WASHINGTON — The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.
The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011, as set forth in Revenue Procedure 2010-51.
In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.
"This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices," said IRS Commissioner Doug Shulman. "We are taking this step so the reimbursement rate will be fair to taxpayers."
While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.
The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.
The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.
The new rates are contained in Announcement 2011-40 on the optional standard mileage rates.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Mileage Rate Changes
Business
Rates 1/1 through 6/30/11 - 51
Rates 7/1 through 12/31/11 - 55.5
Medical/Moving
Rates 1/1 through 6/30/11 - 19
Rates 7/1 through 12/31/11 - 23.5
Charitable
Rates 1/1 through 6/30/11 - 14
Rates 7/1 through 12/31/11 - 14
Thursday, June 23, 2011
Tuesday, June 21, 2011
Travel Tax Breaks
The following article is from RIA Daily Tax Alert (06/21/2011).
Tax Breaks are Available for Travelers Who mix a bit of pleasure with their business travel
Although video conferencing has made inroads in the ranks of business travelers, there still are many situations where it's necessary to travel away-from-home overnight for face-to-face meetings with staff, management, or customers. Businesspeople or professional who must travel for work reasons should keep in mind that they may be able to qualify for a travel bargain by piggybacking a vacation onto an out-of-town business trip. In effect, the business traveler gets free vacation airfare if the trip is set up the right way. And if the travel is undertaken for an employer, a properly set up reimbursement arrangement for the business portion of the trip will be income- and payroll-tax-free. This Practice Alert takes a closer look at how this combination works for domestic travel, along with a review of other business travel strategies that may yield personal savings. It doesn't cover some of the more specialized rules, such as those that apply to travelers in the transportation industry, or the per diem reimbursement rules.
Deductions for trip undertaken primarily for business. A taxpayer who mixes a bit of pleasure with business while away from home nonetheless may deduct all of the round-trip transportation costs as long as the trip was undertaken primarily for business reasons. ( Reg. 1.162-2(b)(1) ) The cost of lodging plus 50% of meals while on business status is deductible. Additionally, if the traveler is an employee reimbursed for all expenses under an accountable plan that requires a timely accounting of the time, place, and business purpose of the travel, plus receipts, the reimbursement is tax-free to the traveler (but the personal portion of the trip yields no tax benefit to the traveler).
RIA observation: In effect, the 100% deduction for the round-trip travel costs works as a kind of tax subsidy for a personal vacation, or as a partially tax-free perk.
RIA illustration 1: Jane, a self-employed information technology specialist, flies from the East Coast to Los Angeles for a 5-day business trip. She takes in three days of vacation and sight-seeing after the business part of the trip is over.
Result: Because Jane can deduct the entire air fare, part of her mini-vacation is, in effect, subsidized by the tax break.
RIA illustration 2: The facts are the same as in illustration (1), except that Jane is employed by a corporation that reimburses her for the business portion of the trip after she submits detailed records and receipts. She pays for the personal portion of the trip (meals and lodging during the three personal days).
Result: Under the accountable plan rules, the reimbursement for the round-trip airfare (as well as for meals and lodging while on business status) is tax-free to Jane, and is not subject to FICA or income tax withholding. (Reg. 1.62-2(c)(2)(i) , Reg. 1.62-2(d)(1) ) That's true even though she took a mini-vacation after her business trip ended. The corporation deducts the travel costs it pays (but only 50% of the cost of meals is deductible).
RIA illustration 3: The facts are the same as in illustration (2), except that the corporation reimburses Jane for the cost of the entire trip, including the 3-day mini-vacation. Result: Her cost for the personal portion of the trip consists of the tax she pays on the personal portion's value (hotel, meals, etc.), which must be treated as compensation income. The corporation's deduction consists of 50% of the meal costs while Jane is on business travel status, 100% of the round-trip air fare, 100% of the lodging costs while she is on travel status, and (assuming that her entire compensation package is "reasonable") 100% of the cost of the mini-vacation since that was treated as compensation paid to Jane.
When is a trip treated as undertaken primarily for business? There is no hard-and-fast rule. It depends on the facts and circumstances of each case. The regs do say, however, that the way travelers split their time between business and personal pursuits is "an important factor." ( Reg. 1.162-2(b)(2) )
RIA illustration 4: Fred works in Atlanta and travels to New Orleans on business. On his way home, he stops in Mobile to visit his parents. During the nine days he is away from home, he spends $1,999 for travel, meals, lodging, and other travel expenses. Had he not stopped in Mobile, Fred would have been away from home for only six days and his trip would have cost only $1,699. Result: Fred can deduct $1,699 for his trip, including the round-trip transportation to and from New Orleans. The 50% deduction limit applies to his meals while on business status. (IRS Pub. 463 (2010), p. 6)
RIA observation: As is evident from illustration (4), the personal part of a trip need not occur at the business destination. It can take place on the way home from the business destination (or, for that matter, en route to the business destination).
RIA caution: Taxpayers who make a stop for personal reasons en route to a business location or on the way home should be sure to keep records of what their round-trip transportation costs would have been without the personal stop.
Saturday night stayovers. Although an employee's out-of-town business chores conclude on Friday, he may extend his business trip to take advantage of a low-priced fare requiring a Saturday night stayover, where the savings in airfare are higher than the costs of the weekend meals and lodging. The employee doesn't pay tax on the reimbursement for his Saturday meal and lodging expenses. ( PLR 9237014 ) In this case, IRS said that under a "common sense test," payments to the employee for the Saturday stay were deductible if a "hardheaded business person would have incurred such expenses under like circumstances."
When a personal day may not be a personal day. An away-from-home business trip may straddle a weekend. For example, a traveler may have to attend business meetings on Thursday, Friday, and Monday. He is too far away to travel home and then come back (and besides, the trip back and forth would cost more than staying put), so he spends the weekend relaxing at the out-of-town location. Because he must remain at the location for business reasons, the weekend days (Saturday and Sunday) should under the "common sense test" be treated as business days the expenses for which are deductible (50% of meal costs, 100% for other expenses) or excludible if the traveler is reimbursed under an accountable plan. Note that in the context of foreign travel, IRS Pub. 463 (2010), p. 8, treats such standby days as business days.
Tax break for weekend travel home. A business traveler on an extended out-of-town assignment may decide to fly home for a weekend to be with family or friends. The cost of the weekend trip home is deductible up to the amount the traveler would have spent on meals and lodging at the out-of-town location. Note, however, that this rule applies only if the traveler checks out of the out-of-town hotel before leaving for the weekend trip home, and then re-registers. If the traveler retains the hotel room, its cost is deductible, but the deduction for the weekend trip home (i.e., the air fare) is limited to what the traveler would have spent on meals during the weekend at the out-of-town location. (IRS Pub. 463 (2010), p. 4)
Tax breaks when spouse or companion comes along. The expenses of a spouse or other companion accompanying a traveler aren't deductible unless (1) the spouse or other companion is an employee of the taxpayer and travels for a bona fide business purpose, and (2) the expenses would otherwise be deductible by the spouse or other companion. (Code Sec. 274(m)(3)) Nevertheless, even if the spouse's or other companion's travel expenses aren't deductible, a tax benefit may still be salvaged from traveling together. That's because the business traveler's deduction isn't based on 50% of the trip expenses. The deduction is based on what it would have cost the taxpayer to travel alone. (Rev Rul 56-168, 1956-1 CB 93 ) This rule can be a money saver on accommodations. For example, where the cost of a hotel room is $200 for one occupant and $149 for two, a taxpayer on business status may deduct $149 per night, not $100, when he gets a room for two. (IRS Pub. 463 (2010), p. 5) Similarly, where the taxpayer travels out of town on business via rental car, and his spouse or other companion accompanies him for non-business purposes, the entire cost of the rental is deductible, because the cost would have been the same for the taxpayer even if his spouse did not join him on the trip. (Pohl, Kenneth, (1990) TC Memo 1990-298 , PH TCM 90298 , IRS Pub. 463 (2010), p. 5)
2011 Thomson Reuters/RIA. All rights reserved.
Tax Breaks are Available for Travelers Who mix a bit of pleasure with their business travel
Although video conferencing has made inroads in the ranks of business travelers, there still are many situations where it's necessary to travel away-from-home overnight for face-to-face meetings with staff, management, or customers. Businesspeople or professional who must travel for work reasons should keep in mind that they may be able to qualify for a travel bargain by piggybacking a vacation onto an out-of-town business trip. In effect, the business traveler gets free vacation airfare if the trip is set up the right way. And if the travel is undertaken for an employer, a properly set up reimbursement arrangement for the business portion of the trip will be income- and payroll-tax-free. This Practice Alert takes a closer look at how this combination works for domestic travel, along with a review of other business travel strategies that may yield personal savings. It doesn't cover some of the more specialized rules, such as those that apply to travelers in the transportation industry, or the per diem reimbursement rules.
Deductions for trip undertaken primarily for business. A taxpayer who mixes a bit of pleasure with business while away from home nonetheless may deduct all of the round-trip transportation costs as long as the trip was undertaken primarily for business reasons. ( Reg. 1.162-2(b)(1) ) The cost of lodging plus 50% of meals while on business status is deductible. Additionally, if the traveler is an employee reimbursed for all expenses under an accountable plan that requires a timely accounting of the time, place, and business purpose of the travel, plus receipts, the reimbursement is tax-free to the traveler (but the personal portion of the trip yields no tax benefit to the traveler).
RIA observation: In effect, the 100% deduction for the round-trip travel costs works as a kind of tax subsidy for a personal vacation, or as a partially tax-free perk.
RIA illustration 1: Jane, a self-employed information technology specialist, flies from the East Coast to Los Angeles for a 5-day business trip. She takes in three days of vacation and sight-seeing after the business part of the trip is over.
Result: Because Jane can deduct the entire air fare, part of her mini-vacation is, in effect, subsidized by the tax break.
RIA illustration 2: The facts are the same as in illustration (1), except that Jane is employed by a corporation that reimburses her for the business portion of the trip after she submits detailed records and receipts. She pays for the personal portion of the trip (meals and lodging during the three personal days).
Result: Under the accountable plan rules, the reimbursement for the round-trip airfare (as well as for meals and lodging while on business status) is tax-free to Jane, and is not subject to FICA or income tax withholding. (Reg. 1.62-2(c)(2)(i) , Reg. 1.62-2(d)(1) ) That's true even though she took a mini-vacation after her business trip ended. The corporation deducts the travel costs it pays (but only 50% of the cost of meals is deductible).
RIA illustration 3: The facts are the same as in illustration (2), except that the corporation reimburses Jane for the cost of the entire trip, including the 3-day mini-vacation. Result: Her cost for the personal portion of the trip consists of the tax she pays on the personal portion's value (hotel, meals, etc.), which must be treated as compensation income. The corporation's deduction consists of 50% of the meal costs while Jane is on business travel status, 100% of the round-trip air fare, 100% of the lodging costs while she is on travel status, and (assuming that her entire compensation package is "reasonable") 100% of the cost of the mini-vacation since that was treated as compensation paid to Jane.
When is a trip treated as undertaken primarily for business? There is no hard-and-fast rule. It depends on the facts and circumstances of each case. The regs do say, however, that the way travelers split their time between business and personal pursuits is "an important factor." ( Reg. 1.162-2(b)(2) )
RIA illustration 4: Fred works in Atlanta and travels to New Orleans on business. On his way home, he stops in Mobile to visit his parents. During the nine days he is away from home, he spends $1,999 for travel, meals, lodging, and other travel expenses. Had he not stopped in Mobile, Fred would have been away from home for only six days and his trip would have cost only $1,699. Result: Fred can deduct $1,699 for his trip, including the round-trip transportation to and from New Orleans. The 50% deduction limit applies to his meals while on business status. (IRS Pub. 463 (2010), p. 6)
RIA observation: As is evident from illustration (4), the personal part of a trip need not occur at the business destination. It can take place on the way home from the business destination (or, for that matter, en route to the business destination).
RIA caution: Taxpayers who make a stop for personal reasons en route to a business location or on the way home should be sure to keep records of what their round-trip transportation costs would have been without the personal stop.
Saturday night stayovers. Although an employee's out-of-town business chores conclude on Friday, he may extend his business trip to take advantage of a low-priced fare requiring a Saturday night stayover, where the savings in airfare are higher than the costs of the weekend meals and lodging. The employee doesn't pay tax on the reimbursement for his Saturday meal and lodging expenses. ( PLR 9237014 ) In this case, IRS said that under a "common sense test," payments to the employee for the Saturday stay were deductible if a "hardheaded business person would have incurred such expenses under like circumstances."
When a personal day may not be a personal day. An away-from-home business trip may straddle a weekend. For example, a traveler may have to attend business meetings on Thursday, Friday, and Monday. He is too far away to travel home and then come back (and besides, the trip back and forth would cost more than staying put), so he spends the weekend relaxing at the out-of-town location. Because he must remain at the location for business reasons, the weekend days (Saturday and Sunday) should under the "common sense test" be treated as business days the expenses for which are deductible (50% of meal costs, 100% for other expenses) or excludible if the traveler is reimbursed under an accountable plan. Note that in the context of foreign travel, IRS Pub. 463 (2010), p. 8, treats such standby days as business days.
Tax break for weekend travel home. A business traveler on an extended out-of-town assignment may decide to fly home for a weekend to be with family or friends. The cost of the weekend trip home is deductible up to the amount the traveler would have spent on meals and lodging at the out-of-town location. Note, however, that this rule applies only if the traveler checks out of the out-of-town hotel before leaving for the weekend trip home, and then re-registers. If the traveler retains the hotel room, its cost is deductible, but the deduction for the weekend trip home (i.e., the air fare) is limited to what the traveler would have spent on meals during the weekend at the out-of-town location. (IRS Pub. 463 (2010), p. 4)
Tax breaks when spouse or companion comes along. The expenses of a spouse or other companion accompanying a traveler aren't deductible unless (1) the spouse or other companion is an employee of the taxpayer and travels for a bona fide business purpose, and (2) the expenses would otherwise be deductible by the spouse or other companion. (Code Sec. 274(m)(3)) Nevertheless, even if the spouse's or other companion's travel expenses aren't deductible, a tax benefit may still be salvaged from traveling together. That's because the business traveler's deduction isn't based on 50% of the trip expenses. The deduction is based on what it would have cost the taxpayer to travel alone. (Rev Rul 56-168, 1956-1 CB 93 ) This rule can be a money saver on accommodations. For example, where the cost of a hotel room is $200 for one occupant and $149 for two, a taxpayer on business status may deduct $149 per night, not $100, when he gets a room for two. (IRS Pub. 463 (2010), p. 5) Similarly, where the taxpayer travels out of town on business via rental car, and his spouse or other companion accompanies him for non-business purposes, the entire cost of the rental is deductible, because the cost would have been the same for the taxpayer even if his spouse did not join him on the trip. (Pohl, Kenneth, (1990) TC Memo 1990-298 , PH TCM 90298 , IRS Pub. 463 (2010), p. 5)
2011 Thomson Reuters/RIA. All rights reserved.
Monday, June 13, 2011
Two New Partners Announced
Mantyla McReynolds, Certified Public Accountants announced the promotion of two new partners, Matt McReynolds and Brian Cheney.
“It is with excitement that we welcome Matt and Brian to the partnership as they have continually exemplified leadership and success,” said Don Mantyla, co-founder and Partner. “They demonstrate the important skills necessary of a partner as they’ve made significant contributions to our clients, communities and our staff”.
Matt McReynolds, CPA has been with Mantyla McReynolds for approximately 12 years. Matt has been heavily involved with companies going public through initial SEC registrations and reverse acquisitions. This requires strict compliance with rules and regulations and Matt has also applied this high level of attention and care to private entities. He has guided companies through numerous technical issues such as convertible debt and equity transactions. Matt worked for Mantyla McReynolds part-time during his master’s and bachelor’s programs from 1999 through 2003. After the master's program, he was recruited and hired by a Big 4 firm as an Audit and Risk Advisory Services Associate. However, after our audit practice started to grow exponentially, we asked Matt to consider coming back in 2004. He agreed, as long as it meant that he could service some amazing public and private companies, which has definitely been the case. As a result of Mantyla McReynolds joining the BDO Seidman Alliance as an independent member, Matt enjoys being involved with a firm that has direct access to extensive national and international resources, while maintaining our local firm autonomy. Matt services publicly traded issuers and privately held companies throughout the United States as well as companies with international operations. Matt has been a very dedicated manager, and we are confident in the success of Mantyla McReynolds with him as a partner.
Brian Cheney, CPA has been with Mantyla McReynolds since 2008. In a short amount of time we've come to realize that new clients investigate and retain our firm not because of what Brian has said about our service and expertise, but because of what his clients have said about him. It's not every day that the CEO and CFO of large public companies will brag to their peers about their auditor, but that is what we've come to experience from Brian's clients. Brian is widely recognized by clients and peers alike for his personable and dedicated client service and outstanding technical knowledge. Brian's clients know this is his passion, and fortunately he's very good at it. While at Mantyla McReynolds, Brian’s clients have successfully completed secondary public offerings aggregating over $500 million. After graduating from Brigham Young University, Brian excelled at a Big 4 accounting firm for 8 years. He joined us in 2008 as a Senior Audit Manager, with the vision of serving his clients with the streamlined efficiencies only a local firm can provide. With the BDO Alliance, he still has the national and international resources immediately available to efficiently respond to each of his client's unique needs. Whether it's working with attorneys and underwriters through a substantial equity raise or guiding a client through the efficient implementation of a financial reporting internal control system, he has consistently exceeded the needs of his clients.
“It is with excitement that we welcome Matt and Brian to the partnership as they have continually exemplified leadership and success,” said Don Mantyla, co-founder and Partner. “They demonstrate the important skills necessary of a partner as they’ve made significant contributions to our clients, communities and our staff”.
Matt McReynolds, CPA has been with Mantyla McReynolds for approximately 12 years. Matt has been heavily involved with companies going public through initial SEC registrations and reverse acquisitions. This requires strict compliance with rules and regulations and Matt has also applied this high level of attention and care to private entities. He has guided companies through numerous technical issues such as convertible debt and equity transactions. Matt worked for Mantyla McReynolds part-time during his master’s and bachelor’s programs from 1999 through 2003. After the master's program, he was recruited and hired by a Big 4 firm as an Audit and Risk Advisory Services Associate. However, after our audit practice started to grow exponentially, we asked Matt to consider coming back in 2004. He agreed, as long as it meant that he could service some amazing public and private companies, which has definitely been the case. As a result of Mantyla McReynolds joining the BDO Seidman Alliance as an independent member, Matt enjoys being involved with a firm that has direct access to extensive national and international resources, while maintaining our local firm autonomy. Matt services publicly traded issuers and privately held companies throughout the United States as well as companies with international operations. Matt has been a very dedicated manager, and we are confident in the success of Mantyla McReynolds with him as a partner.
Brian Cheney, CPA has been with Mantyla McReynolds since 2008. In a short amount of time we've come to realize that new clients investigate and retain our firm not because of what Brian has said about our service and expertise, but because of what his clients have said about him. It's not every day that the CEO and CFO of large public companies will brag to their peers about their auditor, but that is what we've come to experience from Brian's clients. Brian is widely recognized by clients and peers alike for his personable and dedicated client service and outstanding technical knowledge. Brian's clients know this is his passion, and fortunately he's very good at it. While at Mantyla McReynolds, Brian’s clients have successfully completed secondary public offerings aggregating over $500 million. After graduating from Brigham Young University, Brian excelled at a Big 4 accounting firm for 8 years. He joined us in 2008 as a Senior Audit Manager, with the vision of serving his clients with the streamlined efficiencies only a local firm can provide. With the BDO Alliance, he still has the national and international resources immediately available to efficiently respond to each of his client's unique needs. Whether it's working with attorneys and underwriters through a substantial equity raise or guiding a client through the efficient implementation of a financial reporting internal control system, he has consistently exceeded the needs of his clients.
Thursday, May 19, 2011
Community Commitment
At Mantyla McReynolds we take great pride in taking care of our clients, our professionals, and our communities. Frequently our professionals are involved in multiple service and charitable organizations, and as a firm if an event is important to one of our people it is important to all of us.
Over the last several years it has become an annual tradition for our firm professionals to support and participate in the Buddy Walk as sponsored and organized by the Utah Down Syndrome Foundation (UDSF). The Buddy Walk is a family event that promotes awareness of individuals with Down syndrome within our community, and provides the community an opportunity to interact with these individuals, form friendships, and increase the community’s understanding of the amazing potential each of these individuals have. UDSF is a non-profit organization that is comprised entirely of volunteers, the majority of which are parents of children with Down syndrome.
One of our senior audit managers, Brian Cheney, has a son with Down syndrome, and Brian has been a key organizer of our firm’s annual involvement in this event and with the UDSF. Brian has commented “that you can’t help but feel uplifted and enthusiastic about life after being around some of these special individuals, even for just one day.” One of the Buddy Walk’s many activities includes a 5K run, that firm professionals and friends of the firm have historically placed very well in. As a firm, we look forward to our continued involvement in the Buddy Walk and the continued support of each of our professionals in the various charitable organizations they serve.
Mantyla McReynolds is a PCAOB registered CPA firm and a BDO Seidman Alliance firm with over 20 years experience servicing public companies, from their initial internal control assessment to seasoned filer with the SEC. The firm’s clients range from businesses in the developmental stage to established public companies with market capitalizations exceeding one billion dollars. As a BDO Seidman Alliance firm, they offer experienced and accessible service teams, world-class engagement management and a focus on quality and efficiency.
Over the last several years it has become an annual tradition for our firm professionals to support and participate in the Buddy Walk as sponsored and organized by the Utah Down Syndrome Foundation (UDSF). The Buddy Walk is a family event that promotes awareness of individuals with Down syndrome within our community, and provides the community an opportunity to interact with these individuals, form friendships, and increase the community’s understanding of the amazing potential each of these individuals have. UDSF is a non-profit organization that is comprised entirely of volunteers, the majority of which are parents of children with Down syndrome.
One of our senior audit managers, Brian Cheney, has a son with Down syndrome, and Brian has been a key organizer of our firm’s annual involvement in this event and with the UDSF. Brian has commented “that you can’t help but feel uplifted and enthusiastic about life after being around some of these special individuals, even for just one day.” One of the Buddy Walk’s many activities includes a 5K run, that firm professionals and friends of the firm have historically placed very well in. As a firm, we look forward to our continued involvement in the Buddy Walk and the continued support of each of our professionals in the various charitable organizations they serve.
Mantyla McReynolds is a PCAOB registered CPA firm and a BDO Seidman Alliance firm with over 20 years experience servicing public companies, from their initial internal control assessment to seasoned filer with the SEC. The firm’s clients range from businesses in the developmental stage to established public companies with market capitalizations exceeding one billion dollars. As a BDO Seidman Alliance firm, they offer experienced and accessible service teams, world-class engagement management and a focus on quality and efficiency.
Monday, May 9, 2011
IRS Phishing Email Warning
Phishing (as in “fishing for information” and “hooking” victims) is a scam where Internet fraudsters send e-mail messages to trick unsuspecting victims into revealing personal and financial information that can be used to steal the victims’ identity. Current scams include phony e-mails which claim to come from the IRS and which lure the victims into the scam by telling them that they are due a tax refund.
The IRS does not send out unsolicited e-mails or ask for detailed personal and financial information. Additionally, the IRS never asks people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts. The IRS does not discuss tax account matters with taxpayers by e-mail.
With that in mind and the fact that 2010 tax returns have for the most part been filed and taxpayers have received their refunds, beware of UNSOLICITED e-mails such as the following. Don't fall for this scam.
With that in mind and the fact that 2010 tax returns have for the most part been filed and taxpayers have received their refunds, beware of UNSOLICITED e-mails such as the following. Don't fall for this scam.
Sample of a phishing e-mail
From: Internal Revenue Service [mailto:admin@irs.gov]
Sent: Wednesday, March 01, 2006 12:45 PM
To: john.doe@jdoe.com
Subject: IRS Notification - Please Read This .
From: Internal Revenue Service [mailto:admin@irs.gov]
Sent: Wednesday, March 01, 2006 12:45 PM
To: john.doe@jdoe.com
Subject: IRS Notification - Please Read This .
After the last annual calculations of your fiscal activity we have determined that you are eligible to receive a tax refund of $63.80. Please submit the tax refund request and allow us 6-9 days in order to process it.
A refund can be delayed for a variety of reasons. For example submitting invalid records or applying after the deadline.
To access the form for your tax refund, please click here
Regards,Internal Revenue Service
© Copyright 2006, Internal Revenue Service U.S.A. All rights reserved..
3/13/
[End - Sample of a phishing e-mail]
Refund Scam
The bogus e-mail, which claims to come from the IRS, tells the recipient that he or she is eligible to receive a tax refund for a given amount. It instructs the recipient to click on a link contained in the e-mail to access and complete a form for the tax refund. The form requires the entry of personal and financial information. The refund scam is the most common one seen by the IRS. Taxpayers do not have to complete a special form to obtain a refund. Taxpayer refunds are based on the tax return they submit to the IRS.
A refund can be delayed for a variety of reasons. For example submitting invalid records or applying after the deadline.
To access the form for your tax refund, please click here
Regards,Internal Revenue Service
© Copyright 2006, Internal Revenue Service U.S.A. All rights reserved..
3/13/
[End - Sample of a phishing e-mail]
Refund Scam
The bogus e-mail, which claims to come from the IRS, tells the recipient that he or she is eligible to receive a tax refund for a given amount. It instructs the recipient to click on a link contained in the e-mail to access and complete a form for the tax refund. The form requires the entry of personal and financial information. The refund scam is the most common one seen by the IRS. Taxpayers do not have to complete a special form to obtain a refund. Taxpayer refunds are based on the tax return they submit to the IRS.
How to Spot a Scam
Many e-mail scams are fairly sophisticated and hard to detect. However, there are signs to watch for, such as an e-mail that:
• Requests detailed or an unusual amount of personal and/or financial information, such as name, SSN, bank or credit card account numbers or security-related information, such as mother’s maiden name, either in the e-mail itself or on another site to which a link in the e-mail sends the recipient.
• Dangles bait to get the recipient to respond to the e-mail, such as mentioning a tax refund or offering to pay the recipient to participate in an IRS survey.
• Threatens a consequence for not responding to the e-mail, such as additional taxes or blocking access to the recipient’s funds.
• Gets the Internal Revenue Service or other federal agency names wrong.
• Uses incorrect grammar or odd phrasing (many of the e-mail scams originate overseas and are written by non-native English speakers).
• Uses a really long address in any link contained in the e-mail message or one that does not start with the actual IRS Web site address (www.irs.gov). To see the actual link address, or url, move the mouse over the link included in the text of the e-mail.
Many e-mail scams are fairly sophisticated and hard to detect. However, there are signs to watch for, such as an e-mail that:
• Requests detailed or an unusual amount of personal and/or financial information, such as name, SSN, bank or credit card account numbers or security-related information, such as mother’s maiden name, either in the e-mail itself or on another site to which a link in the e-mail sends the recipient.
• Dangles bait to get the recipient to respond to the e-mail, such as mentioning a tax refund or offering to pay the recipient to participate in an IRS survey.
• Threatens a consequence for not responding to the e-mail, such as additional taxes or blocking access to the recipient’s funds.
• Gets the Internal Revenue Service or other federal agency names wrong.
• Uses incorrect grammar or odd phrasing (many of the e-mail scams originate overseas and are written by non-native English speakers).
• Uses a really long address in any link contained in the e-mail message or one that does not start with the actual IRS Web site address (www.irs.gov). To see the actual link address, or url, move the mouse over the link included in the text of the e-mail.
What to Do
The IRS does not initiate taxpayer contact via unsolicited e-mail or ask for personal identifying or financial information via e-mail. If you receive a suspicious e-mail claiming to come from the IRS, take the following steps:
• Do not open any attachments to the e-mail, in case they contain malicious code that will infect your computer.
• Do not click on any links, for the same reason. Also, be aware that the links often connect to a phony IRS Web site that appears authentic and then prompts the victim for personal identifiers, bank or credit card account numbers or PINs. The phony Web sites appear legitimate because the appearance and much of the content are directly copied from an actual page on the IRS Web site and then modified by the scammers for their own purposes.
• Contact the IRS at 1-800-829-1040 to determine whether the IRS is trying to contact you.
• Forward the suspicious e-mail or url address to the IRS mailbox phishing@irs.gov, then delete the e-mail from your inbox.
The IRS does not initiate taxpayer contact via unsolicited e-mail or ask for personal identifying or financial information via e-mail. If you receive a suspicious e-mail claiming to come from the IRS, take the following steps:
• Do not open any attachments to the e-mail, in case they contain malicious code that will infect your computer.
• Do not click on any links, for the same reason. Also, be aware that the links often connect to a phony IRS Web site that appears authentic and then prompts the victim for personal identifiers, bank or credit card account numbers or PINs. The phony Web sites appear legitimate because the appearance and much of the content are directly copied from an actual page on the IRS Web site and then modified by the scammers for their own purposes.
• Contact the IRS at 1-800-829-1040 to determine whether the IRS is trying to contact you.
• Forward the suspicious e-mail or url address to the IRS mailbox phishing@irs.gov, then delete the e-mail from your inbox.
Genuine IRS Web site
The only genuine IRS Web site is IRS.gov. All IRS.gov Web page addresses begin with http://www.irs.gov/. Anyone wishing to access the IRS Web site should initiate contact by typing the IRS.gov address into their Internet address window, rather than clicking on a link in an e-mail.
The only genuine IRS Web site is IRS.gov. All IRS.gov Web page addresses begin with http://www.irs.gov/. Anyone wishing to access the IRS Web site should initiate contact by typing the IRS.gov address into their Internet address window, rather than clicking on a link in an e-mail.
Wednesday, May 4, 2011
International Services
Earlier this year, Matt McReynolds, assurance manager at Mantyla McReynolds LLC watched the snow fall in downtown Salt Lake as he longed for a nice sunny vacation. While the cold, snowy weather can often remind us of more moderate climates, this wish came true by proxy as he worked with other accounting professionals in the Cayman Islands.
Matt and the assurance team at Mantyla McReynolds LLC completed an audit engagement for an investment fund with a master-feeder structure with operations in the U.S. and in the Cayman Islands. The structure consisted of three entities: a domestic U.S. partnership Master Fund, a domestic U.S. partnership Feeder Fund, and a foreign Cayman Islands Feeder Fund.
Cayman Islands’ laws require that a local Cayman Islands accounting firm opine on the audits that are domiciled within their jurisdiction. Because Mantyla McReynolds is in the BDO Seidman Alliance, we were able to seamlessly team up with BDO Cayman to successfully complete this engagement. Mantyla McReynolds provided the assurance services and the audit reports on the two U.S. entities, while BDO Cayman utilized our services and documentation to perform their procedures and report on the foreign Feeder Fund.
Mark Sperry, the engagement partner for Mantyla McReynolds observed, “We were very impressed with the timeliness and professionalism of BDO Cayman, one of the 600 international office relationships available to us through our membership in the BDO Seidman Alliance.”
Matt and the assurance team at Mantyla McReynolds LLC completed an audit engagement for an investment fund with a master-feeder structure with operations in the U.S. and in the Cayman Islands. The structure consisted of three entities: a domestic U.S. partnership Master Fund, a domestic U.S. partnership Feeder Fund, and a foreign Cayman Islands Feeder Fund.
Cayman Islands’ laws require that a local Cayman Islands accounting firm opine on the audits that are domiciled within their jurisdiction. Because Mantyla McReynolds is in the BDO Seidman Alliance, we were able to seamlessly team up with BDO Cayman to successfully complete this engagement. Mantyla McReynolds provided the assurance services and the audit reports on the two U.S. entities, while BDO Cayman utilized our services and documentation to perform their procedures and report on the foreign Feeder Fund.
Mark Sperry, the engagement partner for Mantyla McReynolds observed, “We were very impressed with the timeliness and professionalism of BDO Cayman, one of the 600 international office relationships available to us through our membership in the BDO Seidman Alliance.”
Tuesday, May 3, 2011
Equity Raises
Over the past 18-months Mantyla McReynolds LLC has assisted various public clients in raising more than $500 million in multiple secondary equity offerings. Mantyla McReynolds is pleased to have brought to each of these transactions experienced SEC engagement teams with a comprehensive understanding of the public markets, and specific technical knowledge and experience to the follow-on equity process. As a member of the BDO Seidman Alliance, Mantyla McReynolds has consistently had access to and used the vast technical resources of BDO in issuing comfort letters and performing related regulatory offering procedures.
Mantyla McReynolds understands the increased value that is achieved for all parties when the auditors bring to the equity raise process a deep understanding of the regulatory requirements and an ability to work efficiently and confidently with regulators, underwriters, and attorneys. It’s not often the underwriters and their attorneys express their appreciation in working with an audit firm that clearly understands the IPO and secondary offering process, but Mantyla McReynolds has been the recipient of this praise time and again. Our experience has shown there is a narrow window in completing many of these transactions and our clients have consistently been impressed with our ability to meet critical timelines, while still keeping overall fees in check and thoroughly addressing all legal and regulatory requirements.
With BDO as a strong and resourceful partner, the Mantyla McReynolds’ Public Practice Group continues to be well positioned to build upon the significant results that have been achieved in the past.
Mantyla McReynolds is a PCAOB registered CPA firm and a BDO Seidman Alliance firm with over 20 years experience servicing public companies, from their initial internal control assessment to seasoned filer with the SEC. The firm’s clients range from businesses in the developmental stage to established public companies with market capitalizations exceeding one billion dollars. As a BDO Seidman Alliance firm, they offer experienced and accessible service teams, world-class engagement management and a focus on quality and efficiency.
BDO is a US professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded companies. For 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. BDO is the world's fifth largest accountancy network. BDO International and BDO Alliance firms combine for more than $5.2 billion in annual fee income and account for 46,930 professionals worldwide.
Mantyla McReynolds understands the increased value that is achieved for all parties when the auditors bring to the equity raise process a deep understanding of the regulatory requirements and an ability to work efficiently and confidently with regulators, underwriters, and attorneys. It’s not often the underwriters and their attorneys express their appreciation in working with an audit firm that clearly understands the IPO and secondary offering process, but Mantyla McReynolds has been the recipient of this praise time and again. Our experience has shown there is a narrow window in completing many of these transactions and our clients have consistently been impressed with our ability to meet critical timelines, while still keeping overall fees in check and thoroughly addressing all legal and regulatory requirements.
With BDO as a strong and resourceful partner, the Mantyla McReynolds’ Public Practice Group continues to be well positioned to build upon the significant results that have been achieved in the past.
Mantyla McReynolds is a PCAOB registered CPA firm and a BDO Seidman Alliance firm with over 20 years experience servicing public companies, from their initial internal control assessment to seasoned filer with the SEC. The firm’s clients range from businesses in the developmental stage to established public companies with market capitalizations exceeding one billion dollars. As a BDO Seidman Alliance firm, they offer experienced and accessible service teams, world-class engagement management and a focus on quality and efficiency.
BDO is a US professional services firm providing assurance, tax, financial advisory and consulting services to a wide range of publicly traded companies. For 100 years, BDO has provided quality service through the active involvement of experienced and committed professionals. BDO is the world's fifth largest accountancy network. BDO International and BDO Alliance firms combine for more than $5.2 billion in annual fee income and account for 46,930 professionals worldwide.
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