Category Archives: Raleigh CPA Firm

Accounting Services Requirements

by Russell Barker

The accounting services department at Langdon and Company LLP utilizes a customized approach to serve many companies by providing varied aspects of a “backoffice” accounting department.  We can perform the following functions: accounts receivable, accounts payable, invoicing, payroll and financial reporting.  We communicate with the client to ensure that we have the needed documentation to properly record transactions.  We process transactions on a monthly or quarterly basis for general ledger processing based on the clients’ needs.  We also provide payroll services and offer direct deposit.  To efficiently and effectively perform these functions, great communication is required.  There is supporting information and documentation that is needed.

Typically, for a small business items such as bank statements, invoices, billing records, loan records, amortization schedules, credit card statements, etc. are required in order post to the general ledger.  For payroll, employee information, hours and pay rate is needed.  In order to properly maintain fixed asset records, invoices and applicable financing records are needed.

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With the client providing all appropriate documentation on a monthly basis and L&C recording proper transactions, this will enable our year end process to be more efficient, precise and timely in order for the tax department prepare the clients tax returns in a timely fashion.

 

Russell Barker is a QuickBooks Pro Advisor in the Accounting Services department at Langdon & Company LLP.  He specializes in periodic reviews for a variety of physician’s practices.

 

L&C Promotions

It is with great pleasure that we announce the following promotions within L&C this year.

Lee Byrd, Audit Manager

Lee Byrd, Audit Manager
lbyrd@langdoncpa.com

Lee joined L&C’s audit department in 2007. She has served on numerous engagements including nonprofit organizations with single audit requirements, as well as healthcare, manufacturing, real estate and small businesses.  She also routinely consults in the areas of accounting and internal controls for clients in these industries. Lee is a CPA.  She graduated from North Carolina State University where she obtained her BSBA and Masters in Accounting.

 

 

 

 

 

 

 

Susan Dean, Tax Manager

Susan Dean, Tax Manager
sdean@langdoncpa.com

Susan joined L&C’s tax department in 2009.  Prior to joining our firm Susan served as tax senior with McGladrey and Pullen, LLP.  Susan is an Enrolled Agent with the Internal Revenue Service.  With over ten years of experience in tax, Susan has spent the majority of her career providing services to corporate, pass-thru, non-profit and individual clients. She has significant tax experience with the non-profit industry, trust income tax reporting and multi-state tax filings. Susan obtained her Bachelor of Science and Masters of Science in Accounting from East Carolina University.

 

 

 

 

 

 

 

 

Taylor Elliott, Tax Manager

Taylor Elliott, Tax Manager
telliott@langdoncpa.com

Taylor also joined the L&C tax department in 2009.  Prior to joining our firm she served as a tax senior with McGladrey and Pullen, LLP.  Taylor provides tax services to corporate, pass-through, nonprofit and individual clients. She frequently works with owners of closely-held businesses on matters related to tax planning, consulting and state and local taxation.  She has extensive experience in healthcare, bio-medical engineering, manufacturing, construction and real estate. Taylor is a CPA and obtained her undergraduate degree from Meredith College and received her Masters in Accounting from North Carolina State University.

 

 

 

 

 

 

 

Kendall Tyson, Tax Manager

Kendall Tyson, Tax Manager
ktyson@langdoncpa.com

Kendall joined the L&C tax department in 2011.  Prior to joining our firm she served as a tax senior with McGladrey and Pullen, LLP.  Kendall provides tax planning and compliance, reporting and special projects for closely-held businesses, including physician and dental practices. She also has significant experience with nonprofit tax reporting and multi-state tax filings.  Kendall is a CPA and obtained her undergraduate degree from Meredith College and received her Masters in Accounting from North Carolina State University.

 

 

 

 

 

 

Brittany Powell, Audit Senior

Brittany Powell, Audit Senior
bpowell@langdoncpa.com

Brittany joined L&C’s audit department in 2013. She has served on numerous engagements including nonprofit organizations with single audit requirements, as well as healthcare and small businesses.  Brittany is a CPA and obtained her undergraduate degree from Campbell University and received her Masters in Accounting from East Carolina University.

 

 

 

 

 

Please join us in congratulating them on their promotions!

Does your Nonprofit Need an Audit?

baudity Brittany Powell

The National Council of Nonprofits’ Audit Guide (“Audit Guide”) can provide your organization with a starting point for making the decision on whether or not your nonprofit organization needs an audit.

As the Audit Guide points out in its “Does your nonprofit need to have an independent audit?” section, nonprofits may be required to have an audit for various reasons including, but not limited to, compliance with specific grant agreements or loan covenants.  Additionally, a nonprofit organization may be required to have a Yellow Book or Single Audit depending on its level of Federal or State expenditures.  A nonprofit with federal expenditures equal to or exceeding $500,000 is required to have a Single Audit.  As discussed in our February 10, 2014 blog post, this threshold will increase to $750,000 beginning with fiscal years beginning on or after December 26, 2014.  This Audit Guide provides a summary for each state’s audit requirements.  North Carolina requires “a non-governmental entity that receives $500,000 or more annually in state funds” to submit a Yellow Book audit.

However, an audit may not be necessary or cost effective for all nonprofit organizations.  A review, while substantially less in scope than an audit, provides limited assurance over an entity’s financial statements.  Therefore, a review can be a viable, less costly alternative to an audit for some nonprofit organizations.

If you are considering an audit or review for your nonprofit, contact someone at our office to help you determine the engagement type that best fits your organization’s needs.  See the Audit Services & Consulting section of our website for more information about audits, reviews, and other services we provide.

Brittany Powell is a Senior Accountant with Langdon & Company LLP.  She specializes in audit, serving a wide variety of nonprofit organizations.

IRS Unveils New Form for Organizations Applying for 501(c)(3) Tax-Exempt Status

by Taylor Elliott

On July 1, 2014, the Internal Revenue Service (IRS) released Form 1023-EZ as part of its efforts to streamline the application process for organizations seeking tax-exempt status.  The form is specifically designed for charities who wish to be classified as exempt under section 501(c)(3).  An organization must meet several criteria in order to be eligible to apply using the form, including a gross receipts test of $50,000 or less as well as an assets test of $250,000 or less. The form instructions outline additional criteria, including an eligibility worksheet that helps charities determine whether the form is right for them through a series of yes and no questions.

The IRS has indicated that the overall goal in developing Form 1023-EZ is to reduce the time and paperwork associated with providing a charity a determination as to its tax-exempt status. Previously, the IRS has been intensely criticized for a lengthy and cumbersome 1023 application process that includes an application backlog that is many months behind. Until now, all organizations, regardless of size, have been subject to the same 23-page form filled with a seemingly endless list of tedious questions, many of which are not relevant to smaller, simpler charities. After soliciting feedback from impacted parties, the IRS was able to whittle down to Form 1023-EZ, a three-page form containing only the most essential questions pertaining to determination of tax-exempt status of smaller organizations. According to IR-2014-77, as many as 70% of applicants are expected to be eligible to use this form, not only slashing the time spent by those charities in completing the application but also minimizing the time spent by the IRS in reviewing their files. The electronic filing requirement  is  also expected to increase the efficiency of the process. An application fee of $400 must be electronically submitted with the application as well.

For questions about this form or the tax-exempt application process in general, please contact our office.  We would love to discuss with you the ways that Langdon and Company LLP can help your organization obtain and maintain a tax-exempt status.

Taylor Elliott is a tax manager with Langdon & Company LLP. She specializes in tax compliance and planning, working with several not-for-profit organizations in the Triangle area.

Long Term Care Update

Nursing-homeby Rachel Owens

There is a proposed Medicare rate increase on the drawing board for skilled nursing facilities.  If the proposed rule (CMS-1605-P) is approved by CMS, there will be a market basket increase of 2% beginning 10/1/2014. This will result in an estimated economic impact on the country is $750 Million in FY 2015.  There are also wage index changes on the horizon.  These wage index reductions/increases vary by region.  In addition there are upcoming changes to the Medicare reimbursable bad debt percentages.  For fiscal year 2014, the reimbursable portion of non-dual bad debts has been reduced from 70% to 65%.  For dual eligible bad debts, only 76% – reduced even further for fiscal year 2015 to 65%.

On the Medicaid front, the FRV (Fair Rental Value) valuation will be changing to reflect renovations, bed additions and replacements (that were not adjusted with initial submission and now are included in the rates).  Also, NC’s Medicaid billing system has seen changes as well.  NC Tracks has been in the news for all the issues related to billing, and for good reason.  Beyond those problems, they have made the Medicaid application process a headache with extensive delays.

Many other changes continue to thwart our healthcare system.  Langdon & Company LLP continues to stay updated on the most recent issues.  Our professionals will be happy to help you sort through the details and understand the facts!

Rachel Owens is a Senior Accountant with Langdon & Company LLP.  She specializes in serving healthcare clients, including skilled nursing facilities and behavioral healthcare providers.

Net Investment Income Tax

Net Investment Income TaxStarting in 2013, individuals, estates and trusts may be subject to the Net Investment Income Tax (NIIT).  NIIT is surtax of 3.8% which is applied to the lesser of:

  • Modified Adjusted Gross Income (MAGI) above the threshold amount [Married filing jointly $250,000; Single/Head of Household $200,000; Married filing separately $125,000] or
  • Net Investment Income (NII).

The tax planning and compliance issues surrounding the NIIT are very complex.  The IRS has just recently updated its NIIT Frequently Asked Questions page.  It can be found at:  http://www.irs.gov/uac/Newsroom/Net-Investment-Income-Tax-FAQs. Continue reading Net Investment Income Tax

Are My Social Security Benefits Taxable?

Social SecurityToday many folks find themselves working into the Social Security years, whether by choice or necessity. Our Firm fields this question regularly. If Social Security was your only source of income in 2013, your benefits may not be taxable. You also may not need to file a federal income tax return. If you get income from other sources, then you may have to pay taxes on some of your benefits.

A quick and dirty rule of thumb is to add one-half of your Social Security benefits to all your other income, including any tax-exempt interest. Next, compare this total to the base amounts below. If your total is more than the base amount for your filing status, then some of your benefits may be taxable. The three base amounts are: Continue reading Are My Social Security Benefits Taxable?

Obama Administration Delays Part of Health Law’s Employer Mandate

More Delays to Obama Care Personal MandateThe U.S. Government announced an additional delay of the employer mandate associated with the Affordable Care Act (“ACA”) for certain medium sized employers. ACA is intended to extend health coverage to uninsured Americans, partly by imposing penalties on individuals and businesses not seeking coverage. Most individuals face a tax penalty for not having healthcare coverage in 2014. Continue reading Obama Administration Delays Part of Health Law’s Employer Mandate

Common Considerations for IRA Rollover

Common Considerations for a IRAIf you’ve been thinking about rolling over your traditional IRA from one financial institution to another, there are a number of things you should think about when doing so. There are a number of mistakes that occur here, which can incur unnecessary taxes and penalties, that you will definitely want to avoid. Check out some of the most important things to know about IRA rollovers, below. Continue reading Common Considerations for IRA Rollover