Business Startup Solutions

Forensic and Fraud Accounting Fuels Growth at Wilmington’s Adam Shay CPA

PRESS RELEASE Contact: Richard Pasquantonio [email protected] 910-256-3456 Michael Angerhauser Joins to Expand Forensic Practice for Accounting Firm Wilmington, NC – September 14, 2017 – Experiencing an increase in the need for forensic and fraud accounting, Adam Shay, CPA PLLC has further strengthened its fraud investigations and forensic accounting services by adding Michael Angerhauser to the team. With 35 years of accounting and law enforcement experience, Angerhauser’s Big 4 accounting experience enables enhanced strategic counsel for attorneys and private companies throughout the southeastern United States. The focus includes fraud investigations, Independent Pr

1/31 1099 and Business Property Tax Listing Filings Are Due

1099’s are due by January 31. Starting 1/31/17 they need to be filed with both the recipient and the IRS by that date. Otherwise, you'll face penalties (see below). If you have paid someone over $600 for services, such as tax preparers Wilmington NC, or for rent, then you most likely need to send them a 1099. However, if you paid a corporation or paid them via credit or debit card, then you are not required to send a 1099. Some corporations are still required to receive a 1099, such as attorneys. We advise all clients to have people who are providing services for them to fill out a W-9. This helps us determine if they need to receive a 1099 because they have to tell us what type of enti

Shutting Down a Business? File your Final Taxes On Time and Avoid the Short Year Trap

Filing a late partnership or S corporation tax return has gotten increasingly expensive over the last 10 years. In 2006, the penalty per month, per partner/shareholder was $50. For 2016 that penalty is $195 per month, per partner/shareholder. This means that if a partnership with two partners who fail to file an extension for their tax return, but still file by September 15th would face $1,950 in penalties from the IRS. The maximum months that penalties can be assessed are 12, but consider the client who may be a few years behind in filings and has multiple shareholders. These penalties can quickly reach the $10,000 plus mark. If you are a business owner the above situation may not apply

Catching Up on Missed Rental Property Depreciation

If you own a rental property, do you know if you have taken all of the possible deductions?  The number one item that I see most commonly missed for a rental property on self-prepared tax returns is depreciation.  You are allowed to depreciate residential rental property over 27.5 years and commercial rental property over 39 years.  To calculate the depreciation, you will need the cost basis of the property, which is what you paid for it.  Make sure you allocate a portion of the basis to land, another common error on tax returns.  The land portion is not depreciable. Why is it important to depreciate the property?  Whenever you sell or dispose of the property, you have to calculate

NC PACES (Crowdfunding) Act

On June 29, 2016 the North Carolina House and Senate unanimously passed the NC PACES Act. PACES stands for “Providing Access to Capital for Entrepreneurs and Small Business”. As a NC business owner this means that in any given 12 month period up to $1 million can be raised from investors who are NC residents without audited or reviewed financial statements. If companies want to raise more than $1 million then audited financial statements will be required. The legislation still limits investors who are not accredited may only invest $5,000 in one particular business. As a business owner if you want to promote a public offering there will be a filing requirement with the Securities Divis

Proposed Fair Labor Standards Act (FLSA) Regulations

The Department of Labor recently updated the Fair Labor Standards Act (FLSA). The regulations regarding overtime pay for white collar workers was last updated in 2004. The new changes were proposed to take effect December 1, 2016 but implementation has been delayed. It is most likely that this will affect you. Our Adam Shay accountant in Wilmington NC explains the ins and outs of the regulations so you may better familiarize yourself with the changes. OVERTIME FLSA requires that certain employees that do not fall under an exemption be paid overtime if they work over 40 hours a week. These employees would include inside sales, construction workers and waitresses to name a few. So, the c

What are excess distributions and how do you handle them?

A common question from business owners is “How much money can I take out of the business?” We like to make sure business owners know what they are allowed to take out by educating them. After all, it is their hard-earned money. Before we get into the nitty-gritty of this, I would like to point out that if you are an S Corporation shareholder there is one thing to keep in mind: salary. The IRS requires that a shareholder providing services to the S Corporation must take a reasonable salary. If you were ever to be audited by the IRS regarding this issue, and the IRS deemed that your salary is not reasonable, they could reclassify distributions to salary. As a result of the reclas

The Self Employed Vicious Tax Cycle

Let us lay out a scenario. You are a self employed individual. You are meeting with your tax accountant to complete your taxes by April 15 and are told that you owe a bundle in taxes for the year. In addition to the thousands you owe (that is due by April 15), your tax accountant advises you to also make your first estimated tax payment for the current year(also due April 15). You simply do not have the money. You get set up on a payment plan to pay the balance due and because you are paying off this amount, you surely cannot make estimates for this year. At this rate, it feels as though you will never catch up. Does this sound familiar? Let's talk about the vicious cycle of taxes and why

Our Spring Clean-A-Thon: Helping Others via Charitable Donations

In December, the Adam Shay CPA team ventured out for our volunteer day expecting to decorate the Harrelson Center downtown for the holidays while learning about each organization. Sadly, when we arrived at the center that Monday morning, we were informed that over the weekend, someone had vandalized the building, flooding every level. While we were not able to decorate, we were able to help the center start cleaning up the mess. We hate that it happened, but we were glad that we could be there to help. For those of you who do not know, The Harrelson Center houses various non-profit Organizations that are helping our wonderful Wilmington Community. For example, Wilmington Area Rebuilding M

Workers Compensation Insurance and North Carolina (NC)

Health insurance may be the hot topic right now, but employers should not forget about workers’ compensation insurance. The beginning of the year is a good time to get on track if your business has not been compliant in the past. From the NC Department of Commerce website, “The North Carolina Workers’ Compensation Act requires businesses which employ three or more employees, including those operating as corporations, sole proprietorships, limited liability companies and partnerships, obtain workers’ compensation insurance or qualify as self-insured employers for purposes of paying workers’ compensation benefits to their employees.” A Chairman at the NC Department of Commerce has

How to reach us?

Adam Shay CPA, PLLC

1721 Allens Ln #210

Wilmington, NC 28403

(910) 256-3456

[email protected]