Blogging Beyond the Numbers

Are you a US citizen or resident and have a relationship (either as a shareholder, officer or director) or own 10% or more in a foreign corporation?  If yes, then you might be obligated to file Form 5471 along with your tax return.  Form 5471 is annual informational form that generally does not result in any tax due for the taxpayer. If you are a partner in a foreign partnership, you would file a Form 886...

The Tax Cuts and Jobs Act (TCJA) has enhanced two depreciation-related breaks that are popular year-end tax planning tools for businesses. To take advantage of these breaks, you must purchase qualifying assets and place them in service by the end of the tax year. That means there’s still time to reduce your 2018 tax liability with these breaks, but you need to act soon. Section 179 expensing Sec. 179 ex...

The legal battle is over for the parties in South Dakota v. Wayfair, Inc.  The Supreme Court’s decision that South Dakota was correct in requiring remote sellers to collect South Dakota sales taxes was decided June 21, 2018.  However, the Justices decided that the lower court handle the specific settlement terms. The November 1, 2018 Wayfair settlement agreement terms are as follows: Removes the i...

It’s been a big year for tax changes. The United States Tax Cuts and Jobs Act (“Tax Reform”) has taken front seat and grabbed much attention. However, an equally big tax change occurred this year in the sales & use tax world with the Supreme Court decision South Dakota v. Wayfair, Inc. The Supreme Court ruled in favor of South Dakota’s authority to require out of state sellers without physi...

Is your accounting department prepared for the recent changes to meals and entertainment deductions?  Have they been trained to code invoices and track expense reports according to the new rules?  Are you looking for a better understanding of the new rules? The Tax Cuts and Jobs Act of 2017 made significant changes to the meals and entertainment rules that most have grown accustom to.  To date, the IR...

If you own an interest in a family-owned or other closely held business, a buy-sell agreement is a valuable document to have in place. These agreements specify whether — and under what circumstances — owners’ interests may be transferred. Buy-sell agreements should be planned and drafted carefully to ensure that they meet your expectations and don’t trigger unwanted tax consequences or conflicts wit...

The Tax Cuts and Jobs Act (TCJA) liberalized the eligibility rules for using the cash method of accounting, making this method — which is simpler than the accrual method — available to more businesses. Now the IRS has provided procedures a small business taxpayer can use to obtain automatic consent to change its method of accounting under the TCJA. If you have the option to use either accounting method,...

For those of you keeping up with this landmark sales and use tax case, changes are happening fast and furious across the country.  Since the end of June when the Wayfair decision was handed down by the Supreme Court (confirming South Dakota is right to require out of state online retailers who have no physical presence in South Dakota to register and collect South Dakota sales and use taxes) at least 12 o...

There continues to be much uncertainty about the Affordable Care Act and how such uncertainty will impact health care costs. So it’s critical to leverage all tax-advantaged ways to fund these expenses, including HSAs, FSAs and HRAs. Here’s how to make sense of this alphabet soup of health care accounts. HSAs If you’re covered by a qualified high-deductible health plan (HDHP), you can contribute pre...

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements. July 31 Report income tax withholding and FICA taxes for second...