General Articles

We are proud to announce that Elizabeth Kramb, CPA has been selected as one of three finalists for the West Michigan Women Brilliance Award in the Emerging Leader category. Her nomination stood out of 175 nominations.

Liz is a Supervisor at Brickley DeLong in our Grand Rapids Office. She has been a leader in our firm’s “Next Generation” movement, and has been instrumental in leading our training initiatives and encouraging staff to set career goals… and stick to them.

In 2013, Brickley DeLong launched their “Next Gen” team. Liz has served as a founding member, and now serves as the head of the team. The “Next Gen” team is a group of up and coming Seniors and Supervisors. Their team goals are to:

• Drive change from a bottom up approach
• Hold quarterly goal setting meetings
• Propose new ideas to the Firm’s Executive Committee

Liz also serves as a volunteer for Family Futures, a non-profit that’s mission is to create a community in which all children are able to reach their full potential. She also participates in the Association for Corporate Growth mentorship program.

Not only is she a champion at work, but she is also a champion at home to her husband and two children. She has met the challenges of balancing work and home life, and has continued to show that she is dedicated to growing her career and raising her family.

What is the Brilliance Awards?

The Brilliance Awards is a first-time awards ceremony aimed to honor the success of women in the West Michigan community. It is hosted by West Michigan Women.

The goal of the event is to shine light on dynamic talent, spirit and intellect of local women and celebrate the brilliant and meaningful impact they have on our careers and the communities we live in. By focusing on nominees who excel in their fields, are committed to creating positive change and demonstrate how they elevate other women leaders, the WMW Brilliance Awards will highlight those tackling the issues that face professional women in West Michigan and who are blazing trails for the rest of us.

Mentoring… A process that helps us to develop, maintain a teachable attitude and take a “new” look at what you are doing on a daily basis.

When I think of mentoring, my mind immediately thinks of two words – why and how.

I connect mentoring with these two little words because of many teachable moments. My 3 year old granddaughter is in the “why” stage.  She will ask a question, I give an answer…and then the “why’s” begin.  I can choose to answer each “why” with a logical answer or stop the conversation with the word….”because.”

There is something about that “because” word that ends the conversation.

Just like my experience with a 3 year old, a Mentor we can lose effectiveness and end conversations when we give a “because” response.  The more they ask (and get a response), the more they learn, the quicker our mentee’s will grasp the knowledge that we are trying to help them reach.

So, as long as our mentee’s are asking questions…bring them on.

The “how” is also very important to explain.  Sometimes the “how” is answered in step-by-step directions, and at other times it can be a one word answer.  The significance is that it deserves a response.  If a mentee has the nerve to ask their mentor “how” to perform a certain task, then, as a mentor, you need to have the tools to lead them in the right direction.

I firmly believe that the mentoring process – sometimes as a mentor and sometimes as a mentee – can have a profound impact on a person’s personal and professional life.   We just have to take the time to answer the “why’s” and the “how’s” …and enjoy those teachable moments!!

No matter what the profession – you need to embrace the mentor inside you.

Author: Christine Dill, Firm Administrator

Each year, the IRS creates a list of the top tax scams it has seen throughout the year.

This year’s “Dirty Dozen” are:

1. Phishing
   Taxpayers should be wary of fake e-mails and website looking to steal personal information.
2. Phone Scams
   Taxpayers should be aware of callers that are impersonating IRS agents and threatening taxpayers with arrest, deportation, unpaid taxes, and more.
3. Identity Theft
   Especially during tax season, there are criminals that file fraudulent returns under another person’s Social Security number.
4. Return Preparer Fraud
   Tax season brings about con artists that perpetuate return fraud, identity theft, and scams to taxpayers.
5. Fake Charities
   There are groups that disguise themselves as charities in hopes of collecting donations for their benefit. Taxpayers should pay close attention to the charity’s name and status before donating. The IRS has tools that will help.
6. Inflated Refund Claims
   Taxpayers should always be cautions of a promised “big refund”, especially when your records has not been reviewed.
7. Excessive Claims for Business Credits
   Taxpayers should avoid improperly claiming business credits.
8. Falsely Padding Deductions on Returns
   Taxpayers should avoid falsifying deduction such as charitable contributions and business expenses.
9. Falsifying Income to Claim Credits
   Taxpayers should not create false income to quality for a tax credit; this can lead to back taxes, penalties, and, in some cases, criminal prosecution.
10. Abusive Tax Shelters
    Taxpayers should avoid using the use of phony tax shelters to avoid paying what is owed.
11. Frivolous Tax Arguments
    Taxpayers should avoid outlandish and unreasonable claims to avoid paying tax.
12. Offshore Tax Avoidance
    Taxpayers should avoid hiding money in unreported offshore accounts.

Read the full article.  For assistance in tax preparation, please contact Brian McFarren.

Recently, the IRS’s Large Business and International Division issued guidance for business taxpayers which laid out 13 “campaigns” it plans to target in 2017. While this lists targets last businesses, it will likely trickle down to small and mid-sized businesses as well.

The 13 “campaigns” or areas they plan to target are:

1. examinations of the energy credit described in Internal Revenue Code 48C;
2. declines and withdrawals from the offshore voluntary disclosure program;
3. related-party transactions;
4. repatriation of income from overseas locations;
5. foreign companies doing business in the United States that are not filing appropriately;
6. transfer pricing associated with inbound distribution of goods from related parties outside the United States;
7. deferred variable annuity reserves and life insurance reserves;
8. basket transactions that seek to treat ordinary income and short-term capital gain as long-term;
9. micro-captive insurance contracts;
10. the completed contract method of accounting applied by land developers;
11. application of the domestic production activities deduction to certain entertainment products;
12. risks associated with larger, more complex pass-through partnerships; and
13. losses claimed in excess of basis in S corporations.The IRS did not provide detailed information on how they plan to address these areas. For more information, please contact us.

For many, tax season brings about the dreaded task of scrounging through stacks of paper work – looking for receipts, bills, statements and more.

Forbes published an article this month offering 5 organizational strategies for the disorganized taxpayer.

1. Find the Perfect Spot

Dedicate a specific spot for important tax papers. This spot should be convenient, so you do not fall back into the habit of putting papers in a junk drawer or leaving them on the counter.

Tip: Search Google and Pinterest for organizational ideas.

2. Divide and Conquer 

Use file folders or binders to create a filing system. Separate different receipts into categories such as: insurance payments, donations, medical bills, mortgage statements, etc.

3. Consolidate your Finances

Perform financial “decluttering”. Visit our Record Retention Policy, and shred papers you do not need anymore. Consolidate and pay down accounts and/or debt if able.

4. Consider Electronic Storage

Look into apps that allow you to track and store your information online. For example, there are many different apps that will allow you to take pictures of receipts and categorize them.

5. Stow Some Documents Separately

Find a specific place for important documents that should be preserved (will, trust, marriage license, birth certificates, Social Security documents, etc.). These documents should be kept in a fire-safe lockbox.

At Brickley DeLong, we aid your tax planning and preparation process and strive to have it go as seamless at possible. Our clients receive a tax organizer each year to help them answer important questions related to their return. If you need help, we encourage you to set up a tax planning meeting with one of our tax advisors.

To read the full article from Forbes, click here.

Visit our Individual and Business Tax Preparation page for more information on our tax services or to request information.

On November 22, a federal judge in Texas blocked the Obama administration’s  rule that would extend overtime eligibility to over 4 million Americans. This follows 21 states who sued to block the rule before it went into effect.

This new overtime rule was announced by the Department of Labor on May 18, 2016; it stated that any salaried employee earning less than $47,476 annually would qualify for overtime pay when they worked over 40 hours a week. The current threshold is $23,660.

The rule was to go in affect on December 1, 2016. The Department of Labor is weighing options; but, for now, employers can continue to use the $23,660 threshold.

Read more about the announcement.

Planning for taxes makes good financial sense. When you take the time to plan, you know you are doing what you can to minimize your tax burden.

Everyday financial decisions and transactions can affect your taxes more than you may realize. This 2016 Tax Planning Guide explains how taxes fit into your financial picture and suggests strategies that can help lower your federal income-tax liability. The Guide includes helpful explanations of important individual and business tax provisions along with examples of how the rules work.

As you read the Guide, please keep in mind that everyone’s tax situation is different. Before implementing any of the strategies discussed here, you will want to secure professional advice.

2016 Tax Planning Guide