By: Charles L. Telk Jr., CPA, Partner  |  email Recently we have seen a new type of IRS notice that I have not previously seen in my 28 years of practicing public accounting. The IRS sends a letter to a corporation assessing additional tax on “unreported income”. The source of this unreported income are 1099’s...

Recently some taxing agencies have become very aggressive with their enforcement actions. These agencies send out questionnaires to taxpayers which are designed to determine if the target taxpayer should be filing tax returns (income, sales, payroll, etc.) in their jurisdiction.

Firms participating in the Peer Review Program must have an independent review of its accounting and auditing practice every three years. Its peer review rating of pass indicates Gardiner Thomsen meets the accounting profession’s high standards of quality and professionalism. If requested, the firm will provide a copy of the report on the results of the review to all interested parties.

By definition, an involuntary conversion is a mandatory liquidation of assets (such as a loss due to fire, wind, flooding, or tornado). The lost property is normally replaced by another asset, such as cash from insurance proceeds. According to generally accepted accounting principles (GAAP), the difference between the value of the asset lost (property) and the value of the asset received (cash) is recognized in financial statements as a gain or loss. An involuntary conversion, and the resulting gain or loss, is considered to have occurred even if an entity reinvests the monetary assets with non monetary replacement assets.

Local Savings are the key to maintaining a viable cooperative. You hear it from us in every audit meeting report, from the bank, and at management and director training programs you attend. The percentage of local savings is the key factor in determining a cooperative’s profitability.

The “Fiscal Cliff” deal extends beneficial key cost recovery provisions. Bonus depreciation, which was set to expire December 31, 2012, was extended to qualified properties acquired and placed in service prior to January 1, 2014.