• Offering cost-effective, quality audit and tax services.
  • Building long-term and effective professional relationships.
  • Serving the greater Chicago area and beyond.
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Welcome to Sassetti LLC !

Sassetti LLC is a full-service Certified Public Accounting Firm with a ninety year tradition of quality professional services.  Our clients include businesses, both privately-held and publicly traded, not-for-profit organizations, employee benefit plans and individuals.
Sassetti LLC was originally founded in 1921, and has been located in Oak Park, Illinois since 1964.
We are members of the American Institute of Certified Public Accountants, the Illinois CPA Society, the Center for Public Company Audit Firms and the AICPA Employee Benefit Quality Center.

2014 Year Under Review

January 2015
Final FASB Guidance 

Not-for-Proft Newsletter

1st Quarter 2015



News & Alerts

Tax News

Wed, 07 Oct 2015 04:00:00 GMT

The latest edition of BDO International's Indirect Tax News covers current global developments in relation to indirect tax, including Australia’s “Goods and Services Tax” on tangible and intangible goods, the Court of Justice of the European Union (CJEU) judgment in support of the recovery of VAT on corporate finance deals and other holding company costs, and more.

Wed, 07 Oct 2015 04:00:00 GMT

Could You Be a Victim of Tax Identity Theft?

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Recently, the IRS has investigated more vigorously identity theft schemes which steal taxpayers’ refunds. These acts of fraud can not only significantly delay an individual’s refund, but they can cause a great deal of time and stress to resolve. This article describes how tax identity theft typically works, information on how to protect yourself and how to proceed if you become a victim of identity theft.

How Tax Identity Theft Works

A typical tax identity theft involves someone who uses another taxpayer’s identity and Social Security number to deceitfully file a tax return and receive a refund from the IRS. The victim is commonly apprised of the fraud only when he or she files a tax return and the IRS informs them that the return has been rejected because a tax return was already filed for the same year under that Social Security number. The refund is then delayed until the IRS can determine the validity of the taxpayer.

Steps to Take to Protect Yourself From Tax Identity Fraud

There are a number of ways thieves can obtain your Social Security number to file a tax return:  hacking business or personal computers, calling an individual under the guise of an official or business requesting confidential information or even stealing personal statements from a mailbox or trashcan. While there is no way to completely protect yourself from tax-related identity theft, there are some steps you can take to minimize your risk:
  • Be proactive by visiting the IRS website. This site has valuable information under the tab Taxpayer Guide to Identity Theft. It also reports the most current phishing and email schemes.
  • The IRS requests that you report suspicious online or emailed phishing scams to phishing@irs.gov. For phishing scams by phone, fax or mail, call 1-800-366-4484. You can also report IRS impersonation scams by filling out the Treasury Inspector General for Tax Administration form.
  • Remember that the IRS only uses the U.S. mail to contact taxpayers. It does not make contact by phone or use electronic communication or social media.
  • Shred any documents with personal identifying information.
  • Avoid divulging your personal information on the phone or through email.
  • Strengthen the security of your computers by using a variety of security programs.
  • Frequently change your online account passwords; every three months is the recommended frequency  
  • Thwart refund fraud by filing your tax return as early as possible.
  • Only provide your Social Security number to a business or medical provider if it is required.
  • Your Social Security card should always be kept in a secure place such as a safe deposit box or home safe.
  • Check your Social Security Administration earnings statement annually.
  • Check your credit report at least once a year for any suspicious activity.

What Actions to Take if Your Identity is Stolen

If you are a victim of tax refund fraud, the IRS will contact you BY MAIL after it is verified that your return has been previously filed. They will provide identity confirmation via the Identity Certification Service (IDVerify) on IRS.gov or at a toll-free number provided. It is also advisable to prepare and submit an Identity Theft Affidavit on IRS Form 14039. In addition, make a report on the IRS Tax Fraud Hotline at 1-800-829-0433. Once your account has been resolved, the IRS will issue and mail to you an Identity Protection Personal Identification Number (IP PIN). This number will verify that you are legitimate when you file future tax returns and it will prevent the processing of fraudulent returns.

If you are the victim of an identity theft crime, file a complaint with the Federal Trade Commission (FTC). Also, contact your local police. Closely monitor your credit card accounts and contact one of the credit report companies (Equifax, Experian or TransUnion) to have a Fraud Alert placed on your account.

For questions related to matters discussed above, please contact Kelli Lewis.

Assurance News

Mon, 05 Oct 2015 04:00:00 GMT

FASB Issues ASU to Simplify the Accounting for Measurement-Period Adjustments  

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The FASB recently issued ASU 2015-16 as part of its Simplification Initiative. The amendments require adjustments to provisional amounts that are identified during the measurement period, including the cumulative effect of changes in depreciation, amortization, or other income effects to be recognized in the current-period financial statements.  Prior periods should no longer be adjusted.  The new standard takes effect in 2016 for public companies and is available here. Early adoption is permitted.    



If the initial accounting for a business combination is incomplete by the end of the reporting period in which the acquisition occurs, an acquirer should report provisional amounts related to items for which the accounting is incomplete.  During the measurement period, the provisional amounts are then adjusted to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period ends as soon as the acquirer receives the information it was seeking or learns that more information is not obtainable.  However, the measurement period cannot exceed one year from the acquisition date.

Prior U.S. GAAP required that measurement-period adjustments be retrospectively applied as if the accounting had been completed at the acquisition date.  This required adjusting comparative information for prior periods, including any changes in depreciation, amortization, or other income effects.  For example, in the 20X4 financial statements, the initial accounting for a business combination was incomplete because the appraisal of fixed assets had not been received.  In the March 31, 20X5 financial statements, a measurement period adjustment would be recognized by disclosing that the 20X4 comparative information was retrospectively adjusted to increase the carrying amount of fixed assets by $9,500, offset by a corresponding decrease to goodwill of $10,000 and an increase in depreciation expense of $500. That retrospective adjustment reflects the increased fair value of the fixed assets by $10,000 at the acquisition date, less the additional depreciation recognized from that date.1
Main Provisions

Under ASU 2015-16,2 adjustments to provisional amounts that are identified during the measurement period should be recognized in the reporting period in which the adjustment amounts are determined.  This includes any related impact on earnings of changes in depreciation, amortization, or other income effects, calculated as if the accounting had been completed at the acquisition date.  Continuing with the example above, the March 31, 20X5 financial statements would reflect the measurement period adjustment in the current period by increasing the carrying amount of the fixed assets by $9,000. Depreciation expense would also be increased by $1,000, including $500 related to the prior period.3 That is, depreciation should reflect the cumulative effect of the measurement period adjustment, including amounts relating to the current period.

In addition, the amendments require an entity to disclose (either on the face of the income statement or in the notes) the nature and amount of measurement-period adjustments recognized in the current period by income statement line items that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  To illustrate, the March 31, 20X5 financial statements would separately disclose (or present) the $500 of depreciation related to the 20X4 period in the prior example.
Effective Date and Transition

The amendments are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017.  Early adoption is permitted.

The amendments in this Update should be applied prospectively to measurement-period adjustments that occur after the effective date of this Update. 

Only the nature and reason for the change in accounting principle is required to be disclosed in the first interim and annual period of adoption.

BDO Comment

Reporting entities that have recently completed a business combination but for which the measurement period is still open may wish to consider early adopting the new standard to take advantage of its intended cost-savings.

For questions related to matters discussed above, please contact Adam Brown, Gautam Goswami or Chris Smith.

1 Adapted from paragraphs 805-10-55-27 through 55-29 prior to the amendments in ASU 2015-16.
2 Business Combination (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments
3 Adapted from paragraphs 805-10-55-27 through 55-29 after the amendments in ASU 2015-16.

Mon, 05 Oct 2015 04:00:00 GMT

Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships (File Reference No. EITF-15D) (“the ED”)

BDO agrees that a derivative novation should not, in itself, preclude hedge accounting.

General Business News