Federal Tax Compliance
Commercial Item Disclosures
Long exempt from application of many FAR sections, including many cost and price disclosures, commercial pricing has come under heavy scrutiny over the past year and a half. In October 2010, FAR 15.4 was changed to augment the government’s ability to obtain cost or price data on all federal contracts, including contracts which were previously exempt from such disclosure requirements. In the year plus period following the change to FAR 15.4, contractors are now finding governmental requests for data other than certified cost or pricing data for procurements which never had been subject to such requirements, such as procurements for commercial items. Previously, market competition was thought. Read More.
Repeal of 3% Withholding Signed into Law, Includes Tax Incentives for Hiring Veterans
On November 21, 2011, President Obama signed into law the Three Percent Withholding Repeal and Job Creation Act, or H.R. 674 (hereafter, “the Act”). This new legislation repeals a controversial law that would have required federal, state and local government entities with total annual expenditures of $100 million or more to withhold three percent of certain payments for goods and services to government contractors and vendors. The Act also expands the Work Opportunity Tax Credit (“WOTC”) by creating the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit to encourage employers to hire unemployed and disabled veterans. Withholding Relief. Read More.
New Law Repeals 3% Withholding for Contractors, Expands WOTC Tax Incentives for Hiring Veterans
On November 21, 2011, President Obama signed into law the Three Percent Withholding Repeal and Job Creation Act, or H.R. 674 (hereafter, “the Act”). This new legislation repeals a controversial law that would have required federal, state and local government entities with total annual expenditures of $100 million or more to withhold three percent of certain payments for goods and services to government contractors and vendors. The Act also expands the Work Opportunity Tax Credit (“WOTC”) by creating the Returning Heroes Tax Credit and the Wounded Warriors Tax Credit to encourage employers to hire unemployed and disabled veterans. Withholding Relief. Read More.
FASB Votes to Create More Judgment Before Goodwill Impairment Testing
The Financial Accounting Standards Board ( FASB ) has recently approved a revision to its goodwill impairment testing guidance to simplify how an entity tests goodwill for impairment. You can use the new approach immediately. Current guidance requires an entity to test goodwill for impairment on an annual basis at a minimum. Testing requires the entity to compare the fair value of a reporting unit with its carrying amount, which is more commonly known as Step One. If the fair value of a reporting unit is less than its carrying amount, then the second step involves measuring the amount of the. Read More.
Deadline Nearing for 2011 Offshore Voluntary Disclosure Initiative
On February 8, 2011, the IRS announced that it was implementing a 2011 Offshore Voluntary Disclosure Initiative (“OVDI”) modeled after the 2009 OVDI (although the terms of the 2011 OVDI are less favorable) for those taxpayers with unreported income or other missed filings related to offshore accounts or investments. The 2011 OVDI established an original deadline of August 31, 2011 for taxpayers to enter the program and remit all required filings. Due to Hurricane Irene, the deadline has been extended to September 9, 2011. Like the 15,000 offshore account owners who came forward under the first program, those seeking leniency. Read More.
CB&H’s Bill Becker to Speak on 1099-MISC Issues for 2011
William F. Becker, Jr. , a Tax Partner with Cherry, Bekaert & Holland, L.L.P. (CB&H) will speak at an upcoming two-hour webcast entitled “1099- MISC Issues for 2011: What You Need to Know.” This event is scheduled for Tuesday, October 25, 2011 at 12:00 PM – 2:00 PM (ET). 2010-2011 proved to be a tumultuous year for taxpayers especially in the area of 1099 reporting requirements. Although the passing of the Comprehensive 1099 Taxpayer Protection and Replacement of Exchange Subsidy Overpayments Act of 2011 nullified some of the thorniest issues, companies, small businesses, and individuals need to understand the new 1099 requirements left over to stay ahead of the penalty curve. Join us as we discuss: Update on all things 1099 for 2011 and beyond Impact of the repealed 1099-MISC reporting requirements. Read More.