activity conducted by a not-for-profit is a trade or business carried on regularly, and not substantially related to furthering its exempt purpose, the income generated is considered unrelated business income (UBI). Accumulating too much UBI can subject the not-for-profit organization to taxes — and even threaten its tax-exempt status. This article explains what kinds of activities do and do not generate UBI.
Preventing and resolving post-acquisition disputes
Feb. 10, 2014
The year 2014 is expected to be a strong one for merger and acquisition (M&A) activity. Several factors are contributing to a deal-friendly environment such as inexpensive debt capital, strong stock prices and cash-heavy balance sheets that provide the currency needed to enter into deals. In addition, overall macro-economic strength continues to build. Against this backdrop, there is pent-up demand in those who wish to grow through acquisitions after years of standing on the sidelines during a slow economic recovery.
File early to reduce your risk of tax return fraud
Jan. 31, 2014
With the well-publicized security breach at major retailer Target recently, identity theft is likely on your mind. And stolen credit isn't your only risk.
Target incident heightens security concerns
Jan. 30, 2014
In the wake of one of the nation's largest retail hacking attacks ever, business owners and consumers alike have a heightened concern about information security.
The cost of misclassifying employees as independent contractors
Jan. 29, 2014
The cost of misclassifying employees as independent contractorsBusiness owners who need more workers, but don't want the overhead — or commitment — associated with employees should pause before classifying them as independent contractors. The IRS actively looks for misclassified workers and can impose financial penalties on businesses that wrongly report employees as contractors.
Experts weigh in with timely tax advice
Jan. 27, 2014
While you might not be able to stop the inevitable progression to tax day, at least you can take heart in knowing Nashville has a cadre of highly capable accountants and financial professionals with expertise in the healthcare industry to help minimize your personal or corporate tax liability. Following are a few tips to keep in mind whether preparing for your personal return or looking at business tax burden.
Same-sex couples face major changes for 2013 federal tax returns
Jan. 24, 2014
The year 2013 brought about many changes for same-sex couples in the United States. In June 2013, the U.S. Supreme Court ruled in United States v. Windsor that Section 3 of the Defense of Marriage Act (DOMA) was unconstitutional. This portion of DOMA had previously defined "marriage" as the legal union between a woman and a man. Because of the Supreme Court's decision in Windsor, it was also deemed unconstitutional for the U.S. federal government to deny same-sex married couples any of the federal benefits associated with marriage (if legally performed in a state or foreign country that permits same-sex marriage).
IRS issues new guidance on domestic production activities deduction
Jan. 24, 2014
The IRS issued new guidance to assist examiners in the Large Business & International (LB&I) Division in determining which taxpayer can claim the domestic production activities deduction (Internal Revenue Code Section 199) under a contract manufacturing arrangement.
Don't overlook Form 5500 filing obligations for welfare benefit plans
Jan. 24, 2014
Most employers understand that filing a Form 5500 is required for a 401(k) or other type of retirement plan, but welfare plans also have filing requirements that sometimes confuse plan sponsors. There is more than one way to structure your company's welfare plans, and the structure affects filing and audit requirements.
Edwards and Pruitt named finalists for the Nashville Business Journal's Women of Influence award
Jan. 7, 2014
State changes business tax license filing requirements
Jan. 3, 2014
The State of Tennessee is changing the business tax license filing requirements and has now issued guidance and transition dates. For calendar-year taxpayers, the business tax license filing for 2013 will be due on April 15, 2014.
Howard passes Certified in Risk and Information Systems Control exam
Dec. 20, 2013
Alisa Howard, a senior consultant in KraftCPAs' information systems assurance & consulting services department, has passed the Certified in Risk and Information Systems Control (CRISC) exam. The CRISC designation represents Alisa's dedication to remain knowledgeable and proficient as an IT professional who is responsible for the creation, utilization and protection of IS controls.
Take steps to increase your cyber security awareness
Dec. 4, 2013
Imagine the volume of information passing through cyberspace every second. Businesses, financial institutions, hospitals, government and military entities collect, process and store a huge amount of confidential information on computers and transmit that data across networks to other computers. Our lives are a tangled web of wired and wireless networks.
KraftCPAs associate prevails in online security competition
Nov. 1, 2013
Jonathan Weaver, an associate in KraftCPAs' information systems (IS) assurance & consulting practice, achieved second place in the Symantec Cyber Readiness Challenge on Oct. 8. Fifteen "ethical hackers" participated in this installment of the competition as part of the Information Systems Security Association (ISSA) conference in Nashville.
CMS makes changes to extended history of present illness guidelines
Oct. 4, 2013
Professional services provided on or after Sept. 10, 2013, will be allowed by CMS to use the 1997 Documentation Guidelines (DG) concerning the extended History of Present Illness (HPI) in conjunction with the 1995 guideline for extended HPI.
Want to sell your business?
Sep. 26, 2013
One of the most intimidating aspects of selling your business can be facing the barrage of questions during the various management presentations you'll be doing for potential acquirers. Be prepared to be grilled on all facets of your operations. Of course every meeting will be different, but here are some questions you can expect to be asked when you're in the hot seat.
9 warning signs you're a hub-and-spoke owner
Sep. 13, 2013
If you were to draw a picture that visually represents your role in your business, what would it look like? Are you at the top of a traditional Christmas-tree-like organizational chart, or are you stuck in the middle of your business, like a hub in a bicycle wheel?
QuickBooks' custom fields: an overview
Sep. 11, 2013
The beauty of QuickBooks is that it can be used for so many different kinds of businesses. Its smart design lets realtors and retail shops, plumbers and plastic surgeons use it to track income and expenses, pay bills and invoice customers, and to run those all-important reports.
Justification for your next vacation
Aug. 14, 2013
A recent survey by The Sellability Score found companies that would perform well without their owner for a period of three months are 50 percent more likely to get an offer to be acquired when compared to more owner-dependent businesses.
Is Your Business You-Proof?
July 15, 2013
Whether you're planning to sell your company sometime soon or sometime in the future; now is the time to ensure that your business isn't all about you. From the latest Sellability Score* research involving 2300 companies from around the globe, here are two key factors that are linked to the probability of getting an offer for your business when it's time to sell.
Physicians closing up shop, being acquired
June 17, 2013
As national health reform begins arriving at our door step, more and more physicians are taking down their shingles and joining hospitals or emerging national healthcare practice companies as employees.
QuickBooks: How to create a progress invoice from an estimate
June 6, 2013
The U.S. economy may be picking up, but your customers are probably still being very careful with expenditures. If your company's finances will allow it, you can help them out on sizable jobs by using progress invoicing, also known as partial billing or progress billing.
Mertie attends healthcare delegation in France
April 30, 2013
Scott Mertie, president of Kraft Healthcare Consulting, LLC, was part of a delegation of approximately 30 healthcare leaders to visit Paris in April — a trip spearheaded by the Nashville Health Care Council (NHCC).
QuickBooks' tools may help deter financial fraud
April 22, 2013
Small and medium size business owners work hard for their money. Making use of basic software tools may help to prevent theft or fraud.
How safe is your critical business information?
March 29, 2013
Most companies are highly dependent on technology for critical aspects of their business including finance, operations, procurement, distribution and sales. Unfortunately, few businesses have the resources for effective information systems (IS) risk assessment to ensure their data is accurate, available, secure and un-compromised. Even large companies with internal IS audit departments struggle to keep their staff trained on all current and emerging technologies.
Identifying and protecting brand value in the digital age
March 25, 2013
To many businesses, their brand is a critical business asset. Of course, the value of this asset may not be identified on the balance sheet since many of the brand-building investments made by companies are expensed over time. However, when one company acquires another company, brand-related value may be recognized on the balance sheet of the acquiring company.
KraftCPAs' Alexander named to Nashville Post's 2013
March 11, 2013
KraftCPAs Chief Manager Vic Alexander was named in February to Nashville Post's 2013 "In Charge" list of influential Nashville business leaders.
10 reasons why the cloud is changing the finance world
Feb. 4, 2013
Business management systems are a critical success factor for growing enterprises. A business can plateau without scalable systems in place. Or, even worse, it can suffer a loss of existing customers due to mismanagement. The effective deployment and use of enterprise resource planning (ERP) software (or some kind of business management system) can provide a model for managing an entire business.
RAC myths busted
Feb. 1, 2013
On Dec. 17, 2012, the Centers for Medicare & Medicaid Services (CMS) released Medicare Fee-For-Service Recovery Audit Program Myths. In this article, CMS works to debunk industry-wide myths to help facilities better understand the role the Recovery Auditor Contactors (RACs) play in ensuring proper payment for medically necessary services rendered to Medicare patients.
A little help please! - physicians discovering benefits of outside ownership
Jan. 4, 2013
In the search for a place to hang their hats, physicians have more choices than ever. But changes in federal and technology healthcare standards mean fewer and fewer are taking the plunge toward self-employment. A Little Help, Please!
2nd Generation Capital instrumental in sale of large physician practice to public company
Jan. 4, 2013
2nd Generation Capital, LLC, the merchant and investment banking firm affiliated with KraftCPAs PLLC, announced on Wednesday the successful acquisition of its Chattanooga-based client, Anesthesiologists Associated, P.C. (AA) by MEDNAX , Inc. (NYSE – MD). 2nd Generation represented Anesthesiologists Associated through its licensed broker-dealer subsidiary, 2nd Generation Financial, LLC. The transaction was closed and effective as of Dec. 31, 2012.
Kraft Healthcare Consulting presented with Leadership Health Care award
Dec. 21, 2012
Leadership Health Care (LHC), an initiative of the Nashville Health Care Council to nurture the talents of future health care leaders, has announced its 2012 award winners in the categories of Health Care Emerging Leader, Volunteer of the Year and Supporting Organization of the Year.
Are you defining items in QuickBooks correctly?
Dec. 14, 2012
Create item records in QuickBooks carefully, and QuickBooks will return the favor by running useful, accurate reports.
Healthcare providers to be reimbursed for transitional care management (TCM) services
Dec. 12, 2012
Healthcare providers are justifiably worried about cuts in reimbursement, but some are finding other services they already perform that can add legitimate revenue to the business if they are coded properly. As the healthcare industry coding system evolves, it is critical to understand code changes along with the relative reimbursement value of each change.
Physician practice for sale - If it's just about the money, don't do it
Oct. 17, 2012
Read the Physician Practice For Sale article written by Mike Collins' Managing Director and CEO of 2nd Generation Capital and published in Nashville Medical News.
QuickBooks 2013 gives you a reason to upgrade
Oct. 15, 2012
You chose QuickBooks for a variety of reasons, a major one being its simplicity and usability. But the software is more than 20 years old now, and hundreds of features have been added over the years. QuickBooks looks old, tired and in need of a makeover.
CMS approves RAC review of E/M services
Sep. 27, 2012
Despite opposition from the American Medical Association, the Medical Group Managers Association and numerous state specialty societies, The Centers for Medicare & Medicaid Services has approved RAC review of E/M services.
Take a Closer Look at Your Superbill to Ensure Accurate Billing
Sep. 19, 2012
Superbills aren't necessarily supposed include every code a physician might report. The superbill is typically a one-page reference of the most common codes used in a particular practice.
KraftCPAs' Gina Pruitt earns Certified Information Technology Professional (CITP) credential
Aug. 2, 2012
Gina Pruitt, managing director of KraftCPAs' information systems assurance and consulting practice, has earned the Certified Information Technology Professional (CITP) credential.
CMS begins meaningful use audits
Aug. 1, 2012
The Electronic Health Record Initiative program established by the Centers for Medicare and Medicaid Services (CMS), for eligible healthcare professional and facilities, is currently being implemented, and CMS is preparing to begin compliance audits related to the "meaningful use" reporting rules.
IT forecast: partly to mostly cloudy
July 27, 2012
The world of IT is never lacking for new acronyms and buzz words. One of the newer buzz words is the "CLOUD". The term "CLOUD" originated from the old symbol used in network diagrams where a picture of a cloud represented the Internet or other types of data communications media. While different people have different definitions for the CLOUD, most believe, "If it's on the Internet, it's 'in the CLOUD'."
Robust Microsoft products link operations and administration to support business growth
July 10, 2012
Time is wasted; work is duplicated; employees and customers are frustrated; opportunities are missed. These are the probable outcomes if you're trying to grow a business enterprise while clinging to an inadequate information management system.
If You Did It … Document It
June 13, 2012
There is no government conspiracy … there's not even a hidden website with all the super secret tips to avoid being penalized during an audit. In fact, when it comes to healthcare contractors and audits, the federal government is relatively straightforward regarding what they expect, how to comply and what happens if you fall short. Read the entire Nashville Medical News article: If You Did It . . . Document It
QuickBooks: Billing for time and expenses
March 28, 2012
QuickBooks handles billable expenses capably, but it's critical that you understand the process thoroughly before proceeding.
CMS 60-day rule
March 16, 2012
Last month, CMS issued a proposed rule for comments on "Reporting and Returning of Overpayments". This rule, if finalized, would require persons (providers and suppliers) to "report and return overpayments by the later of the date which is 60 days after the date on which the overpayment was identified; or any corresponding cost report is due, if applicable." CMS is proposing to implement section 1128J(d) of the Act for Medicare Part A & B providers and suppliers only at this time. This will be addressed at a later date for other "stakeholders" such as MAOs and Medicaid MCOs according to CMS.
Are Post-Acute Care Transfers a Goldmine for RAC Audits?
March 9, 2012
What happens after a patient leaves a facility can have a huge impact on reimbursement.
Buyers and sellers: appreciate the art of valuation
March 7, 2012
Value is in the eye of the beholder. If you're considering a business sale or acquisition, it's important to understand the basics of business valuation.
When and How to Use Modifier -25
Feb. 22, 2012
Modifiers are two-character alpha-numerics reported with a CPT code when appropriate. They provide Medicare and commercial payers with additional—and essential—information needed to process a claim. Modifiers provide the means by which the physician can flag a service that has been altered by some special circumstances without changing the basic CPT code description.
RACs Plan to Spotlight IRFs
Feb. 10, 2012
CMS has announced that their contracted Recovery Audit Contractors will focus their attention on Inpatient Rehabilitation Facilities (IRFs) in 2012 to determine if IRFs are submitting data compliantly.
New court ruling on Disproportionate Share Calculation
Feb. 6, 2012
Last month Catholic Health Initiatives – Iowa (CHI) received a summary judgment in their favor from the District Court for Washington D.C. related to their FYE: June 30, 1997 cost report. This judgment favored CHI's position on Medicaid days that, where the Medicare inpatient Part A benefits were exhausted, those days were still includable in the Medicaid portion of the Disproportionate Share (DSH) fraction.
QuickBooks tips and tricks to make your workday easier
Jan. 11, 2012
No matter which version of QuickBooks you're using, there are always ways to make your workday easier. As with any software, we tend to learn the features we need and not much more. But small changes in the way you operate can add up to significant time savings and more accurate files. If you jumped into QuickBooks without a thorough introduction, consider these tips.
Perdue earns Certified Licensing Professional designation
Aug. 3, 2011
Glenn Perdue, managing member of Kraft Analytics, LLC, earned the Certified Licensing Professional (CLP) designation awarded by Licensing Executives Society (LES).
Valuation considerations related to employee ownership
May 4, 2011
Owners of closely-held businesses may face difficult choices as they consider the future of their businesses without them. Death, illness, retirement, career changes, and disputes with other owners can lead to transitions in business ownership and management that can be disruptive and economically harmful.
Don't shrug off a business valuation: Appraisals can help during tough times
April 6, 2011
During tough economic times, it's understandable that many business owners look to cut any nonessential activities from their operations. And, assuming no specific circumstance warrants it, taking the time to assemble the financial documents and engage a qualified appraiser may not seem particularly essential. Yet, in truth, business valuations shouldn't be shrugged off quite so quickly. When dark economic clouds threaten, an appraisal can provide just the information you need to find shelter from the storm.
Timing may be favorable for strategic acquisitions or mergers
March 14, 2011
The downturn in the economy and the resulting decrease in stock value of many entities have created opportunities for strong businesses to acquire competitors or merge. Likewise, we are starting to see some signs of increased interest among venture capital firms and other investors.