FASB 141 and 142 Becoming Critical for Technology Companies at LKNS
The recent FASB pronouncements, along with all paranoia surrounding the Enron case etc. is making our technology group crank into high gear to provide our clients with the most up to date impact to their business. We have already addressed some of these issues with some of our clients that have done business combinations or that have significant goodwill and intangibles, and stand ready to help you figure out the proper treatment for your transaction. Give our emerging business/technology group a call.





Stay Tuned: It appears the Supreme Court is ready to hear the case of Fior D'Italia Inc vs. US in what appears to be one of the most important cases affecting our clients in years. This case has to do with the fact that the IRS has historically come in and assessed restaurants employer payroll taxes on underreported tips of their employees using an aggregation approach. For example, they may look at the average of charge tips to total charge sales and calculate a percentage, and then apply the percentage obtained to the total sales for the year. Well, the IRS has lost so far in this case in that the argument is that they can't do this based on a pool of employees, but that employer payroll taxes are to be based on specific employee reporting of payroll taxes. LKNS would be happy to discuss our opinions and further details with you. Contact our restaurant group.

SmallWares Becomes Big News
In a recent Rev. Proc. issued by the IRS (rev proc 2002-12) the IRS has announced that restaurants can now account for smallware costs under more liberal methods. Under the new method obtained by automatic request consent, one can elect to deduct the cost of smallwares in the year they are consumed and used. Come in and talk to us to find out if you are treating these properly. Contact our restaurant group.