Blogs

Be the first person to recommend this.
As the number of ransomware attacks continue to increase, the response at C-level must be swift and decisive. Top executives are increasingly dreading the phone call from their fellow employee notifying them that their company has been hit by a cyberattack. Nearly every week in 2021 and early 2022, a prominent organization has been in the media spotlight as their public relations team struggles to explain how they were attacked and how they can regain consumer confidence. A recent survey showed that 37 percent of organizations surveyed had been affected by ransomware attacks in the last year. Worse, the days when executive leadership teams could fully delegate ...
0 comments
Be the first person to recommend this.
The AICPA Professional Ethics Executive Committee (PEEC) recently developed and approved new interpretations related to noncompliance with laws and regulations (NOCLAR) within the AICPA Code of Professional Conduct. The new interpretations of the "Integrity and Objectivity Rule" (ET §1.100.001 and ET §2.100.001) are titled "Responding to Noncompliance With Laws and Regulations" (ET §1.180.010 and ET §2.180.010). The interpretations are effective June 30, 2023. Early implementation is allowed. The "Integrity and Objectivity Rule" states: "In the performance of any professional service, a member shall maintain objectivity and integrity, shall be free of conflicts ...
0 comments
Be the first person to recommend this.
A Q&A with Chicago Booth’s René Caldentey about crisis-ready supply-chain management COVID-19 hurt supply chains. Will conflict in Ukraine stress them further? It is obviously having a huge effect on a number of sectors, most notoriously on energy markets, which have an immediate impact on logistics costs. More broadly, it is not just war but the fact that the geopolitical environment of countries and regions changes the way companies run their supply chains. The challenge, of course, is whether you have the capabilities as a company to manage the interaction between politics and business. The political environment is one more risk you have to deal with. ...
0 comments
Be the first person to recommend this.
For some organizations, it’s back to in-office work as usual, but the majority of enterprises are embracing remote and hybrid models. A new report from Forrester entitled The Anywhere-Work Preflight Checklist shows that when done correctly, businesses embracing remote and hybrid work are able to grow talent, culture and technology over time. However, if the move is not done correctly or at all, companies may experience disastrous results. “While we predict that anywhere work is here to stay, we also point out the many headwinds facing companies as they try to operationalize employee-experience-focused return to office (RTO) programs,” said J.P. Gownder, vice ...
0 comments
Be the first person to recommend this.
The Internal Revenue Service is coming under criticism from Congress and the American Institute of CPAs for destroying an estimated 30 million paper-filed information returns to cope with its backlog last year, with one lawmaker even calling for the IRS commissioner to be replaced immediately. The Treasury Inspector General for Tax Administration released a report on the processing of business tax returns, noting that the IRS decided in March 2021 to destroy millions of paper information returns because of its inability to process all the paper returns it was receiving. The IRS typically uses information returns such as Form 1099-MISC to verify the accuracy ...
0 comments
Be the first person to recommend this.
WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rate for the final 6 months of 2022. Taxpayers may use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business and certain other purposes. For the final 6 months of 2022, the standard mileage rate for business travel will be 62.5 cents per mile, up 4 cents from the rate effective at the start of the year. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents for the remainder of 2022, up 4 cents from the rate effective at the start of ...
0 comments
Be the first person to recommend this.
CENTERVILLE, OHIO, June 8, 2022—The National Society of Accountants for Cooperatives (NSAC) is pleased to announce that it has selected its scholarship recipients for the 2022-2023 academic school year. There were a record number of entries this year, and the Scholarship Selection Committee was thoroughly impressed with all applicants. Thirteen students received a $1,000 scholarship, for a combined total of $13,000. Congratulations to the following recipients: Ally Cochran Sponsoring Member: Lance Cochran, Mid-West Chapter Kyle Goblirsch Sponsoring Member: Kathy Goblirsch, North Central Chapter Dylan Wehner Sponsoring Member: ...
0 comments
Be the first person to recommend this.
CENTERVILLE, OHIO, June 8, 2022—The National Society of Accountants for Cooperatives (NSAC) is pleased to announce that it has selected its scholarship recipients for the 2022-2023 academic school year. There were a record number of entries this year, and the Scholarship Selection Committee was thoroughly impressed with all applicants. Thirteen students received a $1,000 scholarship, for a combined total of $13,000. Congratulations to the following recipients: Ally Cochran, Mid-West Chapter Kyle Goblirsch, North Central Chapter Dylan Wehner, Great Lakes Chapter Emilie Loyd, Great Lakes Chapter Tiarra Tefft, Mid-West Chapter Tiffany ...
0 comments
Be the first person to recommend this.
Among private sector companies, 86% of those surveyed by Sophos said that a ransomware attack caused them to lose business or revenue. A successful ransomware attack can devastate an organization, resulting in lost or leaked data, financial pain, business and operational downtime, loss of revenue, and even reputational damage. A new report from security firm Sophos looks at the effects of ransomware on businesses and offers a few tips on how to protect your organization from these types of attacks. The Sophos “ State of Ransomware 2022 ” report is based on a survey of 5,600 IT professionals in mid-sized organizations (100-5,000 employees) across 31 countries. ...
0 comments
Be the first person to recommend this.
On Oct. 15, 2021, the IRS announced changes that allow taxpayers to argue reliance on Service-issued frequently asked questions pages (FAQs) in seeking relief from penalties that provide a reasonable-cause exception (see IRS News Release IR-2021-202 ) . While taxpayers will still have to show that such reliance was in good faith and was reasonable based on all the facts and circumstances, the announcement represents a new era in penalty relief. The change in the IRS's position applies to all penalties that provide for an exception due to reasonable cause. This includes the negligence penalty or other accuracy-related penalties imposed under Sec. 6662(a), ...
0 comments
Be the first person to recommend this.
Originally published in The Cooperative Accountant , Spring 2022 Issue The decision whether to “own or lease” company fleet equipment has been seen by many historically as a financial decision. But there may be other good reasons to consider one option over the other. Some of the non-financial reasons to choose leasing may include the constant influx of new equipment technologies and an ever-growing shortage of qualified automotive technicians. In the past, leasing had been favored by sizable fleets that run standard equipment on shorter trade cycles. But, increasingly, more companies of all sizes are looking at all options which could include outright ownership, ...
0 comments
Be the first person to recommend this.
Delegating is far more than just assigning tasks to others. "It's not just about shuffling things around. It frees you up to work on things that are highest and best use for your level," said Tamera Loerzel, a partner with ConvergenceCoaching LLC in Prior Lake, Minn. "It also offers crucial opportunities for you to help employees learn and grow." As a career coach, Loerzel spends a lot of time teaching others to delegate more effectively, and she has identified a handful of common mistakes that many leaders make. At her session at AICPA & CIMA ENGAGE 22, "Becoming a Powerful and Effective Delegator," she'll identify common pitfalls and discuss how they ...
0 comments

TCA Spring 2022 TAXFAX

Be the first person to recommend this.
Originally published in The Cooperative Accountant , Spring 2022 Issue Research Credit Update The federal Section 41 Credit for Increasing Research Activities (“R&D Credit”) is an intriguing opportunity for cooperatives to claim a dollar-for-dollar tax credit against their tax liability for the year based on their qualified research expenses and a 20-year carryforward of any unused credit to offset tax liabilities in future tax years. However, the IRS and U.S. Tax Court have recently indicated heightened requirements for taxpayers to provide supporting information to substantiate their R&D Credit claims. On October 15, 2021, the ...
0 comments
Be the first person to recommend this.
The IRS issued sharply higher new depreciation limitations for passenger automobiles, reflecting inflation of vehicle prices in the past year. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers. Rev. Proc. 2022-17 contains the Sec. 280F(a) inflation-adjusted dollar limitations on depreciation deductions for passenger automobiles (which includes trucks and vans) acquired after Sept. 27, 2017, and placed in service during 2022, for 2022 and each succeeding tax year. For passenger automobiles for which Sec. 168(k) additional first-year, or "bonus," depreciation is applied, ...
0 comments
Be the first person to recommend this.
The COVID-19 pandemic has brought numerous changes to our daily lives, including the workforce, which saw a significant shift. The finance and accounting sector, in particular, has been deeply affected as the pace of the modern workplace was exacerbated by COVID-19 and has become a pressure cooker for controllers and their teams as they faced tighter deadlines, expanding compliance obligations, a shift to remote work, and higher scrutiny from management. In fact, according to a recent study by the Institute of Chartered Accountants in England and Wales, this increasingly intense atmosphere has led to more than half of accountants admitting depression and ...
0 comments
Be the first person to recommend this.
Originally published in The Cooperative Accountant , Spring 2022 Issue FASB AMENDS THE LEASE STANDARD TO ALLOW LESSEES THAT ARE NOT PUBLIC BUSINESSES GREATER FLEXIBILITY IN APPLYING INTEREST RATE SELECTION On November 11, 2021, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU 2021-09) that modifies an existing provision of Topic 842 which allows non-public business entities to elect to use a risk-free rate as the discount rate for all leases . The amendments in this Update allow those lessees to make the risk-free rate election by class of underlying asset, rather than at the entity-wide level. The ...
0 comments
Be the first person to recommend this.
That’s according to a new report from mobile security firm Lookout, which recently published a list of the 20 passwords most commonly found in leaked account information on the dark web. The list ranges from simple number and letter sequences like “123456” and “Qwerty” to easily typed phrases like “Iloveyou.” Choosing easy-to-remember passwords is understandable: The average person has more than 100 different online accounts requiring passwords, according to online password manager NordPass. But simple passwords can be extremely easy for hackers to figure out, allowing them stress-free access to your personal data and accounts. It’s a timely concern. Cybersecurity ...
0 comments
Be the first person to recommend this.
Ukraine was being hit by cyberattacks well before Russia launched its invasion. DDoS attacks and wiper malware were among the cyber threats that targeted Ukrainian government ministries, banks, media and other services, but there are also other examples from recent history. Russia has been accused of being behind attacks that took down Ukrainian power grids in December 2015, and it's thought that the Russian military was also behind the widespread and disruptive NotPetya malware attack of June 2017. NotPetya was designed to target organizations in the Ukrainian financial, energy and government sectors, but the impact quickly spread to organizations around the ...
0 comments
Be the first person to recommend this.
For more than 100 years, the evolution of Form 1099 has required organizations to repeatedly adjust their tax reporting and compliance strategies in order to allow the Internal Revenue Service to cross-check reported payments with an individual and entity’s tax return. In 1918, five years after the 16th amendment gave Congress the “power to lay and collect taxes on incomes,” businesses were required for the first time to use Form 1099 to report any payments that totaled at least $800 during the year. At the time, one version of the form covered all payments, such as salaries, wages, profits, etc. After more than a century of policy changes and assertive efforts ...
0 comments
Be the first person to recommend this.
Originally published in The Cooperative Accountant , Spring 2022 Issue There has been extensive media coverage surrounding Bitcoin but DAOs (Decentralized Autonomous Organizations) are utilizing the same blockchain technology to revolutionize organizational structure. DAOs have garnered a large amount of capital and attention in the last year. In August 2021, BitDAO raised $365 million, $230 million of which was secured within 20 minutes of going live (Genc 2021). Other interesting DAOs include Krause House DAO formed in November 2021 with the mission of buying an NBA team. It has currently raised $1.7 million dollars. The DAO market is growing rapidly. ...
0 comments