Category: Taxation-Corporate

The Tax Cuts and Jobs Act (TCJA) created a new general business tax credit for certain businesses that grant their qualifying employees paid family and medical leave in 2018 and 2019. The IRS now has released Notice 2018-71, which addresses several related issues, including eligibility, types of leave covered and calculation of the credit amount. Notably, the guidance allows employers currently without a paid family and medical leave policy to adopt a retroactive policy before year end and claim the… Read more ›

To ensure success, contracting and subcontracting companies need accounting professionals responsible for managing cash flow, budgeting, bank reconciliation, payroll, financial reporting, and other accounting functions. For many small and medium companies, the workload may not require full-time staffing or competent professionals may be too expensive. An alternative to hiring in-house staff is to outsource all or a portion of the accounting department, which offers a variety of benefits you may not even have considered. Here are some of the top… Read more ›

The tax reform legislation that Congress signed into law on December 22, 2017, was the largest change to the tax system in over 3 decades. The new tax code contains many provisions that will impact everyone, including dealerships. While some provisions will be welcome, others will add a new level of complexity. Dealerships must be mindful of how these changes will impact their dealerships. The key to staying ahead of these changes is awareness and planning. One of the more… Read more ›

In a much-anticipated ruling that confounded the expectations of many court watchers, the U.S. Supreme Court has given state and local governments the green light to impose sales taxes on out-of-state online sales. The 5-4 decision in South Dakota v. Wayfair, Inc. was met by cheers from brick-and-mortar retailers, who have long believed that the high court’s previous rulings on the issue disadvantaged them, as well as state governments that are eager to replenish their coffers. The previous rulings The… Read more ›

New regulations published by the IRS and U.S. Treasury in January 2018, provided much-needed guidance for partnerships to determine how they might opt out of the partnership audit regime that went into effect following the Bipartisan Budget Act of 2015. The 2015 Act overhauled prior rules set in 1982 that governed the taxability of partnerships. One significant concern addressed by the Bipartisan Act was the lack of a system for addressing any underpaid tax from the partnership entity. The IRS… Read more ›

The Washingtonian, one of the Washington, DC metropolitan region’s most prominent guides to business, lifestyle and entertainment, interviewed Richard Morris, Councilor, Buchanan & Mitchell (CBM)’s tax services director, about the impact of the Tax Cuts and Jobs Act. The Act, which Congress passed in late December and represents the most significant act of tax reform in more than 30 years, introduces a series of impacts for both businesses and individuals. Mr. Morris specifically addressed the end of deductions for business… Read more ›

CBM has developed this post to inform clients and friends of the firm about changes to the estate and gift tax exemption made by the massive Tax Cuts and Jobs Act effective beginning in 2018. It will result in significantly fewer estates being subject to the 40% tax, and larger estates owing less tax. Before the Tax Cuts and Jobs Act, the first $5 million (as adjusted for inflation in years after 2011) of transferred property was exempt from estate… Read more ›

Today, President Trump signed the reconciled tax reform bill–commonly called the “Tax Cuts and Jobs Act” (TCJA)–which represents the most sweeping federal tax legislation in more than three decades. While many of the new law’s provisions affect businesses, it also includes significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025. Here are some of the most notable changes. Tax brackets The TCJA maintains seven income tax brackets but temporarily adjusts the tax rates… Read more ›

Click here to learn more about our tax, accounting and advisory services for attorneys and law firms. When it comes to setting up a tax-favored retirement plan — such as a 401(k) plan, a pension or profit sharing plan, or a simplified employee pension (SEP) plan — law firm partnerships must follow essentially the same federal income tax rules as other employers. A partnership retirement plan can potentially cover both partners of the practice and eligible firm employees. However, partnership plans… Read more ›

November 9 was a busy day in Washington for lawmakers in their race to hammer out a tax reform package. The House Ways and Means Committee made amendments to, and approved, the Tax Cuts and Jobs Act. And the Senate Finance Committee released “policy highlights” for its proposed version of a tax plan. Many of the House and Senate provisions are similar. For example, both plans would repeal the alternative minimum tax and retain the charitable contribution deduction. However, there… Read more ›