By Samantha Ramirez, Tax Senior
ASL Nonprofit Group
For nonprofit organizations, no income tax may be due, but an annual return must be provided by certain exempt organizations in order to maintain tax-exempt status. Tax-exempt organizations typically file a Form 990, but depending on the amount of gross receipts or the total value of assets, the organization may have options for filing a more simplified form. Below we have outlined the requirements for each form: (more…)
By Julie Malekhedayat, Principal
ASL Family Wealth and Individual Tax Planning Group
Estate tax repeal is on the wish list of both the Republican party and the new President and is an idea that is generally popular with voters. However, a repeal of the existing transfer tax system would likely impact taxpayers in ways they are not aware of. In 2015, only 4,918 estates paid estate taxes, but the beneficiaries of all estates benefited from the income tax savings of a higher tax basis for the assets they inherited. Historically the repeal of an estate tax has been accompanied by changes in income tax rules that could reach far more taxpayers than the estate tax itself. (more…)
By Jeff Faust, Director of Valuation Services
ASL Business Valuation Services
Late last year, we wrote a few times about the looming regulations affecting valuation discounts under the IRS Proposed Section 2704 Regulations.
The comment period ended on November 1st and the public hearing in Washington D.C. was held on December 1st to a capacity crowd. Here are some quick highlights from the hearing that were published by BV Wire: (more…)
By Mark Sheffield, Principal
ASL Emerging Business Group
In a previous Emerging Business Group seminar, we talked about the importance of diligent learning. In case you missed it, here is a snapshot:
Some experts on learning say the world is changing so rapidly that only fifteen percent of what we know today is likely to be relevant in five years. So, in five years our knowledge will be 85% irrelevant unless we are diligent learners. Diligent learners are not necessarily the smartest people, but they usually surpass the smartest people, like the tortoise and the hare, in their accomplishments. They know how to persistently learn. Diligent learners are on a constant trajectory in gaining relevant knowledge; while the relevant knowledge of average learners decreases over time. Here are two attributes of diligent learners: (more…)
By Tony Dai, Senior Tax Manager
ASL Technology Group
The combination of a Republican president and Republican majorities in both the House and Senate significantly increases the prospects for enactment of comprehensive tax reform, including legislation to repeal the Affordable Care Act (commonly known as ObamaCare). Below is a chart comparing the current law to the various proposals.
Overview of various proposals: (more…)
By Josh Cross, Senior Audit Manager
ASL Construction Group
When surety underwriters review your financial statements, they are looking for evidence of sound financial condition. Every underwriter has its own standards and expectations, but here are five key performance indicators (KPIs) many bonding companies look at closely: (more…)
By Sheba Dalaney, Principal
Recent legislation has made changes to due dates for some tax and information returns that will be filed for the 2016 and following tax years. These changes will require modifying the timing of the preparation work in many cases.
Payroll and information reporting returns (Forms W-2 and 1099)
These forms historically were sent to the recipients by January 31st of each year, and government reporting copies of these forms were transmitted by either February 28th or March 31st , depending on whether they were mailed or electronically filed. For 2016 returns filed in 2017, all copies of the forms must be sent to recipients and filed by January 31st. This change was made to combat identity theft by allowing the IRS to match withholding information when tax returns are filed and reject fraudulent refund claims. The due dates for filing all other information reporting returns remain unchanged. See the table below for specific details: (more…)
By Mark Sheffield, Principal
ASL Emerging Business Group
Which is the better deal for a founder: 1) $500,000 for 10% of the start-up; or 2) $500,000 for 25% of the start-up? Of course, option 1) is better because it values the start-up at $5 million vs. 2) which values it at $2 million. A start-up business valuation for investment purposes is complicated and subjective; so many founders just wing it. That’s the wrong approach because founders risk undervaluing their start-up. It is better to negotiate from a position of knowledge and strength. The complexity in determining investment value is why founders need help. (more…)
Luis Ramirez, Principal
ASL International Group
U.S. taxpayers with maquiladora operations in Mexico won’t be exposed to double taxation if they enter into a unilateral advance pricing agreement (APA) with Mexico’s tax agency under terms that were negotiated by the U.S. and Mexico.
The companies would have to reach the agreements with the Large Taxpayer Division of Mexico’s tax agency, the Servicio de Administración Tributaria (SAT). (more…)
