June 18, 2018

Accounting News Roundup: Management Accountants and Creative Tax Arguments | 05.08.17


Management accountants

I had no idea that International Management Accounting Day was on May 6th. Did the management accountants have to recognize the holiday by going into work?  That seems more likely than a management accountant march or a management accountant Derby party.

Anyway, if you weren’t aware of the holiday, then I’m sure most of you management accountants out there in Internetland can observe the holiday today by…working.

Creative tax arguments

Creative ideas are essential to successful tax planning, even if those creative ideas go beyond the range of plausibility sometimes.

Strip clubs, for reasons we won’t get into here, tend to stretch the bounds of creative financial ideas of all kinds. In the case of the Penthouse Executive Club in New York, it claimed:

its dancers are love doctors offering the same nontaxable services that a massage therapist or a sex shrink provides.

I understand the argument, and in certain contexts, it might be compelling, but finding a sympathetic taxing authority would be pretty difficult.

Accountants behaving badly

You’d think that with the high demand coupled with the (seemingly) short supply, there’d be little dissatisfaction about compensation among the accounting class. But life consists of human nature, not just economics, so every once in awhile, an accountant unhappy with her pay may take matters into her own hands.

That is what’s alleged in the case of Sarah Batenhorst of Lincoln, Neb. who was an accountant at the Nebraska Rural Electric Association:

Batenhorst adjusted account ledgers to increase her salary in 2014, 2015 and 2016 and adjusted printing rates charged to members for the magazine, Rural Electric Nebraskan, and used the added fees to pay her personal credit card.

Of course, it might be less trouble to find another job that pays better, but again, human nature’s worst tendencies play a role for some people.

Elsewhere, an ABB story out of Minnesota includes this sentence: “Police were initially tipped off when the CEO of the company reported a check missing,” and, sure, the CEO turned out to be right, something suspicious was going on, but hopefully none of your superiors are that impulsive.

Brought to you by Accountingfly

The featured job of the week was an Accounting Manager at ORBA.

Previously, on Going Concern…

Megan Lewczyk wrote about cyber espionage. Adrienne Gonzalez wrote about the state of recruiting and the talent shortage in accounting. In Open Items, someone is curious about “preferred” qualifications.

In other news:

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Related articles

Looking for a Tax Break? Try Donating Your Erotic Artifacts to the Museum of Sex!

Using a foundation to fuel your for-profit business is never nice, especially when there is an extensive collection of BDSM memorabilia involved.

New York’s Museum of Sex does not claim to be a non-profit but it has obtained over 1,000 items donated through its tax-exempt Muse Foundation for tax deductions. Well? You wouldn’t donate your old brushed-steel bondage machine to Goodwill for the deduction now would you?

Want to help by bequeathing your great-grandma’s old pasties? There’s a handy donation link on their website that explains this bizarre relationship between for-profit museum and non-profit foundation:

The Muse Foundation of New York is a fully registered private foundation affiliated with The Museum of Sex. Its mission is to work with The Museum of Sex to preserve and make available a comprehensive collection of materials relating to the history, evolution and cultural significance of human sexuality.

That’s awesome but does the Treasury realize taxpayers can get fat deductions for contributing to this effort?

Museum founder Daniel Gluck claims that his lawyers allowed this relationship (plenty of for-profit companies have non-profit foundations that share their name) and the Museum would love for its Foundation to be, erm, profitable enough to serve its stated goal of providing underwriting art grants but that plan just hasn’t quite worked out. Yet. After more than a decade of operation. “The Muse Foundation is completely its own separate entity,” he said. “We can’t take money from the foundation and we don’t plan to. We aim to build it up into a foundation whose interests are aligned with the museum.”

Gluck told the NYT that the museum earns 70% of its income from admissions fees – nearly $17 a pop – and the remainder by selling cute Sex Museum tchotchkes in the gift shop (perhaps your dog is sexually frustrated and desperately needs a modern and arty $650 toy to hump?)

Before you ask, no the $300 bunny bondage hood is not tax deductible. But hold onto it long enough and you might just be able to get one for donating it back to the museum if Treasury still hasn’t caught on to this unique foundation/corporation relationship.

Tax Break for Erotica? A Museum Favors It [NY Times]