Insights

On June 21, 2018, the Financial Accounting Standards Board (FASB) issued its final guidance for contributions received and contributions made.

Calendar year employee benefit plans are generally required to file the 2017 Form 5500 and Form 8955-SSA by July 31, 2018 unless an extension Form 5558 is timely filed with the Internal Revenue Service Center in Ogden, Utah.

The Auditing Standards Board (ASB) last year released Statement on Auditing Standards (SAS) No. 133, Auditor Involvement with Exempt Offering Documents. This SAS addresses the auditor’s responsibilities when the auditor’s report on the financial statements is included, or incorporated by reference, in an exempt offering document, such as for municipal bond offerings, AND the auditor is considered “involved” in such exempt offering document.

It may not be an Infinity War, but a tax battle is heating up between some states and the IRS. The fight is over the new federal limitation on the state and local tax (SALT) deduction that individuals can take on their federal income tax returns.

The European Union (EU)’s General Data Protection Regulation (GDPR) has awakened us to the importance of securing our data and to be mindful of an individual’s privacy. For organizations that must adhere to GDPR, not only will they be subject to specific technical, administrative and legal requirements but also potential liability. Whether or not a specific organization must comply with the regulation, it has a responsibility to properly secure and control the use of personal data. Internal auditors should take this opportunity to assess the risks related to personal and other sensitive data (i.e., intellectual property).

There’s little doubt that the electronic revolution that we experienced, and continue to experience, is a force for tremendous good. Time-savings, accuracy, widening our personal knowledge and experience, medical breakthroughs, on and on cannot be fathomed without information technology. Eventually, the genius of IT will solve resultant cyber criminality – or, at the very least, ensure that it is minimal – so that we can reap the benefits without the fear. In the meantime, vigilance is the best practice … so that now brings us to this issue of Cyber Roundup.

Private foundations looking for an upgrade over EO Select Check should look no further as the Internal Revenue Service (IRS) launched a new online tool called Tax-Exempt Organization Search (TEOS). Its objective is to help users find information on the federal tax status of grantees and potential grantees. The new online tool replaces EO Select Check, the federal search engine that has been in service since 2012.

New York State is on a hunt for increasing personal income taxes on nonresidents. Its method: expanding the definition of a nonresident individual’s source income. Nonresidents, of course, are the easiest of targets. They don’t vote in the state.

Recently, the American Institute of Certified Public Accountants (AICPA) formally requested the Internal Revenue Service (IRS) to consider making suggested changes to the 2018 Form 990, Return of Organization Exempt from Income Tax, that conform with new financial statement reporting changes required under the Financial Accounting Standards Board’s (FASB) Accounting Standards Update (ASU) 2016-14, Presentation of Financial Statements of Not-for-Profit Entities.

Buyers of businesses are often eager to get the deal done. But tax due diligence may be worth the wait. There can be a significant impact on the market value of a target company. State and Local Tax (SALT) issues, in particular, can sometimes be deal breakers.

Before we get to this month’s cyber events — which many of you may consider to be “jaw-dropping” in their intensity and reach — let’s be reminded of the FBI’s list of steps that should be taken to help protect your computer from intrusion.