Alteryx or Microsoft Excel Power Query?

https://www.taxconnections.com/Alex-Fazelat---Tax-Technology/12275731/United-States/New-Jersey/New-Jersey/profilepage

Microsoft Excel Power Query and Alteryx are both powerful data manipulation and analysis tools that can automate data transformation of large datasets.  While both products can streamline complex manual tasks, there are some key differences that should be considered before implementing one or the other. Below is a very high-level comparison of the two products.

Excel Power Query is a free Microsoft add-in that allows the user to connect to various data sources, transform and cleanse data, and create impressive visualizations and analytical reports. Because it is an extension of MS Excel, it looks and feels like the rest of Excel which makes it more user-friendly and relatively easier to learn compared to Alteryx.

On the other hand, Alteryx is a more advanced data preparation and analytics platform that offers a wide range of features and capabilities in exchange for thousands of dollars of annual subscription fees. Like Excel Power Query, Alteryx allows the user to connect to various data sources, perform advanced data transformation, and join or blend data from multiple data sources. Alteryx also has a large library of pre-built data connectors and workflows, making it a great tool for data professionals who need to handle very large and very complex datasets.

Alteryx and Excel Power Query offer data transformation features that allow the dragging and dropping of icons on the solution’s work environment to produce the desired output.  Both products promote “LC/NC” (Low Code/No Code) concept which means little to no computer coding is required.  However, to take advantage of some moderately advanced features of either tool the user must have some level of experience in computer coding (Excel Power Query “M” scripting language – Alteryx “R” scripting language).  In addition to familiarity with coding, the user must also be familiar with some basic data manipulation concepts like looping, indexing, and pattern matching etc…

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Navigating International Remote Work: Tax Implications For Employers

Navigating International Remote Work: Tax Implications for Employers

Introduction

Following covid 19 when remote work became commonplace, or the only way to work, the concept of remote work has allowed employees to work from virtually anywhere. While this flexibility can be a win-win for both employers and employees, it also introduces complex tax considerations, particularly when employees are working from international locations. In this blog post, we will delve into the tax implications for employers of letting their employees work remotely in international locations, addressing potential dangers and offering solutions to minimize tax liabilities.

Ultimately, much of the exposure can be limited by restricting employees’ movement to countries that have a tax treaty and a social security totalization agreement with the country of origin, and fall within the parameters of that tax treaty.

Company Registration / Sales Tax / Corporate Income Tax

Company registration: By having a presence in given country, the corporation might be required to register itself with the local authorities. As these vary widely country to country, I will not get into specifics.

Sales tax: When employees work in a foreign country, it can create a nexus for the employer, potentially triggering the duty to collect and remit sales tax on goods or services sold in that area.

Corporate income tax: Tax treaties would exempt the corporation from paying corporate income tax to the foreign country if it doesn’t have a permanent establishment in that country.

A dependent agent (such as an employee), when acting on behalf of an enterprise, can create a permanent establishment if they have the authority to conclude contracts or regularly habitually perform activities on behalf of the employer. However, merely having an employee working in a foreign country does not automatically trigger PE status.

Income Tax Withholdings In Foreign Countries

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A Wave Of New Data Privacy Laws: Should You Update Your Privacy Policies And Practices?

A Wave Of New Data Privacy Laws: Should You Update Your Privacy Policies And Practices?

Are your privacy policy and practices adequate? Given a new wave of state-level data privacy laws, companies that collect customer information should consider whether updates are required. This applies especially to companies that do business online or use wireless devices to harvest personal information.

Customer Information and Data Privacy Law Prior to New Wave

There is no uniform or single body of law in the United States governing data privacy protection in the context of information collected from customers.

[1] Instead, there is a patchwork of federal and state laws that may apply to a company’s data collection and retention efforts depending on the type of activities performed by the company.[2] Typically, these laws apply to specific industry sectors, such as healthcare providers and financial institutions, to protect specific populations, such as minors, or to specific types of information.[3] Policy experts have referred to these laws as being grounded in a framework based on ‘”harm-prevention.”

Where sectoral special privacy laws don’t apply, the only federal law of general application is the Federal Trade Commission Act, which allows the Federal Trade Commission to force companies to abide by their own online privacy policies and to challenge certain data practices as unfair or deceptive.[4] To date, unless a specific data protection law applies, a company’s data collection activities are largely unregulated.[5] Thus, the content of most privacy policies has been driven by an interest in obtaining customer consent to avoid litigation[6] and by market dynamics.

Growing Body of State Law Comprehensive Regulating Data Privacy
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Top 3 Things In Business To Foster Growth

Top 3 Things In Business To Foster Growth

No matter how bold or ambitious your plans are to grow your business, success fundamentally relies on three critical, interdependent components: operational excellence, customer relations/communications, and financial management. This blog post explores these cornerstones, offering strategies to enhance these elements for sustained business growth.

Operational Excellence

Operational excellence refers to the execution of your business strategy more consistently and reliably than the competition. Achieving operational excellence requires an unrelenting focus on efficiency, productivity, and process optimization. Leverage technology to automate routine tasks, empower your team with clear goals and objectives, and continually evaluate your processes for improvement. Remember, operational excellence isn’t a destination—it’s an ongoing journey of continuous improvement.

Consult with our experts to drive operational excellence in your business.

Customer Relations/Communications

Customer relations and communications can make or break your business. Your customers should always be at the heart of your business decisions. Focus on building relationships, not just transactions. Listen to your customers, anticipate their needs, and strive to exceed their expectations. Embrace transparency in your communications, and foster trust with consistency and reliability.

Discover our suite of tools to enhance customer relations and communications.

Financial Management

Financial management is the cornerstone that supports all other business operations. Efficient financial management involves meticulous planning, monitoring, and control of your business finances. Understand your financial position, maintain healthy cash flow, plan for taxes, and make informed investment decisions. With solid financial management, you’re better prepared for future growth and can navigate business challenges with greater confidence.

Click HERE to Schedule a consultation with our financial management experts.

Operational excellence, customer relations/communications, and financial management are the top three aspects of a successful business. By focusing on these areas, you can lay a strong foundation for your business’s growth and longevity.

Have a question? Contact Robin Boyd, Essential Accounting.

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FBAR Compliance: From Requirements To Submission

FBAR Compliance: From Requirements To Submission

Navigating the world of taxes as a U.S. citizen overseas? Then you’ve likely come across the term FBAR – the Foreign Bank Account Report. We recognize that for U.S. expats, tax compliance goes beyond ticking boxes on forms. It’s about truly grasping your obligations and rights in foreign lands. At 1040 Abroad, our mission is to offer crystal-clear insights that enable you to act confidently. Rest assured, we won’t use scare tactics. Instead, consider us your trusted companion on this journey to compliance.

What Is FBAR?

FBAR stands for Foreign Bank Account Report, a disclosure requirement mandated by the United States Treasury Department. It is officially known as FinCEN Form 114 and is separate from your income tax return. The FBAR is designed to provide the U.S. government with information about financial accounts held by U.S. persons in foreign countries.

Who Needs To File An FBAR?

If you’re a U.S. individual or entity—be it a citizen, resident, or any form of business organization like an LLC or trust—you’re obligated to file an FBAR. The criteria are straightforward:

1) You must have either financial interest or control (like signature authority) over one or more financial accounts situated outside the U.S.

2) The combined value of these accounts must have exceeded $10,000 at any point during the year you’re reporting. It doesn’t matter if the account generated taxable income; its foreign location alone makes it subject to FBAR.

Common Exceptions To The Rule

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What Are The Consequences Of A Stock Dividend Under Section 1202?

What Are The Consequences Of A Stock Dividend Under Section 1202?

A stock dividend involves the distribution by a corporation of shares to existing shareholders with respect to their outstanding shares. Section 305(a) generally provides that a distribution made by a corporation to its shareholders in its stock is nontaxable. As discussed elsewhere in this Article, Section 1202(h)(3) provides that rules similar to those in Section 1244(d)(2) apply to Section 1202. Treasury Regulation Section 1.1244(d)-3 provides that stock dividends generally fall within the scope of Section 1244(d)(2). Under the authority of Section 1202(h)(3), a dividend of stock with respect to outstanding QSBS should also qualify as QSBS. As discussed in more detail in Section G above, there are arguments based on the language of Section 1244 and Treasury Regulation Section 1.1244(d)-3 that the corporation should not be required to satisfy the $50 Million Test a second time when the stock dividend is made. The only Section 1202 eligibility requirements that should be applicable at the time of the stock dividend would be those ongoing Section 1202 eligibility requirements that would need to be satisfied for the original stock to maintain its QSBS qualification (e.g., the continuing use of at least 80% of the corporation’s assets [by value] in the active conduct of a qualified business activity).

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Navigating The Landscape Of 2024 Federal Tax Credits: A Guide For Tax Professionals

Navigating The Landscape Of 2024 Federal Tax Credits: A Guide For Tax Professionals

 As we move closer to 2024, it’s crucial for tax professionals and firms to start strategizing and planning for the upcoming federal tax credits. The landscape is ever-evolving, and being proactive is key to ensuring that your firm maximizes its benefits.

Why Plan Now?

Early planning provides ample time for due diligence, helping firms to:

Identify the most beneficial tax credits based on their specific financial situation.

Understand the implications and requirements of each tax credit.

Strategize on how to best utilize the credits for optimal tax savings.

 Tools & Resources

Ensure you have access to the latest tools and resources to navigate the complexities of federal tax credits. Stay updated with the IRS guidelines, and consider seeking advice from experts who specialize in this area.

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Commissioner Werfel Letter On Audit Disparity Issues In Areas Such As The Earned Income Tax Credit

Commissioner Werfel Letter On Audit Disparity Issues In Areas Such As The Earned Income Tax Credit

Text of the Sept. 18, 2023, letter IRS Commissioner Werfel shared with the members of Congress PDF updating them on agency enforcement efforts and efforts to address audit disparity issues in areas such as the Earned Income Tax Credit.

The following is the text of a letter sent to members of Congress on Sept. 18, 2023 by IRS Commissioner Danny Werfel updating them on agency enforcement efforts and efforts to address audit disparity issues in areas such as the Earned Income Tax Credit. Following the one-year anniversary of enactment of the Inflation Reduction Act (IRA) and my sixth months as Commissioner, I am writing to update you on our ongoing efforts to rebalance the IRS’ enforcement activities. The investment of resources under the IRA represents a generational opportunity for the IRS to refocus our energy on closing the tax gap by ensuring efficient and effective tax administration. This rebalancing effort centers around high-income and high-wealth individuals, complex partnerships, and large
corporations who are not paying the taxes they legally owe, as well as any bad actors who victimize taxpayers.This effort also recognizes that the vast majority of taxpayers want to comply with tax law.
We aim to make this simpler and easier to do, while allowing taxpayers to interact with the IRS in the ways that work best for them. For the first time, and thanks to the new resources provided by the IRA, the IRS will help taxpayers identify mistakes before filing, quickly fix errors that delay their refunds, and claim the credits and deductions they are eligible for. Helping taxpayers get it right at the time of filing will reduce the need for the IRS to contact taxpayers through notices, correspondence audits, and other enforcement activities. To that end, the changes we are making benefit all Americans by promoting fairness and accuracy and protecting all taxpayers from scams and schemes. Following a top-to-bottom review of enforcement and in line with our Strategic Operating
Plan, IRS has begun announcing sweeping efforts to overhaul compliance efforts to improve tax administration. For example, IRS is intensifying collections activities that focus on high-income taxpayers with more than $250,000 in recognized tax debt. This builds off earlier successes that collected $38 million from more than 175 high-income earners this past spring. In addition, IRS staff are closely examining potential non-compliance among large, complex partnerships, including 75 of the largest partnerships in the U.S. identified as higher risk for tax compliance with the help of new AI tools as well as hundreds of partnerships with over $10 million in assets and balance sheet discrepancies. In the near term, we will be sharing details regarding our stepped-up activities to address noncompliance among large corporations. These changes, which leverage the IRA’s investment in modernized technology, expanded data science, and right sizing of our
workforce, will significantly improve the IRS’s ability to address the tax gap, which was projected to be $540 billion per year for 2017-2019.

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Cryptocurrency: Tax Basics And Income Considerations

Cryptocurrency: Tax Basics And Income Considerations

Cryptocurrency and other digital assets such as nonfungible tokens often feel like an unexplored universe, where the laws of nature haven’t yet been discovered. Where the system that is being developed, and the rules that will govern, have the potential to upend the current economic structure. As that monumental shift continues to grow, and current rules, such as existing tax law, are being applied to digital assets, certified public accountants, tax attorneys, and enrolled agents are acquiring the skills and experience necessary to assist cryptocurrency holders with their tax compliance requirements. Some advisors are even navigating the sparse but developing IRS rules and notices to provide planning advice and tax management strategies. While it is key to have knowledgeable advisors helping you manage your tax responsibility, it is also helpful for the cryptocurrency owners and investors themselves to have a basic understanding of the following ways in which their cryptocurrency transactions may generate a tax bill.

INCOME EVENTS:

The federal government currently considers cryptocurrency to be a form of property, rather than currency. As a result, certain transactions, such as making a payment using cryptocurrency or exchanging one type of cryptocurrency for another, might actually generate an income tax liability. Some potential income recognition events include the following:

Receiving cryptocurrency as payment for goods or services: A recipient is taxed on the value of the crypto that such recipient receives as payment for selling goods or performing services. The taxable amount is based on the value of the coin at the time it is received. Cryptocurrency values continue to fluctuate dramatically, so it’s possible that by the time the recipient’s tax payment is due, the coin has decreased in value to where it’s worth less than the tax that’s due on it. It is therefore important to set aside sufficient cash in US dollars to pay income tax on cryptocurrency that is received as payment for goods or services. In addition to being subject to income tax, the value of the coin received as payment may be subject to self-employment tax if the payment is connected to a trade or business.

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Benefits of Federal Tax Credits For Insurance Companies: How To Lower Your Effective Rate

Benefits of Federal Tax Credits For Insurance Companies: How To Lower Your Effective Rate

Navigating the intricacies of federal tax credits can be daunting due to the sheer volume of information available. This blog post aims to discuss the advantages and potential revenue streams tied to federal tax credits.

Our objective is to boost your cash flow, lower your effective tax rate, empower your team to cultivate new relationships, explore untapped investment avenues in the realm of tax credits that conventional methods might overlook, and guide you on reducing your tax liability by up to 15% and in some cases more, depending on your effective tax rate.

Benefits of Investing in Tax Credits:

  1. Tax Liability Reduction | Offsetting Tax Liabilities: Tax credits directly reduce the amount of tax owed. If an insurance company has a significant tax liability, purchasing tax credits can help reduce this liability up to 15%.
  2. Investing in Specific Industries: Some tax credits are designed to encourage investments in specific industries such as renewable energy, affordable housing, or historic preservation. Insurance companies may buy these credits to invest indirectly in these sectors.
  3. Diversification: Buying tax credits can be a way for insurance companies to diversify their investments and earn a return on their tax liability.
  4. Corporate Social Responsibility | Promoting Sustainable Practices: By investing in tax credits related to renewable energy or environmental initiatives, insurance companies can demonstrate their commitment to sustainable and responsible business practices.
  5. Community Development: Tax credits for renewable energy, affordable housing or community development can help insurance companies contribute to social welfare and improve their public image.
  6. Risk Management | Stable Returns: Investments in certain tax credits can offer stable and predictable returns, which can be attractive for insurance companies that have to manage long-term liabilities.
  7. Financial Planning | Cash Flow Management: Using tax credits can help in managing cash flows by reducing the amount of cash needed to settle tax liabilities
  8. Tax Planning: Incorporating tax credits into their financial planning can help insurance companies optimize their tax position.
  9. Building Partnerships and Network | Strengthening Industry Relationships: Engaging in transactions related to tax credits can help insurance companies build relationships with others in the industries they are supporting.

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How The Lives Of “Free Trade Professionals”, Americans Abroad And Casablanca Overlap

JOHN RICHARDSON

Mexico City – September 2023 – A reminder that citizenship matters

Last month I attended an Immigration Conference in Mexico City. It was organized by Buffalo immigration lawyer Joe Grasmick and focussed on the USMCA, CUSMA (formerly called the NAFTA Free Trade Immigration Visa- TN Visa). The conference highlighted the opportunities available to citizens of Canada, Mexico and the USA to live in any one of these three countries performing certain professional services for which they are qualified.

In a nutshell the “Free Trade Immigration” visa is an opportunity for:

1. Citizens of the United States, Canada and/or Mexico who have the status of being certain kinds of professionals (who they are and their professional qualifications); to accept

2. Certain kinds of employment (what will they actually be doing).

The devil is certainly in the details. Immigration under the “Free Trade Professional” category has its own nuances. It is certainly more difficult than it appears (and is described).

The conference was a “sobering” reminder that “citizenship matters”!

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Common Tax Department DIY Cost-Saving Plans And Consequences

Common Tax Department DIY Cost-Saving Plans And Consequences

Ignoring professional technology services by a tax department can have several significant costs and consequences. Here are some of the potential drawbacks:

  1. Inefficiency and Error-Prone Processes: Without the assistance of professional technology services, tax departments may rely on outdated or manual processes for data entry, calculations, and reporting. This can lead to inefficiencies and a higher likelihood of errors in tax returns and financial statements.
  2. Compliance Risks: Tax laws and regulations are constantly changing. Failing to keep up with these changes can lead to non-compliance and the risk of penalties or legal issues. Professional technology services can help tax departments to avoid non-compliance.
  3. Data Security Concerns: Tax departments handle sensitive and confidential information. Ignoring professional technology services can expose this data to unintentional security breaches and cyberattacks. Tax IT professionals  can implement robust security measures to protect sensitive data.
  4. Missed Opportunities: Tax Technology professionals can help tax departments to efficiently identify potential deductions that can save a company significant taxable income. Without Tax IT expertise, opportunities for tax savings may be overlooked.
  5. Inefficient Resource Allocation: Tax department personnel usually spend a significant amount of time on manual and repetitive tasks. On the hand, a competent and trusted Tax IT professional can easily automate these processes by creating repeatable solutions that will significantly reduce the time to perform the repetitive tasks. Any inefficient resource allocation can limit a tax department’s ability to focus on strategic tax planning.
  6. Lack of Data Analytics: Professional tax technology services can provide tax departments with the tools and skills to analyze large volumes of financial data. This can be valuable for making informed business decisions and optimizing tax strategies.
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