United States

The Tax Exchange - September 2016

Review your tax technology now to avoid headaches tomorrow

TAX BLOG

Review your tax technology now to avoid headaches tomorrow

Who has time to put day to day operations on hold to assess their current tax solutions? The demand of tax departments to meet multiple deliverables throughout the year can leave this question unanswered far too long.

  • September 29, 2016
Some service providers can accelerate recognition of bad debt

TAX BLOG

Some service providers can accelerate recognition of bad debt

To recognize a bad debt, an accrual method taxpayer is generally required to be on a specific charge-off method. However, certain service providers may be able to accelerate the recognition of bad debt to a time prior to the debt is specifically charged-off.

  • September 27, 2016
4 WOTC issues to consider during an acquisition

TAX BLOG

4 WOTC issues to consider during an acquisition

The Work Opportunity Tax Credit (WOTC) offers employers a credit for a portion of the first-year wages of employees based on hours worked that were hired from certain target groups. The credit can be substantial, but how do you address WOTC credits when you acquire another company?

  • September 22, 2016
R&D credit may be disqualified for prototype costs capitalized in CIP

TAX BLOG

R&D credit may be disqualified for prototype costs capitalized in CIP

Favorable rules enabling taxpayers to claim the R&D tax credit on developing prototype equipment may be sabotaged when the taxpayer does not use the proper tax accounting method for the associated research and experimentation (R&E) expenditures under section 174 of the Internal Revenue Code.

  • September 20, 2016
IRS updates priority guidance plan with 4 new international tax items

TAX BLOG

IRS updates priority guidance plan with 4 new international tax items

The Treasury has released its 2016-2017 Priority Guidance Plan (the Plan) which outlines the projects that the Treasury and IRS intend to prioritize for the upcoming year. With regard to international tax items, there were four new projects added to the list and several updates to prior listed items.

  • September 14, 2016
Will your health plan trigger IRS penalties?

TAX BLOG

Will your health plan trigger IRS penalties?

Due to the Affordable Care Act (ACA), large employers that fail to offer employee health insurance that meets ACA standards may be assessed a shared responsibility payment by the IRS.

  • September 12, 2016
Watch your preliminary steps when exiting a business line

TAX BLOG

Watch your preliminary steps when exiting a business line

To exit a business line, preliminary steps may be necessary within a corporate group. Assets (and liabilities) may need to be brought together under the ownership of one company before that company is transferred to the acquirer. These preliminary steps should be approached with caution, as a recent IRS ruling illustrates.

  • September 08, 2016
Is your sales force creating nexus around the country?

TAX BLOG

Is your sales force creating nexus around the country?

A recent Washington Department of Revenue Determination should serve as a reminder to businesses with traveling sales employees that the physical presence nexus standard for sales and use tax purposes is alive and well despite recent criticism and calls for reform.

  • September 06, 2016
Foreign federal contractors must act quickly to avoid 2% excise tax and penalties

TAX BLOG

Foreign federal contractors must act quickly to avoid 2% excise tax and penalties

Newly issued final regulations offer certain foreign federal contractors a 90-day window to satisfy past tax and filing obligations with respect to the 2 percent federal excise tax (the procurement tax) on certain payments made to foreign persons under a federal procurement contract.

  • September 01, 2016