What duties should be segregated to help prevent fraud?Segregation of duties means that key duties are divided among two or more people so that no one person has control of company assets.
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If you’ve never been audited, you may not know that when the IRS audits you, it could take up to a year or more to complete the audit.
If you have been audited you know that audits are time consuming and fraught with endless worries.
Are there any consequences when a corporation leaves Canada and takes up residence in a new country?
Generally, a corporation is a resident of Canada if its central management and control is exercised from Canada. When this stops occurring, the corporation is considered to be a non-resident of Canada, regardless if initially incorporated in Canada or not. This can result in taxes owing.
What are Shareholder Loans on a Balance Sheet? The Shareholder Loans category may appear as a short term or long term liability on a Balance Sheet. Shareholder Loan is a loan by a corporation to one of its shareholders.
What is Foreign Accrual Property Income (FAPI) and what affect does it have on my corporate taxes?
If you are a Canadian resident and own a foreign corporation that earns passive income, the income needs to be reported on your Canadian tax return even if you never received the funds. However, if the foreign corporation has a loss, the loss is not allowed to offset any other income you have for the year. Instead, the loss can be carried back three years against previous FAPI or forward 20 years against future FAPI.
The AICPA Tax Division has a nice tax reform resources website that includes comment letters and testimony from the AICPA and short update videos. I’ve got one there dated February 27 on what to tell your clients about tax reform. I hope you’ll check it out and that it helps give you some ideas of information to share with your clients to help them understand tax reform and the possible effects on them.
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When an organization wishes to become a tax-exempt organization eligible to accept tax deductible contributions from donors it is not sufficient that it be a non-profit organization. That, however, is the first step. Before the organization can be recognized by the IRS as a tax-exempt organization, it must file organization papers with the state as a non-profit corporation.
Have you suddenly become the unhappy target of an audit for allegedly under-reporting income to the IRS? Maybe you did under-report. Maybe you didn’t. Whether you did or not, your tax returns have waved some red flags at the IRS and you are now in their line of sight.
The Canada Revenue Agency (CRA) has issued me a business number. Now what do I do?
In Canada, once a company is assigned a business number then it needs to request which type of program account it needs to be setup. There are five types of accounts:
What are Accounts Payable on a Balance Sheet?
The Accounts Payable category appears under Current Liabilities on a Balance Sheet, as it is expected that these amounts owing will be paid within one year. It represents funds that a company has an obligation to pay vendors or creditors for goods and services received.
How the gains from the sale of a primary residence are taxed has changed in recent years. If you have recently sold your home, or are considering doing so, you may want to be aware of some of these tax rules.