The Multistate Tax Commission (“MTC”) unveiled a new Arm’s-Length Adjustment Service that would enable states to conduct transfer pricing audits with support from specialist economist firms. The nine states investing in the MTC program include Alabama, the District of Columbia, Florida, Georgia, Hawaii, Iowa, Kentucky, New Jersey and North Carolina. The proposed four-year charter period is expected to start shortly after MTC meetings in July 2015. This program represents a significant commitment of states’ resources in an area expected to raise substantial revenue.
Michigan voters gave final approval August 5, 2014, to a plan that will phase out Personal Property Taxes (“PPT”) that small businesses and manufacturers pay on business equipment. The reform makes the following changes to the future reporting of PPT:
- All business owners with personal property having a Combined True Cash Value of less than $80,000 as of January 1, 2014, will be eligible for an exemption from the PPT. Combined True Cash Value is the market value of all personal property owned, leased, in the possession of or controlled by the owner or related entity within a local tax collecting jurisdiction.
It’s been a little over a year since the AICPA issued the Financial Reporting Framework for Small and Medium Sized Entities (“FRF for SMEs”) as an alternate reporting option to Generally Accepted Accounting Principles (“GAAP”) financial statements. We have seen multiple clients switch to this framework in order to have more relevant financial statements for the users, without the needless complexity that often comes when small and medium sized businesses are forced to follow the complex requirements of US GAAP.
Based on recent discussions at the Securities and Exchange Commission (SEC), US public companies will not be required to adopt International Financial Reporting Standards (“IFRS”) any time soon. Some of the key issues contributing to this are the undefined role of the US Financial Accounting Standards Board (FASB) in the global accounting standard setting process, the focus of the SEC on other required rule making such as Dodd-Frank, difficulties finding stable sources of funding to assure the International Accounting Standards Board’s (IASB) independence, and questions about the ability of the IASB to provide timely interpretive guidance and react to changes needed to respond to changes in the economic environment. However, among standard setters at the FASB and SEC there continues to be a long-term vision of a single set of high-quality, globally accepted accounting standards.
Identity (“ID”) theft is one of the most rampant and fastest-growing crimes today. The Federal Trade Commission (FTC) consistently reports ID theft as the top consumer complaint it receives. The IRS also reported ID theft criminal investigations jumped 66% from 2012 to 2013.
In recent years, a twist on ID theft has really come into its own: Tax Return theft. Most often, victims discover when they try to e-file that a return has already been filed under their Social Security Number (“SSN”). From here, it’s a long and laborious process to report the fraud, get records straightened out, and ultimately receive your rightful refund.
Earlier articles have focused on the filing requirements for US persons with foreign bank accounts or other foreign financial accounts. If you have such accounts which have not been properly disclosed, consider participation in the IRS Streamlined Filing Compliance Procedures for Non-Resident, Non-Filer Taxpayers (Streamlined Procedures) or the Offshore Voluntary Disclosure Program (OVDP).
These programs are not new, however, On June 18, 2014, the IRS announced substantial changes to both programs. Effective July 1, 2014, the IRS made it easier for individuals to qualify for the new Streamlined Procedures. Before these changes, taxpayers had to enter the OVDP or submit through the $0 penalty Streamlined Procedure. However, taxpayers only qualified for the Streamlined Procedures if they met all of the following criteria:
CPA firm Clayton & McKervey, P.C. is pleased to announce the additions of Elizabeth (Beth) Butchart and Greg Schulte to the management team.
Supporting the Clayton & McKervey, P.C. goal of being a global resource for our clients, these professionals will continue to support the firm’s mission of providing specialized accounting, auditing, and tax services to growth driven, middle market companies who compete in the global marketplace.
“We are excited to see these talented young professionals continue to grow in their careers. Beth and Greg are great individuals who will no doubt be valuable future leaders of the firm,” said Kevin McKervey, President of Clayton & McKervey, P.C.
As a new member of the ownership team, Sarah will continue to support Clayton & McKervey’s mission to provide specialized accounting, auditing, and tax services to privately held, middle market companies that compete in the global marketplace.
“Sarah is a key point person for international tax strategies in this organization,” said Kevin McKervey, President of Clayton & McKervey, P.C. “She has the depth and range of knowledge to meet the needs of globally minded companies with international tax consulting and compliance – whether those companies are coming to the United States or expanding to other parts of the world.”
“We are honored to be recognized for the tenth consecutive year as one of Metro Detroit’s 101 Best and Brightest Companies to Work For,” said Kevin McKervey, President of Clayton & McKervey, P.C. “It is our people that have set Clayton & McKervey apart in the marketplace for more than 60 years. This recognition validates our focus to recruit, develop, and retain the best talent to serve our globally minded clients.”
Individuals or businesses that sell tangible personal property to end consumers, and in some cases, provide services, are required to collect and remit sales tax. A seller must obtain a sales tax license prior to completing any taxable transactions. All sales are considered taxable unless the specific goods and services are defined as exempt from tax in the jurisdiction of the sale.