IRS will Provide Tax ID Victims Copies of Fraudulent Returns The Internal Revenue Service announced procedures for victims of tax ID theft or their authorized representative to request copies of bogus returns filed by identity thieves. This change of policy will allow identity theft victims to better assess what personal information was compromised and how it was used. Paul Bonner, JofA senior editor, discusses the IRS posting instructions for requesting the returns and explaining the circumstances under which they will be disclosed. To find out more on this Journal of Accountancy article, click: Tax ID Theft Victims may Obtain Copies…
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Get Top Value When Selling an Accounting Firm Avoiding these seven key misconceptions can help you avoid getting less than your firm is worth. Harry L. Olson, president of Accounting Broker Acquisition Group Inc., discusses the misconceptions and what pitfalls to look out for. To find out more about this Journal of Accountancy article, click: Maximize Proceeds in Accounting Firm Sales.
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Being on the rise, dissenting actions are catching the eye of investors, attorneys, and other deal makers. Jay D. Wilson, Jr., senior member of Mercer Capital’s Depository Institutions practice, takes a look at why it is important an appraiser preparing a valuation of a bank in an appraisal action understand both valuation techniques and the banking industry. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: Dissenting Shareholders and Bank Appraisals: Speak Now or Forever Hold Your Peace This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with…
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Grow and Retain Your Referral Base Today’s valuation firms rely heavily on referrals to produce new leads and revenues. According to a new study by NACVA and Hinge Marketing, most firms could be getting far more referrals if they made a few changes to their marketing. This article shares the findings.
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Guidance from Bross Trucking v. Commissioner (2014) Valuation analysts often have to separate company-owned entity goodwill from shareholder-owned personal goodwill in the valuation of closely held companies. These valuations may be performed for family law, shareholder dispute, breach of contract, or other litigation purposes; for transaction structuring and sale consideration allocation purposes; and for gift tax, estate tax, or income tax purposes.
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Healthcare Costs for Large Companies Rose Slowly in 2015 Healthcare costs for large companies rose 3.2% in 2015, research by Aon Hewitt has found. It is the smallest increase since 1996, when Aon began tracking the data. However, the company predicts a 4.1% increase in 2016. David McCann discusses the findings. To find out more on this CFO article, click: Hike in Healthcare Costs Sinks to 20-Year Low.
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How to Turn Business Cards into Meaningful Connections A conference or industry event can be a great networking opportunity, provided you stay in touch with your new contacts. Alexandra Samuel, author of Work Smarter with Social Media, gives step-by-step instructions for keeping track of the business cards you receive and building stronger relationships. To find out more about this Harvard Business Review article, click: What to do with all the Business Cards from Your Last Conference.
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There seems to be an imbalance between the public and private markets. Holding private capital markets more desirable than public markets expresses and illiquidity preference. Madeleine L. Harrigan, financial analyst with Mercer Capital, notes this is at odds with basic investment logic and the requirements of portfolio management and why it cannot continue. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: Are IPOs the New Down Round? This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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Your Next Engagement Currency has played a central role in most business valuation and financial forensic engagements since the origination of the two terms. What has not been so clear lately is the changing nature of currency and for that matter, the very definition of money itself. This article explores how digital currencies originated, their attributes, and how they should be considered for your next valuation or forensic engagement.
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Meet Your Advisory Team Selling a business is a one-time process for most owners. It is also a harrowing process involving professionals in many disciplines. Here is a description of the primary people assisting in the process.
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Economists Predict an Interest-Rate Hike in December Ninety-two percent of the private economists surveyed by The Wall Street Journal believe the Federal Reserve will start raising interest rates at the policy meeting to be held on December 15-16. In recent comments, Federal Reserve officials have suggested they were ready to act and have discussed the pace of future increases. Binyamin Appelbaum, of The New York Times, looks at what held up this decision and what the impact of this change will be. To find out more on this The New York Times article, click: Several Fed Officials Say They are…
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Startups interested in taking advantage of the final crowdfunding regulations under the Jumpstart Our Business Startups Act passed by the Securities and Exchange Commission a couple weeks ago should be aware of nuances to the rules that may prove challenging. Among other things, companies will have to decide whether to offer investors debt or equity. David M. Katz discusses the new rules and the impact this will have. To find out more on this CFO article, click: JOBS Act Rules Could Spawn Headaches as Well as Capital.
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Fear is keeping many Americans from seeking help from a financial adviser, according to a survey conducted by the Harris Poll for financial-planning firm McAdam. More than 70% of respondents said some aspect of dealing with an adviser scares them. The cost of getting advice was the top concern, at 49%. Mary Kate Nelson looks at the survey results. To find out more about this Reverse Mortgage Daily article, click: 71% of Americans Fear Talking to Financial Advisers.
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Obviously, every equity compensation plan is different and the particular tax treatment of a given security depends on the facts and circumstances of the arrangement. Samantha L. Albert, senior financial analyst with Mercer Capital, examines equity-based compensation and the tools available when examining these arrangements. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: The IRS Equity Compensation Audit Guide. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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Why the Change from “Fraudulent Transfer” to “Voidable Transaction” May be a Big Deal The Uniform Fraudulent Transfer Act (UFTA) was recently amended and renamed; it is now called the Uniform Voidable Transactions Act (UVTA). “The renaming has no substantive effect whatever. Yet, it reflects an important truth about the act that merits discussion.” This article shows how changes in semantics can potentially lead to changes in how so-called fraudulent transfer lawsuits are addressed by practitioners and the courts.
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Review of BVR’s Special Report on Marijuana Dispensaries What do business valuation advisors and consultants need to know before providing consulting services to marijuana establishments? There are opportunities and challenges; keep in mind that marijuana is listed as a Schedule I Controlled Substance. At the national level, one Presidential candidate introduced the Ending Federal Marijuana Prohibition Act in the Senate. In its simplest form, the bill would remove marijuana from the list of Schedule I drugs. Schedule I drugs are deemed by the federal government to be highly addictive and offer no medical benefits. For those valuation analysts interested in…
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How to Apply Survey Data to Your Company, using K-means Clustering We are in an age when fraud statistics and the individual profiles of those committing the fraud are at an all-time high. How does a firm identify factors that will enable the firm to understand the risk? The Association of Certified Fraud Examiners (ACFE) annual fraud survey—readily available for free—provides valuable insight to prevent fraud. In this article, Elliott Chester shares how K-means clustering is developed and used for profiling employees.
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Large Partnerships Face Major Changes to Audits and Adjustments The recently enacted federal budget deal includes major changes to how the IRS will audit large partnerships and, when adjustments result in tax underpayments, will allow the IRS to collect the tax directly from the partnership, instead of from the individual partners. Alistair M. Nevius, Journal of Accountancy editor-in chief, discusses the new rules and some major provisions affecting partnerships. To find out more on this Journal of Accountancy article, click: Congress Makes Changes to Partnership Audit and Adjustment Rules.
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Taxpayers and practitioners are still waiting for Congress to agree on a package extending all currently expired tax breaks. Here’s a look at the expired provisions and the actions that are pending to extend them. Sally P. Schreiber, senior editor for Tax Insider, examines tax incentives for individuals, business, and energy-related provisions. To find out more on The Tax Adviser article, click: Expired Tax Provisions: No Relief In Sight?
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The need to develop reliable, defensible fair value markets for hard-to-value assets is universal. Sujan Rajbhandary, senior member of Mercer Capital’s Financial Reporting Valuation Group, sits down with Travis Harms to get his insight from a financial reporting perspective on a few issues around valuations of startups. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: A Few Thoughts on Valuing Investments in Startups: An Interview with Travis Harms. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.