Made in the USA: Does What You Do Qualify for a Tax Deduction?

Uncle Sam rewards companies that engage in MPGE (manufactured, produced, grown, or extracted) activities in the U.S. And the kinds of goods, services, and activities that qualify under this MPGE category are broader than you might think at first. Created through the American Jobs Creation Act of 2004, the Domestic Production Activities Deduction (“DPAD”) is a permanent deduction under IRC §199(a). It’s equal to 9% of either the taxpayer’s qualified production activities income (“QPAI”) for the taxable year or the taxpayer’s taxable income for the taxable year, whichever is less. Besides being limited to the lesser of QPAI or taxable. Read More.

Federal Contractors Now Subject to 15 “Basic Safeguarding” Cybersecurity Requirements – Are You Ready?

By Neal W. Beggan, CISA, CRMA, CRISC Cherry Bekaert LLP Risk Advisory Services Nearly four years following an initial ruling on IT security and data classification proposed by the combined efforts of the Department of Defense (DoD), NASA, and General Services Administration (GSA) comes a revised ruling tailored more towards the future of Federal contracts. On June 15, 2016, a new set of cybersecurity measures were enforced in order for contractors and consultants across a wide span of industries be able to better attain the “basic safeguarding” of their systems that house, process, and export the newly established classification of. Read More.

401(k) Plan Sponsors Sued

The current edition of Cherry Bekaert Benefits Consulting’s (“CBBC”) Insights & Implications discusses the recent lawsuit involving a company-sponsored 401(k) profit sharing plan. The defendants in the case are being accused of selecting high-cost investment options over the available lower-cost options, and for not actively monitoring the fees and costs associated with their service provider. Read more in the CBBC’s June 2016 Insights & Implications alert.

Transition Relief to Retroactively Claim Work Opportunity Tax Credits

Work Opportunity Tax Credits (“WOTCs”) are federal tax credits that are available to your business if you hire individuals from certain targeted groups, including veterans, food stamp recipients, recipients of Temporary Assistance for Needy Families, and individuals who have been unemployed for more than 26 weeks. The credits you may receive range from $1,200 to $9,600 per qualified hire, depending on the targeted group. Certain state tax credits may also apply. WOTCs can be used to offset your regular or alternative minimum tax. However, before claiming a credit, you must generally screen employees on or before the date of hire,. Read More.

Foreign Assets Reporting with Form 8938: What It Is and Who Should File

Failing to report foreign assets can earn you huge penalties – $10,000 and more – as the government continues to scrutinize companies and individuals hiding assets abroad to evade taxes. But sometimes, failing to report foreign assets is simply a matter of not knowing that you were supposed to report or not knowing what form to use. A lot of people know about the Form 114, Report of Foreign Bank and Financial Accounts (“FBAR”) , but did you know you may also be required to file another, newer form? We’re talking about Form 8938, Statement of Specified Foreign Financial Assets. Failure to file it can yield stiff penalties of $10,000. Read More.

Big Changes Will Affect How, When You Report Your Foreign Assets

Do you have assets outside the U.S.? It’s becoming more common these days for people and businesses to have economic ties to other countries as the global economy grows and becomes more interconnected. But with these ties come additional reporting requirements, as the government tries to clamp down on tax evasion. And the penalties for not complying with these reporting requirements are incredibly high. If you have financial accounts overseas, you may be required to file Form 114, Report of Foreign Bank and Financial Accounts (“FBAR”) and/or Form 8938, Statement of Specified Foreign Financial Assets .  You may also need to file other forms to report interest in. Read More.

Reduce Your Property Taxes with a Better Understanding of How Obsolescence Works

Do you think your assets have to be completely unusable, abandoned, or destroyed before you can claim obsolescence to reduce your property tax bill? Think again. Most business owners think obsolescence means when something isn’t in use or isn’t capable of use. It can also include anything that inhibits the use of an operating asset or real property. However, the real definition of obsolescence (at least for tax purposes) has more nuances. For example, obsolescence can actually include a building that is simply underutilized. It doesn’t have to be ruined or abandoned. Without fully understanding all the scenarios that can. Read More.

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