Cherry Bekaert: The Tax Beat

U.S. taxpayers that own or control certain foreign corporations, foreign partnerships or foreign trusts are required to disclose the activities, usually with forms attached to a tax return. If not reported timely or properly on the designated forms, these U.S. taxpayers may be subject to significant penalties. A recent Tax Court Ruling for Farhy v. Commissioner brought to light how the Internal Re...

The Internal Revenue Service (IRS) made headlines this past year with the news that they would be receiving an additional $80 billion towards their budget over 10 years through the Inflation Reduction Act of 2022. With the IRS facing many of the same issues they have been dealing with for more than six decades, the question remains: what will be different this time?  There has been much discussion...

On March 9, 2023, the Biden Administration released The President’s Budget for Fiscal Year 2024 . It is currently unlikely that this budget proposal will become legislation, but it is important to recognize the tax revenue raises in this latest budget proposal. Parts of the latest proposed budget come from the drafted Build Back Better Act and early versions of the Inflation Reduction Act. In the...

In July 2021, the Internal Revenue Service (IRS) formally introduced Schedules K-2 and K-3. These forms bring uniformity and consistency to reporting items of international tax relevance to partners and S corporation shareholders on the foreign activity of a partnership or S corporation. Unfortunately, Schedule K-3 can add up to 20 additional pages to a partner’s or shareholder’s Schedule K-1.  Mi...

State Credits & Incentives programs are offered by state governments to encourage economic development and investments in their state. These credits allow businesses an opportunity to reduce their tax burden, increase cash flow and make investments for growth and long-term success. All these credit and incentives programs are designed to benefit the local areas and give businesses an advantage...

At the end of 2022, the Consolidated Appropriations Act of 2023 (the Act) was signed into law. The bill included the Securing a Strong Retirement Act, commonly known as SECURE 2.0, that gave new guidance and regulations to retirement plan provisions. The new law encourages employers to offer retirement savings plans, extend tax deferred earnings for plan participants and permit easier withdrawals...

One of the provisions of the Tax Cuts and Jobs Act of 2017 (TCJA) that had a major impact on businesses was Section 174: Amortization of Research & Experimental Expenditures (IRC Section 174). The Internal Revenue Service (IRS) recently released Rev. Proc. 2023-11 in December 2022 to update the IRC Section 174 guidelines. Martin Karamon , Tax Credits Incentives & Advisory Practice Leader,...

In 2022, the Internal Revenue Service (IRS) released Revenue Procedure 2022 – 19 (Rev. Proc. 2022-19) to offer relief for businesses operating as S Corporations (S Corp) that have issues with their organizational documents. IRS guidance addresses six specific items that could potentially disqualify the status of an S Corp, with the most important of these items focused on a non-identical governing...

Our conversation covers new benefits for tax-exempt organizations from the Inflation Reduction Act of 2022 (IRA) , big picture data from recent Internal Revenue Service (IRS) examinations, and hot topics of name, image and likeness(NIL) and alternative investments. Additionally, the team looks though a future-focused lens at proposed legislation. Join Cherry Bekaert professionals Brooks Nelson , P...

In January 2021, the Corporate Transparency Act (CTA) was passed into law as a part of the larger Defense Authorization Act for Fiscal Year 2021. The CTA requires certain domestic and foreign held business entities to report information to the Department of Treasury about the company and its individual owners and managers. The required reporting focuses on personal information about company owners...

Transfer pricing is the intercompany pricing of goods and services that one company charges another when both are under common ownership or control.  Countries around the world pay attention to transfer pricing as these intercompany charges can shift income or deductions from one tax jurisdiction to another.  When it comes to collaborating with transfer pricing within a company, front-end planning...

On August 16, 2022, President Biden signed the bipartisan Inflation Reduction Act (“IRA”) of 2022 into law. The bill includes sweeping legislation to create more incentives for green energy production, storage, and use through federal income tax credits and deductions. The IRA allows government and not for profit entities to cash in on certain credits, and it increases the payroll tax offset elect...

Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed on March 27, 2020. With that legislation came the Employee Retention Credit (“ERC”), which provided tax credits to employers that retained employees due to government mandates or supply chain issues during the COVID-19 pandemic. Why are we still talking about ERC? Many employers still have not taken advantage of ERC that they...

Pass-through entity (“PTE”) guidance has rapidly been changing state-by-state since the IRS issued Notice 2020-75 on November 9, 2020. After that notice was released, almost 30 states have passed new PTE related legislation. With this developing landscape, we turn to Cathie Stanton, a Tax Partner and national leader of the firm’s State & Local Tax practice , and Tony Konkol, a Strategic Tax Ma...

For more than 20 years, the New Markets Tax Credits (“NMTC”) program has issued federal tax credits to community development entities (“CDEs”) and community development financial institutions (“CDFIs”). These organizations are empowered to use NMTC to support business development and investment in economically challenged communities around the country.   In the last year, less than one half of all...

The Corporate Transparency Act (“CTA”) was passed into law, effective January 1, 2021, as part of the larger Defense Authorization Act for Fiscal Year 2021. CTA requires most business entities registered to conduct business in the U.S. to report information about the entity’s beneficial owners to the Department of the Treasury. Specifically, Beneficial Owner Information (“BOI”) is reported to the...

Since 1996, when California became the first state to legalize the medical use of marijuana, 38 more states have followed.  Additionally, approximately 18 states, as well as the District of Columbia, have passed legislation to allow for recreational or adult use of cannabis. With many listeners living in or vacationing in one of these states, this is a good time to review the difficult federal inc...

This Tax Beat podcast takes a closer look at Form 2848, Power of Attorney and Declaration of Representative (“POA”).  A properly completed Form 2848 can open the flow of taxpayer information between the IRS and the tax professional representing the taxpayer.  Anne Oliver , leader of the Firm’s Federal Tax Controversy Practice answers questions on how to effectively file, share, and use a POA.    C...

In this episode of Cherry Bekaert’s Tax Beat, Brooks Nelson and Sarah McGregor welcome back Ron Wainwright , Partner with the Tax Credits & Incentives Advisory practice to talk about recent activity in Washington D.C.  The conversation opens with a discussion of the President’s proposed budget for fiscal year 2023 and Treasury’s Greenbook.   Next, Ron covers tax provisions that may be attached...

Accomplished business leaders, professionals, and community leaders are often sought out to serve on the boards of not-for-profit organizations . These organizations generally operate under a tax-exempt designation from the IRS, but that does not mean they do not file tax returns. In fact, the Form 990 asks for more information about the operations, best practices, related party activities, invest...

The employee retention credit (“ERC”) is an incentive for employers who faced declining revenues or experienced disruptions to their businesses due to government-imposed restrictions during 2020 and 2021. Businesses and certain not-for-profit organizations that continued to pay employees during these challenges of the COVID-19 pandemic can still qualify for the ERC, and many recipients are receivi...

Today we are covering the latest news and guidance regarding R&D tax credits. Innovation is percolating through all areas of the economy, especially with companies pivoting during the pandemic and later as the economy has recovered. Since 1981, the federal income tax credit for increasing research activities (“R&D credit”) has been a vehicle for the federal government and many states to re...

Tax Beat hosts Brooks and Sarah continue a focus on strategic planning issues for companies that are onshoring, expanding and relocating operations. In this episode, the issue faced by many companies is finding funding sources to support their growth plans. One solution is the New Markets Tax Credit (“NMTC”) which facilitates private investment into low-income and targeted communities. Peter Byfor...

Profits splits, tax incentives , income shifting, nexus , pass-through entity tax elections, and commercial domicile are just some of the state and local tax (SALT) issues that companies should incorporate in planning substantive changes to their supply chain.  Tax Beat hosts, Brooks and Sarah , talk with Cherry Bekaert’s State and Local Tax Practice Leader, Cathie Stanton about these issues and m...

Tax Beat hosts Brooks and Sarah sit down with Christy Pierce , managing partner of Cherry Bekaert’s Tax Services , to discuss the big events in the tax world during 2021 that impacted our clients and our Firm, and the trends we expect to see continue in 2022. Chapter Markers: 1:44 -- 2021 Tax Highlights and Legacies 8:42 -- Impact of Tax Law Uncertainty 17:38 – Complexity of Tax Reporting 21:02 --...