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Employee Newsletter News Tax

Watch out for the Wash Sale Rule

Watch out for the Wash Sale Rule

If you’ve cashed in some big gains this year, consider looking for unrealized losses in your portfolio and selling those investments before year end to offset your gains. This can reduce your 2014 tax liability.

But if you want to minimize the impact on your asset allocation, keep in mind the wash sale rule. It prevents you from taking a loss on a security if you buy a substantially identical security (or an option to buy such a security) within 30 days before or after you sell the security that created the loss. You can recognize the loss only when you sell the replacement security.

Fortunately, there are ways to avoid the wash sale rule and still achieve your goals:

  • Immediately buy securities of a different company in the same industry or shares in a mutual fund that holds securities much like the ones you sold.
  • Wait 31 days to repurchase the same security.
  • Before selling the security, purchase additional shares of that security equal to the number you want to sell at a loss; then wait 31 days to sell the original portion.

For more ideas on saving taxes on your investments, please contact us.

© 2014

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Construction News Tax

Employee vs Independent Contractor

Employee vs Independent Contractor

An employer enjoys several advantages when it classifies a worker as an independent contractor rather than as an employee. For example, it isn’t required to pay payroll taxes, withhold taxes, pay benefits or comply with most wage and hour laws. However, there’s a potential downside: If the IRS determines that you’ve improperly classified employees as independent contractors, you can be subject to significant back taxes, interest and penalties.

To determine whether a worker is an employee or an independent contractor, the IRS considers three categories of factors related to the degree of control and independence:

1. Behavioral. Does the employer control, or have the right to control, what the worker does and how the worker does his or her job?

2. Financial. Does the employer control the business aspects of the worker’s job? Does the employer reimburse the worker’s expenses or provide the tools or supplies to do the job?

3. Type of relationship. Will the relationship continue after the work is finished? Is the work a key aspect of the employer’s business?

Determining the proper classification under these factors may not be easy. If you’re concerned you may have misclassified workers, please contact us. We’re more than happy to talk with you about it.

© 2014

Categories
News Tax

Consider the Sec. 83(b) election to save tax on restricted stock awards

Consider the Sec. 83(b) election to save tax on restricted stock awards

Restricted stock is stock that’s granted subject to a substantial risk of forfeiture. Income recognition is normally deferred until the stock is no longer subject to that risk or you sell it. You then pay taxes on the stock’s fair market value at your ordinary-income rate.

But you can instead make a Section 83(b) election to recognize ordinary income when you receive the stock. This election, which you must make within 30 days after receiving the stock, can be beneficial if the stock is likely to appreciate significantly. Why? Because it allows you to convert future appreciation from ordinary income to long-term capital gains income and defer it until the stock is sold.

There are some potential disadvantages, however:

  • You must prepay tax in the current year — which also could push you into a higher income tax bracket or trigger or increase the additional 0.9% Medicare tax.
  • Any taxes you pay because of the election can’t be refunded if you eventually forfeit the stock or sell it at a decreased value.

If you’ve recently been awarded restricted stock or expect to be awarded such stock this year, work with us to determine whether the Sec. 83(b) election is appropriate for you.

© 2014

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News

Alexander Thompson Arnold CPAs Announces Team Member Achievements

Alexander Thompson Arnold CPAs Announces Team Member Achievements

January 21, 2014
Alexander Thompson Arnold CPAs is proud to announce its team members who have earned promotions and have passed the Uniform CPA Examination.
“ATA’s mission is to help our clients succeed. Our team members continually excel in the accounting industry and provide the highest quality accounting and auditing services to our clients,” said Al Creswell, CPA and Chief Manager, Alexander Thompson Arnold CPAs. “It’s an honor to recognize these individuals for their determination and leadership within our firm.”
These individuals were recently promoted:
  • Alecia Purtteman, CCBIA (Jackson, Tenn.) has been promoted to Senior Manager;
  • Teresa Spann, EA (Jackson, Tenn.) is now Tax Manager;
  • Brittany Kissell, CPA (Union City, Tenn.) and Angie Hutchison-Adams, EA (Jackson, Tenn.)  have been promoted to Manager;
  • Katie Little, CPA (Milan, Tenn.); Emily Davidson (Union City, Tenn.); Branden Crosby, CPA and  Angela Gobelet, EA (Jackson, Tenn.) have been promoted to Senior Accountant; and
  • Jessi Alexander and Rachel DePriest (Jackson, Tenn.)  are now Staff Accountants.
In addition to these promotions, Branden Crosby (Jackson, Tenn.) recently passed the Uniform CPA Exam.
The Uniform CPA Examination is one of the nation’s most comprehensive examinations. Sections covered in the test include auditing and attestation, financial accounting and reporting, regulation and business environment and concepts. To be eligible to sit for the exam, candidates must have completed a minimum of 150 semester hours, which include a baccalaureate or higher degree from an academic institution recognized by the Tennessee State Board of Accountancy, with a minimum of 30 semester hours in accounting and 24 semester hours in general business subjects.
Alexander Thompson Arnold PLLC (ATA) is a regional accounting firm that offers a comprehensive array of tax, audit, accounting, and consulting services to businesses and individuals. Founded in 1946, the firm was named the ninth largest accounting firm in the State of Tennessee by American City Business Journals in 2014. ATA has 15 partners, approximately 140 team members, and 11 offices located in Dyersburg, Henderson, Jackson, Martin, McKenzie, Milan, Nashville, Paris, Trenton and Union City, Tennessee and Murray, Kentucky.
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News

ATA CPAs Sponsors Discovery Park of America Traveling Exhibit Hall

Alexander Thompson Arnold CPAs Sponsors Discovery Park of America’s Traveling Exhibit Hall

Alexander Thompson Arnold CPAs (ATA) is the name sponsor of the Traveling Exhibit Hall located in Discovery Center, the main exhibit building at Discovery Park of America. The 4,000 square foot room will house temporary special exhibitions.

“The Kirkland Foundation has created an incredible venue in Union City that will benefit children and adults throughout Western Tennessee, Kentucky and surrounding states,” said Al Creswell, CPA and Chief Manager of Alexander Thompson Arnold CPAs.  “ATA is proud to be a small part of this great facility and to help bring interesting and educational exhibits to visitors. We understand that unique educational opportunities like Discovery Park strengthen our communities, and the ATA team is enthusiastic about being a part of it. We look forward to the announcement about the first exhibit in the ATA Traveling Exhibit Hall, and we hope it will bring thousands of people to visit.”

“We sincerely appreciate the generous support of all our sponsors and partners. In order for Discovery Park to fulfill its potential we need the involvement of area businesses and the support of everyone,” Jim Rippy, CEO of Discovery Park.  “It’s been very rewarding to see companies like ATA come to us and offer to help. We’re fortunate to have so many individuals and companies who have stepped up and supported Discovery Park. The real beneficiaries of this support will be the thousands of children and adults whose lives are enriched by programs at Discovery Park.”

Discovery Park of America, Inc. is a $100 million educational complex with exhibits and interactive experiences in the areas of nature, science, technology, history, and art. Discovery Park opened November 1, 2013. For more information, visit www.discoveryparkofamerica.com or call 731.885.4417.

To read more about ATA, click here.

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News

Jason Anderson Named Partner with Alexander Thompson Arnold CPAs

Jason Anderson CPA Named Partner with Alexander Thompson Arnold CPAs

Al Creswell and the team at Alexander Thompson Arnold CPAs are pleased to announce that Jason Anderson CPA has been named partner with the firm.

“When Jason joined our office three years ago, I was immediately impressed by his dedication to our clients,” said Red Howe, principal at ATA Murray.  “He is a young man who is qualified and capable of handling tax and audit issues, but he also understands how important personalized service is. Jason is definitely an asset to this company and our community.”

“Jason has been an integral part of the Alexander Thompson Arnold CPAs team and continually demonstrates his hard work ethic and high professional standards,” said Alfred H. Creswell, CPA, chief managing officer for Alexander Thompson Arnold PLLC.  “He has an excellent reputation in the community and has worked hard to develop his skills as an accountant and a leader. We are proud to welcome him as partner and look forward to a bright future together.”

With more than 13 years of experience, Anderson focuses his practice on individual and corporate tax, business valuations, audit work, fraud investigations and, estate planning. He has worked hard in the accounting industry and has earned several certifications, including certified public accountant (CPA), certified valuation analyst (CVA), certified fraud examiner (CFE), certified internal auditor (CIA) and chartered global management accountant (CGMA). A graduate of the University of Tennessee at Martin, Anderson is a member of the Kentucky Society of CPAs, Kansas Society of CPAs, American Institute of CPAs, Association of Certified Fraud Examiners, National Association of Valuators and Analysts, and Institute of Internal Auditors.

A native of Carroll County, Tennessee, Jason and his wife Brandy have two daughters, Annabella and Genevieve, and a son, Zechariah. He is a member of Rotary and enjoys spending time with his family, an array of outdoor activities, reading and classical music.

“Becoming a partner with Alexander Thompson Arnold CPAs is a tremendous privilege,” said Jason Anderson CPA.  “The culture at ATA is one that respects our clients and staff and strives for excellence. That is why ATA has the distinction of being one of the best accounting firms in the area. It is a huge responsibility to continue that legacy, and I am especially glad to have this opportunity in Murray.”

Alexander Thompson Arnold PLLC is a regional accounting firm that offers its clients the resources and expertise of a large firm and the personalized service of a small firm. The firm has 15 partners and approximately 140 staff members and offers a complete range of accounting, auditing, tax, and consulting services to a diverse portfolio of clients. Its offices are located in Dyersburg, Henderson, Jackson, Martin, McKenzie, Milan, Nashville, Paris, Trenton and Union City, Tennessee and Murray, Kentucky. Each office reflects the community it serves and gives exceptional personal attention to its clients.

Please join us in welcoming Jason as partner.

Categories
News Tax

IRS Announces 2014 Mileage Rates

IRS Announces 2014 Mileage Rates

On December 6, 2013, the IRS announced the standard 2014 mileage rates. Taxpayers can use the optional standard mileage rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on January 1, 2014, the standard mileage rates are:

  • For business use of an automobile, the rate decreases to 56 cents per mile.
  • For medical or moving expenses, it is 23.5 cents per mile.
  • For services to charitable organizations, the rate stays the same at 14 cents per mile.

Instead of using the standard mileage rates, taxpayers can use their actual costs but must maintain adequate records and be able to substantiate their expenses.

A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.

Please let us know if you have any questions.

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News

Alexander Thompson Arnold CPAs Announces Nashville Office, Welcomes Goldstein Sacks to ATA Team

Alexander Thompson Arnold CPAs Announces Nashville Office, Merger with Goldstein/Sacks & Associates, P.C.

 

Larry Sacks and the Goldstein/Sacks & Associates team have been providing professional accounting services for more than 25 years. The Nashville-based firm started a new chapter on November 1, 2013 when it merged with Alexander Thompson Arnold CPAs, the eighth largest accounting firm in Tennessee.

“Joining forces with Alexander Thompson Arnold has been very exciting for our team,” said Larry Sacks. “ATA has the resources of a large accounting firm, which can be a great advantage for our clients, but they focus on providing personalized customer service. Our clients will see many positive things from this merger and will continue to work with the same employees they know and trust.”

“The marriage of our firms is a win-win situation for everyone,” said Al Creswell, chief manager with Alexander Thompson Arnold CPAs. “ATA’s heritage is customer service centered and locally focused, which fits nicely with the integrity of Goldstein/Sacks. We look forward to continued growth and prosperity with this partnership.”

Prior to joining ATA, Goldstein/Sacks provided high-end tax preparation, accounting and consulting services to individuals and businesses in the Nashville-area. Now, Middle Tennessee will have access to ATA’s wide-variety of accounting, auditing and consulting services for individuals and organizations of various sizes. The firm has extensive experience in the financial institutions industry, governmental industry, construction industry, transportation industry, not-for-profit industry, and a variety of private and public companies.

In addition to expanded accounting services, ATA Technologies will begin serving Middle Tennessee from ATA’s office at 905 Harpeth Valley Place, Nashville. ATA Technologies, a subsidiary of ATA, offers a wide-range of information technology services, including managed services, IT consulting, computer forensics and cloud services.

Alexander Thompson Arnold PLLC is a regional accounting firm that offers its clients the resources and expertise of a large firm and the personalized service of a small firm. The firm has 14 partners and approximately 150 staff members and offers a complete range of accounting, auditing, tax, and consulting services to a diverse portfolio of clients. In addition to Nashville, its offices are located in Dyersburg, Henderson, Jackson, Martin, McKenzie, Milan, Paris, Trenton and Union City, Tennessee and Murray, Kentucky. Each office reflects the community it serves and gives exceptional personal attention to its clients.

To read more about ATA, click here.

Categories
Healthcare News

October 1 Healthcare Reform Deadline : Employers Must Mail Letters to All Employees about Exchanges by Oct. 1

Employers Must Mail Letters to All Employees about Exchanges by Oct. 1, 2013

Most employers — even those with just one employee — are required to send a notice to all employees via first-class mail by Oct. 1 informing them about the new public health insurance exchanges. This notification requirement applies to companies with at least one employee and $500,000 in annual revenue. The letters must be sent to all employees, full-time, part-time and temporary regardless of their benefits plan status. After Oct. 1, new employees must receive the letter within 14 days.

The letters must inform employees that the exchange exists and provides details to help employees understand how the exchange could help them. They must include these specific items:

  • The existence of the exchange;
  • A description of the services provided by the exchange;
  • How to contact the exchange to request assistance;
  • The employee’s potential eligibility for subsidized coverage on the exchange if your company’s group health plan doesn’t provide “minimum value,” which means the plan’s share of the total allowed cost of benefits provided under the plan is less than 60 percent of such costs; and
  • The fact that the employee may lose the employer contribution (if any) toward health insurance coverage if he or she chooses to purchase individual coverage on the exchange.

It is not permissible to use electronic means to send the letter.

If you have any questions or need assistance about implementing these mandates, don’t hesitate to call us.

Categories
News

Dennis Dycus Joins ATA As Governmental Consultant : Alexander Thompson Arnold CPAs is proud to announce that Dennis Dycus, CPA, CFE, CGFM has joined its team. He is a consultant with the firm’s Governmental Audit Team.

DENNIS DYCUS JOINS ALEXANDER THOMPSON ARNOLD CPAs AS GOVERNMENTAL CONSULTANT

Alexander Thompson Arnold CPAs is proud to announce that Dennis Dycus, CPA, CFE, CGFM has joined its team. He is a consultant with the firm’s Governmental Audit Team.

“Governmental auditing is a significant part of ATA’s accounting practice,” said Al Creswell, CPA and chief manager for Alexander Thompson Arnold PLLC. “Dennis’ career with the State of Tennessee and extensive experience fits nicely with our focus on governmental services. This combination means better service and a more effective and efficient audit for our clients, and it means higher standards for governmental audit services in the region.”

Dycus recently retired after 39 years as the director of the Division of Municipal Audit with the State of Tennessee Office of the Comptroller of the Treasury. As a governmental consultant with ATA, he will be using his experience to continue helping governmental organizations throughout the Southeast reduce fraud and eliminate waste. His experience includes the oversight of the financial audits of local governments and conducting investigations related to fraud, waste, and abuse in local governments. ATA clients benefit from the dynamic combination of his career experience and ATA’s governmental auditing depth.

Since its inception, ATA has provided accounting, auditing and consulting services to governmental entities, utility systems, and not-for-profit organizations of various sizes. As a matter of fact, the firm provides services to over 200 governmental, utility systems, and nonprofit organizations throughout the Southeast. ATA is currently the largest governmental auditor in Tennessee and has a significant presence in Kentucky.

Alexander Thompson Arnold PLLC is a regional accounting firm that offers its clients the resources and expertise of a large firm and the personalized service of a small firm. The firm has 16 partners and approximately 140 staff members and offers a complete range of accounting, auditing, tax, and consulting services to a diverse portfolio of clients. Its offices are located in Dyersburg, Henderson, Jackson, Martin, McKenzie, Milan, Paris, Trenton and Union City, Tennessee and Murray, Kentucky. Each office reflects the community it serves and gives exceptional personal attention to its clients.

 

ATA Governmental experience

Since its inception, ATA has provided accounting, auditing and consulting services to governmental entities and not-for-profit organizations of various sizes.  ATA is currently providing services to over 200 governmental and nonprofit organizations.  This means better service and a more effective and efficient audit for your organization.

 

Services for governments:

  • Audit Services, including Yellow Book and A-133
  • SSAE 16/SAS 70
  • GASB 54 Consulting
  • Employee Benefits Audits
  • Monthly, Quarterly Accounting Services
  • Assistance with Preparation of Management Discussion Analysis
  • Audit Services, including Yellow Book &  A-133
  • Fraud & Forensic Investigations
  • Financial Consultation Services
  • Internal Control Procedure Development
  • Information Technology Audits & Consulting
  • Risk Assessment Studies
  • Regulatory Filings
  • School System Activity Fund Audits
  • Penetration Testing
  • Inspector General Readiness