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Summing It Up

Keeping you ahead of the curve with timely news & updates.


Samuel C. DiSalvo to Speak at the Knowledge Group’s ASC 740

New York, NY, May 17, 2014 --(PR.com)-- The Knowledge Group/The Knowledge Congress Live Webcast Series, the leading producer of regulatory focused webcasts, has announced today that Samuel C. DiSalvo, Tax Director, Freed Maxick CPAs, P.C. will speak at the Knowledge Group’s webcast entitled: “ASC 740: Income Tax Accounting for 2014.” This event is scheduled for October 16, 2014 from 12:00pm – 2:00pm (ET).

For further details, please visit: http://theknowledgegroup.org/event_name/asc-740-income-tax-accounting-for-2014-live-webcast

About Samuel C. DiSalvo
Samuel C. DiSalvo is a Director with Freed Maxick’s Tax Practice. Prior to joining the Firm, Sam spent over 25 years in the accounting profession with both Big Four firms and private industry. During this time, he gained significant experience with mergers and acquisitions, corporate taxes and compliance, and financial statement tax accounting.

Sam is responsible for providing day-to-day tax advisory services, coordinating, and supervising the preparation of the corporate income tax returns, and reviewing the annual and quarterly provisions for income taxes for both publicly held and privately held corporations. Sam concentrates his practice on joint venture tax matters, merger and acquisition issues, and corporate taxes as well as ASC 740 issues such as purchase accounting, valuation allowances, and international issues. He also has significant experience in identifying tax opportunities in connection with the due diligence reviews of companies’ prior year tax returns.

About Freed Maxick CPAs, P.C.
Freed Maxick CPAs, P.C. is one of the largest accounting and consulting firms in Upstate New York and a Top 100 largest CPA firm in the United States. Serving SEC companies, closely held businesses, governmental and not-for-profit clients across New York as well as nationally and internationally, Freed Maxick mobilizes high-performance professionals to guide client growth, compliance, and innovation. They specialize in the healthcare, manufacturing, real estate, banking, agribusiness and private equity sectors and have more than 280 professional and administrative personnel, with offices in Buffalo, Batavia, Rochester and Syracuse, New York. Freed Maxick’s Tax Practice is the largest of any accounting firm in Upstate New York with over 110 personnel, including 12 tax directors. Freed has built a significant SEC Practice through years of experience in auditing a wide variety of companies and has extensive knowledge in handling public and private capital transactions.

Event Synopsis:
In this two-hour Live webcast, a panel of distinguished professionals and thought leaders will help Finance Executives, CPAs, Attorneys, Enrolled Agents, Tax Practitioners, and other related professionals understand the important aspects of this significant topic. They will provide an in-depth discussion of the significant issues related to tax accounting rules and latest developments in ASC 740. Speakers will also offer best practices in developing and
implementing an effective income tax accounting strategies.

Key topics include:

− An overview of ASC 740: Income tax accounting

− Review issues/considerations on significant areas including valuation allowances, business combinations and uncertain tax positions

− Guidelines and best practices

− Latest tax accounting and regulatory developments and a lot more.

About The Knowledge Group, LLC/The Knowledge Congress Live Webcast Series
The Knowledge Group, LLC was established with the mission to produce unbiased, objective, and educational live webinars that examine industry trends and regulatory changes from a variety of different perspectives. The goal is to deliver a unique multilevel analysis of an important issue affecting business in a highly focused format. To contact or register to an event, please visit: http://theknowledgegroup.org

 

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Tax Update

FASB reaches Consensus and Ratifies EITF Issue No. 13-C

On June 26, 2013 the Financial Accounting Standards Board effectively ratified the guidance provided by the Emerging Tax Force Issue No. 13-C. The following is a summary of the consensus:

  • Unrecognized tax benefits should be netted against tax losses or credit carryforwards from the same jurisdiction that could be utilized to offset the UTB.  The UTB would reduce the deferred tax asset established for these losses or credits and would not be recorded as a separate liability.

  • The new standard requires prospective adoption but allows optional retrospective adoption (for all periods presented).

  • For public companies, the standard must be adopted in years beginning after December 15, 2013 (and in interim periods).

  • For private companies the standard must be adopted in years beginning after December 15, 2014 (and in interim periods).

  • No new disclosures are required. However, if the gross amount of the loss or credit (i.e. the amount listed on the income tax returns as-filed) is disclosed, then further explanation may be needed to explain the difference on the returns versus the amount in the financial statements.

  • At this time, it appears as if the SEC requirements for the disclosure of UTBs will not change. Therefore, the gross amount of UTBs would still appear in the footnote disclosure.

  • It will still be important to continue to track the UTBs. For example, there could be an adjustment to the UTB presentation if the position on the UTB changes, or if the loss or credit carryforwards are used. Similarly, if the loss or credit has a full valuation allowance against it, then the VA could change as well if the UTB is no longer necessary. 

When it comes to taxes, Freed Maxick CPAs is different than most accounting firms in Western New York. To us, tax time is all the time. We’re sticklers about deadlines and compliance, but our larger goal is tax management. So we keep a year-round eye on federal, state and local tax laws, including those pending. We alert you to any changes that may affect you and help you respond in a timely way.

We have no doubt that we bring a level of in-house tax expertise second to none in Upstate New York. We have the experience and resources necessary to resolve all your tax issues no matter what the complexity, including:

ASC 740
Canadian Services
Capitalization vs. Repair 
Cost Segregation Services
Foreign Bank Account Report Compliance
IC-DISC
International Tax Services

New York (NY) State Excelsior Jobs Program
Personal Tax Services
Research & Development (R&D) Tax Credits
State and Local Tax Services
State Tax Analysis & Resolution
Tax Credits
Tax Planning and Consulting
Transfer Pricing Analysis – Study
Tax Planning and Consulting

CONTACT US Freed Maxick CPAs is Western and Upstate New York’s (NY) largest public accounting firm and a Top 100 firm in the U.S. Freed Maxick provides audit, tax and consulting services to closely-held businesses, public (SEC) companies, not-for-profits and governmental entities in Buffalo, Rochester, Syracuse, Albany and NYC, New York.

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Affordable Care Act Alert

 

Due Date of July 31, 2013 for Payment of Tax on Certain Self-funded Health Insurance Plans 

The Affordable Care Act of 2010 established the Patient-Centered Outcome Research Institute (PCORI) for the purpose of conducting research to evaluate and compare health outcomes, clinical effectiveness, risks and benefits of two or more medical treatments, services, and procedures. This “PCORI fee” was created, in part, to pay for its activities.

The fee is one dollar, times the “average number of lives” covered under the plan, for each plan year ending after September 30, 2012 and before October 1, 2013 and two dollars per covered person for each plan year that ends thereafter and up through September 30, 2019.

The “average number of lives” is determined by one of four optional methods. For plan years beginning before July 11, 2012 and ending after October 1, 2012 any reasonable method can be used per IRS Form 720.

Employers with self-funded health insurance plans (including VEBAs) are now required to pay a “fee” to the IRS for each plan year ending after September 30, 2012 and before October 1, 2019.

Employers with self insured plans that have year-ends between October 1, 2012 and December 31, 2012 are required to pay the fee and file Form 720, Quarterly Federal Excise Tax Return by July 31, 2013.

The fee is considered to be a deductible tax expense.     

Generally, health insurance policies and self-insured plans that provide only excepted benefits, such as plans that offer benefits limited to vision or dental benefits, are not subject to the PCORI fee. The PCORI tax applies to tax-exempt organizations and governmental entities.

Employer Mandate Penalty - 2014

Starting in 2014 the ACA will impose an annual penalty on employers who: 

(1) do not offer group health insurance coverage to at least 95% of its employees OR

(2) offer its employees coverage that is unaffordable. Health insurance coverage is considered affordable if an employee's required contribution to the plan for self coverage does not exceed 9.5% of the employee's household income (or Form W-2) for the tax year.

For an employer that offers no coverage, the tax is $2,000 for each full time employee (in excess of 30) if at least one employee is certified and enrolled in qualified health care coverage under an insurance exchange. If an employer offers unaffordable coverage, the tax is $3,000 for each employee that is certified. The penalty is calculated on a monthly basis and applies to tax exempt organizations and government entities.

Applicable tax is determined on 2013 employee levels      
Only an applicable large employer (ALE) is subject to the tax. The ALE threshold is triggered if an employer hires an average of 50 full time employees (which includes full time equivalents or “FTEs”) in the preceding calendar year. FTEs are determined by aggregating part-time employees under specific rules provided. There are also special rules for seasonal employees. Part-time employees are considered only for purposes of determining ALE status. They are not considered in calculating the penalty. 

Thus, for 2014, an employer determines whether it qualifies as an ALE by virtue of its employee count in 2013. An employer can determine whether it has exceeded the ALE threshold by looking at any consecutive six month period it chooses to use in 2013, instead of the full year.

Aggregation of separate businesses may be required in determining ALE status. 
Generally, the employee count for separate businesses that share a significant level of common ownership must be aggregated and treated as a single employer in determining whether ALE status applies. 

In 2013 employers should assess effort to compile information needed. 
Calculating the number of employees subject to the penalty could become very complicated. This is because employers could have a number of different employee “types” (i.e. variable hour, part-time, seasonal, salaried, common law employees v. independent contractors, etc.) Employers should assess the effort needed to make an accurate count of its full time employees There is also an obligation to furnish information to the employees, which is due January 31st of the calendar year following the year for which the employer return is required to be filed. Whether ALEs or employers providing minimal health insurance coverage, there is still a reporting requirement to the IRS even if no penalty is due.

Contact Our Tax Professionals

If you have questions about this issue or other complex tax issues, please contact us for assistance.

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