WILLIAMS OVERMAN PIERCE ACCOUNTING NEWS


April 2018 Newsletter

In this issue:

  • What Tax Reform Means for Healthcare Entities: For-profit and Non-profit
  • Tips to Streamline Money Management in Retirement
  • Daily Habits of Successful Executives
  • Accountants Urge IRS for Clarity on Business Meals Deduction
  • and more!

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Important Notice from The NC Department of Revenue Sales and Use Tax Division

The NC Department of Revenue Sales and Use Tax Division has issued “Important Notice: Additional Information Regarding Real Property Contracts and Retail Sales of Repair, Maintenance, and Installation Services to Real Property”.

This notice includes a list which provides general guidance to assist with making a determination as to whether a transaction is a real property contract with respect to a capital improvement; subject to tax as a retail sale of repair, maintenance, and installation services; or exempt from sales and use tax.

Please contact your trusted advisor at Williams Overman Pierce if you have questions about the notice or about your specific situation.

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Tax Reform’s Impact on Individual Taxpayers

On December 22, 2017, President Donald J. Trump signed into law “An act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.” The bill is more commonly known as the, “Tax Cuts and Jobs Act,” and provides the most sweeping changes to the tax code since 1986. This alert will highlight the changes that are relevant for individual taxpayers.

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IRS Provides Insight for Long Term Capital Gain Treatment Under Section 1061

On Thursday, March 1, 2018, the Internal Revenue Service (IRS) issued Notice 2018-18 (the “Notice”) announcing the intention on the part of Treasury and the IRS to publish regulations on the application of Section 1061 of the Internal Revenue Code as enacted by the Tax Cuts and Jobs Act. The Notice announces that Treasury and the IRS intend that the forthcoming regulations will provide that the term “corporation” as used in Section 1061 does not include an S corporation.

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What Tax Reform Means for Healthcare Entities: For-profit & Non-profit

What Changes are Coming for Healthcare Companies? To help organizations navigate the issues most impactful and urgent to the healthcare industry, we’ve prepared a summary of the major implications based on the signed legislation.

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Using Forensic Accountants in Court

By Deborah Jackson, ADA, 27A; Michael H. Womble, Willams Overman Pierce, LLP

Embezzlement cases are becoming more prevalent in today’s society because of advancements in technology and the absence of oversight over employees with access to financial assets. Despite all of the electronic conveniences available to business owners today, many businesses become unsuspecting prey to employees who lose their fear of being discovered due to the lack of proper oversight and supervision.

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March 2018 Newsletter

In this issue:

  • What Tax Reform Means for Audit Committees
  • How to Address Problems that Lead to Turnover
  • 5 Types of Back Office Occupational Fraud, and How AI can Stop Them
  • Health Care Spending Projected at Nearly $5.7 Trillion in 2026
  • and more!

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Tax Reform is Here, So What’s Next for Nonprofits?

The Tax Cuts and Jobs Act, signed into law on December 22, marks the largest overhaul of U.S. tax policy in decades. What are the Changes for Nonprofit Organizations? Reviewing the 1,000-plus pages of the Act is a daunting task for nonprofits. To help organizations navigate the key provisions affecting nonprofits, we’ve summarized top considerations and implications below.

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Impact of the Tax Cuts and Jobs Act and the Bipartisan Budget Act of 2018 on North Carolina's Corporate and Individual Income Tax Returns

North Carolina’s corporate income tax law uses federal taxable income as the starting point in determining North Carolina taxable income. North Carolina’s individual income tax law uses federal adjusted gross income as the starting point in determining North Carolina taxable income.

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Top 10 Things Companies Need to Know About Tax Reform

The $1.5 trillion new tax law represents the most sweeping change to tax code in a generation. Tax reform of thismagnitude will have broad implications for businesses of all sizes and in all industries. While accountants and taxdepartments wade through the 185-page legislation, here are the top 10 things companies need to know:

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February 2018 Newsletter

In this issue:

  • New Tax Withholding Tables are Issued
  • Fall in PPI Hits Hopes for Inflation Growth
  • 20 Cities in the Running for Amazon HQ
  • How the Tax Law Changes Education Financing
  • and more!

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Non-Profit News: Winter 2018

In this issue:

  • Nonprofits: The New Kids on the Blockchain
  • IRS Issues 2018 Work Plan for Tax-Exempt Organizations
  • Year End Accounting Update Summary – What is On the Horizon?
  • What Organizations Should Do To Maintain Exemption and Public Charity Status
  • and more!

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Tax Cuts and Jobs Act of 2017

After months of intense negotiations, the President signed the “Tax Cuts And Jobs Act Of 2017” (the “New Law”) on December 22, 2017 - the most significant tax reform since 1986! It is no overstatement to say that this mammoth tax bill will have a significant impact on virtually every business and individual.

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Senate Passes its Version of Tax Reform Setting Stage for Conference Committee Action and Possible Enactment Before the New Year

In the very early hours of Saturday morning December 2, 2017, the Senate passed its version of proposed tax reform legislation, the “Tax Cuts and Jobs Act” 51-49, with Senator Bob Corker (Tenn.) as the only Republican voting against the bill. The House previously passed its own tax bill on November 16, 2017.

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December 2017 Newsletter

In this issue:

  • Senate Tax-Reform Bill Contains More Changes
  • How to Find the Best Talent in the Current Economic Climate
  • Goldman Economists Expect 4 Rate Hikes in 2018
  • Key Parts of Every Mentoring Relationship
  • and more!

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House Passes Tax Reform Bill; Senate Finance Committee Considers Bill of its Own

On November 9, 2017, the Senate Finance Committee released its version of proposed tax reform legislation, the “Tax Cuts and Jobs Act,” which the Committee is marking up this week. The House of Representatives passed its tax bill on November 16; however, the bill under consideration by the Senate Finance Committee differs in several respects, including individual tax rates, itemized deductions, retaining the estate and GST taxes, the timing of changes to the corporate tax rate, and pass-through tax rates.

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House Tax Bill Released

On November 2, 2017, the House of Representatives released a draft tax reform bill titled the “Tax Cuts and Jobs Act.” The bill would reduce individual and business tax rates, would modify or eliminate a variety of itemized deductions as well as repeal the estate and alternative minimum taxes, and would change the taxation of foreign income.

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New Proposed Regulations Address Signature Requirement for Section 754 Election

On October 11, 2017, Treasury issued proposed regulations (REG-116256-17) (Proposed Regulations) that would remove the signature requirement associated with making a section 754 election to adjust the basis of partnership property. The Proposed Regulations would reduce regulatory burdens by eliminating partnership relief requests for unsigned section 754 elections.

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November 2017 Newsletter

In this issue:

  • Study: RIAs on Track to Set M&A Record
  • How to Survive a Stock Market Downturn
  • Interest Rate Hike could be Coming, Minutes Show
  • Americans’ Financial Well-Being Reaches Record High
  • and more!

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Non-Profit News: Fall 2017

In this issue:

  • FASB Issues Exposure Draft on Accounting for Contributions Received and Contributions Made
  • IRS Revokes Hospital’s Tax-Exempt Status, Shedding Light on Section 501(r) Compliance Concerns
  • Obstacles Turned Opportunities in the Nonprofit Infrastructure
  • Critical Conversations Between Managers And Employees – Do We Have To?
  • and more!

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Breaking Down the Equifax Data Breach

Equifax, one of the “Big Three” credit reporting agencies, disclosed a massive data breach in a press release on Sept. 7—six weeks after the breach was discovered. Over the course of three months, hackers exploited a website application vulnerability to access the personal data of as many as 143 million Americans—nearly half the U.S. population.

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How Employers Can Assist Employees Who Are Victims of Hurricanes

In the case of a presidentially declared disaster, such as a hurricane, an employer has several opportunities to provide assistance to affected employees that have favorable tax treatment.

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NHL Team Prevails in Tax Case: Away from Home Meals are 100 Percent Deductible

The Boston Bruins case represents a potential (but not guaranteed) opportunity for employers outside of the sports industry to deduct 100 percent for meals provided to their employees far away from the business premises.

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IRS Confirms ACA Penalties Still Apply, So ACA Reporting on Forms 1094 and 1095 Continues Too

Amidst the White House and legislative activities aimed at repealing the Affordable Care Act (“ACA” or colloquially referred to as “Obamacare”), many employers are questioning whether the ACA penalties will be enforced for prior year violations and if its reporting requirements still apply to the current year. The IRS has recently confirmed that Obamacare continues to be the law of the land, taxpayers are required to follow the law, and the IRS will continue to enforce its provisions.

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August Recess and the State of Play on Tax Reform

On July 27, 2017, in the wake of the failure of any legislative changes to health care policy, Speaker Paul Ryan, Majority Leader Mitch McConnell, Treasury Secretary Steven Mnuchin, National Economic Council Director Gary Cohn, Senate Finance Chair Orrin Hatch, and House Ways and Means Chair Kevin Brady issued a joint statement on tax reform.

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October 2017 Newsletter

In this issue:

  • Program Helps Employers Offer Student Loan Repayment
  • State Tax Considerations for Foreign Companies with Inbound US Investments
  • CFOs Growing Role: Culture Champions
  • Hurricane Irma Victims get IRS Reprieve
  • and more!

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September 2017 Newsletter

In this issue:

  • A Dream Board Can Help Boost Your Career
  • Do You Have any Privacy Online at Work?
  • How Outstanding Leaders Differentiate Themselves
  • The Case Against DIY Human Resources
  • and more!

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Non-Profit News: Summer 2017

In this issue:

  • Three Critical Privacy Issues Every Nonprofit Entity Should Consider
  • So, You Want to Terminate Private Foundation Status and Become a Public Charity!
  • Board Governance: A Board Member’s Perspective
  • IRS Focused on Charitable Donation Substantiation Compliance
  • and more!

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North Carolina Legislature Overrides Governor’s Veto and Enacts Budget Bill – Corporate Rate Reduction and other Tax Changes

North Carolina has enacted a budget bill, S.B. 257, which, among other things, reduces the state’s corporate income tax rate from 3 percent to 2.5 percent, effective for taxable years beginning on or after January 1, 2019. The governor had vetoed the bill, but on June 28, 2017, the legislature overrode that veto. The budget bill also includes a franchise tax rate reduction for S corporations, a rate reduction and other changes for personal income tax, and other sales and use tax changes.

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August 2017 Newsletter

In this issue:

  • 6 Traits of Leading Finance Functions
  • What Proposed Regulations on the Fractions Rule Mean for Tax-Exempt Organizations
  • Microsoft Could Provide Early Test of New Lease Accounting Rules
  • Lawmakers Consider TIFIA Loan Program Expansion
  • and more!

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IRS Issues Clarifying Guidance on the PATH Act Changes to Section 179 and Bonus Depreciation

The Protecting Americans from Tax Hikes Act of 2015 (“PATH Act” or “The Act”) included amendments and changes to §§179, 168(k), and 168(j). The changes made in The Act are effective for property placed in service in taxable years beginning in 2016. A major impact of The Act is the creation of a new category of qualified property, called qualified improvement property, eligible for the additional first-year depreciation deduction (bonus depreciation)under §168(k).

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June 2017 Newsletter

In this issue:

  • Why Understanding Valuation Methods is Paramount to Success of Early-stage Health Tech Companies
  • Tax Court Decision Addresses Self-Employment Taxes of LLC Members
  • Tips to Manage Sustainability Risks and Drive Value
  • What Does Your Capital Deployment Say About Your Growth Expectations?
  • and more!

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Why Understanding Valuation Methods Is Paramount to Success of Early-stage Health Tech Companies

The healthcare industry is facing significant changes, not only in the practice of medicine, but also in the tools by which providers practice. Significant changes are also underway to the methods by which healthcare is paid for vis-a-vis value-based payment models. Technological advancements have opened the door to an era of digital medicine, an expanded environment for telemedicine and the increased use of robotics in patient care.

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Tax Court Decision Addresses Self-Employment Taxes of LLC Members

In Vincent J. Castigliola, et ux., et al. v. Commissioner, TC Memo 2017-62, the Tax Court held that the three members of a Mississippi Professional Limited Liability Company (“PLLC”) in the practice of law were subject to self-employment tax on their entire distributive share of the PLLC’s income, despite the fact that they received guaranteed payments commensurate with local legal salaries.

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Back to Basics: Why Adhering to Central Real Estate and Facilities Management Principles is Critical for Hospitals in Time of ACA Uncertainty

President Trump and the Republican leadership’s plan to repeal the Affordable Care Act (ACA) has created a climate of uncertainty across the healthcare industry, with direct impact on real estate and facilities healthcare operations.

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Automation In Manufacturing & Distribution: Are Job Cuts The Future?

We’re at the onset of the next big industrial revolution–and the widespread adoption of new technologies, including Internet-connected devices, machine learning and robotics in the manufacturing industry. Strides in automation have significantly boosted U.S. manufacturers’ output in recent years, and the industry is just beginning to understand and exploit the full potential of technology and disruptive supply chain models to reinvent manufacturing as we know it.

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Trump Administration Announces President's Outline for Tax Reform

On April 26, 2017, Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn announced President Donald Trump’s outline for individual and business tax reform, which includes new federal income tax rates and repeal of the estate tax.

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Technology's Post-Election Future: Spotlight on Trade & Immigration

As President Trump nears his 100-day mark, Silicon Valley has already experienced a whirlwind of political activity. Within the first three months, the president has implemented a flurry of “America first” policies that have elicited a myriad of reactions from the tech world—including Apple’s Tim Cook, Google’s Sundar Pichai and Uber’s Travis Kalanick, among others.

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May 2017 Newsletter

In this issue:

  • New Bridge Being Constructed on Outer Banks in N.C.
  • New CEOs: Look at Your Company Like an Outsider
  • How Slow Internet Speeds Affect Finance Departments
  • 7 Things Great Bosses Tell Their Employees Every Single Day
  • and more!

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Non-Profit News: Spring 2017

In this issue:

  • Building a Resilient Organization – A Toolkit for Nonprofit Boards to Manage Transformational Change
  • Public Charities and Private Foundations – What's the Difference?
  • Accounting and Financial Reporting for Other Postemployment Benefit Plans
  • Supporting Organizations Could Be Putting Their Charity Designation at Risk
  • and more!

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April 2017 Newsletter

In this issue:

  • Does Your Company Need a Czar of Bad Systems?
  • Arbitration Program Suggested to Speed Up Infrastructure Construction
  • Why "Complete ERM” is a Myth
  • Tactics for Communicating Effectively with Your Boss
  • and more!

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Real Estate News

In this issue:

  • Cybersecurity: A Business Threat for Contractors
  • REIT IPO Watch: 2017 Progress Report
  • Effects of Potential Tax Reform on the Real Estate Industry
  • and more!

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News Archive

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