Archive for the ‘Uncategorized’ Category

The Nienow & Tierney, LLP Blog as Moved!

February 6, 2016

The Nienow & Tierney, LLP blog has a new home at our website (  For the latest accounting, tax and business news from Nienow & Tierney, LLP please visit our blog here:



2% S-Corp Shareholder Health Insurance

November 18, 2013

Are you properly reporting the purchase of health insurance for any shareholders which own over 2% of the stock of an S corporation?  Watch this video from Stephen Tierney as he explains the tax implications of purchasing health insurance for this shareholder.  If you have any further questions, please call or email us at



IRS Announces Cutback in Operations

October 2, 2013

Via Spidell Publishing, Inc.

The IRS announced today that “due to the current lapse in appropriations, IRS operations are limited.”

The key points of their announcement are:

  • They are unable to issue refunds;
  • Taxpayers must continue to file returns and make payments and deposits on a timely basis;
  • There is no live telephone service and walk-in taxpayer assistance centers are closed;
  • Audits, Appeals, and Taxpayer Advocate Services are “assumed” cancelled. “IRS personnel will reschedule those meetings at a later date;”
  • Automated notices will continue to be mailed, but the IRS will not be working any paper correspondence;
  • Automated applications on the regular (800) 829-1040 phone line will remain open; and
  • The IRS website will remain available, although some interactive features may not be available.

More information is available at:

Farewell to Melinda Mergelsberg

July 19, 2013

Nienow & Tierney, LLP would like to inform you that senior accountant Melinda Mergelsberg will be leaving our office on Friday, July 19.  Many of you know Melinda, who has worked at Nienow & Tierney, LLP since 2005.  Last year, Melinda moved to Florida and continued working for us remotely, but is now transitioning to an accounting firm that is local to her new home.  Melinda has been a valuable employee and treasured friend to all at our office and will be greatly missed.  To assist with this transition, Melinda will continue to receive emails until July 31.  If you have any questions about projects that she has worked on for you in the past, or if you would simply like to express your farewell wishes to her, feel free to send an email to  Effective August 1, please contact Katy Allen with any questions or concerns at or 714-836-8300 x16.

We wish Melinda the best in her new position!

Melinda and Family Easter 2013

Melinda, Bo, Brady & Earl

CPA Day at the Capital

January 27, 2013



On January 23rd, CPA’s from all around the State of California converged on our state capital in Sacramento as a part of the annual CPA Day at the Capital.

Meetings were scheduled with each state Senator and Assemblymen/women.  It was an opportunity for the CPA profession to voice a united opinion on the topics which affect our profession and also the taxpayers for whom we prepare tax returns and financial statements.

This year, Stephen Tierney took part in this opportunity to share with our state legislature the issues which we feel are important to clients such as yourself.

We specifically called upon the legislature to forego any effort to impose sales tax on service organizations.  As a profession, we feel that this tax would provide an unfair advantage to service based business owners located outside of the state.  This additional tax would also cause increased costs to our clients for tax preparation services.

As we met with the state representatives, we also promoted a financial literacy program which is sponsored by the California Society of CPA’s.  This program is designed to educate individuals on basic financial issues such as maintaining a budget and how to save for future expenses.  These programs are provided free of charge by CPA’s around the State of California.

Stephen loved the opportunity to meet with our state representatives and participate in helping promote issues for our clients and our profession.  He looks forward to participating in this event in future years.

Client Spotlight: Greenlaw Partners

August 10, 2012

We are pleased this quarter to spotlight our client, Greenlaw Partners. Greenlaw Partners is an Irvine based real estate investment, management and development company. The company’s focus is acquiring and developing real estate in joint venture with a select group of institutions and individuals.

1551 N. Tustin Building

You may have seen articles about Greenlaw Partners in the business news these days due to their involvement in some high profile commercial real estate transactions, one of which is the popular entertainment center known as Triangle Square. As detailed recently in the Orange County Business Journal, in 2006 Greenlaw Partners assembled a group to purchase the center and now has big plans for its future. Along with other changes Triangle Square will now be known as “The Triangle”, this name change is the first of many ways that the landmark is trying to change its image. The most notable change that the plan will take will be the lack of retail stores. The center will try to focus on being a restaurant and entertainment center. The new designs include a 24 hour fitness sport, A bowling alley, and 17,000 more square feet of restaurant space.

Greenlaw has been acquiring and managing properties since 2003. It currently has over $230 million in transactions in the last 12 months and over $1.2 Billion since its inception. The company has over 40 professionals all with in depth and diverse experience.

We are proud of our relationship with Greenlaw Partners.  Through a strategic approach in partnership with Greenlaw personnel, we have assisted Greenlaw in providing timely, accurate tax reporting information to their many important partners.  Our focus is to leverage our real estate expertise to the services we provide Greenlaw so that they remain in compliance with the uniquely complicated tax rules applicable to real estate transactions, while at the same time taking full advantage of those provisions of the law that allow them and their partners to minimize taxes.

You can learn more about Greenlaw Partners at their website here.

Stephen Tierney on “Real Orange” television show on Thursday

February 1, 2012

Real Orange

On Thursday at 5pm, Stephen Tierney will be featured on the PBS broadcast of “Real Orange”.  Stephen is partner at Nienow & Tierney, LLP and also the Chief Running Officer for Up and Running Again.  Up and Running again is a nonprofit dedicated to training homeless and at-risk youth to run half marathons.

Steve will be given the opportunity to share with the Orange County community the mission of Up and Running Again.  In the interview, he hopes to communicate the amazing achievements that so many of the homeless and at-risk kids have completed over the past year. 

The show will air on channel 50 in the Orange County area.

Also don’t forget to look for Up and Running Again at the Surf City half marathon on Sunday February 5th!

Hear Stephen Tierney on the radio with Hugh Hewitt

January 23, 2012

On Tuesday January 24th, at 5pm, our very own Stephen Tierney will be on the air with Hugh Hewitt to talk about the running charity he started called Up and Running Again. 

Up and Running Again is a 501(c)(3) public charity that trains homeless and at-risk youths to run a half marathon.  It is through the training runs and the half marathon race that these individuals gain the confidence they need to get jobs or go to college.

During the 5pm hour, Hugh will be featuring three entrepreneurs and Stephen was selected to be on one of the guests.  Hugh Hewitt is a nationally syndicated radio host with over 1.5 million weekly listeners.

We are very excited to see one of our firm partners be presented with a chance to share how this organization is impacting the lives of the less fortunate.

If you have an opportunity tune into AM870 in Los Angeles or go online to to listen live over the internet.

$1,000 retained worker credit

January 20, 2012

In 2010, Congress passed the HIRE Act which included a credit for businesses that hired unemployed workers.  If the new employee had been out of work for 60 days prior to hiring, the business was allowed a “payroll tax holiday” on the Social Security tax for that eligible employee.  This credit was available on wages paid from February 3, 2010 through December 31, 2010.  The credit was claimed on the employers payroll tax returns.

Along with the “payroll tax holiday”, if the same worker is retained for 52 consecutive weeks, the employer is allowed a credit equal to the lesser of $1,000 or 6.2% of the workers wages.  The employees wages in the second 26 weeks of employment need to be 80% of the first 26 weeks of employment.

Since the HIRE Act was passed in 2010, the first time the $1,000 credit would be available is on the 2011 business  tax return, 52 weeks later.  The credit will be claimed on Form 5884-B.

Form 990–Reporting Issues

November 22, 2011

According to an article recently published in the AICPA  Tax Adviser, there are eight common reporting issues.

1. Identifying the president as both an officer and a key employee:  The organization should only report the president one time under Section A, Column C of Part VII.

2. Reporting only salaries as compensation expenses:  The Statement of Functional Expenses should include all compensation and benefits paid to the officer or director.  Additional benefits could include, pension plan contributions or medical/dental insurance.

3.  Improperly reporting compensation reported in a prior Form 990:  Schedule J, Part II, Column F should include compensation on the current W-2 that was previously reported.

4.  Failing to include the annual actuarial increase of defined benefit plans:  Schedule J of Part VII indicates that any increase in the actuarial value for deferred compensation should be be reported.

5.  Reporting only unrestricted income: Form 990 should include all items of income whether they are unrestricted, temporarily restricted or permanently restricted.

6.  Reporting support payments to a related organization as “other expense”:  A payment to another charitable organization in an attempt to support them should be reported as a grant and not an operating expense.

7.  Misidentifying the proper interested person:  On Schedule L, Part IV, the organization must enter the name of the interested person.

8.  Showing details of related transactions with a  501(c)(3) parent organization:  Transactions between related entities do not necessarily need to be reported. Transactions with controlled entities must be reported if the amounts meet the criteria noted in the instructions.