Beginning in 2015, the IRS is requiring additional mandatory reporting of values within IRAs and Roth IRAs. The assets that will be requiring additional reporting are the hard-to-value assets, or assets without a readily available fair market value (FMV).  

 

These new reporting requirements indicate that the IRS is looking more closely at IRAs that hold hard-to-value assets, especially in years that a distribution or deemed distribution have been made. If the assets were undervalued at the time of distribution, a taxpayer could be subject to a 50 percent penalty for the undervaluation and underpayment of tax. The valuation of the assets also relates to the required minimum distributions from the IRAs. The IRS may also be using this information as the basis for an audit to determine whether prohibited transactions have occurred by the IRA holding assets that are not allowed to be held in an IRA.

Each year, IRA providers file two forms with the IRS in relation to IRA accounts.

Form 5498- This form reports the account's fair market value at the end of the previous year end date, and also if there has been a distribution from the account. The new required boxes are: 

1. Box 15a - the FMV of assets held in an IRA that are not readily tradable on an established securities market or option exchange, or that do not have a readily available FMV;
2. Box 15b - the IRA provider must place a code to indicate the type of non-tradable assets held in the account. The letter-code choices are:

Form 1099-R - This form reports whether there were distributions made from the IRA during the previous year. Box seven of Form 1099-R is for the distribution code the IRA provider must use to give the IRS information about the type of distribution that has been made. A new distribution code "K" has been added to use when there is a distribution of an IRA asset which does not have a readily available FMV.

IRA owners and providers need to take the annual valuation requirement more seriously starting this reporting year, as the IRS's interest in these valuations has been identified.

For more information on the new reporting requirements for IRAs please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.

5/21 UHY LLP Nonprofit Roundtable: 10 Ways To Get the Most Out of Your Board

Please join us at UHY's training center in Farmington Hills on Thursday, May 21 from 7:30AM - 9:45AM where a panel of experts will be discussing ways to get the most out of your nonprofit board.

 

Many of us have sat on or worked with organizations that had ineffective directors on their board or did not have the ability to retain the effective directors they had. Either of these problems significantly affects the success of an organization. Building a strong and reliable nonprofit board of directors is no easy task, but leveraging simple best practices and utilizing innovative strategies can mean the difference between an engaged, effective board of directors and a social club with minimal leadership and poor results.

 

CPE credit will be offered.

 

Pre-registration for this complimentary program is required. Continental breakfast will be provided. Space is limited. Multiple registrations are welcome. To RSVP or if you have general questions, contact Jill Andree via email jandree@uhy-us.com or phone 248 204 9338. 

 

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As reported in Crain's Detroit Business in late March, UHY Advisors' Corporate Finance team presented private equity firm O2 Investment Partners LLC with the potential acquisition of a technology client, PC Treasures, Inc. At first Jay Hansen, managing partner of O2, had a hard time grasping PC's business. PC Treasures is a multi-channel distributor of licensed multimedia bundles and cutting-edge computer, tablet and smartphone accessories, and other specialty products. It took a while for Hansen and his staff to understand PC's niche, causing the deal to take longer, but the light finally went on.

Due diligence taught Hansen and Todd Fink, another O2 managing partner, that there was a profit to be made in bundling. They also learned that they were compatible with the co-founders of PC Treasures. The deal was especially complex because PC has a unique business model. They were launching a new major product and it was the middle of their busiest season. It was also imperative that the "family" culture remained intact to maintain great customer relationships built on mutual trust and quickly capitalize on new market opportunities.

The unique nature of the transaction forced the advisers on the deal to come up with creative solutions that would meet the needs of all parties. Despite the complications, the deal went smoothly and PC's co-founders Brian Austin and Les Thomas agreed to invest some of the proceeds from the sale back into the company.

The deal closed in November 2014, PC Treasures busiest season, and was awarded "Deal of the Year: Best Deal under $100 Million" by Crain's Detroit Business. UHY's team played a crucial role in facilitating the transaction. Operating under Steve McCarty; Aaron Witalec, Bob Kendall and Alex Conti acted as sell side advisors on the deal.
 

Employees, their friends and associates of UHY LLP, certified public accountants, in conjunction with UHY Cares, the firm's independent 501c(3)organization; celebrated their eighth annual Texas Hold 'Em tournament on February 19. The charity poker event was held at Star Lanes at Emagine Royal Oak and was packed with players, sponsors and donors who helped raise funds for Make-A-Wish® Michigan, a statewide nonprofit that grants the wishes of Michigan children with life-threatening medical conditions to enrich the human experience with hope, strength and joy.

With over $25,000 of generous contributions, UHY Cares was able to use a portion of the money to adopt the wish of Jayden A., 11, from White Lake. Jayden has progressive muscle disease that causes severe muscle weakness, inhibiting his ability to take part in certain activities. His wish was to go to Walt Disney World with his family. Thanks to successful fundraising efforts from UHY, Jayden and his family were able to take their trip in mid-April. 

"We had a record turnout at this year's poker event. It's through this direct support that we were able to raise the funds needed to adopt Jayden's wish, as well as give back to several other local charities", said Scott Miller, MAW board member and partner at UHY LLP. "Although Make-A-Wish Michigan grants approximately one wish a day, each wish experience is unique and frequently a source of inspiration and optimism helping to strengthen and empower children undergoing difficult medical treatments. Imagine how a child's spirit will be lifted from planning, sharing and treating his or her family to a wish experience of their choosing."

 

Are you ready to take charge of your career path? Be sure to visit our careers page for the most up to date career listings or contact Yolanda Rountree at yrountree@uhy-us.com or 586 843 2642. Check out some of the current opportunities in our Michigan offices: 

 

• Audit manager, 7+ years of experience, manufacturing experience is highly preferred
• Audit accountant, 2-10 years of experience working with municipalities
• Audit senior staff accountant, 2-4 years of experience
• Tax manager, 7-10 years of experience
• Tax senior accountant, 5-7 years of experience, CPA required
• Director of litigation, testifying experience required
• Senior associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred 

 

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