Articles From Lumsden McCormick

Nonprofit organizations can use fringe benefits as a strategic tool to attract and retain talent, especially when they face the challenge of lower compensation compared to for-profit entities. Some cost-effective and innovative benefits solutions, such as wellness programs, retirement savings plans, dependent care accounts, and education reimbursement programs, can appeal to the diverse needs and preferences of nonprofit employees.

We outline important third quarter tax filing dates, including July 15, July 31, and September 16.

The article explains the concept of undue influence and provides tips to protect your estate plan from undue influence claims, such as using a revocable trust, verifying competency, preventing the appearance of undue influence, communicating with family, and including a no-contest clause.

Job rotation is a strategic initiative that allows nonprofit employees to enhance their skills, productivity, and adaptability by switching roles within the organization. This practice benefits both the organization and the employees, as it ensures continuity of operations, strengthens internal controls, increases employee value and commitment, and fosters a supportive work environment.

For sustained profitability in the manufacturing sector, management must emphasize the importance of profit enhancement over revenue expansion. The strategies include optimizing overhead costs, leveraging negotiation opportunities, investing in modern equipment, strengthening the workforce, reviewing business entities, and prioritizing operational efficiency. 

Digital assets often leave no paper trail, making it crucial to include them in your estate plan to ensure your family can locate and access them. Take inventory of your digital assets, provide access instructions, and ensure your representatives have the necessary legal consent to manage these accounts; contact us for further assistance.

To avoid penalties on your next quarterly estimated tax payment, your business should aim to pay the minimum required estimated tax using one of four methods: the current year method, the preceding year method, the annualized income method, or the seasonal income method. 

Neglecting international holdings in estate plans may lead to dual taxation, as U.S. citizens face federal taxes on global assets which could also be taxed abroad. Although a foreign death tax credit might mitigate this, it’s not guaranteed, and professional advice should be sought.

Nonprofits should maintain accurate records and work to prevent fraud throughout the year to ensure timely and precise filing of Form 990, including Schedule G and foreign operations details, by the next IRS deadline.

When manufacturers purchase, build, or improve their facilities, the associated expenses are substantial. There is an alternative approach that allows you to accelerate your tax depreciation deductions: a cost segregation study.