Tax Update: April 2019

Trending in Tax

Wayfair, sales tax, and economic presence laws
Economic sales and use tax nexus laws are gaining momentum as states make a direct challenge to traditional physical presence standards.

District Court decision uploads imposition of willful FBAR penalty
Court imposes substantial “willful” penalty for failure to file FBAR where taxpayer fails to consult tax advisor regarding foreign account.

Structuring deals in the era of TCJA and BEPS
Legislation relating to the Base Erosion and Profit Shifting (BEPS) Action Items has resulted in expanded tax due diligence engagements.

Top tax considerations for manufacturers in 2019
Tax planning in an evolving marketplace can be challenging. What are the top tax issues and new rules that manufacturers should focus on?

man point to a printed chart with computer and calendar out

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

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Audit & Accounting Update: April 2019

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 financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition for federal government contractors
We recently published a white paper to assist federal government contractors in understanding the guidance in ASC 606.

Proposed changes to disclosure requirements for income taxes
If finalized, a recent proposed Accounting Standards Update would modify the current disclosure requirements for income taxes.

ASC 842: Lessee transition
We have published a white paper to assist lessees in identifying and understanding the applicable transition guidance in ASC 842.

Treatment of cumulative dividends on preferred stock
Our article addresses questions often raised regarding how and when cumulative dividends should be recognized on preferred stock.

FASB updates the definition of “collections”
Collection-holding entities should be aware of a change to the definition of “collections” and new required disclosures.

Critical audit matters: PCAOB guidance
The PCAOB recently issued guidance related to the requirement for auditors to communicate critical audit matters.

Amendments to modernize and simplify Regulation S-K
The SEC recently issued amendments to modernize and simplify some of the disclosure requirements in Regulation S-K.

 

patrons at an art gallery as the FASB updates the definition of collections for nonprofits, museums

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

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 2019

Trending in Tax

U.S. Supreme Court to hear Kaestner trust tax nexus case
High court to decide whether in-state beneficiary of nonresident trust is sufficient for the Due Process Clause. The U.S. Supreme Court will revisit state tax nexus for the second year in a row after granting North Carolina’s petition for certiorari in North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust.

Opportunity zone investors can’t forget about local tax incentives
To make opportunity zone projects financially viable, developers need to consider state and local tax credits beyond QOZ incentives. Numerous programs offer developers tax abatements, deferrals and incentives in the same economically distressed areas as QOZs. These extra incentives will make opportunity zone projects more attractive to investors and may bring new capital deeper into the areas that need it most.

New election may provide enhanced interest deduction to multinationals
Special election in new interest regulation may benefit CFCs. The Tax Cuts and Jobs Act (TCJA) enacted a limit on the deductibility of business interest expense (the section 163(j) limitation).

What US companies need to know about Making Tax Digital
US companies with VAT obligations in the United Kingdom should understand and prepare to comply with Making Tax Digital. The transition to Making Tax Digital represents one of the most fundamental changes to the United Kingdom (UK) tax system in a generation.

Supreme Court of the United States to hear Kaestner tax nexus case

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

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Audit & Accounting Update: February 2019

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 financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Changes to revenue recognition in the consumer products industry
We have published a white paper to assist consumer products entities in understanding the new revenue recognition guidance.

Private company accounting for common control arrangements
Our white paper provides insights on private company accounting for variable interest entities under common control.

Business combinations: In motion
Our summary highlights standard-setting activities that affect the content in our Guide to Accounting for Business Combinations.

Market volatility: Consideration of goodwill impairment
Reminder: a significant drop in share price could be a triggering event for the consideration of the impairment of goodwill.

FASB proposes targeted transition relief for CECL
The FASB proposes to allow the option of measuring certain types of assets within the scope of Subtopic 326 at fair value.

 

computer, phone and pens on a desk

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

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 2019

Tax Reform

Final regs highlight actions for taxpayers using 20 percent deduction
Critical action items taxpayers need to take.


Trending in Tax

Tax issues arise when employers pay employee business travel expenses
Business travel arrangements require employers to carefully analyze and determine proper tax treatment for employees.

Why we call it business transition planning
What is the secret to a successful business succession and transition for owners? It starts with a sound plan.

The gift tax exemption coast is clear. Time to go back into the water?
Knowing that there will be no loss of the benefit of using the higher exemption before 2026, we consider some ways and means of using it.

writing in note pad and calculator out

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

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Audit & Accounting Update: January 2019

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 financial reporting insights. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

FASB Staff Q&A document: Estimating credit loss reserves
A FASB Staff Q&A addresses use of the WARM method to estimate credit loss reserves for less complex financial asset pools.

ASC 606: Disclosure checklists for public and nonpublic entities
Our disclosure checklists are intended to assist entities in complying with the FASB’s revenue-related disclosure requirements.

Monitoring inflation when applying ASC 830
The CAQ International Practices Task Force has developed a framework that may be helpful in monitoring inflation statistics.

FASB issues narrow-scope amendments to ASC 842
The FASB has addressed three issues lessors sometimes encounter in applying Accounting Standards Codification Topic 842, “Leases.”

Proposed Codification improvements for lessors
The FASB has proposed guidance for two issues lessors sometimes encounter in applying Accounting Standards Codification Topic 842.

Proposed accounting alternatives for not-for-profit entities
The FASB has proposed accounting alternatives for not-for-profit entities for goodwill and certain identifiable intangible assets.

consulting with one another using a calculator

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

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: January 2019

Tax Reform

New year, new law, new challenges
Complexity of the Tax Cuts and Jobs Act and technology delays at the IRS may force taxpayers to extend filings. At a minimum, taxpayers should be prepared to extend and file their returns later in the year, even if they have previously filed by the March or April 15 deadlines. Taxpayers should consult their tax adviser and make a plan to address the appropriate timing and additional steps necessary to file their 2018 returns.


Trending in Tax

Tax reform’s impact on business and professional services firms
Business and professional services firms face challenges due to tax reform, but there are opportunities to maximize the benefits, too.

Post-Wayfair misconceptions and technology companies
The Wayfair decision doesn’t just affect online retailers. Technology businesses must address resulting state sales taxes, too.

Tax deduction for pharmaceutical drug inventory
Enhanced tax deduction may be available for drug inventory contributions made to certain charitable organizations.

Nonqualified deferred compensation plan FAQs for employers
When setting up or managing nonqualified deferred compensation plans, employers should consider several key questions.

 

tax preparer typing on computer and using calculator

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

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 as well as updates pertaining to the Tax Cuts and Jobs Act. We hope that you find these informative and useful, and invite you to reach out to us if you have any questions.

Insero Names New Tax Partner

Insero & Co. CPAs has announced that Douglas D. Stark has been admitted as a partner in the firm’s Tax Department based in Rochester. He joins Insero with over 35 years of diversified tax and accounting experience serving privately-held businesses, family offices and high net worth individuals.

His areas of specialization include tax and estate planning, business acquisitions and divestitures, family office services, succession planning and wealth transfer strategies. Stark began his career at Deloitte & Touche, where he eventually became partner before making the move to private industry. He has a broad base of diversified business experience working with startups through late stage multi-generational businesses and their owners.

Douglas Stark, Tax Partner at Insero & Co. CPAs

“Doug has a wealth of knowledge to share and our clients will see a great benefit from his return to public accounting,” said Nancy Catarisano, Managing Partner of Insero & Co. CPAs. “With our firm’s growth and the increasing complexities associated with changes in tax law, we are glad to have Doug on our team.”

Stark is a graduate of Houghton College, where he earned a Bachelor of Science in Business Administration and the Rochester Institute of Technology where he received a Master of Science in Accounting.

Rochester-based Insero & Co. CPAs is an accounting and business advisory practice with five locations serving New York state. A full-service public accounting firm, Insero provides attest, tax and consulting services to government agencies, colleges and universities, non-profit organizations and businesses ranging from privately held family businesses to multi-national corporations. These clients represent many industries, including service, manufacturing, distribution, high-tech, telecommunications, education, social services and real estate. For more information, visit www.inserocpa.com.

Nonprofit Update: December 2018

Foundations for Board Governance
Looking to increase the effectiveness of your nonprofit’s board? RSM’s guide highlights common problems and practical solutions related to board governance.

The evolving role of outsourcing within nonprofit organizations
Adjusting existing outsourcing strategies can help streamline service delivery and further increase efficiency and productivity.

Phishing awareness: Recognizing, addressing and avoiding threats
Phishing is one of the most common and most successful forms of cyberattack. Learn how to recognize the warning signs of potential phishing.

IRS issues guidance for determining UBTI for separate businesses
The IRS issued Notice 2018-67, providing interim and transition rules for determining UBTI for separate trades or businesses.
Read more.

Recorded webcast: Annual tax update webcast for nonprofit organizations
Learn about the current tax landscape for exempt organizations as well as look ahead to 2019.
View the webcast.

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. This includes regular updates on the latest insights for nonprofit organizations.