Welcome to Sector Insights... giving executives and families of dynamic, privately-held companies the latest tax, business and financial news affecting their world... and ultimately, their success.

WHAT ARE YOUR CHANCES OF BEING TARGETED BY AN IRS AUDIT?
by Leonard Smith, RBF Tax Principal
United States Internal Revenue Service building sign
(via RBF Knowledge Center) - Many times, typically moments before a client signs their tax return, we get asked the question: "What are my chances of being audited"?

While there is no standard formula to quantify audit risk, the Internal Revenue Service releases each fiscal year their IRS Data Book which does offer some clues. But if an 86-page tome of just-released audit statistics isn't exactly at the top of your summer reading list, here are some of the more interesting highlights that RBF tax principal Leonard Smith has hand-picked for you. 
 

6 THINGS YOU MUST KNOW ABOUT THE PAID FAMILY AND MEDICAL LEAVE LAW
by Sudha Vishwanath, RBF Tax Manager
close-up of happy parents holding their newborn baby
(via RBF Knowledge Center) - Last summer, Governor Charlie Baker signed legislation authorizing the Paid Family and Medical Leave ("PFML") law. But as the law's mandated implementation date approached, state officials bowed to calls by local business leaders to delay the start date by three months.

The biggest consequence to businesses is that the collection of a new payroll tax was pushed to October 1, 2019. Although PFML won't begin paying benefits to employees until January 1, 2021, RBF tax manager Sudha Vishwanath reviews six steps employers will need to take soon to comply.


WHEN IS THE BEST TIME TO VALUE YOUR BUSINESS?
by Cutty I. Thomas, RBF Controller Consultant
FINANCIAL SERVICE concept with Data analyzing in Forex_ Commodities_ Equities_ Fixed Income and Emerging Markets. the charts and summary info show about  Business statistics and Analytics value .
(via RBF Knowledge Center) - Most business owners would rightly say "when I'm ready to sell" or, more vaguely, "when the time comes" in reference to some far-off milestone they are not quite sure about or prepared to face.

But is it always necessary to be facing a specific triggering event that makes conducting a business valuation a wise choice? As RBF controller consultant Cutty Thomas points out, more and more business owners are learning that investing in the business valuation process at regular intervals is a source of highly useful information for both short and long-term business and financial health.  

NEW RULES, NEW TIPS FOR 529 FUNDING 
Small group of university students working on computer in a library. Young people finding information for their college assignment.
(via Thinkadvisor.com) - Tax reform has expanded the universe for 529 savings even for clients with young children. Previously, 529 plans were reserved for post-secondary education expenses such as college tuition and fees, room and board and computers. Withdrawals used for these qualified expenses were tax free.

Under the new tax law, however, parents can also withdraw savings tax-free from a 529 account to pay for tuition at private or religious schools for K-12 education. Unlike for college, those withdrawals are limited to $10,000 per year. 
  

AROUND THE OFFICE
In May, RBF partners Lenny Smith and Paul Bardaro presented to a group of private company CEOs on the subject of "Preparing for a Smooth 2020 Tax Season." 

The seminar, organized by the CEO peer advisory group Vistage, offered participants the ten critical questions they should be asking their CPAs now in order to avoid thorny tax surprises later in the year. 



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