Padgett Stratemann & Co.

2010 Tax Relief Act: Finally, Some Certainty in the Estate & Gift Tax Area
March/April 2011
Featured In: MDNews Austin Magazine
Perhaps that certainty is only for the next two years because in what seemed to have been an 11th-hour decision, President Obama signed the Tax Relief, Unemployment Insurance Reauthorizations and Job Creation Act of 2010 on December 17, 2010. Read More

 

Texas Franchise Tax Reminders
March 2011
The due date for franchise tax returns is right around the corner - May 16. We thought this would be a good time to highlight often overlooked items we see on franchise tax returns to help you avoid these pitfalls. Read More


Healthcare Reform: Two Acts, One Very Big Impact
January/February 2011
Featured In: MDNews Austin Magazine
The signing of the Patient Protection and Affordable Care Act (March 23, 2010) and the Health Care and Education Reconciliation Act of 2010 (March 30, 2010) (the “Acts”) brings a number of health insurance coverage reforms, health insurance reform and increased taxes and potential fines or penalties. To fully understand the Acts you need to read the two Acts as one.  Read Article or View MDNews Austin magazine


Tax Changes to Consider Before Year-End
December 2010
In 2010, at least fifteen bills were passed that amended tax laws in one way or another. Some amendments are effective beginning in the 2010 tax year. The year is not yet over and the current Congress is returning for its final days. Will there be more change? One provision of the HIRE Act, which was passed on March 18, 2010, has already been amended five times. Read More


More of the Same for Employers in 2011
December 2010
Based on budget requests and strategic initiatives announced by federal agencies, employers should anticipate enforcement activity to continue to ramp up. Read More


Gifts to Family: You Have Options
December 2010
Although the federal estate tax is repealed in 2010, it is scheduled to return in 2011. The 2011 estate exemption amount and tax rates are uncertain, but it is fairly certain the estate tax will return. One strategy you should consider is making sufficient gifts during your lifetime so when you pass away, your estate subject to tax, if any, will be minimized. Read More


The Best Practice of Keeping Corporate Minutes
December 2010
All corporations, even those with a sole shareholder, should follow the best business practice of documenting in writing key decisions and actions taken by shareholders and board members. This documentation should be in the form of properly executed corporate minutes. Read More


Understanding the Impact of Health Care Reform
September 2010
We should all be aware at this point that individual health care coverage and insurance was dramatically changed in recent months by Congress and the President. In March of this year, the President signed two Acts into law - the Patient Protection and Affordable Care Act (March 23, 2010) and the Health Care and Education Reconciliation Act of 2010 (March 30, 2010). To fully understand the changes brought about by these acts you must read them together. Expanded coverage and tighter controls over the health care insurance industry come at a cost – a hefty cost. A slew of new (or increased) taxes and fines are embodied in the acts. The revenue related provisions of the acts have differing effective dates. Read More


HIRE Act - New Credits for New Hires
September 2010
The recently enacted Hiring Incentives to Restore Employment (HIRE) Act grants a payroll tax exemption to businesses that hire people who have been out of work for at least 60 days. Read More


Financial Reform - Safeguarding Against Financial Meltdowns
September 2010
On July 21, 2010, President Obama signed into legislation the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which has quickly been described as “the biggest financial reform since the Great Depression.” This 2,300 page bill is impressive in size and, after much debate, was passed with the intent to prevent any future financial meltdowns and to assist consumers in making financial decisions. Read More


Could Employer-Owned Life Insurance Proceeds be Taxable?
September 2010
Generally, when a company purchases a life insurance policy on a shareholder or key employee to fund a buy/sell agreement, redemption, or to compensate for the loss of that employee’s expertise, the proceeds of the policy would not be taxable to the business upon the death of the insured. The premiums paid on such a policy are not deductible by the company. Read More


Expanded Reporting for Foreign Financial Assets
June 2010
Many U.S. taxpayers are familiar with the current Report of Foreign Bank and Financial Accounts (FBAR) requirements. These require a U.S. person, individual, or entity that holds a financial interest in, or signature or other authority over, bank accounts, securities accounts, or other financial accounts in foreign countries, which in aggregate exceed $10,000 for any part of the calendar year, to file an FBAR report (TD F 90-22.1) by June 30 of each year.  Read More


Financing a Business: Is the Answer Debt or Equity?
June 2010
When seeking financing, owners typically have two options: debt or equity. It is necessary to consider facts and circumstances specific to business owners and their business to determine the best alternative.  Read More


Dependent Eligibility Audits
June 2010
Employers are now being faced with many questions and soon new challenges with the issue of legislative healthcare reform. Every company wants to remain competitive and provide the best benefits at the most reasonable cost to employees. In addition to this new issue of healthcare reform, the current downturn of economic conditions and increasing health care costs, are pressuring companies to quickly prepare and help control plan expenses.  Read More


More Federal Changes Headed Your Way
June 2010
The Treasury will begin implementing a three-pronged initiative to dramatically reduce the number of transactions that are conducted on paper by moving them to electronic systems.  Read More


Corporate Shell Game
June 2010
How well do companies know their vendors? Simple questions can be insightful for a company to know who it pays on a regular basis for goods and services - questions such as: Who are the company’s owners? Where is the company’s physical location? How was the company referred to our business?  Read More


Health Care Reform
June 2010
This past spring brought more than a changing of the seasons. Spring also brought about significant tax law changes for individuals and businesses with the Senate’s passage of the health care reform package.  Read More


Transition in Federal Transfer Taxes
March 2010
The gridlock in Congress caused unanticipated consequences for federal transfer taxes. For 2010, estate and generation-skipping transfer (GST) taxes are repealed and the gift tax rate is reduced.  Read More


A Slippery Slope - Disclosing Tax Positions
March 2010
It all began about four years ago when the General Accepted Accounting Principles (GAAP) accounting hierarchy decided that legal entities filing financial statements should disclose uncertain tax positions.  Read More


Trends in Affirmative Action for 2010
March 2010
In February 1, 2010, the Department of Labor (DOL) released its fiscal year budget request for the 2011 fiscal year. The Office of Federal Contract Compliance Programs (OFCCP) has increased its budget request for 2011 by almost $9 million over its 2010 estimated fiscal year budget.  Read More


Employment Tax Audits
March 2010
Over the past three years, the Internal Revenue Service IRS Audit Division has been restructured. One of the new divisions is the Small Business/Self-Employed Division.  Read More


Embezzlement Blues - Hitting Closer to Home
March 2010
The recent embezzlement and misappropriation of billions of dollars by misguided and greedy Wall Street gurus have dominated the national news headlines. While they make for good press, high profile, New York financial scandals might as well be the next reality television series as far as Central and South Texas business owners and managers are concerned, and not something we have to worry about here, right?  Read More


IRA/Roth IRA Conversion Rules Change in 2010
December 2009
The Roth IRA has long been considered an ideal tool for growing wealth. The investments grow tax-free and all qualified distributions are tax-free. Read More


Employers Take Note - Government Audits are on the Rise
December 2009
The chances of your business being selected for audit by the federal government increased drastically on November 19, 2009. Employers should take immediate action to ensure compliance with federal regulations that address I-9's, pay practices, and classification of employees versus independent contractors.  Read More


IRA/Roth IRA Conversion Rules Change in 2010
December 2009
The Roth IRA has long been considered an ideal tool for growing wealth. The investments grow tax-free and all qualified distributions are tax-free. Read More


Business Valuation and Economic Damages
December 2009
When financial markets turn downward, litigation tends to escalate.  At Padgett, Stratemann & Co. we are increasingly being retained as experts to perform analysis that quantifies economic damages or lost profits related to a damaging event in a litigation context.  Read More


Past Years and Future State and Local Tax Amnesty and Voluntary Disclosure Programs
December 2009
Most taxpayers are aware by now that the vast majority of states and cities are under severe budget pressure due to shrinking revenues and increased expenditures.  Read More


Little Known and Underutilized Tax Credits
December 2009
Many Texas employers are eligible for the Work Opportunity Credit (WOTC) and the Empowerment Zone and Renewal Community Employment (EZRCE) Credit. Read More


Human Resource Update
December 2009
It has been a busy year for human resources. A number of new employment regulations have been, or will be, enacted that require attention and action on the part of most employers.  Read More


Reporting Requirements for Recipients of Foreign Gifts
December 2009
Under normal circumstances, individuals who receive gifts or inheritance proceeds from other family or friends in the country in the U.S. are not subject to reporting the gift, though the donor may have reporting responsibilities.  Read More


Are you prepared for the FASB Codification?
September 2009
A new era in conducting research in accordance with Generally Accepted Accounting Principles GAAP became effective July 1, 2009. The Financial Accounting Standards Board's (FASB) Accounting Standards Codification completely changed the way that United States GAAP is documented, updated, referenced and accessed.  Read More


Estate and Trust Planning
September 2009
In light of recent celebrity deaths, and the talk surrounding their wills, it is a good time to revisit estate and trust planning.  Read More


Are you prepared for the FASB Codification?
September 2009
A new era in conducting research in accordance with Generally Accepted Accounting Principles GAAP became effective July 1, 2009. The Financial Accounting Standards Board's (FASB) Accounting Standards Codification completely changed the way that United States GAAP is documented, updated, referenced and accessed.  Read More


Recent Texas Franchise and Sales tax law changes
September 2009
The Texas 81st Legislative Session is complete. Texas' economic outlook played a significant role in the nature of the tax bills that passed during this year's session.  Read More


LLCs and Self-Employment Taxes - Who's Paying Them?
September 2009
Increasingly, the preferred organizational form of doing business is the limited liability company ("LLC"). Despite the growth of LLCs, considerable confusion exists about how and if self-employment ("SE") tax should be levied on members' apportioned income. Read More


Focus For Immigration Compliance Shifting to Employers
September 2009
The United States Immigration and Customs Enforcement (ICE) agency is turning up the heat on employers. In a news release issued on July 1 ICE gave a clear indication of the direction the current administration will be taking with regard to immigration compliance. Read More


PS&Co. Named Top 15 Firms - Southwest
July 2009
In the nearly 65 years since its founding, Padgett, Stratemann & Co. has built a rep as one of Texas's largest, locally owned firms, providing a range of accounting, audit, tax and other consulting services. Clients span banking, construction, government contracting, government-based and non-profit entities, medical and professional services, manufacturing, retail, distribution, insurance, and real estate organizations, including both public and private companies. Read More


IRS Lists Foreign Withholding as Tier 1 Compliance Issue
June 2009
The IRS is clamping down on U.S. persons failing to follow the withholding rules for payments to non-U.S. residents. Most recently, the IRS designated foreign withholding as a taxpayer compliance priority. Read More


Veteran CPA to Business Owners: Build and Maintain Strong Business Practices
June 2009
Tuesday I interviewed Bill Wisecarver, a veteran Certified Public Accountant (CPA) with 37 years of accounting experience. I asked him to give his best advise to small and mid-sized business owners that might help them grow and thrive through the rest of the recession. Read More


HR Handbooks: A Tool for Setting Policy
June 2009
Handbooks are used as a primary communication tool between an employer and employees. Read More


Cash is King, Tax Strategies Count
June 2009
During an economic downturn, cash truly becomes king. A company would like to either delay the tax payment owed to the IRS as long as possible or lower the tax liability due. Read More


Objectives vs. Options - Which Comes First?
June 2009
Do you remember the last time you made a major purchase---such as a car or truck? How did you make your decision? Read More


Can Bad Times Be the Best Time?
June 2009
It should come as no surprise to anyone to hear the economy is experiencing a few problems. Read More


IRS Changes Filing Requirement for Form 2290 Heavy Highway Vehicle Use Tax Return
May 2009
The Internal Revenue Service has modified the annual filing requirement fr Form 2290 - Heavy Highway Vehicle Use Tax Returns due on or before August 31, 2009. Read More