KatzAbosch Announces That Linda J. Lang Has Joined The Firm

KatzAbosch is pleased to announce that Linda J. Lang has joined the firm as Government Contracting Advisor effective January 5, 2015. Linda will provide a specialized list of consultative services to include, but not limited to, proposal review and analysis, assistance with proposal preparation, contract maintenance, GSA scheduling, small business reporting, contract administration, and training. She has spent over 25 years as a government contractor for large and small businesses in the Baltimore and DC Metro areas, where she specialized in both contracting and subcontracting. Linda’s experience working alongside government contractors such as Northrop Grumman, Lockheed Martin, Boeing, Innoplex and TASC has positioned her as one of the most sought-after experts in her industry.

She earned her M.S. in Business Finance and Management from Johns Hopkins University and her B.A. in Business from University of Maryland. Linda has extensive experience with in-house teaching and program specific training on topics to include compliance training in exports and organizational conflicts of interest. She is a member of National Contract Management Association (NCMA) and Armed Forces Communications & Electronics Association (AFCEA). Linda practices her craft through her business philosophy to develop profitable relationships for everyone. During her free time, she enjoys boating, watersports, outdoor hiking and football.

“Linda’s ability to manage complex projects coupled with her commitment to the ever-changing government contracting industry very much align with the firm’s mission to provide exceptional service to our clients, and we are delighted to welcome her to our senior team,” said CEO, Mark Cissell.

About KatzAbosch

Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As a Maryland accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting for 2014. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal and as a Top 100 Workplace in Baltimore by The Baltimore Sun.

For more information, contact: Kelly Ernest, 410.307.6388 or kernest@KatzAbosch.com.

Read More

Contractor Business Systems

Finalized in 2012, the “Business Systems Rules” outlined mandatory requirements for certain contractor business systems, further defined as (1) accounting and billing; (2) estimating; (3) purchasing; (4) material management; (5) government property; and (6) earned value management. Applying only to contracts awarded after May 18, 2011, the DOD Federal Acquisition Supplement (DFARS) 242.70 specified requirements for each system, and established financial penalties for instances of noncompliance qualifying as “significant deficiencies.” There has been a lack of clarity in how these business systems are analyzed by the government, and in many cases, significant business systems have not been reviewed for many years.

The matter at hand, has prompted the issuance of a proposed rule to amend DFARS aspiring to improve the backlogged audit situation and increase effectiveness of auditing contractors’ accounting systems, estimating systems, and material management and accounting systems.

Note: These proposed rules are not applicable to all contractors, generally will not be applicable to small businesses unless contracts exist which are covered by Cost Accounting Standards.

The proposed rule issued on July 15th, 2014 places the responsibility on the individual contractors to demonstrate compliance with DFARS systems criteria related to the contractors accounting systems, estimating systems, and material management and accounting systems. Simply stated, contractors’ will now perform self-evaluations and hire an independent CPA of their choosing to perform an audit on such criteria. Additionally, the contractor is responsible for disclosing any significant deficiencies discovered during these evaluation engagements. Contracting officers and government auditors will then review the results of the independent CPA audits and self-evaluations.

The proposed rule is not without significant controversy, and in August 2014, the DOD held a public meeting. Questions included in the public meeting were items such as whether or not the Defense Contract Audit Agency (DCAA) would provide an audit program to CPA’s, or if DCAA would be performing re-audits after CPA reports are submitted. DCAA indicated they would provide feedback on a CPA’s audit program, and indicated they do not intend to perform re-audits. Questions have also been raised regarding the level of access provided to government auditors, and expected increased costs as a result of the rule. Needless to say, the proposed rules have several glitches to be improved upon.

Katz Abosch will provide further updates as appropriate and when available.

For more information, contact Josh Sutherland, CPA.

Read More

KatzAbosch Has Been Selected as one of The Baltimore Sun’s Top Workplaces

Baltimore, MD. – December 5, 2014 – KatzAbosch is pleased to announce that it has been selected as one of The Baltimore Sun‘s Top Workplaces.

On Sunday, December 7th, The Baltimore Sun is publishing “The Baltimore Sun Top Workplaces”– a list of the best places to work in the Baltimore metro area. KatzAbosch has been named for the past three years consecutively. KatzAbosch attributes the award to the many professional perks we offer to help our employees grow such as:

• A great work/life balance.
• A high-tech education facility with training that exceeds professional requirements.
• Every employee has an office; no cubes.
• High-tech paperless office environment.
• Work from home options.
• Performance evaluations that provides timely career development.
• Coaching/mentor program that enhances career paths.
• Diverse clients for a better learning experience.
• Extensive research resources to ensure quality and efficiency.

“We are honored to have been selected for the award, particularly as the judges were our employees,” said Mark Cissell, President and CEO.

The Top Workplaces are determined based solely on employee feedback. The employee survey is conducted by WorkplaceDynamics, LLP, a leading research firm on organizational health and employee engagement. WorkplaceDynamics conducts regional Top Workplaces programs with 40 major publishing partners across the United States. Over the past year, more than 5,000 organizations and 1 in every 88 employees in the U.S. have turned to WorkplaceDynamics to better understand what’s on the minds of their employees. Through its workplace improvement offerings, WorkplaceDynamics provides solutions, training and tools to help clients improve their workplace. For more information about the Top Workplaces lists and WorkplaceDynamics, please visit www.topworkplaces.com and www.workplacedynamics.com.

About KatzAbosch

Founded in 1969, KatzAbosch is one of the largest CPA and business consulting services in the Mid-Atlantic region. As a Maryland accounting firm, our mission is to provide the highest quality accounting, tax, financial and management consulting services to our regional clients. We understand the needs and challenges of our clients and we have made it our obligation to create, grow and protect asset value. KatzAbosch is consistently named a Best Accounting Firm to Work For in Accounting Today and has been named a Top 200 Accounting Firms in the Nation by Inside Public Accounting for 2014. Our firm is also ranked among the Top 15 Largest Accounting Firms in the Baltimore Area by the Baltimore Business Journal.
For more information, contact: Kelly Ernest, 410.307.6388 or kernest@KatzAbosch.com

Read More

The SALT Shaker: U.S. Supreme Court Hearing – Comptroller vs. Wynne

On Wednesday the Supreme Court hearing for the Wynne’s was held. Quick reminder – this case involves offsetting the Maryland Piggyback taxes with taxes paid to other states. This is an interesting case when you look beyond the details. The real issue for the court to decide is which is more important – states’ rights or the Commerce Clause in the Constitution. The decision could have an impact well beyond Maryland taxes.

I read the transcript from the hearing and based on the questions asked by the justices, there seems to be a lean towards the taxpayers. The Maryland Solicitor General represented Maryland; the justices interrupted him many times to challenge what he was saying. Several justices asked pointed questions that seemed to indicate they disagree with the Maryland position, particularly Chief Justice Roberts. The court has until the end of the current term in June to make a decision, so we will not know for sure until then.

Please contact the KatzAbosch SALT Group if you have any questions regarding Maryland tax filings, or any other SALT issues.

The SALT (State and Local Tax) Shaker is prepared by Andy Bareham, CPA, MST, Chair of the KatzAbosch SALT Group.

Read More

Retirement Plan Compliance Being Scrutinized by The IRS

The IRS is scrutinizing retirement plans with participant loan balances.  The IRS is concerned that Plans have not been following, or are abusing, the rules for loans from retirement funds. As a result, the Employee Plans Compliance Unit (EPCU) sent out letters to Form 5500-EZ filers identified in their records as having participant loans in excess of $50,000 per participant.  The project is intended to ensure sponsors are complying with participant loan limits, and that income tax is paid on excess amounts, and that Plans then correct the underlying procedures allowing this to happen.   Failure to comply does carry the risk that the Plan may lose its tax-favored status. Participant loans must meet the following standard requirements:

• The Plan must allow for participant loans.
  
• Loans must have a legally enforceable agreement stating the date of the loan, the amount, a reasonable interest rate, and the repayment schedule. The maximum loan amount is 50% of the vested account balance or $50,000, whichever is less.  An exception exists for situations where the vested account balance is less than $10,000.
  
• Generally, the participant must make payments at least quarterly of principal and interest.
• Generally, the loan must be paid back in 5 years or less, however there are exceptions if the loan is for a main home or if the participant is performing military service during the 5 year period of the loan.
  

If these rules are not followed, then the loan may be considered to be a “deemed taxable distribution”.  If the Plan has not followed these rules, options may exist for voluntary correction programs.  The IRS is also looking at loan balances in larger plans. More information can be found at http://www.irs.gov/Retirement-Plans/Form-5500-EZ-Excess-Participant-Loans-Project. If you have any questions, or if you need help in reviewing your Plan’s compliance, please contact Janet Cookson at jcookson@katzabosch.com, Josh Sutherland, CPA at jsutherland@katzabosch.com, or Katie Fortwengler, CPA at kfortwengler@katzabosch.com.

Read More

KatzAbosch Celebrates 45 Years in Business This October

Founded in 1969, KatzAbosch is one of the largest certified public accounting and business consulting firms in the State of Maryland. Our professional and support personnel offer a full range of client services to our clients.

However you’ve come to know us — either as Katz & Abosch, KA&W, KAWG&F or simply KatzAbosch — we are committed to providing the highest quality accounting, tax, and consulting services. We place great emphasis on continuing education and our professional personnel members often exceed professional educational requirements.

Any changes that have taken place in the company have been movement forward, including adaptation to changing markets and environments as well as integration of new technologies and financial best practices. Our firm is, and always has been, an example of what every middle-market accounting firm wishes to be.

As stated  by current CEO and President Mark R. Cissell, CPA , “Alvin Katz and John Abosch built this firm on their expertise, strong ethics, and keen business savvy…” The firm continues to thrive and grow through respect for, and understanding of, these bedrock principles.

Read More

KATZABOSCH.COM HAS A NEW LOOK

KatzAbosch is proud to announce that our website has undergone a facelift effective October 2014! The firm has enacted new efforts to implement a cleaner, streamlined and more user-friendly web aesthetic. New photography conveys a team environment where all departments communicate and collaborate on new and existing client engagements. The services pages have also been built out and are more organized and easy to access. In addition to some of the cosmetic website updates, the firm hired local public relations company DAASN to apply stronger SEO tactics and keyword implementation to targeted industry niches on the backend. Furthermore, the firm is continuously involved on social platforms that help drive web traffic as well.

“We have added 60 pages to the website, particularly in our services areas, in order to showcase our breadth and depth of business solution offerings,” says Kelly Ernest, Marketing Manager, at KatzAbosch. “Our firm is unique in that we provide a customized business solution through our vast list of service offerings and specialized expert human capital. I think the website now helps to convey this message. In addition, through our SEO campaigns, we have started to see an uptick in page views and website engagement.”

Read More

Kristin Hucht, CPA Has Been Nominated as One of the MACPA's Women to Watch

Kristin Hucht, CPA and Principal of KatzAbosch, was recognized among others as a Woman to Watch at the MACPA awards breakfast on September 23rd at The Hotel at Arundel Preserve. She was nominated by three of her peers as a leader in both the workplace and in her community. Congrats to Kristin on the nomination!

Read More