WILLIAMS OVERMAN PIERCE ACCOUNTING NEWS


May 2020 Newsletter

In This Issue:

  • Due to COVID-19, Manufacturing Will Experience Five Years of Innovation in the Next 18 Months
  • COVID Tax Tip 2020-59
  • What To Do With Your Stimulus Check
  • Telemedicine Company Doctor on Demand Bets on Coronavirus Changes With Big Medicare Push
  • Staff News
  • Leadership Spotlight: Ashley Bolick

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SBA and Treasury Release Paycheck Protection Program Loan Forgiveness Application

Washington — Friday, May 15, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, released the Paycheck Protection Program (PPP) Loan Forgiveness Application and detailed instructions for the application. The form and instructions inform borrowers how to apply for forgiveness of their PPP loans, consistent with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). SBA will also soon issue regulations and guidance to further assist borrowers as they complete their applications, and to provide lenders with guidance on their responsibilities. 

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SBA Announces Safe Harbor for PPP Borrowers with Loans for Less Than $2M

Today, the SBA published Frequently Asked Question ("FAQ") 46, which provides some answers for PPP borrowers who are concerned about the good faith certification. Following the recent announcement that the Small Business Administration would review any Paycheck Protection Program loans made in amounts exceeding $2 million, the agency today issued guidance extending an automatic safe harbor to borrowers receiving PPP loans with an original principal amount of less than $2 million. These borrowers “will be deemed to have made the required certification concerning the necessity of the loan request in good faith,” SBA said in updates to its PPP FAQ today. 

Borrowers that received PPP loans for amounts over $2 million will be subject to review by the SBA for compliance with program requirements, including the certification of economic need. “If SBA determines in the course of its review that a borrower lacked an adequate basis for the required certification concerning the necessity of the loan request, SBA will seek repayment of the outstanding PPP loan balance and will inform the lender that the borrower is not eligible for loan forgiveness,” SBA said.

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Service Disallows Tax Deductions For Eligible PPP Expenditures

On April 30, the IRS issued Notice 2020-32 providing guidance regarding the deductibility for federal income tax purposes of certain otherwise deductible expenses incurred in a taxpayer’s trade or business when the taxpayer receives a loan (covered loan) pursuant to the Paycheck Protection Program (PPP).

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Federal Reserve Announces Main Street Business Lending Program as Part of Additional Actions to Provide Economic Aid

On April 9, the Federal Reserve announced additional actions it will take to provide up to $2.3 trillion in loans to support the U.S. economy. The Federal Reserve believes this funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

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COVID-19’s Impact on U.S. Retirement Plans

Business leaders face an array of questions they need to answer and information they must analyze during the rapidly evolving response to the COVID-19 pandemic.

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Paycheck Protection Program Loans Frequently Asked Questions (FAQs)
Courtesy of the US Department of the Treasury

As of April 7, 2020, the Small Business Administration (SBA), in consultation with the Department of the Treasury, intends to provide timely additional guidance to address borrower and lender questions concerning the implementation of the Paycheck Protection Program (PPP), established by section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act or the Act). This document will be updated on a regular basis.

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How does the CARES Act Help Nonprofits and Higher Education Institutions?

Nonprofit organizations and higher education institutions have been hard at work trying to help the world navigate the novel coronavirus (COVID-19) pandemic. While trying to maintain focus on their missions, these organizations and institutions face massive uncertainty in the face of COVID-19, including financial turmoil, layoffs, remote work, quarantines, shelter-in-place orders and other measures.

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April 2020 Newsletter

In This Issue:

  • New Retirement Account Rules in Response to Coronavirus
  • Electronic Payments Look More Appealing as People Fear Cash Could Spread Coronavirus
  • What to Do With Your 401(k) When You Retire
  • Parents Who Adopt Can Benefit From This Valuable Tax Credit
  • Meet Our Wilmington Office Staff
  • Leadership Spotlight: Michael H. Womble, CPA

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North Carolina Leaders Announce Shared Support for Deferring Interest on Income Tax Until July 15

Raleigh, N.C. – North Carolina leaders announced shared bipartisan support for deferring the accrual of interest on state income taxes filed before July 15, 2020, in a joint statement released by General Assembly lawmakers and Governor Cooper on Tuesday, March 31, 2020.

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CARES Act: Employee Retention Credit

After days of furious negotiations, Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The $2.2 trillion price tag for tax relief and incentives for individuals and businesses makes it the most expensive piece of legislation ever passed. It includes a provision for a refundable payroll tax credit for 50 percent of wages paid by employers to employees during the COVID-19 crisis.

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Coronavirus Emergency Loans Small Business Guide and Checklist 
COURTESY US CHAMBER OF COMMERCE

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.

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President Trump Signs Into Law Cares Act

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provides relief to taxpayers affected by the novel coronavirus (COVID-19). The CARES Act is the third round of federal government aid related to COVID-19. We have summarized the top provisions in the new legislation below, with more detailed alerts on individual provisions to follow.

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Important Notice: Department of Revenue Extends the Time to File Income and Franchise Tax Returns to July 15, 2020

The N.C. Department of Revenue (NCDOR) recently announced that they will extend the April 15 tax filing deadline to July 15 for individual, corporate, and franchise taxes to mirror the announced deadline change from the Internal Revenue Service.

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Tax Day Now July 15: Treasury, IRS Extend Filing Deadline and Federal Tax Payments Regardless of Amount Owed

The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

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IRS Releases COVID-19 Payment Relief

On March 18, 2020, the Internal Revenue Service released Notice 2020-17, formal guidance describing relief provided to taxpayers for federal income tax payments due April 15, 2020. Notice 2020-17 is available here.

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Federal Aid Package Helps Individuals Affected By COVID-19

The Families First Coronavirus Response Act (H.R. 6201), became law on March 18, 2020. The Act guarantees free testing for the novel coronavirus (COVID-19), establishes emergency paid sick leave, expands family and medical leave, enhances unemployment insurance, expands food security initiatives, and increases federal Medicaid funding.

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Spring 2020 Nonprofit Newsletter

In This Issue:

  • Coronavirus Strikes Nonprofits in More Ways than One

    Now present on every continent except Antarctica, COVID-19 has infected more than 125,000 people, and is responsible for more than 4,600 deaths. With the number of cases in the U.S. continuing to climb, individuals and companies alike are taking steps to prepare for a pandemic. From a shortage of masks and hand sanitizer, to CDC-imposed travel restrictions and the cancellation of conferences and other large events across the globe, this public health emergency is rapidly evolving and all sectors are having to navigate its impact and uncertainty around what the future holds.  

    The nonprofit industry is no exception—in fact, they face more challenges than most.

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February 2020 Newsletter

In This Issue:

  • New Rules for Deducting Meals and Entertainment
  • Final Section 263A Regulations
  • IRS Proposes Rules to Update Income Tax Withholding, Revises Form W-4
  • Are you interested in joining an energetic, growth-oriented firm?
  • Staff News
  • Leadership Spotlight: MaryEllen Prance, CPA

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Final Section 263A Regulations: What Companies Need to Know

What is Section 263A? Section 263A, often referred to as the Uniform Capitalization rules or UNICAP, requires taxpayers to capitalize direct and indirect costs properly allocable to real or tangible personal property produced or acquired for resale by the taxpayer. For example, manufacturers, resellers and distributors of inventory generally must undertake an analysis every tax year to determine which costs must be capitalized, rather than currently expensed, under Section 263A. The costs that must be capitalized for tax purposes typically exceed the amounts capitalized for financial accounting purposes. Accordingly, many taxpayers must capitalize “additional Section 263A” costs to property acquired or produced as an unfavorable temporary book/tax adjustment (i.e., an addback to taxable income).

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January 2020 Newsletter

In This Issue:

  • Williams Overman Pierce, LLP + Barker Jones & Co.
  • Williams Overman Pierce Is Pleased to Announce That Dan Lavelle Has Been Admitted as Its Newest Partner
  • Williams Overman Pierce Staff Promotions

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Special Treatment for Two-Percent Shareholders and Changes Under TCJA

Fringe benefits are defined as a form of pay for performance of services given by a company to its employees as a benefit and must be included in an employee's pay unless specifically excluded by law. Please note the actual value of the fringe benefits provided must be determined prior to December 31 in order to allow for the timely withholding and depositing of payroll taxes. In this article, you will find information regarding the identification and tax reporting for several fringe benefits that are customarily provided.

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December 2019 Newsletter

In This Issue:

  • Cybersecurity in 2020: Top Ten Predictions and Recommendations
  • Get Ready for Taxes: What to Do Now Before the Tax Year Ends  
  • Window for Opportunity Zones Is Narrowing 
  • Spotlight: Jon Howard, CPA

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Cybersecurity in 2020: Top Ten Predictions and Recommendations

The World We Live In!  According to EY’s 2018-2019 Global Information Security Survey, over 6.4 billion fake emails are sent everyday by nation-state cyber-attack groups, criminal cyber-attack groups, and hackers worldwide. This results in the theft of over 2 billion private identities and $3.5 billion in cyber damages daily.  

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Window for Opportunity Zones Is Narrowing

As the end of 2019 approaches, so does the deadline to receive specific tax benefits for Opportunity Zone investments. 

 Congress created the Opportunity Zone program as part of 2017 tax reform, also known as the Tax Cuts and Jobs Act of 2017 (P.L. 115-97). Opportunity zones are census tracts in low-income communities across the country that have been identified for preferential tax treatment: Investment in these communities, through what is called a Qualified Opportunity Fund (QOF), could result in permanent exemption of up to 100% of capital gains taxes. For private equity investors and asset managers looking for certain capital gains deferrals, the deadline to invest and receive all of the tax incentives is December 31, 2019. 

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Winter 2019 Non-Profit Newsletter

In this Issue:

  • Power of Real-Time Insights to Improve Donor Communications
  • GASB Proposes Guidance to Address the Phaseout of Interbank Offered Rates
  • FASB Issues Proposed Standard Related to Reference Rate Reform
  • Tax Exempt & Government Entities Division Releases 2020 Program Letter
  • Vet or Forget? The Case for Background Checks for Nonprofit Board Members
  • Test Your Cyber Systems in 7 Steps
  • What Plan Sponsors Need to Know About DOL Enforcement and Red Flags

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November 2019 Newsletter

In This Issue:

  • Taxation of Employees’ Personal Use of Company Vehicles Simplified by New IRS Regulations  
  • 2020 Cost-of-Living Adjustments for Qualified Retirement Plans 
  • Nonprofit Heart, Business Mindset Mission-Driven Growth
  • Errors That Can Be Costly for Small Businesses Leadership 
  • Spotlight: Brian Schepperley

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Taxation of Employees’ Personal Use of Company Vehicles Simplified by New IRS Regulations

Personal use of a company vehicle generally results in taxable wages for the employee. But sorting out the amount to tax can be confusing. The following provides a high-level summary of the Internal Revenue Services’ (IRS) current rules for taxing employees for their personal use of a company vehicle. 

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Nonprofit Heart, Business Mindset Mission-Driven Growth

In business and economics, the concept of supply and demand is simple. Supply will rise or fall to meet demand, and the price of a service or commodity adjusts accordingly. But in the nonprofit world, it’s not so easy. Demand for nonprofit services is ever-increasing, and supply depends on more than market opportunity and on more than the intention of the mission.  

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2020 Cost-of-Living Adjustments for Qualified Retirement Plans

The Internal Revenue Service (IRS) and the Social Security Administration (SSA) have each announced 2020 cost-of-living adjustments (COLA). The IRS adjustments increased annual compensation amounts and limits for elective deferrals as well as catch-up contribution limits for age 50+ employees, but other catch-up contribution limits remain unchanged. Those receiving Social Security and Supplemental Security Income benefits will receive a 1.6 percent increase in benefits effective January 2020. The SSA also announced an increase in the taxable wage base (that is, the maximum amount of earnings subject to Social Security tax) for 2020. The table below highlights selected IRS COLA amounts for 2020 and prior years as well as the SSA taxable wage base amounts for similar periods. 

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October 2019 Newsletter

In This Issue:

  • When Nonprofits Need to Register in Multiple States
  • DOL and IRS Encourage Workplace Retirement Savings for Smaller Employers by Expanding Availability of Multiple Employer Plans
  • For Best Results, Start Your Strategic Planning Early
  • Take Advantage of the Gift Tax Exclusion Rules
  • Leadership Spotlight: Hannah Milewski, CPA

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When Nonprofits Need to Register in Multiple States

Many not-for-profit organizations use fundraising methods that cross state boundaries. If your nonprofit is one of them, it may need to register in multiple jurisdictions. But keep in mind that registration requirements vary — sometimes dramatically — from state to state. So be sure to determine your obligations before you invest time and money in registering. 

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Take Advantage of the Gift Tax Exclusion Rules

As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For 2019, the exclusion is $15,000. 

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For Best Results, Start Your Strategic Planning Early

Time flies when you’re having fun — and running a business. Although it’s probably too early to start chilling a bottle of bubbly for New Year’s Eve, it’s certainly not too early for business owners to start doing some strategic planning for next year. Here are some ways to get started. 

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DOL and IRS Encourage Workplace Retirement Savings for Smaller Employers by Expanding Availability of Multiple Employer Plans

A multiple employer plan (MEP) allows employees of unrelated private-sector employers to participate in a single tax-qualified retirement plan sponsored by an employer group or association or a professional employer organization (PEO). Generally, joining an MEP is an efficient way to reduce the cost of establishing and maintaining a broad-based retirement plan that is subject to the Employee Retirement  Income Security Act of 1974 (ERISA) by using a common plan administrator and pooled investments. 

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Fall 2019 Non-Profit Newsletter

In this Issue:

  • Governmental Accounting Standards Board Statement No. 91, Conduit Debt Obligations
  • Don’t Turn Your Back on CECL
  • FASB Proposes Delayed Effective Dates of Certain Standards
  • 1 Year After Wayfair: What Nonprofits Need to Know
  • Maximizing Good: 3 Steps to Meeting Your Nonprofit’s Potential
  • Challenges With Gifts-In-Kind
  • Gift Acceptance Policy

This and more...

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September 2019 Newsletter

In This Issue:

  • Why Plan Sponsors Should Read Their Service Providers’ SOC Reports
  • Proposed Income Recognition Regulations Provide Clarity for Accrual Method Taxpayers
  • Regulations Clarify Bonus Depreciation Treatment
  • A Roadmap for Preventing Construction Disputes
  • Leadership Spotlight: Gwen Vass

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A Roadmap for Preventing Construction Disputes

Whether resolved through mediation, arbitration or trial, construction disputes can be costly and time consuming for both project owners and contractors. Construction disputes may involve just a few thousand dollars or may be valued in the billions. The time required to resolve disputes may span years, and cripple both the contractor’s and owner’s financial resources. To eliminate the risk of being embroiled in a costly construction dispute, some construction firms may not bid certain types of projects and avoid working for owners who have a reputation for contentious relationships with contractors.

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Proposed Income Recognition Regulations Provide Clarity for Accrual Method Taxpayers

On September 5, 2019, the IRS and Treasury released proposed regulations addressing the timing of income recognition for accrual method taxpayers under Sections 451(b) and 451(c), as amended by the 2017 tax reform bill known as the Tax Cuts and Jobs Act (TCJA). These eagerly-anticipated regulations provide additional clarity for taxpayers by adding applicability and definitional guidance in several areas, as well as addressing key interactions with ASC 606 (the new revenue recognition standard for financial reporting purposes).

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Eight Key Tax Planning Opportunities for 2019

More than a year after sweeping federal and state tax reform were enacted, businesses of all sizes are still wrapping their arms around the changes. Additional guidance and regulations have been issued nearly every month—indeed, change is the new normal. Strategic tax planning now is key to lowering businesses’ total tax liability. Read on for eight top planning opportunities and considerations businesses should review as part of their 2019 strategy.

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August 2019 Newsletter

In This Issue:

  • What Is the SECURE Act?
  • Breaking Down the Basics of HSAs
  • IRS Automatically Waives Estimated Tax Penalty for Eligible 2018 Tax Filers
  • 3 Biggest Disruptors in the Construction Industry of the Future
  • Alimony Tax Gap Swells to $3.2 Billion, TIGTA Finds
  • Amber Milby Receives Her CPA License

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Summer 2019 Non-Profit Newsletter

In this Issue:

  • Top 10 Trends in the Nonprofit Industry
  • FASB Issues ASU 2019-03, Updating the Definition of Collections
  • From Idea to Impact: 4 Fundamental Elements for Sustainability
  • Don't be a CF-NO: How Nonprofit CFOs Can Collaborate with Senior Leadership

This and more...

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July 2019 Newsletter

In This Issue:

  • Tips for Taxpayers Who Make Money From a Hobby
  • Final Rules Permit Truncated TINs on W-2s
  • IRS Form 5329: Reporting Taxes on Retirement Plans
  • Employers: Let Us Help With Your Employee Benefit Plans
  • The Construction Industry’s Impact

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June 2019 Newsletter

In this issue:

  • IRS Releases New Draft Form W-4 to Help Taxpayers Avoid Withholding Surprises
  • Hiring This Summer? You May Qualify for a Valuable Tax Credit
  • Associations: Avoid Certain Activities to Preserve Tax-Exempt Status
  • Donating Your Vehicle to Charity May Not Be a Taxwise Decision
  • IRS Reminder: Tax Scams Continue Year-Round

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Associations: Avoid Certain Activities to Preserve Tax-Exempt Status

Nonprofit trade associations exist to promote their members’ common interests and improve business conditions or “one or more lines of interest.” Whether the association is a local chamber of commerce, a real estate board or a large professional group, associations’ tax-exempt status is contingent on their sponsoring certain types of activities — and avoiding others. When they fail to do so, the IRS may take action.

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Hiring This Summer? You May Qualify for a Valuable Tax Credit.

Is your business hiring this summer? If the employees come from certain “targeted groups,” you may be eligible for the Work Opportunity Tax Credit (WOTC). This includes youth whom you bring in this summer for two or three months. The maximum credit employers can claim is $2,400 to $9,600 for each eligible employee.

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May 2019 Newsletter

In this issue:

  • Employee Vs. Independent Contractor: How Should You Handle Worker Classification?
  • IRS Highlights Credits and Deductions for Small Businesses
  • 10 Important Ages for Retirement Planning
  • Plug in Tax Savings for Electric Vehicles
  • Prepare for the Worst with a Business Turnaround Strategy 

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Prepare for the Worst With a Business Turnaround Strategy

Many businesses have a life cycle that, as life cycles tend to do, concludes with a period of decline and failure. Often, the demise of a company is driven by internal factors — such as weak financial oversight, lack of management consensus or one-person rule.

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Employee Vs. Independent Contractor:  How Should You Handle Worker Classification?

Many employers prefer to classify workers as independent contractors to lower costs, even if it means having less control over a worker’s day-to-day activities. But the government is on the lookout for businesses that classify workers as independent contractors simply to reduce taxes or avoid their employee benefit obligations.

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April 2019 Newsletter

In this issue:

  • MaryEllen Prance to Assume Partner In Charge Role
  • Why You Should Run Your Nonprofit Like a Business
  • Seniors: Medicare Premiums could Lower Your Tax Bill
  • Divorcing Business Owners Need to Pay Attention to Tax Implications
  • Understanding How Taxes Factor Into an M&A Transaction

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Seniors: Medicare Premiums Could Lower Your Tax Bill

Americans who are 65 and older qualify for basic Medicare insurance, and they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But one aspect of paying premiums might be positive: If you qualify, they may help lower your tax bill.

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Divorcing Business Owners Need to Pay Attention to Tax Implications

If you’re getting a divorce, you know it’s a highly stressful time. But if you’re a business owner, tax issues can complicate matters even more. Your business ownership interest is one of your biggest personal assets and your marital property will include all or part of it.

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Employers May Soon Receive Notices About Mismatched Names and Social Security Numbers on 2018 Form W-2’s

The Social Security Administration (SSA) recently announced that it is mailing “Employer Correction Request Notices”to employers and third-party submitters with at least one 2018 Form W-2 where the name and Social Security number (SSN)do not match the SSA’s records. The notice informs the employer that corrections are needed. 

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March 2019 Newsletter

In this issue: 

  • In Memory of Rick Dodson 
  • Helping Participants Understand Tax Diversification Strategies for Retirement 
  • Eight Key Tax Planning Opportunities for 2019 
  • The Top Three 2019 Tax Numbers Employees Should Know 

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February 2019 Newsletter

In this issue:

  • How Employers Can Calculate Nondeductible Employee Parking Expenses, and Possibly Reduce them by March 31, 2019 
  • Top 10 Property Tax Myths 
  • New Rules for Business Annual Report Filings 
  • Labor Department Proposes Auto-Transfer Plan 

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New Rules for Business Annual Report Filings

Effective January 1, 2019, all business annual reports must be filed directly with the North Carolina Secretary of State. Tax preparers are no longer permitted to complete the annual reports on behalf of their clients, requiring the entities to prepare and file the annual reports directly online through the Secretary of State website. 

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Why Plan Sponsors Should Read Their Service Providers' SOC Reports

When a plan sponsor hires a service provider, that organization and its professionals become part of the team operating the client’s retirement plan. Each member of the team is expected to perform a specific task according to what is prescribed in the plan document. But how do you know whether each service provider has effective systems and controls in place to ensure that they are executing their roles correctly?

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North Carolina DOR Responds to SCOTUS Ruling in Kaestner

On June 21, 2019, the Supreme Court of the United States issued a unanimous opinion finding that North Carolina’s imposition of an income tax on trusts based solely on the residence of a trust’s beneficiaries is unconstitutional. North Carolina Department of Revenue v. Kimberley Rice Kaestner 1992 Family Trust, No. 18-457. The North Carolina Department of Revenue has since issued a notice advising taxpayers who believe they are entitled to a refund under the Kaestner decision.

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Donating Your Vehicle to Charity May Not Be a Tax-wise Decision

Let’s say you’re buying a new car and want to get rid of your old one. Among your options are trading in the vehicle to the dealer, selling it yourself or donating it to charity.

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The Chances of IRS Audit Are Down But You Should Still Be Prepared

The IRS just released its audit statistics for the 2018 fiscal year, and fewer taxpayers had their returns examined as compared with prior years. However, even though a small percentage of tax returns are being chosen for audit these days, that will be little consolation if yours is one of them.

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Plug in Tax Savings for Electric Vehicles

While the number of plug-in electric vehicles (EVs) is still small compared with other cars on the road, it’s growing — especially in certain parts of the country. If you’re interested in purchasing an electric or hybrid vehicle, you may be eligible for a federal income tax credit of up to $7,500 (depending on where you live, there may also be state breaks and other incentives).

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Spring 2019 Non-Profit Newsletter

In this Issue:

  • IRS Answers Many Questions on New 21% Executive Compensation Tax
  • The Uniform Guidance – Five Years and Counting
  • GASB Simplifies Accounting For Capitalized Interest
  • Guidance Released on Taxable Income From Parking and Other Fringe Benefits
  • Lessons Learned From Implementing ASU 2016-14 – Functional Expenses

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Understanding How Taxes Factor Into an M&A Transaction

Merger and acquisition activity has been brisk in recent years. If your business is considering merging with or acquiring another business, it’s important to understand how the transaction will be taxed under current law.

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Why You Should Run Your Nonprofit Like a Business

It’s a well-known truism in the corporate world: Organizations that don’t evolve run the risk of becoming obsolete. But instead of anticipating and reacting to market demands like their for-profit counterparts, many not-for-profits hold on to old ideas about how their organizations should be run. Here are a few things your nonprofit can learn from the business world.

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Helping Participants Understand Tax Diversification Strategies for Retirement

Diversification is an important principle of risk management when it comes to saving for retirement. While many investors understand the benefits of spreading their risk exposure across asset classes in their portfolios, many don’t realize that diversifying their tax exposure can have benefits in terms of managing cash flow in retirement.

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Top 10 Property Tax Myths

Nearly all local taxing jurisdictions, including municipalities, counties, and boards of education, generate tax revenue through the imposition of property tax, which is one of the most substantial sources of local government revenue. For many businesses, property tax is the largest state and local tax obligation, and one of the largest regular operating expenses incurred.

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Non-Profit News: Winter 2018

In this issue:

  • Impact of Wayfair Supreme Court Decision on Nonprofit Organizations
  • TE/GE’s Program Letter Provides Projects and Priorities for 2019 
  • Does Your Information Governance Program Look Like an Abandoned Fairground?

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Exempt Organizations Should be Mindful of Changes Effective January 1, 2018 from the Tax Cuts & Jobs Act

Some areas of consideration are:

  • Employee Compensation in Excess of $1 million
  • Transportation Fringe Benefits
  • Gifts
  • Tickets for college athletic events

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Some of Your Deductions May Be Smaller (Or Nonexistent) When You File Your 2018 Tax Return

While the Tax Cuts and Jobs Act (TCJA) reduces most income tax rates and expands some tax breaks, it limits or eliminates several itemized deductions that have been valuable to many individual taxpayers. This article discusses five deductions you may see shrink or disappear when you file your 2018 income tax return.

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What to Expect from the IRS as the Government Shutdown Continues

Due to the lapse in appropriations that began midnight December 22, 2018, the federal government is in its fourth week of a partial shutdown, which includes much of the Internal Revenue Service (IRS). Although tens of thousands of IRS employees have been recalled, the IRS is working with a skeleton staff at about 60% capacity. While we expect the IRS to be handling some matters and investigations, there are many more visible functions that are generally suspended during the closure.

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Labor Department Proposes Auto-Transfer Plan for Small 401(K) Accounts

Each year, nearly 15 million American workers change jobs, with many leaving their 401(k) accounts behind. The Department of Labor (DOL) is trying to relieve this headache for plan sponsors and keep employee accounts more complete by proposing a rule that would transfer retirement balances left behind to participants’ 401(k) plans at their new employers.

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How Employers Can Calculate Nondeductible Employee Parking Expenses, and Possibly Reduce them by March 31, 2019

Employer business deductions for qualified transportation fringes ended in 2018. The 2017 tax reform known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, amended Sec. 274(a)(4) by eliminating employer business deductions for employee1 qualified transportation fringe (QTF) benefit expenses, including qualified parking2, mass transit and van pool benefits (although such benefits continue to be excluded from employee income).

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