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.

Audit & Accounting Update: September 2018

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.

Accounting

Proposed amendments to credit losses standard
On August 20, the FASB issued a proposal to amend the effective date of ASU 2016-13 for non-public business entities.

Changes to accounting for grants and contributions made and received
Our white paper will help financial statement preparers understand the clarifications made by FASB ASU 2018-08.

FASB proposes narrow-scope amendments to ASC 842
A recent FASB proposal addresses issues lessors sometimes encounter when implementing ASU 2016-02, Leases (Topic 842).

Two working drafts: Allowance for credit losses implementation issues
The AICPA Financial Reporting Executive Committee is requesting comment on two working drafts discussing ASU 2016-13 implementation issues.

Accounting guidance for long-duration insurance contracts
A recent ASU addresses long-duration insurance contracts, such as life insurance, disability income, long-term care and annuities.

Changes to fair value measurement disclosure requirements
Recently issued FASB ASU 2018-13 removes, modifies and adds certain disclosure requirements within ASC Topic 820.

Changes to disclosures for sponsors of defined benefit plans
ASU 2018-14 changes certain disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.

Accounting for costs of cloud computing implementation
ASU 2018-15 addresses the customer’s accounting for the costs of implementing a cloud computing service arrangement.

Changes to revenue recognition in the industrial products industry
Our white paper explains how FASB ASC 606 could significantly affect entities in the industrial products industry.

SEC

SEC disclosure update and simplification
The SEC recently amended certain disclosure requirements that have become redundant, outdated, overlapping or superseded.

Compliance guide: Amendments to smaller reporting company definition
A recent SEC compliance guide addresses matters related to a final SEC rule that amended the smaller reporting company definition.

aerial business computer

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: September 2018

Tax Reform
A closer look at the new pass-through deduction proposed regulations
Initial thoughts, observations and insights on several key areas of the new pass-through deduction proposed regulations.

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.

How to structure executive compensation in a competitive market
Effective executive compensation includes strategy, a mix of components and metrics closely aligned with the organization’s goals.

Ninth Circuit finds transferee liability in asset sale
Former shareholders found liable for tax from asset sale as transferees because the subsequent stock sale lacked economic substance.

 

Book on desk open with pen

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

Tax Update: August 2018

Tax Reform
U.S. tax reform international implications
RSM’s Ramon Camacho and Ayana Martinez discuss the TCJA and BEPS with BEPS Global Currents.
Estate planning subsequent to the enactment of tax reform
Estate planning strategies to help minimize future estate, gift and generation-skipping taxes for estates in excess of the exemption. This article explores tips and traps associated with estate planning strategies to consider.

Trending in Tax

Frequently asked questions on country-by-country reporting
A guide for multinational corporations regarding country-by-country reporting questions and base erosion profit shifting. These regulations are based on model legislation from the Organisation for Economic Co-operation and Development (OECD) and are part of the project addressing base erosion and profit shifting (BEPS).

Stock options and section 409A: Frequently asked questions
An explanation of the section 409A considerations that companies need to be aware of when issuing stock options.

Economic Insight 

The Real Economy: Volume 44
In this issue we discuss the growing risk to key industries and the middle market economy. The hit to the economy caused by the taxes on imports and exports will spread asymmetrically across the industrial ecosystems that make up the domestic economy. Based on our conversation with officials in Washington, it is apparent that the middle market will bear a disproportionate burden of adjustments from trade tariffs and should prepare accordingly.

 

two people with laptops, pencils, and paper, planning for tax reform international implications

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

Non-Profit Update: July/August 2018

New standards for nonprofits present their own challenges
New standards for nonprofit financial statements and revenue recognition will need to be implemented over the next two or three years.

How IT outsourcing strengthens security for nonprofits
The evolving complexity of strong cybersecurity underscores the value of an outsourcing partner dedicated to keeping cybercriminals out. It often requires just a series of emails to get senior finance executives to begin looking beyond their own IT departments to safeguard their businesses against cyber-hackers.

GDPR enforcement is here…is your organization prepared?
General Data Protection Regulation (GDPR) noncompliance could mean potentially significant fines and penalties. Organizations must know where they stand and how to react before it’s too late. The following infographic provides key insights into GDPR compliance requirements, helping your organization understand critical elements of the regulation.

Nonprofit tax reform resource center
The recently enacted Tax Cuts and Jobs Act has produced widespread tax law changes for exempt organizations. Learn more about the latest updates in our resource center. Our resource center features the latest in developments related to the potential effects of the new tax law for exempt organizations.

 

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 insights for non-profit organizations.

American Heart Association Recognizes Insero for Workplace Health Achievement

Scientific, evidence-based instrument rates and recognizes workplace health programs and workforce heart health

The results of the American Heart Association 2018 Workplace Health Achievement Index were announced today and Insero & Co. CPAs achieved Bronze level recognition for taking significant steps to build a culture of health in the workplace. A full-service public accounting firm, Insero & Co. CPAs has over 130 employees in five locations throughout New York State.

American Heart Association 2018 Workplace Health Achievement Bronze Level Recognition Badge

The American Heart Association created the Index with its CEO Roundtable members, a leadership collaborative of more than 40 CEOs from some of America’s largest companies who are committed to applying evidence-based approaches to improve their employees’ overall health. The Index uses science-based best practices to evaluate the overall quality and comprehensiveness of their workplace health programs. A unique feature of the Index is that it calculates an average heart health score for employees of participating companies that securely submit aggregate health data.

More than 1000 companies completed the Index assessment this year and, of those companies, 75% received either Gold, Silver, or Bronze recognition. Companies receive benchmarking reports, which allow them to identify potential areas of improvement so that they can advance their annual performance and recognition in the Index and help their workforce move toward ideal heart health.

“Insero is partnering with the American Heart Association to create a healthier lifestyle in and out of the workplace,” said Kristi Tarantelli, Recruiting & Employee Relations Specialist for Insero & Co. CPAs. “We are honored to receive Bronze level recognition in our first year of participation, as companies often only achieve completion status in their first year.”

“We see this as evidence of our commitment to wellness. Throughout the year our Wellness Committee is coming up with various initiatives to promote health and well-being including stress management, nutrition, physical activity, and education. In addition to participating in the Index, we also worked with the American Heart Association to launch indoor and outdoor walking paths to encourage our employees to stay active during the work day.”

Insero and the American Heart Association launch walking paths as part of workplace health initiative

The Association’s Workplace Health Achievement Index allows companies to measure the effectiveness of their workplace health programs as well as the overall heart health of their employees. Unlike other existing organizational scorecards, the Index also scores companies on the heart health of their employees based on Life’s Simple 7® – the Association’s scientifically validated definition of ideal heart health. The American Heart Association’s Workplace Health Achievement Index assessment is grounded in data-driven science and a quality improvement framework. According to the Nielsen 2016 Employee Health Survey, robust and comprehensive strategies for wellbeing are associated with positive impacts on employees’ health.

To learn more about working for Insero & Co. CPAs, visit our careers page.