Reminder! FBAR Must be Received Electronically by June 30th | New Penalties in Place
Introduced in September 2013 by the Financial Crimes Enforcement Network (“FinCEN”), Form 114, Report of Foreign Bank and Financial Accounts (FBAR), is required to be filed by Tuesday, June 30, 2015. Please note, this Form supersedes Form TD 90-22.1. If you are a U.S. person (i.e., a U.S. individual or U.S. entity) with a financial interest in or signature authority over one or more foreign financial accounts with an aggregate value that surpassed $10,000 at any time during the past calendar year, it is important that you are aware of the recent FBAR filing requirement changes. E-Filing Requirement for Form. Read More.
How Secure is Your Identity?
And what is the IRS doing to protect your identity? For 2014 tax returns, the Internal Revenue Service (“IRS”) is utilizing a filtering system for flagging certain tax returns as “suspicious” and pausing the processing of these returns until additional identity verification is received. If your tax return is flagged, you will receive a written request (Letter 5071C) to answer additional questions to confirm you are the correct taxpayer for that return. To answer the questions, you have the option of calling a toll-free telephone number, or visiting idverify.irs.gov . Due to high call volume, the IRS highly recommends using the. Read More.
TPR UPDATE: IRS Eases Compliance Requirements; Last Chance for Accelerated Deductions
If your business owns significant tangible personal or real property, it is very likely that your tax situation will be affected by the Tangible Property Regulations (TPR). As your tax filing deadline approaches, please consider the following TPR updates from the Cherry Bekaert Accounting Methods and Credits Team. Small Business TPR Relief On Friday, February 13, 2015, the IRS released Revenue Procedure 2015-20, offering eligible small business taxpayers a simplified process to implement the accounting method changes to adopt the final tangible property regulations. For qualifying taxpayers, the regulations would be applied on a “cut-off” basis beginning on the first day. Read More.
Virginia Supreme Court Rules on Important BPOL Case
For almost 200 years, the Business, Professional and Occupational License (BPOL) tax has been a major source of funding for many counties and cities throughout Virginia. As a gross receipts-based tax, the BPOL is regressive in nature; a business that is sustaining significant losses is still subject to the tax. Far from being simple, a multi-state business with numerous locations must address a number of complexities in calculating its BPOL tax liability. The Virginia Supreme Court recently reversed and remanded a decision by the Arlington County Circuit Court which limited certain taxpayers from deducting out-of-state receipts from their gross receipts. Read More.
Government Provides Relief for Certain Healthcare Penalties
If you are a “small employer” who reimburses employees for health insurance premiums, or a 2% S corporation shareholder who is reimbursed for health insurance premiums, then recently released IRS guidance provides you valuable relief from potential excise taxes. For 2014 and through June 30, 2015, small employers can continue these reimbursements or payments directly to an insurance provider for individual coverage without incurring an annual excise tax of $100 per day, per person. Additionally, until 2016 or the release of future guidance, whichever comes later, 2% S corporation shareholders can continue the reimbursements or payments without incurring the excise. Read More.
Danish Meherally Article Featured in Global Tax Weekly
In the February 12, 2015, edition (Issue 118) of Wolters Kluwer’s Global Tax Weekly, Cherry Bekaert International Tax Associate Danish Meherally contributes one of the issue’s featured articles, “Willfulness and the Offshore Voluntary Disclosure Program v. The Streamlined Procedures: The Most Important of Decisions”. Per his article, Meherally examines the role willfulness plays in the Internal Revenue Service’s offshore voluntary disclosure program and Streamline procedure for reporting compliance. Providing guidance on willfulness, Meherally references the outcome of a 2012 case in which a taxpayer failed to report interests in two foreign bank accounts. Meherally’s complete article can be viewed in PDF. Read More.
Transition Relief to Retroactively Claim Work Opportunity Tax Credits (WOTCs)
Did your business experience significant hiring growth during 2014? Is your business in a high turnover industry? If you can answer yes to either of these questions, significant opportunities may exist to generate federal and possible state tax credits related to hiring new employees. Work Opportunity Tax Credits (WOTCs) are federal tax credits resulting from hiring individuals from certain targeted groups (veterans, Temporary Assistance for Needy Families, food stamp recipients, etc.). These credits range from $2,400 to $9,600 per qualified hire, depending on the targeted group. Certain state tax credits may also apply. WOTCs have been in existence for many. Read More.