Survey Reveals Innovative Businesses Are Missing out on Tax Incentives

Many businesses large and small are missing out on “free money” from government sources – money that could fund their innovation and expansion efforts – according to the 2017 Washington Business Journal Metro DC Poll Innovation Survey, just released in September 2017. In this same survey, when asked what are their top barriers to innovation, 26 percent of respondents said financial resources (or the lack thereof), making it the second highest barrier in the survey. If having the financial resources to fund innovation, development and expansion is such a huge issue for businesses throughout the D.C. metro area (including areas. Read More.

All Defined Benefit Plans are NOT Created Equal

Frustrated by the limitations of cash balance plans? Worried about the risks associated with cash balance plans? Consider a Direct Recognition Variable Investment Plan (DR-VIP) from Cherry Beakert Benefits Consulting and reap the benefits. Plan Features DR-VIP Cash Balance Plans Maximum Contribution Per Person $300,000 +/- $300,000 +/- Tax Deductible Contributions Tax Deferred Accumulations Contribution Certainty Optional Auto-Adjust Contributions No Underfunding Liability No Overfunding Direct Recognition No Crediting Limitations Daily Valuation Fully Automated Would you like to: Maximize partner benefits? Minimize additional staff costs? Eliminate underfunding risk? Maximize investment flexibility? See how it works by viewing this short case study . For more. Read More.

How Data Transforms the CFO from a “No” Person to an “Answer” Person

There was a time when the CFO in any given company would have the reputation of being the “no” person. Like a stern but loving parent only looking out for a child’s best interest, the CFO’s job was to say, “No,” when marketing wanted more money or the R&D department needed funds to test some crazy new idea. It was the financially responsible thing to do. And, the CFO would always make sure you knew that it wasn’t that he or she liked to say, “No.” It was that the future stability of the company hinged on frugality and fiscal. Read More.

IRS Gives Estates a Second Chance at Portability

If you have become a widow or widower since December 31, 2010, or if you were made an executor of the estate of someone who died after that date, a Revenue Procedure (“Rev. Proc.”) issued by the IRS can significantly reduce future taxes. Rev. Proc. 2017-34 allows certain estates to make a late portability election if an election wasn’t made on time. What Is Portability and What Changed? In the simplest terms, portability means that if the estate of a deceased person doesn’t use his or her full exemption from federal Transfer (Estate and Gift) Taxes, the surviving spouse can. Read More.

Make Up to $310k in Retirement Contributions

Year-End Benefits Review Time? Cherry Bekaert Benefits Consulting can design a plan proven to maximize benefits and minimize risk. As you review your year-end benefits, we urge you to consider a Direct Recognition Variable Investment Plan (DR-VIP). What’s so great about a DR-VIP? Allows participants to contribute up to $310,000 each year; Provides unlimited investment options that are tax deferred and safe from creditors; Eliminates the risk of underfunding; and Approved by the IRS ( read how IRS used DR-VIPs to set the standard ). The Direct Recognition Variable Investment Plan does what other plan options cannot do: Optimizes retirement benefits for key employees, owners, and even partners Minimizes additional. Read More.

Highlights from Newly Passed Disaster Relief Act and Other Relief Provisions

The Disaster Tax Relief and Airport and Airway Extension Act of 2017 (“Disaster Tax Relief Act” or “Act”), which President Donald Trump signed into law on September 29, 2017, contains a wide range of practical, common sense provisions meant to help victims of Hurricanes Harvey, Irma and Maria. Taking a high altitude look at the goals of this Act, the Disaster Relief Act aims to: Encourage charitable giving for hurricane ravaged areas Help individuals tap into retirement savings without penalty and claim larger deductions for uncompensated hurricane-related losses Aid businesses that continued to pay employees although they had to close. Read More.

IRS: Taxpayers Can Use Financial Statements to Prove Expenses for R&D Tax Credit

The Internal Revenue Service (“IRS”) issued new guidance intended to make it easier for large business and international (“LB&I”) taxpayers to calculate their qualified research expenses (“QREs”) when claiming a research credit under Internal Revenue Code (“IRC”) Section 41. At the same time, it’s also meant to reduce the burden on LB&I examiners when analyzing and verifying QRE amounts. The IRS put out a summary of the directive in a news release on September 22, 2017 (IR-2017-158). The IRS directive, “ Guidance for Allowance of the Credit for Increasing Research Activities under I.R.C. Section 41 for Taxpayers that Expense Research and Development Costs on their Financial Statements pursuant to ASC 730 ,” which was issued on September 11, 2017, instructs LB&I examiners to accept certain financial statements of LB&I taxpayers as evidence of their QREs, as long as. Read More.

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