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.

What We Know So Far about Latest Tax Plan

The Unified Framework for Tax Reform was released on September 27, 2017. This framework represents a joint effort by members of the Trump Administration (Treasury Secretary Steven Mnuchin and National Economic Council Director Gary Cohn) and Congressional leadership (the chairmen of the House Committee on Ways and Means and the Senate Committee on Finance, the Speaker of the House and the Senate Majority Leader). It marks the beginning of the arduous process of significantly overhauling the Internal Revenue Code (“IRC”) for the first time since 1986. Despite the involvement of the Congressional committee chairs in developing the framework, it leaves almost all details for the. Read More.

How Employers and Employees Can Give Disaster Assistance – and the Tax Breaks that Go with It

After any major disaster, either natural or man-made, it’s hard to stand by and watch. When you see people whose homes have been destroyed and whose lives have been uprooted, it’s a natural response to want to help. As an employer, you may feel an urge to help your employees get back on their feet faster. Not only is it a nice thing to do – the sooner your employees get resettled after a disaster, the sooner they can shift their attention back to work. Whatever your motivation, when you give assistance to your employees, there can be tax benefits. Read More.

Florida and Georgia Eligible for Disaster Tax Relief

Taxpayers in Florida and Georgia who were affected by Hurricane Irma have now been granted tax deadline extensions. Most tax filing and payment deadlines have been moved to January 31, 2018. The extension includes any individual and corporate taxpayers with deadlines and payments due on or after the Florida start date (September 4, 2017) or the Georgia start date (September 7, 2017) and before January 31, 2018. This includes, but is not limited to, deadlines for: Taxpayers who already had a valid extension to file their 2016 returns by September 15, 2017, (corporate) or October 16, 2017 (individual) Quarterly estimated. Read More.

Virginia Approves Tax Amnesty Program for Businesses and Individuals

On September 5, 2017, the Virginia Department of Revenue (“VDR”) provided guidelines regarding how you can reap the benefits of its new Tax Amnesty Program. This program was authorized by Virginia’s General Assembly earlier in the year and waives all penalties and 50 percent of interest on a participant’s balance due. The program will run from September 13, 2017, to November 14, 2017, giving taxpayers just over two months to take advantage of this program and get a fresh tax start. Most liabilities that qualified for the program and are unpaid at the end of the amnesty period will be. Read More.

Protecting Yourself after the Large Equifax Hack

Cyber criminals have stolen 143 million credit records from Equifax, one of the three largest credit-reporting bureaus in North America. That means that your personal identifiable information (“PII”) – and that of millions of other people – may have been compromised. This includes your social security number, home addresses (past and present), and even your mother’s maiden name. Hackers can use this information to pretend to be you and open up credit lines in your name. They can also use it to pass themselves off as legitimate individuals or businesses and trick you into giving them sensitive information, such as. Read More.

Recovery Resources for 2017 Hurricane Season: Harvey and Irma

UPDATED September 20, 2017: The Internal Revenue Service (“IRS”) has announced that it will extend disaster tax relief to the entire state of Georgia , including the extension of filing and payment deadlines. The deadline extensions parallel relief given to Florida victims of Hurricane Irma, extending most filing and payment deadlines to January 31, 2018. For links to more resources, including the FEMA Georgia disaster declaration and the full IRS statement, please refer to the resource links at the end of this article. UPDATED September 18, 2017: The Florida Department of Revenue has announced that the due date for tax returns and estimated payments have been extended to February 15, 2018. The Internal Revenue. Read More.

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