Alerts & Bulletins
IRS Issues Final Employer Mandate Regulations with Transition Relief
On February 10, 2014, the IRS issued the Final Regulations on Shared Responsibility for Employers Regarding Health Coverage (employer mandate). The final regulations address a variety of issues and offer additional transition relief beyond 2014 to certain employers who would otherwise be subject to the employer mandate beginning in 2015. In general, the transition relief provides the following: Smaller employers (those with 50-99 full-time equivalent employees on business days during 2014) will generally not be subject to assessable penalties until the first day of the plan year beginning in 2016. However, the employer must certify that it does not (a) reduce the size of its workforce or the overall hours. Read More.
Insights & Implications: Regulators Issue FAQs Impacting Various ACA Provisions
INSIGHTS On January 9, 2014 the Departments of Treasury, Health & Human Services and Labor (the “Departments”) issued Frequently Asked Questions About Affordable Care Act Implementation (Part XVIII) and Mental Health Parity Implementation . These FAQs address a variety of issues such as preventive services, cost-sharing limitations, wellness plans, expatriate plans, indemnity insurance and identify which small group plans are now impacted by the Mental Health Parity and Addiction Equity Act of 2008 (MHPAEA) (previously applicable only to large fully insured and self-funded group health plans with more than 50 employees). IMPLICATIONS The Departments have been using the FAQ technique as a method to offer clarity and to issue sub-regulatory guidance on a variety of Affordable Care Act (ACA) implementation issues. Employers and plan sponsors. Read More.
FASB Permits Private Companies to Amortize Goodwill
Summary On Thursday, January 16th, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-02, Intangibles—Goodwill and Other (Topic 350): Accounting for Goodwill (a consensus of the Private Company Council). This ASU simplifies accounting for private companies in the area of goodwill by permitting goodwill amortization. The effective date is annual periods beginning after December 15, 2014; however, early adoption is permitted, including for financial statements have not yet been made available for issuance. Background The Private Company Council (“PCC”; “the Council”) was established in 2012 to create alternatives within generally accepted accounting principles (“GAAP”) for private. Read More.
Action Required By December 31st to Comply with Final Tangible Property Regulations – De Minimis Expensing Safe Harbor Rules
In September 2013, the U.S. Treasury issued final regulations regarding the capitalization and expensing rules for the costs to acquire, produce or improve tangible property. These regulations contain a favorable de minimis expensing safe harbor for costs that meet certain requirements. To benefit from the safe harbor rules, you are required to have a written non-tax accounting policy in place before the first day of the tax year beginning in 2014 (i.e. January 1, 2014, for December 31, 2013, year-end taxpayers). Further, you are required to be following such procedures for non-tax purposes. De Minimis Safe Harbor Rules Overview The. Read More.
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.
Pass-Through Entity Tax Affecting for Business Valuations
By: Rudolf P. Armbruster, ASA, CVA The issue of tax affecting the earnings of pass-through entities such as S corporations, general partnerships, limited partnerships or limited liability companies is a debated issue in the business valuation community. In general, well-known business valuation authorities including Shannon Pratt, Christopher Mercer and Roger Grabowski all agree that there is no definitive answer to the treatment of pass-through entities in all cases. The tax affecting issue has been argued in the following four Tax Court cases: Gross v. Commissioner, T.C. Memo. 19999-254, affd. 272 F. 3d. 333 (6th Cir. 2001) Wall v. Commissioner, T.C. Memo. 2001-75, filed March 27,. Read More.
Working Capital – Issues Beyond Solvency
By: C. Brett Cooper, CPA·ABV, ASA, BVAL, Cr.FA Working capital is vital to the success of all businesses. It brings the requisite capital to provide the sustenance to maintain operations and allow for the growth of a business. The term is an abbreviated version of the more proper financial and accounting expression, “Net Working Capital”. Net Working Capital is the amount of liquid assets available to a business and calculated by subtracting current liabilities from current assets. Some financial references define working capital as the current assets of a business. The Finance Dictionary defines it as the difference between current assets and current liabilities. Suffice it. Read More.