Tag: IRS

Generally Accepted Accounting Principles (GAAP)

See Also: Accrual Based Accounting Modified Accelerated Cost Recovery System MACRS 10 Q Asset History of Accounting Full Disclosure Principle Generally Accepted Accounting Principles (GAAP) Definition Generally Accepted Accounting Principles (GAAP) are a set of standards, guidelines, and regulations for financial accounting. Companies should follow GAAP rules when preparing financial statements. GAAP rules were established

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W2 Form

See Also: 401k Cash Flow After Tax Deferred Income Tax Form 1098 Marginal Tax Rate W2 Form Definition The W2 form definition is used by employers to report employees‘ wages to the Internal Revenue Service (IRS). The W-2 is also used to report the amount of taxes that have been withheld from each paycheck. W2

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S Corporation vs C Corporation

See Also: S Corporation C Corporation Limited Liability Company (LLC) S Corporation vs C Corporation Although these two entities are very similar, there has always been a debate between an S corporation vs C corporation. The S corporation vs C corporation debate has been ongoing for a while. The following are some major differences that

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S Corporation

An S corporation (S-Corp), also called a subchapter S corporation, is a type of business organization that is structured like a corporation but taxed like a partnership. Find the applicable law in Chapter 1, Subchapter S, of the Internal Revenue Code. S-corps do not have to pay corporate income taxes. Instead, include the company’s profits

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Modified Accelerated Cost Recovery System (MACRS)

See Also: Straight Line Depreciation Double Declining Depreciation Method Accelerated Method of Depreciation Financial Accounting Standards Board (FASB) Generally Accepted Accounting Principles Modified Accelerated Cost Recovery System Definition The modified accelerated cost recovery system (MACRS) method of depreciation assigns specific types of assets to categories with distinct accelerated depreciation schedules. Furthermore, MACRS is required by

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Internal Revenue Service (IRS)

See Also: Cash Flow After Tax Deferred Income Tax Ad Valorem Tax Tax Brackets Tax Efficiency Internal Revenue Service (IRS) Definition The Internal Revenue Service or IRS for short is a government agency underneath the Department of Treasury. Furthermore, it is primarily responsible for administration and collections of federal income taxes. Internal Revenue Service (IRS)

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Form 1099

See Also: Form 1098 W2 Form 401k Tax Efficiency Internal Revenue Service (IRS) Form 1099 Definition The Form 1099 definition is used by the Internal Revenue Service (IRS) determine the amounts of income that is not in the form of wages, salary, and tips. An individual’s employer fills out the 1099. Form 1099 Meaning A form

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Employee Stock Ownership Plan (ESOP)

See Also: Why Exit Planning Cafeteria Plan Evaluating and Renewing Employee Health Insurance Plan Insulate Your Company from Rising Health Insurance Costs How to Hire New Employees PEO or Outsource Payroll Budgeting 101: Creating Successful Budgets How to Select a PEO Employee Stock Ownership Plan (ESOP) An employee stock ownership plan (ESOP) is a type

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Deferrals Definition

See Also: Deferred Income Tax Accrual Based Accounting Accounting Principles Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB) Deferrals Definition A deferral is used in accrual based accounting when an asset or liability has not been realized. It is recognized however because it will be recognized at a future date. Often times, a

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Basis Definition

See Also: Basis Points Make or Buy Business Decision Collateralized Debt Obligations Carried Interests Letter of Credit Basis Definition In accounting, the basis definition is the value of an asset for tax purposes. The basis of an asset is the cost of the asset reported to the Internal Revenue Service (IRS). It includes the original purchase price of the asset

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Capital Expenditures

Capital Expenditures Definition What are capital expenditures? What is CAPEX? Capital expenditures, or CAPEX, refer to spending used to purchase or improve long-term assets, such as buildings or equipment. CAPEX are in contrast to current expenditures, which refer to spending on short-term assets. Capitalize and amortize capital expenditures over their useful life. Whereas, you expense

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Audit Scope Example

Audit Scope Example Ely is an auditor for the IRS. His work, some of the most technical for any forensic accountant, involves looking deeply into a company to find errors which may lead to prosecution. By doing this, Ely is preventing the company from any financial foul-ups that could lead to fraudulent information being shared.

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