The Sarbanes-Oxley Act, 2002 and Audit Committee
The Sarbanes-Oxley Act of 2002 (SOX) was spurred by past major accounting scandals that resulted in the loss of investor confidence. SOX, therefore, aims to protect investors by making corporate disclosures more accurate and reliable. Role of Audit Committee Thus, the role of the audit committee becomes essential in the effective execution of the SOX. One […]
Continue reading
Business Model, Processes, KPI and Risk Management
Business Model Whether it be to earn money or a charitable goal, we need to have a business model. A business model consists of the business objectives (eg. vision, mission, and high-level strategies) and how the business processes achieve these objectives. Two main approaches to understanding the business model are:a) Top-Down Approach – It begins […]
Continue reading
Data Analytics – Uses
In an age of Internet of Things and Big Data, Data Analytics is becoming increasingly important. Data Analytics involves qualitative and quantitative methodologies and procedures to retrieve data out of data sources and then inspect the data based on data type to facilitate decision making. Bigdata is only as valuable as the business outcomes […]
Continue reading
FICA and FUTA
FICA taxes are imposed on both employers and employees. FUTA taxes are imposed on employers only. FICA Employers and employees are each liable for FICA taxes. Under Sec. 3102(a), an employer is liable for collecting (withholding) the employees’ tax from wages. Employers who fail to collect these taxes are responsible for the employees’ tax, in […]
Continue reading
Credits
Nonrefundable Tax Credits (1) Foreign Tax Credit (2) Child and Dependent Care Credit (3) Lifetime Learning Credit (4) Retirement Savings Contribution Credit (5) Child and Other Dependents Tax Credit (6) Credit for the Elderly or the Disabled (7) General Business Credit (8) Adoption Credit Refundable Tax Credits (1) Credit for Taxes Withheld (2) Earned Income […]
Continue reading
Assignment of Partnership Interest
Transfer of a partner’s interest does not Result in loss of rights (other than the right to transfer the interest) Excuse a partner’s performance of duties and obligations Make the recipient (e.g., a person or estate) a partner Dissociate or dissolve the partnership Partnership rights may be assigned without the dissolution of the partnership. The […]
Continue reading
Dissociation and Dissolution of Partnership
Dissolution Dissolution can occur by an agreement of the partners to end the partnership. Although the actual authority to act on behalf of the partnership ceases at dissolution, apparent authority to conduct business in the usual way continues until notice is given to third parties or the partnership business winds up. A partner’s liability for […]
Continue reading
Generation Skipping Transfer Tax
The Generation-Skipping Transfer Tax is imposed separately and in addition to gift and estate taxes on transfers directly or in trust for the sole benefit of a person at least two generations younger than the transferor. A generation-skipping transfer is defined as a taxable termination, a taxable distribution, or a direct skip [Sec. 2611(a)]. A […]
Continue reading
Estate Income Tax vs Estate Tax
Estate Income Tax Estate Income Tax – Imposed on the income of estates. Imposed on the estate level or beneficiary level An estate (or trust) with a gross income of at least $600 is required to file Form 1041, Income Tax Return for Estates and Trusts, no later than the 15th day of the 4th month […]
Continue reading
Gift Tax
The gift tax is a tax of the transfer of a gift imposed on the donor. A gift is complete when the donor has so parted with dominion and control as to leave him or her no power to change its disposition. The amount of a gift made in property is the fair market value […]
Continue reading