SALT Relief for Partners and S Corps
Posted by Miroslav Georgiev on February 23, 2022
With small businesses supporting nearly 47% of U.S. employees, states have been advocating for pass-through entities, operating partnerships and S corporations that have been harshly impacted by the Tax Cuts and Job Act ‘s state and local taxes deduction limit. Recent legislative activity is finally providing relief for many of these businesses.
IRS Provides Relief on K-2 and K-3 Reporting
Posted by Margaret Amsden on February 17, 2022
In an attempt to provide more transparency with regard to reporting of foreign activity and/or information to foreign owners, the IRS came out with two new forms: Schedule K-2 (an addendum to the Schedule K) and Schedule K-3 (an addendum to the Schedule K-1). Learn about the latest K-2 and K-3 reporting requirements issued by the IRS.
Expanded ERC Eligibility for Startups
Posted by Rob Cheyne on February 1, 2022
For many businesses hit hardest by the pandemic, the ERC was a lifeline for continued operations. Unfortunately, that door slammed shut for most companies looking to take advantage of the credit in Q4 2021. Now only some businesses that previously did not qualify can earn up to $100,000 in the form of a tax refund from the IRS. Is your business one of the lucky ones?
Michigan SALT Cap Workaround Details Released
Posted by Sue Tuson on December 22, 2021
Michigan’s Governor has signed a SALT Cap Workaround to avoid the $10,000 limit on individual deductions for state and local taxes at the federal level. The rules are effective for tax years beginning on and after January 1, 2021. Learn about the key details and business considerations.
Insights from Washington: Build Back Better Act Stalled
Posted by Sarah Russell on December 21, 2021
Tax practitioners across the U.S. can enjoy the holiday season and maybe have that extra glass of eggnog this year knowing we will not have a massive legislation to digest before the new year begins! Last weekend Congress conceded that there are not enough votes to pass the massive Build Back Better Act (BBBA).
2021 Child Tax Credit Changes
Posted by Miroslav Georgiev on December 20, 2021
For many Americans, Christmas came early this year in the form of monthly payments from the Federal Government. These payments were vital for many households struggling with the lingering effects of the pandemic, and, for the majority of American households, will not need to be repaid. However, there are several circumstances where people could find themselves having to repay all or a portion of these payments.
IRS Guidance: Retroactive ERC Termination
Posted by Sarah Russell on December 16, 2021
The IRS provided much-awaited guidance regarding penalty waivers for taxpayers who qualified for employee retention credits (ERC) and did not remit payroll taxes before the credit was retroactively terminated after September 30.
12 Build Back Better Changes to Watch
Posted by Sarah Russell on December 16, 2021
As the Build Back Better (BBB) legislation makes its way through congressional talks, there are changes in the works that could impact your upcoming tax obligations. The first thing to know is that the Build Back Better act is evolving daily. Despite the uncertainties, it’s likely that some tax increases will be included in the final bill.
Year-End Update Video
Posted by Clayton & McKervey on December 10, 2021
Watch this live video discussion on key end of year impacts to you and your business. We'll cover everything from tax planning considerations and the employee retention credit to the latest on the Infrastructure Investment and Jobs Act and the Build Back Better Act.
Insights from Washington: Infrastructure Bill Signed
Posted by Sarah Russell on November 16, 2021
As expected, President Biden signed the Infrastructure Investment and Jobs Act Monday, November 15. Now that the work on this bill is complete, Congress can get back to President Biden’s second signature piece of legislation, the Build Back Better Act (BBBA).
New Regulations for Crypto Brokers
Posted by Katie Blake and Elly Mioduszewski on November 16, 2021
Will the infrastructure bill affect personal tax reporting requirements? It could. The information reporting provisions included in the infrastructure bill contain language regarding regulations and tax requirements for cryptocurrency brokers, which is causing a stir among investors and crypto advocates.
Insights from Washington: Finally! Draft Legislation
Posted by Sarah Russell on November 12, 2021
The House finally passed the Infrastructure Investment and Jobs Act. In this week's installment of Insights from Washington, we look at a few key tax items in the infrastructure bill regarding the ERC and cryptocurrency.
ESG: Importance, Impacts, & Implications
Posted by Dave Van Damme and Elly Mioduszewski on November 8, 2021
You might be noticing more discussions about Environmental, Social, and Governance (ESG) initiatives and wondering if they impact you. Learn how ESG reporting can provide stakeholders with transparency regarding the risks and opportunities your company faces related to environmental, social and governance issues.
Insights from Washington: Draft Legislation Released
Posted by Sarah Russell on November 2, 2021
On Thursday, October 28, the House Rules Committee released draft text of the modified Build Back Better Act. In today's edition of 'Insights from Washington', we look at some of the changes to the tax-related provisions included in the bill released in September 2021.
Insights from Washington: Economic Plan Coming into Focus
Posted by Sarah Russell on October 26, 2021
On Thursday, October 21 President Biden acknowledged that he didn’t have sufficient Democratic backing for his proposed increases in the individual, corporate and capital gains tax rates. As we’ve mentioned, the Democratic Caucus needs unanimous support in the Senate to pass legislation but there are two key obstacles in negotiations.
Maximize PPP, ERC, and R&D Benefits
Posted by Bryan Powrozek and Jake Mouradian on October 19, 2021
For businesses and individuals adversely impacted by the COVID-19 pandemic, much needed financial relief was provided when the Consolidated Appropriations Act, 2021 (CAA) was passed last December. The CAA also addresses the interplay for businesses that intend to claim the ERC in addition to the Research and Development (R&D) tax credit.
Insights from Washington: Continued Negotiations and R&D Update
Posted by Sarah Russell on October 18, 2021
Negotiations on the budget bill are picking back up as Congress returns from a week-long break. It appears Democrats are uniting around a $2 trillion top-line, but the party remains divided over which pieces of President Biden’s agenda will be included. Progressives in the party want to include the full list while reducing the numbers of years such benefits will be available.
2021 Year-End Tax Planning Tips
Posted by Sarah Russell on October 15, 2021
As 2021 draws to a close, it's important to determine what tax planning strategies make the most sense for you and your business. Here are some key year-end tax planning considerations to keep in mind as we approach year-end.
2021 Reporting Guidance
Posted by Sarah Russell and Margaret Amsden on October 14, 2021
Every year brings a list of information filing requirements necessary to make sure payees have the information needed to file their taxes. To assist with year-end business reporting, here are some items for you to consider.
Insights from Washington: The Wait Continues
Posted by Sarah Russell on October 11, 2021
As negotiations continue on the budget reconciliation package, it appears more and more likely that progressives in Congress will need to scale back President Biden’s original economic agenda. One way Democrats are considering lowering the cost of the package is to enact income eligibility limitations on some of the programs.
Are Your Financial Statements Telling the Right Story?
Posted by Angela Liu on October 11, 2021
You made it through the adoption of the much-anticipated U.S. GAAP changes to the revenue recognition standard and thought things would get back to normal. Then the pandemic hit, and nothing was normal. Learn about the new U.S. GAAP accounting standard, and why you might want to consider FRF for SMEs instead.
Insights from Washington: Infrastructure & Budget Reconciliation Waiting Game
Posted by Sarah Russell on October 5, 2021
Another week has passed without action in Congress. House Democrats delayed an expected vote on the infrastructure bill as it became evident they didn’t have enough votes to pass the Senate-passed bipartisan legislation without further action on the much larger budget reconciliation (Build Back Better) bill. Learn more in today's edition of Insights from Washington.
Michigan SALT Tax News Impacts Owners
Posted by Sue Tuson on September 30, 2021
In mid-summer 2021 Michigan Governor Gretchen Whitmer vetoed a bill that would have provided a workaround to the current cap on the deduction for state income taxes that business owners face on pass-through income.
Insights from Washington: Infrastructure & Budget Reconciliation Bill News
Posted by Sarah Russell on September 27, 2021
Over the weekend the House Budget Committee advanced a draft version of President Biden’s tax and social spending measure, but it remains to be seen whether the package will be brought to a floor vote in the House of Representatives.
Insights from Washington: Reconciliation Package Update
Posted by Sarah Russell on September 21, 2021
Our Insights from Washington week two summary provides an update on the reconciliation package. The House Ways & Means Committee approved its Build Back Better Act tax increase package September 15 after close to 40 hours of debate and mark-up, during which many amendments were proposed, but none were adopted.
Insights from Washington: House Democrats Propose Tax Increases
Posted by Sarah Russell on September 14, 2021
To keep you informed on the latest tax negotiations from Washington, we will be issuing a weekly blog with the current news. Our first installment covers details of the proposed tax increases drafted by House Democrats and released on September 13. Here are some highlights from the summary.
New FASB Leasing Standard Updates and Guidance
Posted by Dave Van Damme on September 14, 2021
After several adoption date delays, it’s now time to get serious about adopting the new leasing standard. Businesses must begin using the standard in their 2022 fiscal year, and start preparing in 2021. Here is a summary and some important considerations.
International Tax Overhaul Draft Legislation Released
Posted by Sarah Russell on August 30, 2021
Senate Democrats recently released draft legislation overhauling portions of the international tax regime which is part of the expected $3.5 trillion tax and spending package. Review the proposed legislation and see the direction Congress is heading in regards to international tax changes.
House Approves $3.5 Trillion Budget Blueprint
Posted by Sarah Russell on August 25, 2021
On Tuesday, August 24, the House passed a measure approving a $3.5 trillion budget blueprint, paving the way to advance President Biden’s economic agenda. Significant hurdles remain before a budget bill is passed. We will continue to keep you informed as negotiations continue and draft legislation becomes available.
Historic Global Tax Reform on the Horizon
Posted by Sue Tuson on August 10, 2021
The G-20 international forum met in July to discuss plans to create a global minimum tax of 15%. The OECD has proposed a two pillar framework designed to address the needs of a global digital economy. Review the key aspects and potential impacts of this proposed tax reform.
New GST/HST Filing Requirements for E-Commerce in Canada
Posted by Sue Tuson on July 12, 2021
If you’re a foreign company selling goods or services online in Canada, review these new GST/HST filing requirements for e-commerce deals, expected to become law with a retroactive date of July 1, 2021.
Child Tax Credit Update: Advance Payments & Eligibility
Posted by Margaret Amsden on June 23, 2021
The IRS has released an important update to help people manage the Child Tax Credit that was temporarily expanded in the American Rescue Plan Act of 2021. Here’s a quick summary of the new information and additional program enhancements.
International Impacts of President Biden’s Tax Proposals
Posted by Sue Tuson on June 3, 2021
On May 28, 2021, the U.S. Treasury released its Fiscal Year 2022 explanation of the various proposals included in President Biden’s “Made in America” tax plan, known as the Green Book.
Treasury Green Book Offers Look into Biden’s Tax Proposals
Posted by Sarah Russell on June 3, 2021
Right before the Memorial Day weekend, the U.S. Treasury released its Fiscal Year 2022 explanation of the various proposals included in President Biden’s “Made in America” tax plan.
COVID-19 and the Supply Chain: How to Manage the Impacts
Posted by Sue Tuson on May 25, 2021
As multinational companies see imports rising to pre-pandemic levels, they should remain vigilant about supply chain impacts including transfer pricing.
Federal Opportunity Zones: The Right Investment Opportunity?
Posted by Miroslav Georgiev on May 24, 2021
Written into law by the Tax Cuts and Jobs Act of 2017 (TCJA), the Federal Opportunity Zones initiative is a tool aimed at promoting private investment in underserved communities across the country. While many Americans only know it as government-speak, every day more investors are understanding what it really is, a way to defer tax on capital gains.
President Biden’s Tax Plan – What You Need to Know
Posted by Margaret Amsden on May 12, 2021
The Biden Tax Plan is focused on increasing taxes on businesses and high net worth taxpayers to pay for the ambitious infrastructure and education plans. Review the proposed tax increases and legislation of the American Families Plan Act.
Multinational Companies to Pay More Under Biden Tax Plan
Posted by Teresa Gordon on May 6, 2021
Review key details of the Made in America Tax Plan and learn how these proposed changes will impact U.S. multinational companies and U.S. subsidiaries of foreign corporations.
Employers Entitled to Tax Credits for Providing PTO for COVID-19 Vaccines
Posted by Sarah Russell on April 28, 2021
The American Rescue Plan Act of 2021 extended the tax credits for employers who provide paid sick and family leave to employees affected by COVID-19. Eligible employers who offer PTO for COVID-19 vaccines can now receive the credit.
How to Increase Tax Savings with a Roth IRA-Owned IC-DISC
Posted by Casey Haggerty on April 7, 2021
Did you know combining IC-DISC and Roth IRA tax saving strategies can help you save even more tax dollars?