Anquillare, Ruocco, Traester and Company

                                         Certified Public Accountants and Consultants

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Accounting, auditing, tax and advisory services for

  • Businesses

  • Nonprofit organizations

  • Successful Individuals


**What's New**

 

 

How NOT to buy a business

[August 2010]

Owning your own business can be both exciting and rewarding.  However, while you might feel comfortable operating the business, you probably will benefit from professional guidance during the acquisition process.  This article will give you an opportunity to learn from the mistakes of another.

 

When Wages are NOT FICA Wages

[June 2010]

Recently a U.S. District Court found that certain severance payments were not taxable for purposes of FICA taxation.  The ruling conflicts with IRS Publication 15 (Circular E), Employer’s Tax Guide, wherein it specifically indicates that severance pay is taxable for FICA purposes.

 

Employers, Beware of Hidden Limits in New tax Credits

[April 2010]

Under the new health care legislation recently signed into law, certain small businesses and tax-exempt organizations that provide health insurance coverage to their employees will qualify for a new tax credit.  The credit is designed to encourage small employers to begin to offer health insurance coverage to employees or maintain their current coverage.  However, the law is more complicated than advertised.

 

Tax Compliance of S Corporations

[January 2010]
In light of the report and surging federal budget deficits, S Corporation shareholders may look forward to new legislation and additional oversight by the IRS.

 

Accrual basis taxpayer forced to use cash method of accounting

[December 2009]

The Office of Chief Counsel of the IRS recently issued a memorandum that established the timing of a tax deduction for certain bonuses earned by employees of an accrual basis corporate employer.  In general, the IRS effectively denied the deduction of an accrual basis taxpayer’s bonus obligations until the bonuses were actually paid to the employees. 

 

Connecticut Outlook Revised by Moody's

[October 2009]

Moody's Investors Service has revised the outlook on the State of Connecticut's general obligation bonds to  "negative."  The negative outlook reflects the choices made to address the state's biennial 2010-2011 budget gaps as well as the shortfall for fiscal 2009.  According to the report issued by the rating agency, the magnitude of the recent actions taken to balance the budget will likely cause Connecticut to struggle more than other states to achieve structural budget balance.  Read the full report issued by Moody's.

 

OIG Study Finds Medicare Paid Twice for Ambulance Transportation

[September 2009]

The OIG concluded that the Medicare program paid twice for ambulance transportation: once to the SNF under the Part A prospective payment system and again to the ambulance supplier under Part B.  The government expects to recover more than $12 million in overpayments.

 

A win for taxpayers

[August 2009]

Setting aside the contention that single member LLCs are “disregarded entities” the court ruled that with regard to the determination of estate and gift taxes, such entities may be used to secure valuation discounts which can lower or eliminate all related taxes.

 

FY 10 Medicare Rates for Connecticut SNFs

[August 2009]

On August 1, 2009, CMS issued its final rule on Medicare payments to skilled nursing facilities (SNFs), beginning October 1, 2009.  The final rule recalibrates the case-mix adjustments used to establish each of the 53 different payment rates.  As a result, payments to SNFs would be reduced nationally by about $1.05 billion in FY 2010.

 

Connecticut Charities can Reduce Audit Fees

[July 2009]

Tight budgets call for creative ways to save money.  Audit fees should not be immune to such fiscal scrutiny.  Indeed, while the auditor should never compromise his or her audit standards, all audits should be performed as efficiently as possible.  Luckily, in Connecticut, charities have the ability to reduce audit fees and still comply with the state’s registration requirements.  However, there are tradeoffs.

 

FASB Issues New Guidance on Nonprofit Mergers and Acquisitions

[July 2009]

The Financial Accounting Standards Board (FASB) recently issued Statement Number 164 to provide guidance on the accounting associated with a combination of a nonprofit entity with one or more other nonprofit entities, businesses, or nonprofit activities.  Many mergers and acquisitions by nonprofit entities do not involve a payment of consideration.  In other words, many mergers and acquisitions by nonprofit organizations are not fair value exchanges but rather are nonreciprocal transfers.  The FASB felt that that difference contributed significantly to the requirement that different accounting methods apply to a merger of nonprofit organizations and an acquisition by a nonprofit entity. 

 

The Codification – a major restructuring of U.S. GAAP

[June 2009]

Current U.S. GAAP is dispersed, unorganized and confusing.  However, things are about to change.  Effective July 1, 2009 GAAP, as it has been known for the last 50 plus years, will be restructured and codified into a single source called the “Codification.”  On that date the Codification will supersede all then-existing non-SEC accounting and reporting standards – if it’s not in the Codification, it will not be authoritative.

CMS Proposes Major Changes to SNF Medicare Rates

[May 2009]

On May 1, 2009, CMS issued a proposal that would change Medicare payment rates for skilled nursing facilities beginning October 1, 2009.  For Connecticut, most rates would decrease.  For FY11, CMS has also proposed the introduction of RUGS IV along with other changes that would adversely influence SNF payments. 

 

Ensuring Compliance by Tax Exempt Non-filers

[April 2009]

Prompted by the Inspector General, the IRS is planning additional enforcement initiatives to ensure compliance with filing requirements by certain nonprofit organizations. 

 

New COBRA Benefits in 2009 Stimulus Package

[March 2009]

The American Recovery and Reinvestment Act of 2009 calls for changes to the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly referred to as COBRA.  The new law affects former employees and their families, employers and others involved in providing COBRA coverage.  Under the new law, eligible former employees enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent of the cost of COBRA coverage.  Employers must treat the 35 percent payment by eligible former employees as full payment, but employers are entitled to a credit for the other 65 percent of the COBRA cost on their payroll tax return.

 

Combating Fraud – Whistleblower Hotlines

[February 2009]

This article provides information on whistleblower hotlines and how they can be designed as effective fraud detection and prevention tools.

 

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 98 Elm Street, PO Box 308

West Haven, CT 06516

Tel: (203) 932-2931

Fax: (203) 932-9962

 

 

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