Help! The Government Took My Money and Gave it to a State!
By: John Ford , Senior Consultant, Government Contractor Services Group We all know from folk lore that the IRS can seize property from a taxpayer if the taxpayer is delinquent in paying its Federal taxes. However, did you know that the government can seize money from a taxpayer and pay it to a state? Cherry Bekaert’s GovCon Group recently had a client receive a notice that funds had been withheld on a contract with the Department of State related to a state income tax liability that the client and our tax department had received no prior notices of delinquency. After the outrage. Read More.
PCC Slams Income Tax Disclosure Plan
At its December 4th meeting, the Private Company Council (“PCC”) criticized the Financial Accounting Standards Board’s (“FASB”) proposal to add effective disclosures to Accounting Standards Codification 740-10-50, Income Taxes. The plan would require additional details about income taxes to be disclosed in the footnotes of a company’s financial statements. Members of the FASB’s advisory group, however, said that the extra details would be a burden on private companies and worthless to most financial statement users. In particular, PCC members slammed the requirement for companies to disclose the reconciliation of its effective tax rate and statutory rate. While U.S. GAAP requires public companies to. Read More.