Archive for the ‘Business’ Category
In Accounting & Finances,Business,Culture,Education,Taxes on July 9, 2012 by Sufen Wang Tagged: Deloitte, Enron, Public Company Accounting Oversight Board, Sarbanes–Oxley Act, SEC, U.S. Securities and Exchange Commission
U.S. SEC Takes Action against Shanghai-Based Accounting Firm
The world got a good look at American business’ bad side from 2001-2002, and boy, was it ugly. The Enron (now synonymous with corruption), Worldcom, and Tyco scandals made it clear that big corporations and accounting firms needed to bring their ethic sup to code. But first, that code had to be brought up to date.
That’s exactly what the Sarbanes-Oxley Act of 2002 did: it established new and improved standards for U.S. business practices. Companies could no longer pretend they didn’t know something wrong was going on and they would be held accountable for their “oversights.”
Or at least that’s what was supposed to happen. Welcome to 2012, where several Chinese companies listed on the U.S. stock exchange appear to have slipped-up in their accounting. And the foreign accounting firms that audit these companies – in other words, the people who should be reporting any suspicious financial activity – have been less than forthcoming with the U.S. Securities and Exchange Commission (SEC).
For example, a Shanghai-based firm, Deloitte Touche Tohmatsu, has been withholding some very important papers from the SEC. One of the firm’s clients, a Chinese company that trades in the U.S., is under investigation. The Sarbanes-Oxley Act says that the accounting firm must provide the SEC with any documents relating to this suspected, U.S.-based company.
That’s nice, but Deloitte said they gave the documents to the Chinese Securities Regulatory Authority (CSRA), and it was up to the SEC and CSRA to figure things out. That didn’t happen and when the SEC asked for the work papers again, Deloitte said nope. Accordingly, the SEC is charging Deloitte with violating the Sarbanes-Oxley Act provision.
This administrative action comes at an inopportune time for the Public Company Accounting Oversight Board (PCAOB), an agency created by the Act specifically to oversee U.S. accounting firms in their auditing duties, as well as the auditors of any U.S. listed companies – i.e. Deloitte Touche Tohmatsu. Chinese officials had not previously allowed inspectors this crucial access, but the PCAOB was on the very brink of working out an agreement.
That possibility of observing audit inspections in China could be in jeopardy due to the SEC’s aggressive move. Now the million– and what could end up as the billion – dollar question is what should the U.S.government do? What can the government do? Should U.S. law be imposed onto the Chinese? What about accounting laws in China? Should the U.S. be following their laws as well? It’s an international nightmare with no easy answers.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Culture,Education,Entertainment,Family,Human Resources on July 8, 2012 by Sufen Wang Tagged: Android, App, iPhone, NASA
Mobile Apps for Every Occasion
Poke. Poke. Poke. Need a break from Facebook during your lunch break? Put your smart phone and mind to better use by trying out the apps your government has to offer. Oh yeah, they’re all free, so you’ve got nothing to lose.
While not everyone will find all these government apps useful, there’s something useful for everyone. For example, it’s unlikely that a teenager would scramble to download the “Budget of the U.S. Government” app, which provides info from the FY13 Budget book, or the “House and Senate Member Guide,” which offers a picture directory of every single Member of the 112th Congress. Exciting?! Eh?!
However, if that high school student forgot to do their homework, they might want to download “Science.gov Mobile” to find quick answers to all their science questions. Or if they think they’re too cool for school, tell them to download “SatelliteInsight” – it looks like a video game, but it really teaches kids about NASA’s GOES-R,the Geostationary Operational Environmental Satellite, R series. If you don’t know what that is, then get the app too!
Of course, many of the apps are perfect for the average, working American. First, check the forecast with the “National Weather Service.” Then, when you make it to work and start to feel claustrophobic in your cubicle, whip out the “Tactical Breather” app and gain control over your stress level. If that doesn’t help, and you need a cigarette, use the “QuitSTART” app to become tobacco free. When you’re done for the day, use “DOL-Timesheet” to record the hours you worked. If your boss doesn’t pay up, you can always use the “USAJOBS” app to find federal employment.
Admittedly, some apps are very strange. The “MojaveDesert Tortoise” application allows you to upload a photo, take a survey, and find out more info if you happen to encounter this threatened species in the middle of the desert. Though, you’ll probably be more concerned with finding water than taking pictures.
There’s a lot more where these came from. Be aware that some apps were designed only for the iPhone, some only for Android,etc., so pick those compatible with your device. Now all you need is an app for finding apps.
On the Apps,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Culture,Education,Family,Taxes on June 25, 2012 by Sufen Wang Tagged: International Student Exchange, Student exchange program
Don’t Expect the IRS to Help Much!
School’s out for summer and students across the country get to sleep in and watch cartoons. However, summer is also the time when foreign exchange students get ready to travel and arrange their fall residence with their foreign hosts. If you’re thinking of being a host, you might want to do some homework, especially on how much tax relief (or how little) you’ll get from the IRS.
$50! That’s the MAXIMUM amount a taxpayer who hosts a foreign exchange student can deduct from his/her federal income tax as a “charitable contribution in qualifying expenses per month for maintaining the student.” If you buy the kid a pair of sneakers, you’ve already spent more than your deduction. And let’s just say that the IRS doesn’t make it easy to get even this small amount.
No frat boys, sorority girls, or any college students for that matter. To get the tax relief, the student you host must be a full-time 12th grader (or lower) in a U.S. school. And don’t try to pass your teenage son off as an exchange student, although he might seem like a stranger to you. The person you host can’t be a dependent or a relative. Most restrictively, the student must live in your home “under a written agreement between the taxpayer and a qualified organization as part of the organization’s program to provide the student with educational opportunities.” These are only the key limitations, so be sure to check out the IRS publication for more fine print.
Luckily, lots of expenses count towards the deduction: the cost of books, food, clothing, transportation, entertainment,etc. We all know that teenagers hate books, but they love food, clothing, and especially entertainment, and so you’ll probably hit the $50 mark the first day your exchange student arrives. Just keep reminding yourself that $50 per month is as much as you’re going to get back from the IRS.
And it doesn’t look like that amount is going to be raised anytime soon. Back in 2005 a bill was introduced to increase the deduction to $200 per month, but the bill flopped. So if you’re going to be hosting an exchange student, don’t do it for the money. Do it because it’s agreat learning experience for everyone involved!
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Culture,Taxes on June 14, 2012 by Sufen Wang Tagged: Amazon, Amazon.com, california, Online shopping, Patterson, Sales tax, San Bernardino, Tax
with a Big Share of the Sales Tax….
Amazon could soon be your next-door neighbor. The online retailer already has plans to build fulfillment centers in San Bernardino and Patterson, CA. While these huge brick and mortar warehouses won’t attract tourists, they will generate much-needed local jobs and, even better, about $8 million for each city.
That’s because Amazon agreed to start collecting sales tax starting Sept. 15. Since all Amazon purchases by California customers will “originate” from San Bernardino and Patterson, those two cities will earn 100% of the city portion of the state-wide, standard sales tax that will be charged by the online merchant.
Except the cities won’t be keeping the full 100% – after all, Amazon needs a housewarming gift. Specifically, a sales-tax rebate of 75% from Patterson and 80% from San Bernardino. These deals are still in the works, but the high numbers are indicative of how desperate cities are to welcome major online retailers to the neighborhood.
However, Amazon as the new kid on the block isn’t necessarily a win-win situation. California law leaves it up to the merchant to pick the point of sale – that is, the community where they are physically housed which gets the share of the sales taxes. That means that online merchants can shop around the state for the best sales-tax rebate deal, while cities butt heads and try to out-bargain each other.
The result is that Amazon, previously so resistant to charging sales tax, could profit the most from the state sales tax – and not California itself. Now that’s hospitality at its best.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on May 20, 2012 by Sufen Wang Tagged: Fresh Start, Fresh Start Initiative, Internal Revenue Service, irs, Offer in compromise, OIC, Tax, YouTube
A Fresh Start from the IRS
If you still owe taxes, you might be feeling the heat from deadlines and failure-to-pay penalties. Luckily, the IRS is cool enough to give you relief in three areas with its “Fresh Start” initiative.
1. PENALTIES: That’s right folks, the Fresh Start Penalty Initiative gives eligible taxpayers a six-month extension (until Oct. 15, 2012) to fully pay their 2011 taxes, without any penalties. This won’t get you out of paying interest on your owed taxes. But as long as you pay those taxes and the interest by the October deadline, you won’t be charged any nasty failure-to-pay penalties.
All the people who aren’t getting a lot of business/unemployed people in the house raise your hands! Your bad luck is good news for you, because the Fresh Start Penalty Initiative is only available to: Wage earners who have been unemployed at least 30 consecutive days during 2011 or in 2012 up to this year’s April 17 tax deadline – OR – Self-employed individuals who experienced a 25 percent or greater reduction in business income in 2011 due to the economy.
To find out more about this limited time offer, you’ll need to visit the IRS website and read over the brand spankin’ new Form 1127A.
2. INSTALLMENT AGREEMENT: The Fresh Start initiative also offers expanded and improved streamlined installment agreement provisions. Sounds fancy, but it actually makes things simpler. Under this option, more people will have more time to catch up on back taxes, which means fewer penalties for everyone involved. Best of all, streamlined installment agreements require limited financial information.
3. OFFER IN COMPROMISE: What’s the difference between an agreement and a compromise? Well, the “Offer in Compromise” is an agreement between a taxpayer and the IRS that settles the taxpayer’s tax liabilities for less than the full amount owed. Under the Fresh Start initiative, the IRS decided to get real and has been working on more common-sense changes to the OIC program.
Tired of reading, but want to find out more? Then grab some popcorn and enjoy the IRS Fresh Start YouTube video and the IRS video series “Owe Taxes: Understanding IRS Collection Efforts.” They’re not as boring as they sound.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on May 11, 2012 by Sufen Wang Tagged: Forbes, Internal Revenue Service, irs, Notice, Tax, tax return, Telephone number, TurboTax
It Shouldn’t Be…
You head out to your mailbox expecting to find this week’s issue of Forbes. Instead, you open the mailbox and see a notice from the IRS sitting on top. Don’t assume it’s going to be a hassle – most of these letters can be handled without having to call or visit an IRS office.The notice might order you to pay up, but often it will simply notify you of account changes. Whatever the problem, the letter will provide specific instructions about what you need to do.
Please read carefully. If you received a correction notice, compare it with the information on your tax return. If everything looks A-okay, there’s no need to reply – unless the notice tells you otherwise. If the correction looks incorrect, you’ll need to let the IRS know with a written explanation.
Just because you don’t need to contact the IRS, doesn’t mean you can’t. If you have a question, just call the telephone number in the upper right corner of the notice. Have your tax return handy when you call.
See, you’ll be relaxing and reading your magazine in no time – until the next IRS notice arrives in the mail.
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Human Resources,Taxes on April 23, 2012 by Sufen Wang Tagged: accounting, Audit, Credit card, Internal Revenue Service, irs, Tax, tax return, United States
You’re Not Done Yet!
Now that you’ve filed your tax returns, you might be tempted to push your tax documents out of sight, out of mind. That’s not a good idea. Keeping good records after you filed is a good idea, just in case the IRS selects your returns for an audit.
In general, any documents relating to your federal tax returns should be saved for at least three years. This includes bills, credit card receipts, invoices, and any other records that support deductions or credits you claim on your return.
Don’t pull out the shredder for your whole filing cabinet just yet. To be on the safe side, you should keep any and all real estate refinancing loan docs, exchange calculation, escrow closing statements, inheritance or funds gifted to children, trust-related issues, stocks and bond trades, etc. for more than 3 years. Let’s try 5 to 7 years.
Finally, any and all payroll related records should be kept for about 10 years. Yes, you read that right: one whole decade. A few years ago I encountered a case where the State of California Employment Office (EDD) could not reconcile data on an employee, dating back to 1999 and decided to seek out my assistance via an audit. Fortunately, I was able to complete the audit, clean as a whistle, because I had all of the original records on the subject employee.
That just goes to show that employers should make room for keeping records. If you want to save space, go digital and scan all of the employees’ records – but always ensure that their signatures are clear and legible in the scanned images. However you do it, save your records now so you can save yourself some trouble in the future.
On the Record,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on April 16, 2012 by Sufen Wang Tagged: Computer file, Credit card, Filename extension, Internal Revenue Service, irs, Overtime (sports), Tax, tax return
Can’t Pay? It’s Okay! Don’t Delay, File Your Returns Today
Tax returns will be due in less than 48 hours. Don’t have a panic attack if you can’t pay all the taxes you owe when you file. There are always solutions to problems….. But File, File, File – on time. It’s better to file right now and pay as much as you can, than to not file at all. If you don’t, you’ll be looking at a late filing penalty, in addition to a late payment penalty, and accrued interest charges. Or make sure you file an extension by April 17 with some estimated tax along with it.
This extension will give you an extra 6 months, until October 15. But remember this extension will only give you extra time, but not to reduce your tax liabilities. Interest and penalty will continue to accrue during this 6 months extended period on your tax responsibilities. Folks, DO NOT wait until October 15 to seek another extension, because there is NO extension on your extension…
Business Extension Form 7004.
Personal Extension Form 4868.
If you are not able to pay your taxes right now, still file your returns on time, and then request for an installment payment agreement from the IRS (for a fee, of course). You can also use this option when your bill arrives from the IRS. Remember the IRS also accept credit cards… In any case, File, File, File…
On the Money
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on April 11, 2012 by Sufen Wang Tagged: Alien (law), Filing Status (federal income tax), Head of Household, Internal Revenue Service, Itemized deduction, Marriage, Standard deduction, Tax
Find Your Perfect MatchTo itemize or not to itemize? That is the question with personal tax returns due April 17. When choosing between a standard or itemized deduction, you’ll want to pick the method that gives you the lower taxes.
To do this, first figure out the amount of your standard deduction. It’s based on your filing status and can change each year from inflation adjustments. For 2011, the amounts are:
Single: $5,800
Married Filing Jointly: $11,600
Head of Household: $8,500
Married Filing Separately: $5,800
Qualifying Widow(er): $11,600
These numbers are higher for taxpayers who are blind and/or 65 or older. If the total amount you spent on qualifying expenses is more than your standard deduction, you can usually benefit by itemizing.
However, not everybody gets to choose between itemized and standard deduction. Are you a nonresident alien, dual-status alien, or an individual who files returns for periods of less than 12 months due to a change in accounting periods? If you answered yes to any of the above, you are not eligible for the standard deduction.
Those in the “Married Filing Separately” category have some extra rules when it comes to deductions. If one spouse itemizes deductions, the other spouse must also itemize to claim their allowable deductions. Better dust off those communication skills and make sure you and your spouse are on the same page, that is “standard or itemized?” Hit that “refresh” button and make sure both of your tax returns are in sync….
Now that you’ve decided on standard or itemize, the next item on your list should be to finish your taxes…
On the Money,
Sufen Wang
Wang Solutions
In Accounting & Finances,Business,Taxes on March 23, 2012 by Sufen Wang Tagged: Air Force, Earned Income Tax Credit, Form 4868, Income tax, Internal Revenue Service, IRS Volunteer Income Tax Assistance Program, Tax, Tax preparation
Military personnel tax themselves to help their country, so their country is helping them with free tax return preparation assistance. The Volunteer Income Tax Assistance program provides low-to-moderate-income soldiers and their spouses with free tax advice, tax preparation, and return filing. And our troops don’t have to travel far for this help: VITA sites are located everywhere, from libraries to shopping malls. This means less time fighting numbers and traffic, and more precious time with their families.
The Armed Forces Tax Council is the name to know for military-related tax problems. It doesn’t matter if you’re a soldier on land, sea, or in the sky: the AFTC directs military tax programs worldwide and has program coordinators for the Marine Corps, Air Force, Army, Navy and Coast Guard. With VITA, they provide volunteers who are ready to help you solve common tax issues and also answer any military-specific tax questions you may have. These are the people to ask about combat zone tax benefits or Earned Income Tax Credit guidelines. Just head to a military-based VITA site with all of your relevant identification and financial information.
Things can get a little hectic while protecting the country and filing taxes might be the last thing on your mind. There are filing extensions that the military personnel need to be aware of and take an advantage of. Check out the Extension of Deadlines section of the Armed Forces Tax Guide, Publication 3, along with the extension Form 4868; these documents will provide some breathing room for our military families. The IRS is doing what it can to make taxes as painless as possible for our troops.
On the Money,
Sufen Wang
Wang Solutions
The world got a good look at American business’ bad side from 2001-2002, and boy, was it ugly. The Enron (now synonymous with corruption), Worldcom, and Tyco scandals made it clear that big corporations and accounting firms needed to bring their ethic sup to code. But first, that code had to be brought up to date.
Or at least that’s what was supposed to happen. Welcome to 2012, where several Chinese companies listed on the U.S. stock exchange appear to have slipped-up in their accounting. And the foreign accounting firms that audit these companies – in other words, the people who should be reporting any suspicious financial activity – have been less than forthcoming with the U.S. Securities and Exchange Commission (SEC). 
This administrative action comes at an inopportune time for the Public Company Accounting Oversight Board (PCAOB), an agency created by the Act specifically to oversee U.S. accounting firms in their auditing duties, as well as the auditors of any U.S. listed companies – i.e. Deloitte Touche Tohmatsu. Chinese officials had not previously allowed inspectors this crucial access, but the PCAOB was on the very brink of working out an agreement.
That possibility of observing audit inspections in China could be in jeopardy due to the SEC’s aggressive move. Now the million– and what could end up as the billion – dollar question is what should the U.S.government do? What can the government do? Should U.S. law be imposed onto the Chinese? What about accounting laws in China? Should the U.S. be following their laws as well? It’s an international nightmare with no easy answers. 
Wang Solutions 