Foreign Direct Investment Gets a Boost

Kevin McKervey, CPA | President, Clayton & McKervey, P.C.I just returned from the SelectUSA Investment Summit held in Washington DC March 22-24, 2015, and thought I would provide this re-cap of foreign direct investment interest and activity at a national level.

The Summit was spearheaded by the US Department of Commerce and attracted over 2,700 people from around the globe as well as economic development organizations from every corner of the United States, high-level government officials, and others working to facilitate foreign direct investment into the United States.

Three Major Impacts of the Transatlantic Trade and Investment Partnership

Robert Dutkiewicz, CPA, MST | Shareholder - International Accounting ServicesThe Transatlantic Trade and Investment Partnership, commonly referred to as TTIP, is a proposed trade agreement between the United States and the European Union. The idea of creating a trade agreement between the two largest economies in the world is not new and has been discussed for several decades. However, over the last five years, the idea has gained steam and many predict it will become a reality in the near future. The goal of TTIP is to strengthen both the US and European economies by increasing trade and investment, as well as employment.


Reward Your Business with an Additional Tax Deduction

Sarah Russell, CPA, MBA | Shareholder - International Tax | Clayton & McKervey, P.C.The Domestic Production Activities Deduction May Be for You

Does your business manufacture products in the US? Does your company employ US residents that work directly with the manufacturing of your product? If you answered “yes” to the previous two questions, your business will most likely be eligible for an additional tax deduction that will reduce your company’s tax liability for the applicable year.

Employee Benefit Plan Hot Topic: Forfeitures

Julie Killian, CPA, CGMA | Principal - Assurance ServicesVesting in employee benefits is an immediate right to a future asset. The vested right is a promise granted to employees in a pension or retirement plan at a future date. Forfeiture of those vested rights can occur if an employee does not complete the specified service period. The use and allocation of forfeitures can be complicated and is one of the areas that the IRS monitors, so much so that the incorrect monitoring or use of the forfeitures could affect the tax-qualification of your Plan.

Healthcare Reform

cfo-roundtableThe December CFO/Controller Roundtable outlined health care reform from the perspective of employers as a result of “Obamacare.” Kristopher F. Powell, CLU, LIC, CEO of HR PRO and BENEPRO based out of Royal Oak, Michigan, discussed strategy and planning as it relates to current reform and what awaits on the horizon for the American healthcare system.

Health Care Coverage Mandates

Individual Mandate

  • Currently in effect and requires all eligible Americans to have at least basic health coverage
  • Penalties will be assessed for each month without coverage based on household income
    • 2014 – Greater of $95 or 1% of taxable income

Starting a US subsidiary?
Seven Reasons Why Cloud Accounting May Be for You

Teresa Gordon, CPA | Shareholder - International Accounting ServicesFor over thirty years, Clayton & McKervey, P.C. has helped foreign owned companies start up subsidiaries in the US by providing a range of accounting, tax, and business services we like to call “hand holding” services. To best serve these companies, our dedicated team of tax and accounting professionals sought out and invested in several new cloud accounting applications and are adapting them to fit the particular needs of the US subsidiary and its foreign parent company.

China Unveils List of 15 ‘Unacceptable’ Tax Practices in Crackdown on Multinational Companies

Alex Martin | Principal - Transfer Pricing ServicesSubstantial increases in tax disclosures will provide a road map for China’s SAT

China’s State Administration of Taxation (“SAT”) recently announced a major initiative to collect global tax information from multinationals to challenge 15 “unacceptable tax practices”.  The new General Anti-Avoidance Rule (GAAR) Circular No. 32 published on December 12, 2014 signals an accelerated timetable to crackdown on profit shifting through transfer pricing.

Multinational companies of all sizes need to be aware of the SAT’s plans for increased scrutiny, as the SAT has a particular focus on capturing more corporate income tax in China.  To facilitate this initiative, China plans to institute requirements for country-by-country reporting where Chinese and foreign multinationals will need to disclose income taxes paid in every country where they operate to the SAT.

What do I need to know about the Affordable Care Act to file my 2014 taxes?

Margaret Amsden, CPA, MST | Shareholder - Tax ServicesThe Affordable Care Act (“ACA”) creates the Health Insurance Marketplace, also known as the Marketplace or the Exchange. The Marketplace is where taxpayers go to:

  • find information about health insurance options,
  • purchase qualified health plans, and
  • if eligible, obtain help paying premiums and out-of-pocket costs.

If a taxpayer purchased a qualified health plan through the Marketplace, they may qualify for the premium tax credit.

The ACA also includes the individual shared responsibility provision which requires individuals:

  • to have qualifying health care coverage (i.e., minimum essential coverage) for each month of the year,

How to Protect Yourself from Tax Refund Theft

Tood Goodman | Technology Operations AdministratorThis past fall I wrote to alert readers of the serious and growing threat of tax refund theft and recommended some preventive steps we should all take. I gave you statistics on the tens of millions of suspicious returns stopped, and tens of billions of dollars in fraudulent refunds protected by the IRS in recent years.

FASB Update: Simplifying Income Statement Presentation

Wendy Reedy, CPA | Principal - Assurance ServicesOn January 9, 2015, the FASB issued ASU [Accounting Standards Update] 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. The ASU eliminates the concept of extraordinary items and the uncertainty in determining when an item is both unusual in nature and infrequent in occurrence.

Presently, an event or transaction is presumed to be ordinary activity unless evidence supports the transaction as unusual in nature and infrequent in occurrence. If an event or transaction is determined to be unusual and infrequent, it is deemed to be extraordinary, and is required to be segregated from the results of ordinary operations on the face of the income statement, net of tax, after income from continuing operations, along with other financial statement disclosures.