December 13, 2018 @ 9:07 am
Below is an article published by CPA Practice Advisor regarding year-end services to talk about with your CPA. This is the time of year that lists are made (and checked twice). It’s also a great time for CPAs and clients to consult. Here’s a year-end checklist for critical end-of-year tasks to get your clients in top shape for 2019. 1—Review overall performance and objectives Now is a great time to step back from the day to day operations of your business and look at setting some objectives for the future. Your CPA should be able to advise you beyond just helping with taxes to help you set and achieve some of these objectives. Start by drawing insights from your performance over the past year. Map out your business goals for the next 12 months and then discuss long-term plans for the next three to five years. Talk to your CPA about these goals and they should be able to provide insights and advice related to any challenges that might restrict your ability in achieving these goals, such as a need to improve cash flow, profitability or change spending habits. 2—Tax reform The Tax Cuts and Jobs Act (TCJA), passed …
October 22, 2018 @ 7:48 am
We are happy to announce that BiggsKofford is sponsoring a fantastic full-day powerful planning workshop: Scaling Up Business Growth Workshop: Prepare to Dominate Your Industry. BiggsKofford is able to sponsor seven clients this year. Please contact us for additional information at firstname.lastname@example.org if you are interested in attending for FREE! (A savings of $575) Please see the attached PDF for more information. Scaling Up Workshop Flyer 2018 – BIGGS We have sent out an email with further details. If you would like to receive this mailing, please let us know.
September 12, 2018 @ 2:44 pm
BiggsKofford’s Senior Tax Partner, Greg Gandy, recently celebrated his 25th anniversary with the firm. During his 25-years at BiggsKofford, Greg has become the cornerstone of our firm’s Tax Practice as well as the leader of our Real Estate and Construction industry group. We are so pleased to celebrate this major career milestone with Greg.
August 27, 2018 @ 2:12 pm
Late Friday afternoon the IRS issued proposed regulations (which were published Monday morning) regarding transfers (money or in-kind) to state agencies or charitable organizations in exchange for state tax credits. The proposed regulations state that if the Taxpayer is receiving a State or Local tax credit for the contribution made, the credit received will reduce the amount of such charitable contributions claimed on their Federal tax return. However, taxpayers can disregard this new rule if the credit does not exceed 15% of the taxpayer’s payment or 15% of fair market value of the property contributed. In summary the amount of your Federal Charitable Contribution will be reduced by 100% State Income Tax Credit that is received. The summary is clear that is does apply to pre-existing State tax credit programs that were in place before the enactment of the TCJA of 2018. For example, if XYZ contributes $50,000 to a qualified charitable organization on 8-28-18. The payment creates a $25,000 State Tax Credit. The amount deductible on XYZ’s Federal Income Tax Return would be $25,000 ($50,000 contribution less the $25,000 State Tax Credit). This proposed regulation applies to all state credits received arising from charitable contributions made after Aug. 27, 2018. We will …
August 24, 2018 @ 9:57 am
The Colorado Enterprise Zone Program creates a business friendly environment in economically distressed areas by offering incentives to businesses and projects in such areas. If your business is located in one of the Colorado Enterprise Zones, you may be eligible to claim various Colorado tax credits based on your purchases of qualified equipment, facility expansion, the hiring new employees and many other business activities. Click here to learn more from the CO Dep. of Revenue. Pre-certification can be filed at any time prior to commencing the activity. The process is very simple and takes less than 15 minutes. In addition, if you don’t perform activities during the year that would earn you any of the respective credits you have no further commitments. Click here to determine if you are located within one of the zones. Click here to complete the pre-certification online application. If you determine that you are located within an enterprise zone and would like us to assist in the pre-certification process please do not hesitate to contact us at 719-579-9090.
We are excited to announce the promotion of Nick Phillips to Senior Merger & Acquisitions Associate. Phillips joined BiggsKofford CPA firm in 2013 and worked as a Senior Tax Associate before being promoted into the firm’s M&A division. Phillips graduated from the University of Colorado at Colorado Springs. He is a Certified Public Accountant (CPA) and is a Certified Merger & Acquisition Advisor (CM&AA). “Nick’s abilities in both financial analysis and taxes provide a unique combination of skills that allow us to advise our clients through the largest financial events of their lives,” said Christian Blees, Director of BiggsKofford. Founded in 1982, Colorado Springs-based BiggsKofford currently employs more than 30 people. BiggsKofford CPA firm offers integrated business solutions, including tax, attestation, virtual accounting, and consulting services. BiggsKofford Capital, LLC was launched by BiggsKofford CPA firm approximately 15 years ago to provide investment banking services. Since that time, BiggsKofford Capital has represented hundreds of privately-held middle-market clients, throughout the United States, complete acquisition and sale transactions.
Completing your residency and fellowship and successfully landing your first position is a great success. This time can also be chaotic and full of changes. Many times you have relocated to your first position and are experiencing financial changes as well. Now that you have steady earnings, you should create a plan for your finances. It is far easier to get off to a good start and follow a winning plan than it is to adjust bad habits and face regret years from now. We have created a general checklist to help you get started, please note that these guidelines are not a one size fits all solution. Coordinating with your CPA or financial planner is always an integral part of financial planning. The Golden Rule: Spend Less than You Earn Year of hard work deserves reward, as a new physician you have likely spent countless years living modestly and are excited to reap the benefits of high income levels. Enjoying the fruits of your labor is a very different experience than jumping into a lifestyle of your colleagues that have been working physicians for 10 years. It is important to avoid “lifestyle creep”. Lifestyle creep might covertly enter your …
We are thrilled to announce the promotion of Eric Morgan, CPA to Senior Manager, in the firm’s tax department. Morgan joined the firm in August of 2006. Morgan received his undergraduate degree from Brigham Young University and his MBA from the University of Colorado – Colorado Springs. In addition to accounting, Morgan enjoys reading and spending time with his family, as well as tracking sports and current events. “Eric is trusted by his clients and the Partners at BiggsKofford to provide personalized service that is both technically accurate and relevant to our clients’ specific needs,” said Greg Gandy, Director of Taxation at BiggsKofford. “Eric has demonstrated the dedication and loyalty to the firm and our clients that is worthy of the title Senior Manager.” Founded in 1982, Colorado Springs-based BiggsKofford currently employs more than 30 people. BiggsKofford offers integrated business solutions, including tax, attestation, virtual accounting and consulting services. BiggsKofford continues to expand its services to meet the changing needs of over 500 business owners and entrepreneurs in Colorado’s Front Range.
BiggsKofford has become aware of some changes at the Internal Revenue Service that we wanted to pass on to you. Recently, we have noted an increase in the occurrences of IRS field agents appearing at taxpayers’ places of business with no advance notice. In conversing with some of these agents, we learned that the IRS recently changed its posture to give much greater emphasis on in-person contacts with taxpayers. The belief is that the in-person contacts will have a better chance of getting taxpayers’ attention than just sending letters in the mail. The trigger for these visits is if a taxpayer has an outstanding issue, such as unfiled tax returns, balances owed, or notices received that have not been responded to. If you are compliant with your income and payroll tax obligations, then this should not happen to you. You could still be subject to a regulatory audit, but the initial contact for that would be through correspondence in the mail. In the event a revenue agent (or person claiming to be such) appears in your place of business, please be assured that you are not obligated to begin discussing your case with them on the spot. You can ask …
We recently became aware of a fraud scheme targeting 401(k) plans and wanted to bring it to your attention. In this scheme, a fraudster calls the 401(k) plan custodian or third-party administrator (“TPA”) and impersonates a plan participant. First, the fraudster changes the email address on file so the participant will not receive notice of subsequent changes and then the fraudster requests a loan against the participant’s account. Most TPA’s require some form of identification verification before fulfilling these requests. However, it appears the fraudster has obtained the information necessary to “verify” the participant’s identity from other sources (most likely from a separate data breach, e.g. Equifax). After “verifying” the participant’s identity, the fraudster then directs the loan proceeds to his or her own account via ACH or other electronic transfer. To mitigate the risk of this scheme, we recommend that companies with 401(k) plans contact their 401(k) plan custodian/TPA to ensure controls are in place to: Require that every time a change is made to a participant’s account profile (e.g. email address, physical address, ACH account number, etc.), notification is sent to BOTH the old and the new email address Require authorization from the plan administrator (i.e. the person …
The Journal of Accountancy recently published an article disussing changes in HSA Contributions. You can see the article below, or click here to read the original. The IRS announced on Thursday that it is modifying the annual limitation on deductions for contributions to a health savings account (HSA) allowed for taxpayers with family coverage under a high-deductible health plan (HDHP) for calendar year 2018. Under Rev. Proc. 2018-27, taxpayers will be allowed to treat $6,900 as the annual limitation instead of the $6,850 limitation announced in Rev. Proc. 2018-18. The IRS is making the change to allow taxpayers to use the limitation it originally announced in Rev. Proc. 2017-37, which was issued last May. The limitation was revised in Rev. Proc. 2018-18 after the passage of P.L. 115-97, known as the Tax Cut and Jobs Act, which mandated new calculations of various inflation-adjusted amounts, including HSA limitations. After the IRS announced the new lower limit, it heard complaints from individual taxpayers and other stakeholders, including employers and payroll administrators, that the change would be difficult and costly to implement. They also noted that some taxpayers with family coverage under an HDHP had made the maximum HSA contribution for 2018 before …
The IRS released Bulletin 2018-10 a few days ago. Most notable is the changes to HSA limit for family coverage. There has been no change to individual limits. For calendar year 2018, the annual limitation on deductions under Internal Revenue Code Section 223(b)(2)(B) for an individual with family coverage under a high-deductible health plan is $6,850, down from $6,900. A “high deductible health plan” is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $13,300 for family coverage. This definition has not changed since the IRS’ previous announcement. You can see the entire bulletin here. Please feel free to contact us with any questions.
January 22, 2018 @ 8:44 am
Are you curious how the government shut down will affect your taxes? Here’s an article from the Journal of Accountancy that lays out what to expect. What to expect during shutdown.
January 9, 2018 @ 11:42 am
We would like to thank everyone for coming to our presentation on January 10th covering the Tax Cuts and Jobs Act. If you weren’t able to attend, or if you would like to review the presentation, the slides are available below. Do not hesitate to contact us about questions you have about how this new law will impact you. Tax Cuts and Jobs Act Presentation
December 28, 2017 @ 10:38 am
Our clients have been asking about the possibility of prepaying real estate taxes due in 2018 before the end of 2017. Thousands of homeowners are rushing this week to prepay their property taxes before the new tax legislation caps the amount of state and local taxes that can be deducted at $10,000. The IRS on Wednesday announced that taxpayers can prepay their 2018 property taxes only if they have already received a tax assessment from their local government and they make payment by the end of the year. Please contact BiggsKofford to review your particular situation prior to prepaying your real estate taxes before year end.
December 4, 2017 @ 3:03 am
See below for a very insightful article by Matthew Keef with Edge Point. See the original article here. By Matthew Keefe, Managing Director “Do investment bankers add value during an exit process?” Or, in other words, “Are bankers worth their fee?” I am confident that countless first-time sellers have wrestled with this question as they began evaluating an exit. Historically, the answers to these questions were anecdotal. However, a recent whitepaper by Michael McDonald, an Assistance Professor at Fairfield University’s Dolan School of Business attempted (and succeeded) to be the first to take a more scientific approach to determining if and how an investment banker provides value to a client. The Fairfield University study represents the first comprehensive independent analysis to determine whether or not sellers valued their advisor, and more importantly, what specific actions and counsel the sellers valued the most. To accomplish this goal, the study used empirical data from 85 business owners who sold their businesses for between $10 and $250 million during the period from 2011 to 2016. All of the sellers used reputable investment banking firms as advisors and the 85 owners accounted for 24 different investment banks. (EdgePoint was one of the investment banking firms …