By Lynn Eller, CPA, APCIT, PFS FIRPTA Considerations The Foreign Investment in Real Property Tax Act (“FIRPTA”) authorizes the U.S. to tax foreign persons on the disposition of U.S. real property interests. The purchaser of the real estate from the foreign person is generally required to withhold 15% (10% if under certain thresholds) of the gross sale proceeds and remit to the IRS. The withholding on the gross proceeds typically creates a requirement for the foreign person to file a U.S. tax return to obtain a refund. U.S. Estate and Gift Tax Considerations Individuals that are not domicile in ..read more

By Stacie Newnam, CPA, QKA   Large employee benefit plans must have an independent qualified public accounting (IQPA) audit report attached to the Form 5500 filing. Effective January 1, 2023, the determination for being a large or small plans is based on the number of participants with account balances at the beginning of the plan year, except for new plans, which will use the count as of the end of the plan year. In general, when the number of participants with an account balance is 100 or more, an audit is required. The Importance of Choosing the Right Auditor Choosing the right auditor ..read more

By Neena Shukla, CPA, CFE, CGMA, FCPA, CTP The competitive world of government contracting demands not only scrupulous adherence to regulations but also a keen understanding of cost estimating systems. These systems form the backbone of budgetary planning and play a critical role in ensuring that projects are feasible, profitable, and compliant with stringent government requirements. In this blog post, we will explore the intricacies of cost estimating systems, their benefits and drawbacks, the purpose they serve, and provide insights into developing an estimating manual along with the methods ..read more

Source: RSM US LLP.  PBMares is a member of RSM US Alliance.  ARTICLE The changing demands from regulatory bodies, payers and consumers combined with digital transformation have made healthcare organizations increasingly dependent on vendors for operational and financial efficiencies. However, third-party vendors come with additional risks, exposing organizations to everything from reputational damage to operating loss. Organizations that often think they’re covered are not. Reliance on multiple outside vendors has made it harder for healthcare providers to be vigilant in managing th ..read more

PBMares LLP, a top 100 tax and accounting firm, launched the spring grant cycle of its Corporate Social Responsibility Program, PBMares Cares, on April 1, 2024. The program funds nonprofits whose work aligns with the Firm’s giving mission, which focuses on three philanthropic pillars: Education – Financial Literacy: supporting education initiatives that address social inequities and provide a pathway to financial stability and success. Economy – Diversity in Business: supporting nonprofit initiatives that focus on enabling and supporting small and minority-owned businesses to thrive. Economy ..read more

By Neena Shukla, CPA, CFE, CGMA, FCPA, CTP Navigating the labyrinth of government certifications can be daunting. The Small Business Administration’s (SBA) 8(a) Certification stands out as a beacon for small, disadvantaged businesses aiming to grow their footprint in federal contracting. In this guide, we break down the path to obtaining SBA 8(a) certification, the eligibility criteria you need to meet, and weigh the pros and cons to help you determine if it’s the right decision for your business. Eligibility Requirements Before you embark on the application process, ensure your business meets ..read more

By Stacie Newnam, CPA, QKA Traditional 401(k) Plans that have not adopted safe harbor provisions are subject to annual nondiscrimination testing (NDT).  NDT includes the actual deferral percentage (ADP) and actual contribution percentage (ACP) tests.  The goal of the NDT is to prevent the highly compensated employees (HCE) from disproportionately benefiting from the Plan compared to the non-highly compensated employees (NHCE). Plan sponsors have a few options to fix a failed ADP/ACP test, with the most common correction being a refund to HCEs by making a corrective distribution.  ..read more

By Neena Shukla, CPA, CFE, CGMA, FCPA, CTP In the vast universe of cybersecurity, we’ve witnessed an epic saga unfold—from the rudimentary locks of yore to today’s sophisticated digital fortresses, where algorithms and AI stand guard. Yet, as we venture into the next chapter, a surprising yet formidable ally emerges: the human element. The Unsung Heroes of Cybersecurity In a world dazzled by technological advances, we often overlook the most unpredictable element—the people. Yes, those creatures of habit who love clicking on “You’ve won a million dollars!” emails. It turns out, with the right ..read more

By Charles Dean Smith, Jr., CPA The franchise business model is centuries old. And today, a new franchise opens every eight minutes. Although the business model has been steadily gaining traction and popularity, not all franchises are established or managed properly and it’s certain that not all franchises will succeed. This article from the Franchise Team at PBMares begins a multi-part series looking at the future of the franchise model and best practices of successful franchises. We’ll explore prevalent issues on the mind of franchise owners, including: Financial planning Digital marketing ..read more

By Bronach Branan, CPA, ACMA, CLSSGB Keep reading to understand: What is Process Optimization Challenge #1: Inefficiency and Waste Challenge #2: Cost Reduction Challenge #3: Elevated Customer Experience Challenge #4: Agility and Adaptability Challenge #5: Employee Engagement and Productivity How to Get Started with a Process Optimization Project Businesses face rapidly evolving and complex challenges. How a business prepares for and responds to such challenges can make or break future outcomes. Some of these challenges are ever-present, like cost management. However, other challenges ..read more