United States

The Tax Exchange - February 2017

What can you learn from IRS travel costs?

What can you learn from IRS travel costs?

Recently the Senate Finance Committee sent a letter to the IRS Commissioner suggesting the agency reign in its travel expenses. Non-governmental businesses spending their own (or shareholders’) money should not overlook the lessons the IRS learned about its own spending.

  • February 28, 2017
Research tax credit: Increased scrutiny follows credit permanence

Research tax credit: Increased scrutiny follows credit permanence

We’ve seen an increase in business interest in the research and development (R&D) tax credit since it was made permanent by the Protecting Americans from Tax Hikes Act of 2015.

  • February 27, 2017
IRS reminder on nonqualified deferred compensation

IRS reminder on nonqualified deferred compensation

The Office of Chief Counsel recently advised that IRS agents should not enter closing agreements with taxpayers that failed to use the special timing rule for payroll taxes related to nonqualified deferred compensation arrangements. The advice is not surprising, but it serves as a good reminder for employers to ensure they fully understand the rules so they can comply with them.

  • February 24, 2017
More states requiring driver's license data as e-file fraud protection

More states requiring driver's license data as e-file fraud protection

Taxpayers and preparers may be required to provide state driver’s license information as an increasing number of states include the mandate in order to e-file state returns. In the past few years, the progression of technology and ease of e-filing has created convenience for both states and taxpayers.

  • February 22, 2017
A quest for transparency: Transfer pricing for the new economy

A quest for transparency: Transfer pricing for the new economy

Transfer pricing is not new, but the way businesses need to approach it certainly is. With taxation of foreign operations making headlines worldwide, it is imperative that multinational companies understand the changing landscape.

  • February 20, 2017
Pennsylvania proposes budget changes

Pennsylvania proposes budget changes

Recently, Pennsylvania Gov. Wolf announced his proposed budget for the Commonwealth’s fiscal year. The estimated deficit for the Commonwealth is approximately $3 billion through the next two fiscal years – one of the largest potential deficits of any state this budget season.

  • February 16, 2017
Want employees that act like owners? Consider making them owners

Want employees that act like owners? Consider making them owners

Business owners looking to transition ownership and reward employees may want to consider an employee stock ownership plan, or ESOP.

  • February 14, 2017
Court decision reinforces lower FBAR willfulness standard

Court decision reinforces lower FBAR willfulness standard

U.S. persons must file the FBAR to disclose any foreign account with a balance in excess of $10,000 in which they have a financial interest. The penalty for failure to file an FBAR can have both civil and criminal repercussions and generally depend on whether the failure to file is non-willful or willful.

  • February 10, 2017
Co-sourcing and the corporate tax function: Getting it right

Co-sourcing and the corporate tax function: Getting it right

We are frequently called in to meet with companies that are looking to outsource or co-source their tax function. For many, the decision to take that approach has already been made and the company is simply evaluating providers, looking for the right fit.

  • February 08, 2017
House tax reform plan includes new

House tax reform plan includes new "border adjustment" proposal

As 2017 begins, and a new Congress and president are sworn in, a comprehensive tax overhaul appears to be near the top of the legislative agenda. Key to the House GOP’s tax proposal is a move towards a destination-based tax, where income from goods and services are taxed based on where they are consumed, as opposed to where they are produced.

  • February 07, 2017