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1023-EZ Form Shortens Tax-Exempt Application Process

Posted by on Jul 25, 2014 | 0 comments

As of July 1, 2014, many small charities (those with gross receipts of $50,000 or less and assets of $250,000 or less) are able to file Form 1023-EZ to apply for tax-exempt status under Internal Revenue Code 501(c)(3). This form was designed to assist small charities by reducing the lengthy application process. The new Form 1023-EZ is only three pages long compared to the 26 page Form 1023. According to the IRS, up to 70 percent of all applicants qualify to use this new tax form. This new form not only reduces application time for small...

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U.S. Supreme Court to Hear Wynne Case

Posted by on Jun 27, 2014 | 0 comments

On May 27, 2014, the U.S. Supreme Court granted certiorari and will hear the case of Comptroller of the Treasury of Maryland v. Brian Wynne. The issue before the Court is whether a state is prohibited under the Constitution from taxing 100 percent of a resident’s income, earned both in and out of state with a credit for taxes paid on income earned outside of the state. There is currently no date set for hearing the case. We will keep you updated as the case develops further. Since there is no current resolution on the matter, affected...

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Rev up revenue by contributing to a cost segregation study

Posted by on Jun 23, 2014 | 0 comments

Rev up revenue by contributing to a cost segregation study

Contributing services to a cost segregation study remains a viable option for contractors to rev up revenue. It allows building owners to maximize their current tax deductions by using shorter lives and faster depreciation rates for qualifying parts of their properties. This article offers a quick review of the pertinent aspects and how contractors can contribute their expertise. Read the full article in the Summer issue of On-Site.

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4 lean manufacturing fundamentals you can count on

Posted by on Jun 23, 2014 | 0 comments

4 lean manufacturing fundamentals you can count on

Lean companies make their products as efficiently as possible, using the least possible staff time, equipment and working capital. Originally imported from Japan in the 1980s, lean manufacturing continues to play a key role in every successful U.S. manufacturer. Increased global competition and declining operating margins make four particular lean manufacturing fundamentals especially important in today’s marketplace. This article describes how each one contributes. Read the full article in the Summer issue of...

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IRS final regs on tangible property

Posted by on Jun 23, 2014 | 0 comments

IRS final regs on tangible property

The IRS has released its final regulations on the proper tax treatment of expenditures related to tangible property, including buildings. The regs explain how property owners can distinguish between expenses (which are immediately deductible against current income) and capital expenditures (which must be recovered over time through depreciation). As this article explains, they retain many of the earlier regs’ provisions but modify several sections and create and expand some notable safe harbors. And a sidebar notes that the final regs provide...

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Mission: Inbox Zero

Posted by on Jun 23, 2014 | 0 comments

Mission: Inbox Zero

After coming back from a 4-day vacation, I read an article – a very timely one at that – about how to clean out your inbox and keep it that way. Here are some of the key takeaways from the article to help effectively manage your inbox: Commit a set amount of time to catching up on email. In the beginning, more time may need to be set aside, but once a routine has been established, you may find that 15-20 minutes a day is sufficient to manage your emails and keep them in order. When going through email, use the following categories to reduce...

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Employers Cannot Reimburse Individual Health Care Policies on a Pretax Basis

Posted by on Jun 13, 2014 | 0 comments

The IRS recently posted FAQ’s concerning employer healthcare arrangements. The Service clarified that an arrangement where an employer reimburses employees on a pretax basis for health insurance premiums the employee pays on an individual policy is considered an employer payment plan. Employer payment plans are considered to be group health plans and subject to the rules under the Affordable Care Act (ACA). This type of arrangement fails to meet all of the ACA rules, including the prohibition on annual limits for essential health benefits....

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Form FinCEN 114 Should be Received by June 30, 2014

Posted by on Jun 2, 2014 | 0 comments

Federal banking regulations require any United States persons with a financial interest in or signature authority over foreign bank and financial accounts with an aggregate balance exceeding $10,000 at any time during the calendar year to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (commonly referred to as the “FBAR” form). Please note, the FBAR must be filed electronically through FinCEN’s BSA E-Filing System. The application to file electronically is available at http://bsaefiling.fincen.treas.gov/. For assistance...

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Contribution or Exchange Transaction?

Posted by on May 16, 2014 | 0 comments

Contribution or Exchange Transaction?

FASB ASC 958-605 provides guidance for contributions of cash and other assets received. When recording these contributions, an organization needs to determine if the revenue is a contribution transaction or another kind of transaction, such as an exchange transaction. Here we will identify some factors to consider which can assist in determining whether a contribution should be recorded as a contribution transaction or an exchange transaction. The FASB ASC glossary defines a contribution as an unconditional transfer of cash or other assets to...

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Manufacturing contracts face new Sec. 199 rules

Posted by on Apr 2, 2014 | 0 comments

Manufacturing contracts face new Sec. 199 rules

The IRS issued new eligibility guidelines last summer that attempt to clarify which companies are eligible for the manufacturers’ deduction under Section 199 of the tax code when multiple parties manufacture a product. This article explains the deduction and how the new guidelines are intended to make it easier for manufacturers to comply with its requirements. A sidebar reminds manufacturers that Congress has yet to renew expanded Section 179 expensing limits. Read the full article in the Spring issue of...

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