BCo Community News

2023 Year-End Tax Planning For Individuals


As we approach the end of the year, it’s the perfect time to reflect on your financial goals and ensure they align seamlessly with your present and future financial obligations.  At B+Co, we recognize the significance of effective year-end planning, particularly in the current economic climate marked by rising interest rates and market volatility.

Empowering Your Financial Decisions

We are committed to providing you with the necessary tools to make informed decisions, all from a trusted source.  Through our collaboration as independent members of the BDO Alliance USA, we’re pleased to present our clients with a comprehensive tax planning guide designed for individuals.

Your Guide to Tax Planning (2023-2024)

This guide is crafted to assist you in evaluating and strategizing for the tax landscape in the upcoming year, empowering you to minimize, defer, or […]

By |November 16th, 2023|Categories: BCo Community News|Comments Off on 2023 Year-End Tax Planning For Individuals

Interest Rates Increase for the Fourth Quarter 2023


IRS interest rates are increasing to 8% (and up to 10% for large corporate underpayments) starting October 1, 2023.  See below for detailed information regarding IRS Revenue Ruling 2023-17.

For individuals, the rate for overpayments and underpayments will be 8% per year, compounded daily.  Here is a complete list of the new rates:

  • 8% for overpayments (payments made in excess of the amount owed),
  • 7% for corporations.  5.5% for the portion of a corporate overpayment exceeding $10,000.
  • 8% for underpayments (taxes owed but not fully paid).
  • 10% for large corporate underpayments.

Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis.  For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points.

Generally, in the case of a corporation, the […]

By |September 1st, 2023|Categories: BCo Community News|Comments Off on Interest Rates Increase for the Fourth Quarter 2023

IRS Doubles Down on Substantiation of Health and Dependent Care Expenses


The IRS recently cautioned employers that the tax-free status of all benefits provided under their Internal Revenue Code (IRC) Section 125 cafeteria plan could be lost if employees are allowed to self-certify or use shortcut methods to substantiate reimbursable expenses.

Failure of the substantiation requirements for any plan benefit causes the amount of all benefits elected by employees under the Section 125 plan to be includible in every employee’s taxable wage income reported in Boxes 1, 3 and 5 of Form W-2 and subject to income and employment tax withholding. Plus, the employer must pay its share of Social Security and Medicare taxes on such amounts. The primary cafeteria plan benefits that require substantiation are health insurance premiums, health flexible spending accounts (FSAs) and dependent care (FSAs). Failures in any of […]

By |July 25th, 2023|Categories: BCo Community News, IRS|Comments Off on IRS Doubles Down on Substantiation of Health and Dependent Care Expenses

Demystifying Nonprofit Cost Allocations


When asked what is at the top of their finance department “to-do” list, many nonprofits name the need for an updated cost allocation plan. An effective cost allocation strategy is essential to organizations’ understanding of how their resources are being deployed. It is also integral to performing cost analyses, such as evaluating funding requirements and comparing actual versus budgeted costs.

Allocations are an efficient and effective way to distribute costs across activities, including programmatic, administrative and fundraising work. However, many find the practical application of allocation concepts challenging to navigate. While some costs are easily assigned to specific activities and do not need to be allocated at all, there are certain costs that need to be proportionately distributed across activities and the organization, magnifying the potential for complexity and errors.

Allocation Methods

When […]

By |July 19th, 2023|Categories: BCo Community News|Comments Off on Demystifying Nonprofit Cost Allocations

Managing Pay for Disqualified Individuals

The title of this article might have caught the eye of some readers, who may have thought it provides tips on managing pay for poor performers or offers a rationale for employing individuals without proper job qualifications.  However, this article focuses on “disqualified individuals” in the context of IRS intermediate sanctions — IRC Section 4958 — and the management of compensation paid to those individuals.  It is an area that receives considerable attention from the IRS and the general public.  Failure to manage it well can result in lingering reputational damage, as well as punitive taxes and penalties for all involved.

The term “disqualified individuals” is defined as individuals in a position to exercise considerable influence or control over the affairs of an IRC Section 501(c)(3) or Section 501(c)(4) tax-exempt organization.  […]

By |July 17th, 2023|Categories: BCo Community News|Comments Off on Managing Pay for Disqualified Individuals
Go to Top