News

Are Frequent Flyer Miles Ever Taxable?

August 30, 2016 by Yeo & Yeo

If you recently redeemed frequent flyer miles to treat the family to a fun summer vacation or to take your spouse on a romantic getaway, you might assume that there are no tax implications involved. And you’re probably right — but there is a chance your miles could be taxable.

Usually tax free

As a general rule, miles awarded by airlines for flying with them are considered nontaxable rebates, as are miles awarded for using a credit or debit card.

The IRS partially addressed the issue in Announcement 2002-18, where it said “Consistent with prior practice, the IRS will not assert that...

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Ransomware Alert: Be on the Lookout for Suspicious Files

August 25, 2016 by Yeo & Yeo

Ransomware is a malicious software that blocks user access to data and demands payment to restore access. Ransomware criminal networks are continuously finding new ways to hijack your information. Now, we have discovered that cyber criminals have begun to use macro-enabled Word, Excel, Access and PowerPoint files to compromise data. Macros are a set of programming instructions that can be used to eliminate the need to repeat the steps of commonly performed tasks over and over again.

As a precaution, do not open file attachments from senders you are not familiar with. If the email is coming from a sender you know, you should verify with...

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FASB Update: Presentation of Financial Statements

August 23, 2016 by Yeo & Yeo

 

The FASB recently released the first of two phases of its project to improve the financial reporting for not-for-profit (NFP) entities. Read the Accounting Standards Update.

Who will be affected?

The amendments in this update affect all NFPs and the users of their general purpose financial statements.

What are the main provisions?

The main provisions of this update, which amend the requirements for financial statements and notes in Topic 958, Not-for-Profit Entities, require an NFP to:

  • Present on the face of the statement of financial position amounts for two classes of net assets at the end of the period, rather than for the currently required three classes.

Nonprofits Should Personalize GuideStar Profile to Increase Visibility

August 17, 2016 by Yeo & Yeo

GuideStar is a website that provides impartial information about nonprofit organizations to the public for free. The website receives basic details about the organizations from the IRS, including contact information and a copy of Form 990. However, GuideStar encourages each nonprofit to claim its own profile in order to provide in-depth information that could interest donors, supporters and partners.

How to update your nonprofit’s profile

Claiming and updating an organization’s profile is free for all nonprofits. Simply go to the GuideStar website (www.guidestar.org) and click on “Update Nonprofit Profile.” First, request permission to manage the profile, which should be processed within...

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Agribusiness Seminar for Today & Tomorrow — Managing Market Risks + Transitioning Your Family Farm

August 17, 2016 by Yeo & Yeo

Yeo & Yeo is pleased to host a breakfast seminar on August 30 featuring Mark Gold of Top Third Marketing and Kent Creager of Nationwide.  

Join us for breakfast on Tuesday, August 30, from 8:00 to 11:00 a.m. at Horizons Conference Center.

...

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Lost Your Tax-exempt Status? Get it Back.

August 16, 2016 by Yeo & Yeo

For most tax-exempt organizations, Form 990, 990-EZ, 990-PF or 990-N (e-Postcard) is required to be filed each year with the Internal Revenue Service. If an organization fails to file for three consecutive years, it will automatically lose its tax-exempt status on the original filing due date of the third annual return or notice.

If an organization loses its tax exempt status, it is no longer exempt from federal income tax, meaning that it may be required to file Form 1120, U.S. Corporation Income Tax Return or Form 1041 U.S. Income Tax Return for Estates and Trusts, and pay applicable income taxes. In addition, donations made to the organization are not tax-deductible once the organization’s...

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