Reduce Your Personal Property Taxes by Focusing on What Your Company Capitalizes
At most companies, paying personal property taxes is simply a fact of life. Your taxes go up as you acquire property and drop as that property depreciates. If the equipment and other property on your books are overvalued, however, you are almost certainly paying too much tax. While each company faces different tax challenges, you can utilize a number of strategies to reduce your company’s property taxes. Intangible Costs When you purchase new equipment, ask your vendor to provide an itemized bill that details the tangible and intangible costs. In some jurisdictions, you may not owe property tax on the. Read More.
Identity Theft from a Tax Perspective
“It won’t happen to me…” “My information is under lock and key…” “That sort of thing only happens to other people…” Identity theft has become a multi-billion dollar racket to which more and more people are falling prey. It’s big business for the criminals who seek to steal your identity for profit. From 2008 to 2013, the number of identity theft-related crimes investigated by the Federal Bureau of Investigation (“FBI”) resulted in more than 1,600 convictions, $78.6 billion in restitutions, $4.6 billion in recoveries, and $6.8 billion in fines. The purpose of this post is to focus exclusively on tax-related. Read More.
Department of Defense Attempts to Mitigate the Effects of Multiple Compensation Caps
Over the last few years, Congress has changed the law regarding contractor compensation twice. First, Section 803 of the 2012 National Defense Authorization Act (NDAA), P.L. 112-81, expanded the executive compensation cap found in Federal Acquisition Regulation (FAR) 31.105-6(p) to all compensation costs charged to Department of Defense (“DoD”) contracts. This expansion was to be implemented in the FAR within 180 days after enactment of the NDAA, and “shall apply with respect to costs of compensation incurred after January 1, 2012, under [DoD] contracts entered into before, on, or after the date of the enactment of this Act.” Despite that. Read More.
DCAA Issues Revised Guidance on Billing Oversights
On September 26, 2014, the Defense Contract Audit Agency (“DCAA”) issued Memorandum for Regional Directors (MRD) 14-PPS-017(R) , “Guidance on Revised Policies and Procedures for Billing Oversight”. The MRD provides additional procedures for DCAA to follow when determining risk and provides streamlined consistency in public voucher approval. As a result of the guidance, contractors may begin to see changes in how DCAA is reviewing vouchers on a real-time basis. Whether or not this will save you face time (and phone time) with your auditors is yet to be seen. For contractors previously on the Direct Bill program, the MRD clarifies that the Direct Bill program no. Read More.
Universal ID System for Government Contracts Coming by 2017
In a move that seems to have garnered little attention so far, a final rule in the Federal Register was issued which calls for a government-wide system of creating unique identifiers for contract numbers. What started as a recommendation of the Government Accountability and Transparency Board has now become reality – the Federal Acquisition Regulation (FAR) Subpart 4.16–Unique Procurement Instrument Identifiers, details the requirements and deadlines for compliance. To be in place no later than October 1, 2017, all federal agencies which issue financial transactions (procurements, grants, contracts, and finance) are required to comply. The reason for implementing this new. Read More.
Do the New Expanded Compensation Caps Establish the Reasonableness of Compensation?
Section 702 of the Bi-Partisan Budget Act of 2012 (BBA) amended 10 U.S.C. §2324(e)(1)(P) and 41 U.S.C. §4304(a)(16) provide that: The following costs are not allowable under a covered contract: Costs of compensation of contractor and subcontractor employees for a fiscal year, regardless of the contract funding source, to the extent that such compensation exceeds $487,000 per year, adjusted annually to reflect the change in the Employment Cost Index for all workers, as calculated by the Bureau of Labor Statistics. The statute was implemented in Federal Acquisition Regulation (FAR) 31.205-6(p)(3). We have become aware that some contractors are interpreting §702. Read More.