Question

In terms of having a small company (family owned) --> posted a similar question already with way more information but no one has answered yet.

1. How should the compliance or lack of compliance with government regulations (such as filing of a W-2 or 1099 for the president of the company) be addressed ?????

2. What if management doesn't comply???

3. Should legal counsel be hired ? Is a forensic accountant required ???

Answer 1

Regulatory compliance is a big focus for big business today.Privacy concerns are driving government regulations,and some industries are proactively adopting their own privately enforced rules in an effort to head off further government interference.

Small and medium sized businesses face special challenges and situation as new laws bring more and more of them into the regulatory arena,where they must navigate a maze of mandates laid out in confusing and sometimes vague legal jargon that makes it hard to even understand what the requirements are and whether they apply to you,much less how to meet them.

The requirements for securing data,protecting privacy, responding to customer requests regarding their personal data,and reporting regulatory oversight agencies growing rapidly and so is the cost of meeting the demands. Small or medium business are not exempt,and infact it's even more important for small and medium organizations to get and stay compliance and as they don't typically have the cash reserves to easily pay the large fines that can be assessed for non-compliance, or to withstand the laws of customer's trust that can result.

Compliance with all of the applicable and government and industry regulations that may apply to your business today is neither easy nor cheaper-but it's not as difficult nor as expensive as the consequences of failing to do so.