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DDS 2011 Audit and Review Requirements
Many DDS vendors believe they do not need a 2011 Audit or Review. The California State Assembly Bill clearly requires all DDS vendors whose revenues exceed $250,000 need a Reviewed Financial Statement from a Certified Public Accountant. DDS Vendors whose revenues exceed $500,000 in 2011 require a full audit. This is not based on partial year nor your orientation (fiscal or calendar year) This is California State Law and can not be waived by any DDS Regional Center. As a CPA Audit Firm we are very careful to be certain a vendor actually needs an audit. We look at vendor's service codes and revenues and rates. We can not complete a 2012 audit without first checking for a need for a 2011 audit. If 2011 revenues call for an audit, the 2011 audit must be completed before we can issue a passing 2012 audit. I am happy to discuss this requirement more with any DDS vendor as I know this has been confusing in the past. … [Read more...] about DDS 2011 Audit and Review Requirements
DDS Audits in California
We are a bit farther along in the DDS Audit Process. One of the most frequent questions is about the 15% rule for DDS Audits. The rule is complex, but also it does apply. A little study of the actual California State Senate Bill sheds more light on the subject. There are actually two parts to the bill and the later clarifies which funds are affected and not affected by the 15% overhead. The variable is the vendor's classification and rate codes. It is easier to address each individual case rather than describe each scenario on my blog. Another common hurdle is vendor record keeping. Many smaller entities have kept manual records. These can range from Excel Spread sheets, to a notebook with entries to a box full of receipts and bills. AICPA Audit Standards require records to be in a standardized format. This allows the audit firm to be audited. All California CPA firms who perform audits and reviews are themselves audited. Acceptable record keeping would be software … [Read more...] about DDS Audits in California
Latest DDS Audit Requirements
This is my latest information from California DDS its a bit long to post, but here is the link. I hope this is helpful to you. If you have further questions, please post to this site or call me. I am more than happy to help. DDS Audit Letter We will update you are we have more information. Bob Rojas … [Read more...] about Latest DDS Audit Requirements
5 Basic Rules of Safety For The Internet
Recently PC Magazine published an article on how to stay safe on the internet. These are basic ideas but I thought worth repeating. Good advice is always worth repeating. 1. If you write into blogs, don't use your e-mail address as your user name. Spammers and Web Crawlers love to copy these off public places and send your lots of span and ads. Don't put your email address in any Facebook comments. Just because you have good privacy settings does not mean all your friends have good privacy settings. 2. Do not write back to spammers. Your angry note asking the to remove you from their list actually verifies your address. They can now sell your email address as confirmed and charge more money. 3. I know you are smarter than this, but do not click links from people you do not know. The bigger the prize the bigger the hoax. You always hope your anti virus software will protect you, but how lucky do you feel? 4. Do not give people your password. They may only want … [Read more...] about 5 Basic Rules of Safety For The Internet
How Long To Keep Tax Records and Documents
This is from the IRS Web Page and I hope you find it interesting. "IRS Tax Tip 2011-71, April 11, 2011 After you file your taxes, you will have many records that may help document items on your tax return. You will need these documents should the IRS select your return for examination. Here are five tips from the IRS about keeping good records. Normally, tax records should be kept for three years. Some documents — such as records relating to a home purchase or sale, stock transactions, IRA and business or rental property — should be kept longer. In most cases, the IRS does not require you to keep records in any special manner. Generally speaking, however, you should keep any and all documents that may have an impact on your federal tax return. Records you should keep include bills, credit card and other receipts, invoices, mileage logs, canceled, imaged or substitute checks, proofs of payment, and any other records to support deductions or credits you claim on … [Read more...] about How Long To Keep Tax Records and Documents
IRS offers businesses a good deal
New IRS ruling gives businesses a break. Need to re classify a worker? Read this straight from the IRS guidelines. New IRS rule on worker classification If you had employees classified as contract workers here is an easy way to get them back on your payroll and avoid an audit. The above link gives you the whole code, but the meat of the article says: "The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and lower the burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees. The VCSP is available to many businesses, tax-exempt organizations and government entities that currently erroneously treat their workers or a class or group of workers as nonemployees or independent contractors, and now want to correctly treat these … [Read more...] about IRS offers businesses a good deal
How to Avoid an IRS Audit
IRS Audit Tip Offs Low gross profit margin High auto expenses High business use of autos Number of Autos used in the business High travel and entertainment Little or no profit from business operations High number of deductions Estate tax return At home office Official documents which are incorrect Large casualty loss deduction The IRS.gov website claims audits are triggered by: Random selection and computer screening - sometimes returns are selected based solely on a statistical formula. Document matching - when payor records, such as Forms W-2 or Form 1099, don't match the information reported. Related examinations - returns may be selected for audit when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit. … [Read more...] about How to Avoid an IRS Audit
6 IRS Audit Tips
Help for IRS Audits We’re seeing an increase in IRS audits in 2011 for 2009 and 2010 returns. Restaurants are being audited. Individuals with schedule Cs are being audited for travel; automobile; and meals and entertainment. TIP ONE: If you’re audited, never represent yourself. We’ve represented two tax attorneys in the past! Taxpayers talk too much and give the IRS too much information. We’ve been retained by 3 new clients this week alone. Each will be represented by one of two MBAs in tax. TIP TWO: Be respectful. The IRS will not go away. If the notice says reply in 10 days, reply in 10 days. TIP THREE: Hire a representative that knows the rules but is there to win for you. TIP FOUR: NEVER GIVE UP ON THE NEGOTIATION. If the IRS is correct and there is no documentation for certain deductions or if income is not reported, and if they find it, remember you can always try to set up a payment plan. TIP FIVE: If there is an IRS audit adjustment remember to amend the … [Read more...] about 6 IRS Audit Tips
