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IRS to waive tax penalties for underwithholding and underpayment
Montana Society of CPAs
January 17, 2019 at 10:26 AM ·
The Internal Revenue Service said Wednesday it wouldn’t penalize many taxpayers whose tax withholding and estimated tax payments fell short last year because of changes in the withholding tables under the Tax Cuts and Jobs Act.
Montana Society of CPAs
January 17, 2019 at 10:26 AM ·
The Internal Revenue Service said Wednesday it wouldn’t penalize many taxpayers whose tax withholding and estimated tax payments fell short last year because of changes in the withholding tables under the Tax Cuts and Jobs Act.
Congratulation Ann on being awarded the Volunteer of the Year Award from MSCPA!
With the recent changes to the tax law for 2018, is the right amount withheld from your paycheck?
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3. Functional and Natural expense information
Currently, Not-for-Profits are required to provide information about expenses by their functional classification either on the statements or in the notes. Voluntary health and welfare entities are required to provide a statement of functional expenses which means they are required to provide information about expenses by nature.
Under ASU 2016-14, all Not-for-Profits will be required to provide information about their expenses by their nature. They will have the flexibility to present expenses by function, by nature, or by both on the statement of activities. Another way for them to accomplish this is to present a statement of functional expenses.
2. Liquidity Information
Currently, Not-for-Profits are required to provide information about liquidity by any of the following: (1) sequencing assets according to their nearness of conversion to cash and sequencing liabilities according to the nearness of their maturity and resulting use of cash. (2) classifying assets and liabilities as current and noncurrent. (3) disclosing in the notes to the financial statements information about the liquidity or maturity or assets and liabilities.
Under ASU No. 2016-14, they will be required to provide quantitative information in the notes that communicates how a Not-for-Profit manages its liquid resources available to meet cash needs for general expenditures within one year of the statement of financial position date and quantitative information either on the financial statements or in the notes, that communicates the availability of an NFP’s financial assets to meet cash needs for general expenditures within one year.
1. Net Assets
Currently, Not-for-Profits are required to present three classes of net assets on the face of a statement of financial position which include unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. Under ASU No. 2016-14, Not-for-Profits will be required to present two classes of net assets which include net assets without donor restrictions and net assets with donor restrictions.
Also, currently Not-for-Profits are allowed but not required to present information about board-designated net assets on the face of the statement of financial position or in the notes. Under ASU No. 2016-14, they will be required to disclose the amounts and purposes of board designated net assets either on the face of the financial statement or in the notes.
Summers, McNea and Co, PC updated their address.