Tax Update: July 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Is state tax reform coming in waves?
Contending with several quarters of weak growth in overall state tax collections, between 25 and 40 states are facing revenue shortfalls. The budget season is heating up with a flurry of legislation proposed to close those budget gaps for the 2018 fiscal year.
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Personal tax planning in anticipation of reform: What you should know (and do)
Join us July 18 to learn about the implications of potential tax reform on income, estate and life insurance planning and the ways to prepare for it.
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Tax Court holds taxpayer not liable for accuracy-related penalties
A taxpayer’s reliance on a tax professional to prepare accurate tax return was reasonable, thus taxpayer was not liable for penalties.
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Economic sales and use tax nexus laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.
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Canada identifies US partnerships that it will treat as corporations
Canadian Revenue Agency provides list of factors considered when determining certain U.S. partnerships should be treated as corporations.
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Net operating losses: One size does not fit all
Proper diligence when it comes to the state application of net operating losses can help maximize tax benefits and minimize errors.
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What business owners need to know about value before selling
Learn how to view the value of your business through the eyes of a buyer and what you can do today to plan for a successful transaction.
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Employers with self-insured health plans owe PCOR fee by July 31, 2017
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Tax planning for ESOP-owned S corporations
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Navigating nuances in transfer pricing
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Apportionment of net recognized built-in gains in California
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Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: April 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Border tax would mean sweeping changes for middle market
The proposed border adjustment tax and corporate tax reform would be the most sweeping change to the tax code since 1986.
Learn more

Beware of traps with paid time off policies
Some common paid time off (PTO) policy features cause taxable income to unexpected parties at unexpected times.
Read the article

What to do if you are the victim of tax identity theft
Step-by-step guidance for victims of tax identity theft and a general overview of identity theft warning signs.
Learn more

Economic sales and use tax nexus laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.
Read the article

Employment tax and employee benefits: 5 issues for growing companies
A growing workforce means growing tax and employee benefit challenges. When do workforce decisions create tax conversations?
Find out more

Key considerations when selling your business
Details matter when selling to a third party. Know your answers to important succession planning questions to achieve a successful sale.
Learn more

Are local tax prepayment benefits worth it?
Read more

Don’t forget the tax benefits of certain capital investments (video)
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Comprehensive tax reform could call into question US tax treaties
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Updated IRS audit guide gives insight to golden parachute treatment
Read more

 

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: March 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Timing of tax reform
While the process is notoriously fluid and unpredictable, it appears it will likely be late 2017 before we have final tax reform legislation.
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The House Tax Reform Blueprint: What would the building inspector say?
Don Susswein explores the potential impact of the domestic proposals found in the House GOP Tax Reform Blueprint.
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Understand common complexities when applying bonus depreciation
While the concept of bonus depreciation is fairly simple, taxpayers should be aware of the complicated underlying rules.
Learn more

How well do you understand your equity compensation options?
Equity compensation plans can provide powerful incentives. Learn the various plans available and how they can meet your compensation goals.
Download the article

Partnership audits: What you should do now
Join us for an informative webcast as we discuss what you can do now to prepare for changes in partnership audit rules in 2018.
Register now

3 big questions about your business succession plans
Planning for and managing through a business succession means thoughtfully and objectively answering three important questions.
Watch now

Co-sourcing and the corporate tax function: Getting it right (video)
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More states requiring driver’s license data as e-file fraud protection
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A quest for transparency: Transfer pricing for the new economy (video)
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Research tax credit: Increased scrutiny follows credit permanence
Read more

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: February 2017

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Border Adjusted Tax proposals may impact exporters and importers
A new destination-based tax regime may be part of comprehensive tax overhaul, but details remain unclear.
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New revenue recognition guidance is looming
Even though the tax rules have not changed, a change in book recognition could create a change in the tax method of accounting.
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Employee stock ownership from three perspectives (video)
Employee stock ownership plans can be attractive to business owners, employees and companies overall. Anne Bushman discusses the benefits.
Watch now

Final rules require 5472s from foreign-owned disregarded entities
Read more

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: November 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit; and we understand how important timely updates are to our clients. As a member of the RSM US Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

4 tax issues driven by organic growth
Taxation of internally-generated profits can vary. Capital investments in new products, services or facilities can create tax opportunity or risk.
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Managing your personal wealth after leaving a closely held business
Business succession financial planning requires introspection. You must quantify core capital needs and define estate and charitable goals.
Read more

US Supreme Court to hear Delaware unclaimed property check dispute
Twenty-three states challenge the escheat of MoneyGram official checks, claiming instruments should have escheated to state of purchase.
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FATCA and other year-end global information reporting considerations
Read these tips for internationally active taxpayers on FATCA classifications, preparation for CRS reporting and more.
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Business succession planning: Why it is critical to revisit your plan now
The ins and outs of estate planning strategies and key provisions of the proposed regulations to section 2704 and how to prepare.
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Current issues and opportunities for ESOP companies
The ESOP community remains vibrant with maturing ESOPs and many beginning to explore the possibility.
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6 steps to solving the country-by-country reporting challenge
Learn a straightforward six-step process to help U.S. multinationals address new IRS country-by-country reporting requirements.
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Draft remote seller legislation provides unique federal solution
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Review your tax technology now to avoid headaches tomorrow
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Follow new guidance when correcting qualified retirement plan errors
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Apple’s influence on international tax policy
Read more

Capitol Hill

Source: RSM US LLP
Used with permission as a member of the RSM US Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: October 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Employment tax and employee benefits: 5 issues for growing companies
A growing workforce means growing tax and employee benefit challenges.
Read more

Are you ready for your business’ succession?
Important owner readiness considerations.
Read more

2017 fixed asset management primer
Assess and improve your fixed asset strategy and implement best practices that can maximize efficiency, accuracy and benefits.
Read more

International tax controversy: New developments and opportunities
Our tax professionals will discuss new IRS developments that affect international tax controversy matters in this webcast.
Read more

Proposed 2704 regulations have significant life insurance implications
Proposed 2704 regulations: Loss of discounts could materially impact liquidity needs and planning with existing policies.
Read more

Frequently asked questions on country-by-country reporting (CbCR)
A guide for multinational corporations regarding country-by-country reporting questions and BEPS.
Read more

First steps to finding the right tax department resource balance
Redesigning your tax department? Assess your current state first. These three questions will help direct you to optimal tax resource management.
Read more

Retailers must be mindful of gift card tax pitfalls
Retailers should assess gift card procedures including an annual review of reporting, sales tax, unclaimed property and more.
Read more

Is your sales force creating nexus around the country?
Read more

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

Will your health plan trigger IRS penalties?
Read more

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: July 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Federal

  • Plan sponsors must pay health plan fee by July 31, 2016
  • Grantor’s death can compromise S corporation’s status
  • Potential tax traps for employees who become partners
  • How research tax credits are limited for partners and S corporation shareholders
  • Proposed regulations could affect subchapter S status
  • Look for upcoming ‘hot dog stand’ guidance on corporate spin-offs
  • Controlling shareholder is liable as a transferee for corporate level tax
  • IRS addresses deferred revenue treatment in taxable stock acquisition

International Tax

  • Global survey reveals BEPS middle market impact
  • Multinationals with Indian or Singapore investments should evaluate whether to change investment structures

State and Local Tax

  • Oklahoma eliminates ‘double’ state and local tax deduction

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: June 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Federal

  • Pension maximization-a/k/a ‘pension max’
  • Tax treatment of a simple agreement for future equity is not a lock
  • Employer action advised on new health insurance notices
  • Gasoline gallon equivalents for alternative fuel tax credits
  • Deductibility of accrued customer rewards

International Tax

  • International impact of the proposed debt-equity regulations
  • New proposed reporting requirements for foreign-owned DREs

State and Local Tax

  • Colorado department clarifies treatment of electronically delivered software and maintenance agreements
  • Missouri Supreme Court takes narrow view of grocery exemption
  • Tennessee court disallows retailer’s bad debt deduction for third-party write-offs
  • Texas comptroller denies COGS deduction for technology service provider

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Update: March 2016

At Insero, we make it our business to stay abreast of the latest trends and technical updates in accounting, tax, and audit and we understand how important timely updates are to our clients. As a member of the McGladrey Alliance, we also have the benefit of access to the resources and subject matter experts of RSM US LLP (formerly known as McGladrey LLP). This includes regular updates on the latest federal, state, and international tax news. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Federal

  • New Form 1095-C due to employees by March 31, 2016
  • IRS denies S corporation an ordinary loss on worthless stock
  • Partnership varying interest regulations now effective
  • Tax-related ID theft and tax data security issues continue to plague IRS
  • Flip or flop-a cautionary tale
  • Gain determined separately, not netted, for separately acquired blocks of stock
  • Leasing your office or building? Be mindful of this tax pitfall

International Tax

  • European Union anti-tax avoidance
  • Foreign pensions require withholding certificate to claim FIRPTA exemption

State and Local Tax

  • Delaware to shift to single sales factor apportionment
  • States beginning to respond to federal partnership changes

Source: RSM US LLP
Used with permission as a member of the McGladrey Alliance
http://rsmus.com/our-insights/newsletters/tax-digest.html

Disclaimer

As always, we hope you enjoy this edition of our newsletter and we look forward to receiving your feedback. Should you have any questions regarding the information contained in the attached materials or our service offerings, please contact us directly.

Tax Alert: IRS Makes it Easier for Small Businesses to Apply the Tangible Property Regulations to 2014 and Future Years

The IRS issued Revenue Procedure 2015-20 which makes it easier for small business owners to comply with the final tangible property regulations. The simplified procedures were requested by many small businesses and tax professionals. The simplified procedure is available beginning with the filing of the 2014 tax returns and allows small businesses to change a method of accounting under the final tangible property regulations on a prospective basis for the first taxable year beginning on or after Jan. 1, 2014. Furthermore, the IRS is waiving the requirement to complete and file a Form 3115 for small business taxpayers that choose to use this simplified procedure for 2014.

The new simplified procedure is generally available to small businesses, including sole proprietors, with assets totaling less than $10 million or average annual gross receipts totaling $10 million or less. The revenue procedure also requests comments on whether the $500 safe-harbor threshold should be raised for businesses that choose to deduct, rather than capitalize, certain capital expenses.

Although the new simplified procedures will be a welcomed relief for some small businesses, other taxpayers will find it beneficial to apply the final regulations and file Form(s) 3115 in order to dispose of or expense prior assets and potentially receive audit protection. Furthermore, correction of prior depreciation errors still require the filing of Form 3115.

If you would like more details about these changes or if you have additional questions, please do not hesitate to contact us.

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