Newly Released Drafts Help Businesses Prepare for Revamped R&D Credit

Qualifying businesses can now use the research and development (“R&D”) tax credit to offset up to $250,000 of the Social Security portion of their payroll taxes, thanks to the Protecting Americans from Tax Hikes Act of 2015 (“PATH Act”). The PATH Act not only made the R&D credit permanent and retroactive to January 1, 2015 – it also expanded the credit so that qualified small businesses (typically start-ups) can reduce their payroll taxes by taking advantage of the R&D credit. The PATH Act also makes it possible for eligible small businesses to offset their entire Alternative Minimum Tax (“AMT”) liabilities. Read More.

Do New IRS Rules Put Employers with Healthcare Opt-out Provisions at Risk?

Employers that pay employees to opt out of company-sponsored healthcare plans will likely feel the impact of the Internal Revenue Service’s (“IRS”) latest notice of proposed rulemaking (“NPRM”). The NPRM addresses how to calculate health insurance opt-out provisions with respect to the Affordable Care Act. Final rules could be issued later this year, and the requirements are expected to be effective for plan years beginning on and after January 1, 2017. Read more on the NPRM in Cherry Bekaert Benefits Consulting’s July 2016 Health & Benefits Update .

September Deadlines to File Property Tax Appeals in Florida

Are you one of the many Florida businesses that have been hit with increases in your assessed property values? Or a rise in real estate tax rates? Or both? Well, you still have a chance to lower your property tax bill. The deadlines for appealing the assessed value of your property are coming up in September for most of Florida. There may be ways to show that your property has been overvalued by your local city or county. Do you have space anywhere on your property that isn’t used? Have changes in your area decreased the value of your property?. Read More.

Sweeping Changes to How Employers Report Group Health Plan Info

Changes could be on the way for the reporting requirements of Form 5500. The Department of Labor is proposing that employers provide additional details on their group health plans. Additionally, all employers with group health plans, including those currently exempt from filing Form 5500, may soon be required to file. Read more on the proposed changes in the August 2016 Health & Benefits Update by Cherry Bekaert Benefits Consulting .

Temp Regs for IRC 50(d)—Income Inclusion

Do you rent your office space or home from someone else? Do you get to enjoy the benefits of any of these investment property credits without owning property, thanks to an arrangement with the property owner: Rehabilitation credit Energy credit Qualifying advanced coal project credit Qualifying gasification project credit Qualifying advanced energy project credit Qualifying therapeutic discovery credit Sometimes, a lessor will let a lessee claim credits like these as their own – something commonly referred to as a pass-through investment credit arrangement. And it’s been a great arrangement for many entities for a long time. If an owner can’t. Read More.

Estate Planning Options Might Get More Expensive for Family-Owned Businesses

If transferring shares of a family-owned entity plays any role in your estate planning, you may want to think about making those transfers sooner rather than later. That’s because the Internal Revenue Service (“IRS”) released new proposed regulations under Internal Revenue Code (“IRC”) § 2704. These regulations will limit certain valuation discounts when interests in limited liability corporations (“LLCs”), partnerships, and corporations are transferred among family members. This restriction will apply to interests in both active business entities and passive investment vehicles. And that could mean a bigger tax bill for you and ultimately less wealth passed to certain family. Read More.

IRS Sends Failure-to-Deposit Letters by Mistake

The Internal Revenue Service (“IRS”) incorrectly sent failure-to-deposit notices to taxpayers who made timely employment tax deposits on Tuesday, May 31, or on Thursday, June 2, 2016. The Memorial Day holiday observed on May 30, 2016, moved the due dates for both next-day and semi-weekly deposits back by one day. However, the IRS systems didn’t recognize the changes and counted payments made on these days as late. The good news is that taxpayers don’t need to take any action at this time. If you received a letter, you may disregard it. The IRS has corrected the problem and is updating. Read More.

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