Alerts & Bulletins
Last Chance for North Carolina 3J Credits
Does your business qualify for Article 3J Credits? Be aware that beginning with tax year 2014, various tax credits are scheduled to expire, including the Article 3J credits for growing businesses (jobs creation credit, business property investment credit, and the real property investment credit) that may be claimed against corporation franchise, personal and corporate income, and insurance gross premium taxes. In addition, the Tax Simplification and Reduction Act (H.B. 998) signed in July 2013 repealed a number of corporate tax credits, including tax credits relating to conservation, the construction of dwelling units for handicapped persons, real property donations, conservation tillage. Read More.
Virginia Increases Retail Sales and Use Tax Rates across the State
Are you subject to Virginia sales and use tax? Effective July 1, 2013, Virginia House Bill 2313 increased the statewide retail sales and use tax, as well as passing other tax changes. In June, the Virginia Department of Taxation (“Department”) issued guidance on this bill, and later published a Question and Answer Summary from its June 7, 2013, webinar. Details from the guidance are below. Rate Increases The statewide sales and use tax rate increased on July 1, 2013, as follows: The state portion of the sales and use tax rate increased to 4.3%, up from 4%. Meanwhile, the local. Read More.
Tax Considerations of IRS Revenue Ruling on Same-Sex Couples
On August 29th, the Internal Revenue Service (“IRS”) issued Revenue Ruling 2013-17, which provides that same-sex couples married in a state where their union is recognized will be treated as married for federal tax purposes, no matter their residence. As a result, hundreds of federal benefits have been made available to same-sex married couples, including income tax and estate planning advantages. The ruling was in response to the U.S. Supreme Court’s June 26 decision, which declared the definition of marriage in Section 3 of the Defense of Marriage Act (“DOMA”) unconstitutional. Since most federal regulations are written with opposite-sex married. Read More.
The New Data Collection Form & Clearinghouse Changes
The Data Collection Form (“DCF”) is a federal form that summarizes the results of audits performed under OMB Circular A-133. Heavily used by federal agencies, it is important that the DCF is accurate. Thus, the DCF is required to be updated at least every three years. The new DCF form will be applicable for audit periods ending in 2013, 2014 and 2015, and many significant changes are expected. We will not be able to submit the DCF for 2013 audits until the new form is finalized, which is expected by late November. OMB has granted an AUTOMATIC extension until December. Read More.
DFAS Payment May Slowdown Because of Government Shutdown
According to information provided to the Professional Services Council by the Defense Finance and Accounting Service (“DFAS”) in Columbus, Ohio, DFAS anticipates being fully staffed and able to process valid vendor invoices through approximately October 10th if the current lapse of appropriations (“shutdown”) should continue that long. However, beginning immediately, DFAS anticipates slowdowns due to government customers not being available to address pre-validation issues or provide the required receipt certifications. Thus, it is likely that you will see invoices “stuck” in pre-validation or in Wide Area Workflow (“WAWF”) waiting for those predicate actions. While DFAS will endeavor to keep the. Read More.
Shutdown Action – What You Need to Do Now!
Contract and Operations Planning It has been over 17 years since the federal government went through a “hard” shut down (when for twenty-seven days many federal workers were furloughed and agencies physically closed). The impact on contractors at that time was significant but nothing like it might be this year due to the Congress’ failure to pass a spending bill to keep the government funded past September 30th. The government’s dependence on contractors has changed the dynamics of the situation. Government employees that will continue to work during a government shutdown are those designated as “essential”: those employees involved in. Read More.
Final Tangible Property Regulations Released
If your business acquires, produces or improves tangible property, tax elections and accounting method changes may be on your horizon. Final tangible property regulations, recently released by the Internal Revenue Service (“IRS”), generally apply to taxable years beginning on or after January 1, 2014. The final regulations retain many of the provisions of the earlier temporary regulations issued in 2011, but modify and simplify certain rules and create new safe harbors. These final regulations contain rules for: Materials and supplies Repairs and maintenance Capital expenditures Amounts paid to acquire or produce of tangible property Amounts paid to improve tangible property. Read More.