Author Archives:
Erin Carter

With median losses of $203,000, the construction industry ranks fourth among two dozen industries in the cost of damages arising from fraud. The nature of the work makes it an attractive target for bad actors. The confluence of long project lead times, multiple stakeholders, and participants, lots of moving parts, and different job sites all contribute to challenges in preventing and detecting fraud.

The historic backlog of unprocessed communications, income, employment, and other tax returns continues to plague the IRS.  In December, there were a reported 6 million unprocessed individual returns and over 2 million unprocessed amended returns. Since the start of the 2021 tax season, the problem has gotten worse with updated estimates showing the backlog growing to 24 million. At the same time, customer service has also hit historic lows. Only 11% of calls were answered last year leaving taxpayers frustrated and with very few options.

Nondiscrimination testing ensures equity amongst all participants by examining elective contribution rates, company contributions, and the percentage of plan assets that belong to highly compensated employees (HCEs). The test determines there is no discrimination that favors HCEs.

Like most things in the new year, the cost of ERISA penalties for employee benefit plan violations is going up. The Employee Benefits Security Administration (EBSA) adjusted the penalty amounts for violations after January 14, 2022. The adjustments occur annually and are indexed for inflation, so while the adjustment itself isn’t a new development, the increased penalty amounts are something Atlanta plan sponsors need to be aware of. Now, it is important to note these amounts represent the maximum fine that can be levied, but the Department of Labor (DOL) reserves the right to make adjustments based on specific circumstances.

Cyberattacks are more prevalent than ever.  Unfortunately, it is not a question of if an Atlanta business will have to deal with one, but when. Hackers continue to look for new ways to take advantage of organizations and often accomplish that through unsuspecting and unprepared users. While this most commonly occurs through email phishing or some other form of deception, it is now also taking place within business software as well. More specifically, there has been an alarming increase in the past few months in the malware found within Excel add-ins. These useful additions provide professionals with the additional data management capabilities necessary to completed advanced analysis. Unfortunately, they also carry risks.

What many not-for-profits may not be aware of is that accepting federal funds may trigger the need to comply with single audit requirements. Or, that some state funds may instead originate from the federal government, thus triggering the single audit. Especially with trillions in COVID-related funding having been distributed, not-for-profit executives and Board members may need to brush up on their knowledge of single audits – and what to do if the organization is subject to one. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.

During the closing months of the year, many Atlanta individuals look for opportunities to reduce federal income taxes. It is a common practice to review both federal and state tax credits and deductions to identify where opportunities may exist. In fact, 2021 appears to be the last year to leverage many of the now-expired federal COVID-19 tax credit programs. Despite the options, many taxpayers reduce taxes simply by contributing to a tax-deferred retirement plan such as a 401(k), 403(b), 457, or a Thrift Savings Plan. Often increasing the elective deferral amount and accelerating contributions at year-end can go a long way towards tax planning goals. However, it is necessary to be aware of the annual contribution maximums.

Many Atlanta businesses have already started the process of complying with the new ASC 606 Revenue Recognition standard. Originally scheduled to become effective earlier, the Financial Accounting Standards Board (FASB) voted to delay the implementation one year due to the COVID pandemic. As the implementation deadline approaches many businesses are working through the steps of examining contracts to identify where revenue recognition changes may need to be made. While there has been extensive guidance and information made available on how to identify, assess, and report revenue recognition changes, including the 5-step process, fewer details are available on how to account for revenue-generating contracts in a business combination.

Fraud is a persistent threat that severely impacts the financial performance of an enterprise. When it is discovered a trusted employee, staff member, or executive has been stealing money, products, or services, it can have a lasting effect. This can manifest in the form of damage to the brand, or worse yet, adversely impact employee trust. For this reason, many companies in Atlanta and across Georgia regularly update fraud prevention programs. To help with this task, the Association of Certified Fraud Examiners (ACFE) published the 2020 Report to Nations – Global Study on Occupational Fraud.

For many years there has been concern about the accuracy, consistency, and quality of ERISA plan audits. Originally introduced as part of the Employee Retirement Income Security Act (ERSA), the audits are designed to ensure plans comply with established governance, financial reporting, and other standards. The depth of the problem came into focus when the DOL published, Assessing the Quality of Employee Benefit Plan Audits in 2015. In the report, it was found that 40% of audits contained major deficiencies. The report was full of such unfavorable findings which called into question the effectiveness of both the audit standards and firms providing the service.