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| Our firm offers a wide range of services to our individual and business clients. Because our firm is relatively small, our clients benefit by getting personalized, quality service that is beyond comparison. Below we have listed the services that we offer to our clients along with a brief description. As the list below is by no means all-inclusive, please feel free to inquire about a service if you do not see it listed. If it is not a service we provide, we would be more than happy to refer you to a qualified professional. |
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| Nonprofit Services |
| We have experience auditing the following federal programs: •Emergency Shelter Assistance Programs •Supportive Housing Programs •Housing Opportunities for Persons with AIDS •Supportive Services and Senior Centers •Community Development Block Grant •Community Services Block Grant •Mental Health Services •Substance Abuse •HOME funds •FEMA funds We also have experience auditing grants and awards from the following agencies: • State of Washington • King County • Snohomish County • Pierce County • City of Seattle • United Way • YMCA/YWCA • Bill and Melinda Gates Foundation |
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| Low-income housing tax credit services |
| Section 42 or the Low-Income Housing Tax Credit (LIHTC) program has provided thousands of units of housing to moderate and low-income elderly individuals and families across the country. This program is extremely complicated, competitive and has many rules and regulations imposed by the IRS, the state housing finance agencies, and possibly other agencies if additional soft debt or grants are utilized. Misinterpretations of the rules and regulations can become very costly, which makes the alliance with an accountant who understands and is experienced with the programs an invaluable asset. We are not only knowledgeable but to also have working relationships with others within the industry. At Watson & McDonell, PLLC, we understand the need to not only become knowledgeable but to also stay current on the trends within the industry. We attend conferences and seminars and talk regularly to other professionals to learn and discuss the trends and areas of concern with the LIHTC program. Multiple members of our staff are actively involved in housing organizations and committees and have developed excellent relationships with Washinton State Housing Finance Agency and many of the nationally recognized syndication groups. We work with our clients to complete the state agency requirements for carryover allocation and cost cerifications. We perform annual audits that are required by the many syndicators and investment-limited partners that provide equity for the development of the apartment communities. We prepare the required tax returns that include the 8609s and the calculations of tax credit basis and the LIHC available for each year. During this entire process, we will work with each client and their syndicator to assure that there are no material surprises that would jeopardize the integrity of the LIHTCs. |
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| New Markets and Historic Tax Credits |
| Watson & McDonell PLLC professionals are experienced in working with the National Park Service, IRS, developers, investors and syndicators in Historic Tax Credit projects. We also have been involved in the New Markets Tax Credit program through several projects. |
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| HUD Services |
| We have been involved in auditing the financial statements for projects subject to the reporting requirements of the United States Department of Housing and Urban Development (HUD) from cost certification, ongoing operations, through dissolution. We have literally been involved in thousands of these engagements. We have excellent working relationships with HUD, Bremerton Housing Authority and the Washington State Housing Finance Committee. On a national basis we have participated through the AICPA in providing feedback to the Inspector General’s office concerning changing reporting requirements for auditors reporting on HUD regulated projects. As a result of our audit experience and our involvement both locally and nationally we can respond to your affordable housing inquiries timely and with authority. We have as much experience in auditing HUD regulated projects as management has in operating those projects. Your staff will not be training our staff. We know the nuisances of your financial statement, compliance and tax reporting requirements. |
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| Audits, Reviews and Compilations |
| We view our role in the financial reporting process as an opportunity to provide constructive solutions for maximizing your company's profitability and efficiency. We provide financial reporting on all three levels of assurance: *Audit- an intensive examination with the highest level of assurance *Review - some analytical procedures conducted with limited assurance *Compilation - based upon client information provided and used primarily for internal use. |
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| Tax Services |
| We prefer to take a proactive vs. reactive approach to tax services. By keeping current on new tax laws and legislation, we are in a position to identify key tax planning opportunities that minimize both your current and future tax liabilities. We provide our individual and business clients with the taxation expertise and knowledge that they deserve throughout the year. Tax services offered include but are not limited to: *Tax planning & return preparation - Individuals - Corporations - Partnerships - LLCs/LLPs - Estates, trusts & gift - Not-for-profit organizations *Taxing authority representation *Divorce and support issues *Tax effects of buying/selling a business |
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| Tax Planning & Preparation |
| Tax planning and preparation form a winning combination for our successful individual and business clients. Whether you are an individual or a multi-tiered partnership, our experienced staff can develop tax strategies that take advantage of new tax laws and legislation. |
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| Estate & Trust Tax Preparation |
| Effective estate and gift planning facilitates the orderly transfer of assets to your beneficiaries, provides security for your surviving spouse, and can reduce or eliminate the tax due on the transfer of your business and other assets. For business owners, providing for business continuity and succession of ownership is essential. We can guide you through the complex process of getting your financial affairs in order. |
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| Accounting Services |
| Providing financial information to our clients in a timely and accurate manner is a commitment that we feel cannot be compromised. Meaningful, well-organized financial records ensure that your business operations will run more efficiently on a daily basis. Our firm provides a full range of cost effective accounting services including the following: *General ledger & financial statement preparation *Bookkeeping (Monthly/Quarterly/Annual) *Accounting system setup for new businesses (QuickBooks only) *Business tax return preparation (Sales & Use/Business Property) *Personal financial statements *Litigation support |
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| Consulting Services |
| We gauge our worth by the personal and business successes of our clients. We can help your business identify areas negatively affecting profitability and growth and develop solutions that are practical and technically sound. In addition to acting as a sounding board for management, we provide comprehensive, flexible strategies that address the issues affecting your business. The following is just a few of the areas in which we provide consulting services: *Type of entity selection *Financial & retirement decisions *Estate, trust & gift planning |
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| Record Retention |
Storing tax records: How long is long enough?Your file cabinet may have little room left for past tax records. Before you purge past data, Watson & McDonell PLLC offers a few guidelines to help you get organized without eliminating critical information.Federal income tax regulations require you to keep records as long as the contents may be material to the administration of the tax law. The retention periods shown in the federal guidelines chart on this page apply to records needed to substantiate your federal income tax return. They are based on the federal statute of limitations, which is normally three years. What does this mean? The Internal Revenue Service (IRS) can audit your tax return up to three years from the due date or the date of filing, whichever is later. Some state statutes exceed the federal statute or have laws or regulations requiring taxpayers to maintain records beyond the state’s statute of limitations. To determine your record-retention schedule, consider keeping indefinitely records that cannot be recreated by any other office, institution or governmental unit.
Special Rules for Computer RecordsRecord-retention periods are generally the same for machine-sensible records as their hard-copy counterparts. Machine-sensible records include magnetic tapes, punched cards and computer disks. If you or your business has more than $10 million in assets, then the IRS requires your machine-sensible records to be in a retrievable format. Therefore, you must retain the following documentation for data files: • Record formats • System and program flowcharts • Label descriptions • Source program listings of programs used to create the files retained • Detailed charts of accounts • Evidence that periodic tests are performed on the retained records • Evidence that the retained records reconcile to the taxpayer’s books and the tax return If you or your business has less than $10 million in assets, but you maintain accounting records on a computer, then the IRS requires you to conform to the above standards if your books and records are only available in machine-sensible format, machine-sensible records were used for complex computations or you are notified by the IRS your machine-sensible records must be maintained.
Federal Guidelines for Paper Records
Three Years*Auto mileage logs (three years or life of vehicle) Bank deposit slips Cancelled checks Daily sales records Entertainment records Expense reports Paid vendor invoices Written acknowledgment from charity for contributions of $250 or more *From date of filing return or due
Six YearsBank statements Contracts (after expiration)
PermanentAnnual financial statements Corporate stock records General ledger & journals Real estate records Tax returns Copy C of Form W-2 LIFO inventory record
OtherDepreciation schedules (life of asset, plus three years) Meeting minutes (life of company) IRA contribution and distribution records (three years after final distribution)
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| Peer Review |
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