Abbott, Stringham and Lynch News & Press Releases

How Start-ups & Small Business Can Protect Against the Problem of Payroll Tax Embezzlement

2013-05-03T00:29:42Z

San Jose, Calif. – May 2, 2013 – According to CPA Mark Sheffield, Principal in charge of Abbott, Stringham & Lynch’s Emerging Business Group, outsourcing payroll to a small payroll service firm could pose a significant financial risk to start-ups and small businesses. “While small payroll service firms can provide a lower-cost higher-touch service experience for emerging businesses, they’re also more likely to perpetrate embezzlement of your payroll tax payments than a big firm due to lack of oversight that leads to increased opportunity,” said Sheffield.

However, if you feel that a small payroll service firm is the right solution for your business needs, Sheffield recommends you consider implementing two or more of the following four controls…

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Income Tax Implications in 2013 of the Patient Protection & Affordable Care Act and Tax Relief Act of 2012

2013-04-02T23:13:02Z

Watch ASL Principal Pam Hedblad breakdown the income tax implications of ObamaCare and ATRA of 2012

You can also download a copy of the slides ASL Principal Pam Hedblad is speaking to in this presentation for your future reference.

Silicon Valley CPA Firm Adds Three High-Level CPAs to Principal Roster to Position for Growth in 2013

2013-01-02T18:08:05Z

San Jose, Calif. – January 2, 2013 – Managing Principal Ray Scheaffer of Abbott, Stringham & Lynch (ASL), a Silicon Valley accounting and consulting firm, announced that three high-level CPAs, Luis Ramirez, Julie Malekhedayat, and Kay Filler, formerly with the accounting firm of Perisho Tombor Ramirez Filler & Brown (Perisho), have joined ASL. “Luis, Julie and Kay enhance our ability to serve the Silicon Valley domestic and international business community in the areas of tax and audit, as well as to expand services to individuals in the areas of estate, gift and trust planning. We welcome them as part of an overall plan to position for growth in 2013.” The addition of Ramirez, Malekhedayat and Filler brings the firm’s principal count to 12, supported by over 60 professionals, including staff members formerly with the Perisho firm.

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Using Trusts to Take Advantage of Expiring Estate & Gift Tax Rates

2012-11-01T16:58:12Z

According to CPA Bill Melton of Abbott, Stringham & Lynch, a Silicon Valley accounting firm, the most generous estate and gift tax provisions we have ever seen are set to expire at the end of December. Melton explains that, while transferring assets directly to the recipient without restrictions may be the quickest and least costly in terms of legal or accounting fees and appropriate for some circumstances, “in the case of very large sums, gifts to minor children, or adults with special needs, transferring your assets into trusts may be the best tax strategy as well as a more appropriate alternative to direct gifting.”

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How Tech Executives Can Minimize Tax Exposure

2012-09-24T19:33:59Z

San Jose, Calif. – September 24, 2012 – According to CPA Bill Melton of the Silicon Valley accounting firm Abbott, Stringham & Lynch, the top personal income tax area of concern for tech executives he sees in his client base is equity compensation. “Like all of us, tech executives care about how much tax they’re paying, and there are ways to minimize their tax exposure when receiving stock awards,” says Melton.

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Three Common Audit Problems Firms Can Avoid Now

2012-07-28T00:03:41Z

“Firms can take action now to correct three common problems that can be costly and time-consuming when you get to the audit process,” says CPA Carol Wagner of Abbott, Stringham & Lynch. To close out your year efficiently and prepare for an audit, Wagner suggests that you review the following “sticky areas” now with your finance team, CPA and lending sources.

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Contractors Likely to See Increased Tax Liability

2012-06-04T19:35:27Z

The IRS issued new temporary repair and maintenance regulations, Section 162 and Section 263(a), that will likely increase the tax liability of contractors on their 2012 tax returns, according to CPA Rob Trammell, a principal at the accounting firm of Abbott, Stringham & Lynch. “The new regulations fundamentally change the definition of a ‘unit of property’ in a way that significantly restricts the expenditures that can be expensed,” said Trammell.

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Hidden Costs of 1099 Non-Compliance

2012-05-09T19:00:00Z

Watch Video News Release: Hidden Costs of 1099 Non-Compliance

This tax season was marked by increased IRS scrutiny of 1099 compliance, according to Abbott, Stringham & Lynch Tax Manager Jonathan Laddy, and it is “a trend likely to continue.” Laddy says, “The hidden costs of non-compliance can be significant, but there are steps your company can take now to reduce your risk.”

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Unreasonable Loan Covenants? Review Key Performance Indicators

2012-03-05T19:24:43Z

“If you feel that your loan covenants are unreasonable, the problem may be that your bank does not understand what drives your business,” says Carol Wagner, a principal at the Silicon Valley accounting firm of Abbott, Stringham & Lynch. Wagner advises, “Review your business’ key performance indicators with your accountant or management consultant in relation to the loan covenants. If there is a disconnect between what the bank is expecting and your key performance indicators, go to the bank and request a review.” Wagner says that loan covenants based on inappropriate key performance indicators can adversely affect a business’ line of credit, constraining cash flows and reducing investments.

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Plan Now for 2013 Tax Increases, Says CPA Rob Trammell

2012-02-27T17:02:27Z

“Many tax rates are set to increase in 2013,” says Rob Trammell, a principal at the Silicon Valley accounting firm of Abbott, Stringham & Lynch. “This means taxpayers will want to plan now, and monitor that plan to ensure they take appropriate action throughout 2012 before tax rates increase next year.” Trammell says if you wait until next tax season when you file your 2012 return to assess, plan and take action, it may be too late to fully enhance your tax position. Trammell says the scheduled 2013 rate increases include the tax rate on ordinary income, additional tax on investment income for high-income individuals, and long-term capital gains tax rates, “As you consider the impact of these increases, one of the questions you’ll want to ask yourself is does it make sense for me to accelerate income into 2012.”

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