By Sheila Foley, Accounting Consultant
The Tax Cuts and Jobs Act was enacted in late December, 2017 and it significantly altered the tax laws applicable to individual taxpayers. The significant changes included: reduction in tax rates and modification of brackets, increase in the standard deduction, repeal of personal exemptions, limitation on deductions for state and local taxes, mortgage interest, home equity loan interest and elimination of deduction for miscellaneous itemized deductions. (more…)
Accounting guidance for situations when stock awards (stock options, restricted stock units and other equity-based instruments) are modified after the original grant date has been in place for a long time – with the original literature that covers fair value calculations and determining how much and when compensation expense is recorded. What hasn’t been clear for a long time is when the rules for how to handle modifications need to be applied to changes in stock awards. (more…)
There have been a few developments since we last looked at cryptocurrency in April, 2017 (Are Bitcoin Users Cheating on Taxes? (Or Are They Just Confounded by the Rules?)). The IRS has increased tax compliance enforcement but unfortunately, guidance from the Internal Revenue Service has not kept up with the advances in the cryptocurrency world continuing tax reporting challenges.
In 2014 the IRS released their position regarding the taxation of cryptocurrency transactions in Notice 2014-21 (https://www.irs.gov/pub/irs-drop/n-14-21.pdf). The IRS notified taxpayers that: (more…)
By Sarah Renard, Senior Marketing Coordinator
It’s that time again, to send your monthly or quarterly company e-newsletter to your list of hundreds, if not thousands of subscribers. So you go through your routine of adding new clients/prospects/contacts since your last e-mail blast to your existing list, build your newsletter and click ‘send’ then move on to your next ‘to do list’ item. Unfortunately, the recent GDPR regulations may cause a hiccup in your routine. (more…)
Likely, you saw plenty of headlines as the final May 25, 2018 deadline approached. Just more alphabet soup? You may have ignored the article content as soon as you discovered that this was the name of European Union (EU) legislation.
What is it?
General Data Protection Regulation – protects data and privacy for EU residents (individuals), who are referred to as “data subjects”. Provisions cover collection, protection and retention of personal data. (more…)
The European Union (EU) proposed a tax on digital services in the draft package for “Fair and Effective Taxation of the Digital Economy”, which it released on March 21, 2018.
According to the European Commission, top digital companies pay an average tax rate of only 9.5% in EU, which is less than the 23.3% paid by traditional companies. The aim of the proposal is to tax the business in the member state in which value is created, even though the business has little or no physical presence in that state. (more…)
The Tax Cuts and Jobs Act (the Act), enacted on December 22, 2017, creates some interesting consequences when applying US GAAP principles for income tax accounting related to deferred taxes. FASB guidance requires that deferred income tax assets and liabilities be remeasured as a result of changes in tax laws or tax rates. As commonly known by now, the Act reduced the maximum tax rate for corporations to 21% from 35%. (more…)
As everyone knows by now, the U.S. tax system was widely altered on December 22, 2017 by enactment of the Tax Cuts and Jobs Act (the Act). The date of enactment is highlighted here because that is the date that triggers financial statement implications. Oh…so close to year-end for most companies. This timing situation is complicated because: (more…)
In the last couple of years, I have witnessed several of my private company clients reorganize their operations, through either a merger, an acquisition or a significant management member buyout. While such situations provide a great stage for all to display their accounting chops, they also present us an opportunity to consult with our clients and help them avoid an accounting faux pas or burdensome and unnecessary disclosures caused by an inadvertent accounting election. So, in no specific order, I thought I would summarize some of the unique accounting issues I’ve encountered in such situations and how to navigate them: (more…)