GlobalVIEW


February 7, 2019
What's the difference between profits and cash flow?

Business owners sometimes mistakenly equate profits with cash flow. Here’s how this can lead to surprises when managing day-to-day operations — and why many profitable companies experience cash shortages. Learn more.

January 24, 2019
Final Regulations on Transition Tax (Sec. 965) - Immediate Action May Be Required!

The Treasury has issued final regulations on the Transition Tax (even though the document did not have a TD number because of the shut down!). Probably the most important issue relates to a new due date (January 31, 2019) for certain elections or filings that should have been previously filed (often within 30 days of a triggering or acceleration event).

January 22, 2019
Audit opinions: How do your financial statements measure up?
Audit opinions differ depending on the information available, financial viability, errors discovered during audit procedures and other limiting factors. The type of opinion your auditor issues tells stakeholders whether you’re in compliance with accounting rules and likely to continue operating as a going concern.

January 8, 2019
FASB Expands VIE Exception for Private Companies

The Financial Accounting Standards Board (FASB) recently gave private companies long-awaited relief from one of the most complicated aspects of financial reporting — consolidation of variable interest entities (VIEs). Here are the details.

December 20, 2018
Is LIFO Right for Your Business?

You have choices when it comes to reporting inventory costs. One popular technique — the last-in, first-out (LIFO) method — assumes that merchandise is sold in the reverse order it was acquired or produced. That is, it allocates the most recent costs to the cost of sales. Although this method is often preferred for tax purposes, internal accounting personnel may be hesitant to use it for various reasons. Learn more.

December 13, 2018
Do You Qualify for the 199A Tax Deduction?

With the Tax Cuts and Jobs Act of 2017 (TCJA) Congress enacted the Section 199A deduction that is available for tax years beginning after December 31, 2017. It is set to expire for tax years beginning after December 31, 2025. Individuals, trusts and estates with qualified business income, qualified real estate investment trust (REIT) dividends or qualified publicly traded partnership (PTP) income may qualify for the deduction. Learn more.

December 4, 2018
Percentage of Completion Accounting: TCJA Provides Exception for Some Companies 
How do you report revenue and expenses from long-term contracts? Some companies that were required to use the percentage of completion method under prior tax law may qualify for an exception that was expanded by the Tax Cuts and Jobs Act (TCJA). This could, in turn, have spillover effects on some companies’ financial statements. Learn more.

November 20, 2018
Implementing the New Revenue Recognition Rules
When it comes to revenue, auditors customarily watch for fictitious transactions and premature recognition ploys. Here’s a look at some examples of critical issues that auditors may target to prevent and detect improper revenue recognition tactics.

November 6, 2018
Should Cloud Computing Setup Costs be Expensed or Capitalized?
Companies will be able to capitalize, or spread out the costs of, setting up expensive business systems that operate on cloud technology under an update to U.S. Generally Accepted Accounting Principles (GAAP). Here are the details.

October 25, 2018
Cash vs. Accrual Reporting: How the TCJA Could Affect Your Decision
The Tax Cuts and Jobs Act has increased the threshold for businesses that qualify for the simpler cash method for federal tax purposes. Read this article for the details.

October 9, 2018
Guidance on the GILTI Provision
The regulations highlight the differences of foreign provisions on individual versus corporate taxpayers.  There are several favorable provisions for corporations that are not available to individual shareholders of CFCs.  Therefore, an individual’s objectives may be different or even the opposite from those of a corporate taxpayer. Learn more.

September 25, 2018
How Will the New Revenue Recognition Rule and TCJA Affect Your Company?
The Tax Cuts and Jobs Act (TCJA) contains a provision that ties revenue recognition for book purposes to income reporting for tax purposes, for tax years starting in 2018. This narrow section of the law could have a major impact on certain industries, especially as companies implement the updated revenue recognition standard under U.S. Generally Accepted Accounting Principles (GAAP). Learn more.

September 11, 2018
Accounting Estimates a Critical Part of the Audit
Complex accounting estimates — such as allowances for doubtful accounts, impairments of long-lived assets, and valuations of financial and nonfinancial assets — have been blamed for many high-profile accounting scams and financial restatements. Here’s what you need to know about auditing the use of estimates as we head into next audit season.

August 28, 2018
3 Keys to Transitioning to Remote Audits
Are you comfortable communicating electronically with your auditors? If so, a logical next step might be to transition from on-site audit procedures to a more “remote” approach. Remote audits can help reduce the time and cost of preparing audited financial statements. Read this article for 3 keys to transitioning to remote audits.

August 14, 2018
Guidance on Transition Tax
On August 1, 2018 the Treasury and IRS offered some technical changes or clarifications regarding the Transition Tax, as well as reminders, but not much in the way of taxpayer favorable rules in helping you navigate these complex provisions. Learn more.

July 31, 2018
Does the GILTI Provision Work?
The Tax Cuts and Jobs Act was aimed at encouraging multinationals to repatriate profits and dissuade them from moving profits offshore (or even moving intangibles back to the US).  There were provisions in the TCJA to penalize those with offshore intangibles who did not bring them back. The penalty is taxing the income from those intangibles currently rather than allowing them to be earned offshore under the new territoriality system that would have exempted the dividends when repatriated. Learn more.

July 17, 2018
Considering a merger? Which intangibles should your business report?
Accounting for mergers and acquisitions under U.S. Generally Accepted Accounting Principles (GAAP) can be complicated, especially if the deal involves intangible assets. Mistakes can lead to restatements and write-offs in future periods that may alarm stakeholders. Learn more.

July 3, 2018
Are You Reporting All Related-Party Transactions?
Undisclosed related-party transactions can raise a red flag to lenders and investors — and may even require a business to restate its financial results. Accurate, complete reporting of these transactions requires strong internal controls. Learn more.

June 23, 2018
Sales Tax Pulls Even with VAT: The Wayfair Case
On June 21, 2018, in a highly anticipated decision, the US Supreme Court ruled (essentially) that companies do not have to have a physical presence in a state in order to be required to register for and collect sales taxes.  This decision may have far reaching implications on remote and online sellers. Learn how this may impact your business.

June 6, 2018
Expatriates with Local (Foreign) Business: Transition Tax Payment Postponed for One Year
The Internal Revenue Service issued three additional FAQs on June 4, 2018 related to the Transition Tax.  The first installment payment has been postponed until June 15, 2019 for expatriates who own a business through a foreign corporate entity, provided the net tax liability for the Transition Tax is less than $1 million and a timely election to use the installment method is made. Learn more.

May 8, 2018
Are You Ready for the New Lease Accounting Standard?
A new accounting rule for reporting leases goes into effect in 2019 for public companies. Although private companies have been granted a one-year reprieve, no business should wait until the last minute to start the implementation process. Some recently revised guidance is intended to ease implementation. Read this article for an overview of what’s changing.

April 24, 2018
How is Materiality Established for Your Business?
What constitutes a material misstatement for one company may not reach the materiality threshold for another. Materiality is a matter of professional judgment and your audit team’s experience. Read this article to learn how materiality is established for your business.

April 10, 2018
Classifying Shareholder Advances Under GAAP
Should you categorize shareholder advances as bona fide debt, additional paid-in capital or something in between? Under U.S. Generally Accepted Accounting Principles (GAAP), the answer depends on the facts and circumstances of the transaction. Learn more.

March 30, 2018
FAQ on Deemed Repatriation from US Owned Foreign Corporations
The Tax Cuts and Jobs Act includes a deemed repatriation provision applicable to all US Shareholders of Specified Foreign Corporations. This “Transition Tax” from the required deemed distribution of foreign earnings to US Shareholders under Sec. 965 is due by April 17, 2018. Learn more.

March 27, 2018
How to Calculate Your Breakeven Point
Breakeven analysis can be useful when investing in new equipment, launching a new product or analyzing the effects of a cost reduction plan. The breakeven point is fairly easy to calculate using information from your company’s income statement. Here are the details.

March 15, 2018
{ALERT} Offshore Voluntary Disclosure Program to End
The Internal Revenue Service issued a news release on Tuesday announcing it will close down the 2014 Offshore Voluntary Disclosure Program (OVDP) on September 28, 2018. By alerting taxpayers now, the IRS intends that any U.S. taxpayers with undisclosed foreign financial assets have time to use the OVDP before the program closes. Read this article for more details, including Streamlined Filing Compliance Procedures and other options.
March 13, 2018
Why Work In Progress Demands Special Attention
Financial statement auditors spend a lot of time evaluating how their clients report work in progress (WIP) inventory. Read this article to learn why this account warrants special attention and how auditors evaluate whether WIP estimates seem reasonable.

February 27, 2018
4 Questions to Determine Auditor Independence  
Auditor independence is still a hot topic among investors and lenders even though the financial crisis of 2008 was nine years ago. Read this article for an overview of the independence guidance from the Securities and Exchange Commission. Read this article to learn more.

February 19, 2018
Don't call the IRS unless you have a “basic” question.  
The Tax Cuts and Jobs Act (TCJA) was passed on December 22, 2017 and is considered the biggest change in income taxes in the last 30 years. While some of the rules will not impact taxpayers until they complete their 2018 returns, there are some provisions that impact 2017 tax returns that are to be filed within the next couple of months. The problem? This filing season, the IRS will only answer what it characterizes as “basic” questions about the tax law. Read this article to learn more.

February 2, 2018
Have an Interest in a Foreign Corporation? Transition Tax May Apply for 2017.  
The Tax Cuts and Jobs Act provides for the amendment of IRC Section 965, a code section that previously allowed for a limited, one-time foreign earnings repatriation at a favourable rate. This “transition tax” is effective for the 2017 taxable year for most taxpayers impacted by it and requires certain U.S. shareholders to include the accumulated E&P of specified foreign corporations in their current year income as of December 31, 2017. Read this article to learn more.

February 2, 2018
Have an Interest in a Foreign Corporation? Transition Tax May Apply for 2017. 
The Tax Cuts and Jobs Act provides for the amendment of IRC Section 965, a code section that previously allowed for a limited, one-time foreign earnings repatriation at a favorable rate. This transition tax requires certain U.S. shareholders to include the accumulated E&P of specified foreign corporations in their current year income as of December 31, 2017. Read this article to learn more.

January 30, 2018
What to Expect During Your Financial Statement Audit
Independent auditors provide many benefits to business owners and management: They can help uncover errors in your financials, identify material weaknesses in your internal controls, and increase the level of confidence lenders and other stakeholders have in your financial reporting. But many companies are unclear about what to expect during a financial statement audit. Here’s an overview of the five-step process.

January 18, 2018
Planning International Travel? Make Sure to Pay Your Taxes.
The US State Department will deny an application for a new passport, or an application for renewal, to those with seriously delinquent tax debts. Read this article to learn more.

January 16, 2018
What is your business interest worth?
Financial statements are a logical starting point to calculate the value of your business. Here’s an overview of how financial statements can serve as the basis for value under the cost, income and market approaches.

January 4, 2018
{NEWS} MSDM Offers US Tax Services in London
Moore Stephens Doeren Mayhew and Moore Stephens LLP are excited to announce their collaboration to provide US tax services to individuals and businesses with a US connection. Moore Stephens US Tax Services Limited, part of the Moore Stephens Doeren Mayhew group, will be led by senior manager Linus Ostberg and will operate out of the Moore Stephens LLP, London, England office. Learn more.

December 22, 2017
{ALERT} President Signs Biggest Tax Bill Since 1986
The United States Congress just passed the biggest tax bill since 1986. Here is a summary of the Tax Cuts and Jobs Act comprehensive tax reform bill just signed into law by President Trump.

December 19, 2017
Here is what you need to know about tax reform and your financial statements.
Tax reform legislation might be enacted before year end. If it is, companies following U.S. Generally Accepted Accounting Principles (GAAP) will have to recognize the effects of the changes in 2017 — not when the changes go into effect in 2018 and beyond. Here’s what calendar-year businesses need to know as they report their year-end results.

December 12, 2017
New Centralized Partnership Audit Rules and the Impact on Foreign Partners
Changes to the rules on IRS audits of partnerships will require the partnership (which can include LLCs) rather than the partners to pay any additional tax as the result of adjustments made at the partnership level.  The tax is to be paid at the highest tax rate of the partner. Learn more.

November 29, 2017
How the Tax Cuts and Jobs Act May Affect You
The House of Representatives passed the Tax Cuts and Jobs Act on November 16, 2017. The House Bill is enormous – over 420 pages – and changes the playing field for businesses, individuals, and expat programs. Click here to download summaries of proposed changes for individuals, employment policies on a domestic and global basis, flow-through vs. corporate structure, debt financing, and placing assets in service.

November 17, 2017
IRS Rolls Out More Compliance Campaigns for Multinationals
The Internal Revenue Service’s Large Business and International division is launching 11 more compliance campaigns looking at various ways to ensure companies are meeting their tax obligations. Click here to read this article by Michael Cohn, AccountingToday.com

October 31, 2017
Partnerships Can Now Be Used for US Inbound Investments
The Tax Court decided a case on July 13, 2017 dealing with a foreign corporation that was a partner in a US partnership that redeemed the foreign corporation’s interest in the US partnership and determined that a portion of the capital gain was not taxable for US purposes.    This decision went against an IRS ruling that had been around for 25 years, and the court was even harsh in its criticism of the ruling’s analysis of the foreign provisions of the Code. Read this article to learn more about the “GMM” v. Commissioner case and the reasonable cause issue.
 
October 10, 2017
Treasury Department Aims to Reduce Burden of Eight Tax Regulations
On October 5, 2017, the Treasury released a report on upcoming actions they plan to take to reduce the burden of eight of the identified tax regulations.  Two of these regulations have an especially important impact on inbound investors and those with foreign operations. Learn more.
 
October 3, 2017
GAAP vs. tax-basis reporting: Choosing the right model for your business
Virtually every business must file a tax return. So, some private companies issue tax-basis financial statements, rather than statements that comply with U.S. Generally Accepted Accounting Principles (GAAP). But doing so could result in significant differences in financial results. Read this article for the key differences between these two financial reporting options.

September 27, 2017
GOP Leaders Release Tax Reform Framework
On Wednesday, September 27, 2017, President Trump and Republican leaders in Congress released a framework for tax reform.  The framework states that it will provide a “tax code that is built for growth, supports middle-class families, defends our workers, protects our jobs, and puts America first.”  The framework further explains that this will be accomplished through tax relief for middle-class families, simplified tax filing for most Americans, tax relief for businesses (especially small businesses), ending incentives to hold jobs, capital and tax revenue overseas, and broadening the tax base and closing special interest tax breaks. Learn more

September 19, 2017
Be cautious when reviewing EBITDA
Earnings before interest, taxes, depreciation and amortization (EBITDA) is commonly used to assess financial health and evaluate investment decisions. But sometimes this metric overstates a company’s true performance, ability to service debt, and value. That’s why internal and external stakeholders should exercise caution when reviewing EBITDA.
 
September 14, 2017
Outsource Payroll with Confidence
Payroll reporting doesn’t have to be a laborious process. Consider using an outside company to manage your payroll function. Read this article and learn why payroll outsourcing may be beneficial and how a service audit can provide assurance about your payroll provider’s internal controls.

August 22, 2017
'Willful': An Important Word When Determining Tax Penalties
The term “willful”, or a derivation of that word, appears a number of places in the rules and regulations that impact a taxpayer in fulfilling his or her obligations.  It has also become important in eligibility to participate in the Streamlined Filing Compliance Procedures. Read this article to learn how the definition of “willful” impacted a recent Report of Foreign Bank and Financial Accounts (FBAR) case, Bedrosian v. U.S., DC PA, April 13, 2017.
 
August 8, 2017
Country by Country Reporting Marches Ahead
Country by Country (CbC) Reporting continues to move forward on a number of fronts as more rules, regulations and forms are issued by the various jurisdictions that have requirements to report and share this type of summary tax and economic information on large multinational entities (MNEs). Read this article for U.S. reporting requirements, updates, and a Guidance and Resources chart.

July 25, 2017
Are you ready for the new contract revenue guidance?
The sweeping new revenue recognition standard goes into effect soon. But many companies are behind on implementing it. Whether your company is public or private, you can’t afford to delay the implementation process any longer. Read this article for the five steps companies must follow when deciding how and when to recognize revenues.

July 13, 2017
{ALERT} Renewal of FFI Agreements Required by July 
All Foreign Financial Institutions (FFIs) not covered by an IGA and all Reporting FFIs under a Model 2 IGA must renew their FFI Agreement by July 31, 2017. Any agreements not completed by the due date will result in the FFI being considered nonparticipating as of January 1, 2017 and removed from the FFI issued by the IRS. Read this article for a table that sets forth the FFIs that must renew their agreements, and more.

July 11, 2017
U.S. Online Sellers: Are You Subject to VAT?
More and more U.S. sellers of goods (both consumer hard goods and software items) are used to selling in the U.S. and having to figure out whether they are subject to the various U.S. jurisdictions that charge sale and use taxes.  But as online sales increase and attract more customers outside the U.S., these U.S. sellers have to consider a different animal:  Value Added Tax (VAT). Read this article for recent tax guidance by Her Majesty’s Revenue and Customs and VAT liability.
 
June 20, 2017
U.S. Inbound Taxation of Operations in the Gulf of Mexico
To support the oil and gas exploration, development and production occurring in the Gulf of Mexico, vessels often travel between the Gulf and U.S. ports. But if these ships are foreign, are they subject to U.S. taxes? Read this article and find out.

June 6, 2017
Advice to Congress and President Trump on Tax Reform
Everyone, it seems, has an opinion on tax reform. It is interesting to see what the Congressional Research Service (CRS) has to say because they are normally seen as a neutral, non-political source of information. Among other considerations, the CRS says tax law changes could impact the deficit and debt, domestic job markets, competitiveness, and the use of corporate tax havens. Find out more by reading this article.

May 16, 2017
IRS FAQs on FATCA Requirement to Obtain Foreign TIN
The IRS recently added three frequently asked questions to its FATCA compliance page to clarify regulations that require “beneficial owner withholding certificates” to contain taxpayer identification numbers and dates of birth. Read this article to learn more.

May 3, 2017
3 Financial Statements Important for You to Know
Successful business people have a solid understanding of the three financial statements prepared under U.S. Generally Accepted Accounting Principles (GAAP). A complete set of financial statements helps stakeholders — including managers, investors and lenders — evaluate a company’s financial condition and results. Read this article for an overview of each report.
 
April 4, 2017
One Step Closer to Worldwide, International Tax Reform
International tax reform continued moving ahead at the end of last year as the Organisation for Economic Cooperation and Development (OECD) published its so-called multilateral instrument (MLI), along with an explanation of how it will work.  The MLI, formally known as the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, is a cornerstone of the OECD’s base erosion and profit shifting (BEPS) project. Read this article to learn more, including implementation of the MLI.

March 21, 2017
How do agreed upon procedures differ from an audit?
An agreed upon procedures (AUP) engagement uses procedures similar to an audit, but on a smaller and limited scale. Here’s how a customized AUP engagement differs from an audit and can be used to identify specific problems that require immediate action.
 
March 7, 2017
Sec. 385 Final and Proposed Debt Equity Rules: Some Breathing Room
The IRS finalized the proposed regulations issued in April 2016 with Final and Proposed Regulations issued on October 13, 2016, after receiving more than 200 comments and concerned letters from members of Congress.  They backed off some of their harsher, proposed rules, in some cases eliminating parts of the rule, providing additional time before they become effective and reserving (delaying) on others. Read this article for the details.

February 21, 2017
Auditors’ Watchdog Role Requires Professional Skepticism
CPA stands for Certified Public Accountant. Although the company pays their fees, public company auditors work for the audit committee and the public in general, not management. This “public watchdog” role demands that auditors exercise professional skepticism throughout the audit process. This role helps explain why auditors want concrete, third-party evidence to verify management’s assertions. Here’s a closer look at how professional skepticism factors into an audit.
 
 February 7, 2017
FATCA: 2016 Year-End Regulations and Updates
If you have a foreign bank account, take note. The IRS issued a flurry of regulations and updates around year-end covering FATCA (Foreign Account Tax Compliance Act) issues.  Some of the releases were removal of temporary regulations, while others involved final and temporary regulations. Here are some of these regulations and updates.
 
 February 2, 2017
New Tax Compliance Campaigns for International Taxpayers and Large Businesses
The Internal Revenue Service’s Large Business and International division is taking a new approach to tax compliance, with a series of 13 campaigns aimed at cracking down on tax evasion. Read this article from Michael Cohn, editor-in-chief, AccountingToday.com for the details.
 
 January 24, 2017
FASB Clarifies the Definition of a Business
Differentiating the purchase of a business from the purchase of a group of assets is something that the Financial Accounting Standards Board (FASB) has been debating for years. In January 2017, the board finally published guidance to help financial executives and accountants define what a business is in the context of a business combination.
 
 January 10, 2017
3 Ways to Test Fair Value Measurements
Measuring accounting estimates involves some level of uncertainty. As a result, accounting estimates — such as allowances for doubtful accounts, impairments of long-lived assets, and valuations of financial and nonfinancial assets — require extra attention from auditors. Here’s a closer look at the current standards for auditing estimates and examples of specialists who may be hired to provide independent estimates.

January 6, 2017
Moore Stephens Doeren Mayhew Merges in Emerson & Partner U.S. Tax GmbH
Moore Stephens Doeren Mayhew is pleased to announce its merger with Emerson & Partner U.S. Tax GmbH based in Zurich, Switzerland effective January 1, 2017. Clinton L. Emerson, CPA, owner of Emerson & Partner U.S. Tax GmbH will join Moore Stephens Doeren Mayhew as a director in the International Services Group and continue as managing director of the Zurich office. Barbara M. Emerson will continue her role as Director of Finance, HR and Administration. The merger adds 10 professionals. For 2017, Emerson & Partner U.S. Tax GmbH will be known as Moore Stephens Emerson GmbH.
 
December 27, 2016
A Behind-the-Scenes Look at Audit Preparation
An auditor does significant legwork before starting field work. During the audit planning phase, he or she reviews the preliminary financials and compares the current year’s results to last year and industry benchmarks. Here’s a closer look at what happens behind the scenes — and why you might want to implement a similar approach internally.
 
December 20, 2016
IRS Outbound Transfer Requirements: Final Regulations
The U.S. Department of the Treasury and the IRS have recently issued final regulations (December 16, 2016) related to the tax rules covering the establishment of foreign operations. If your company is setting up a new foreign corporation or has a foreign branch that it is incorporating, these new rules will likely effect your tax situation. 

December 14, 2016
Foreign Owned Single Member US LLCs - Final Reporting Requirements
On December 12, 2016, the Treasury and IRS published final regulations that will require foreign owned single member US LLCs - that for most purposes have been treated as disregarded entities for US tax purposes (and therefore not required to obtain a US EIN or file a US tax return) - to be treated as a domestic corporation for reporting purposes under Sec. 6038A.  Read this article for the details and deadlines.

December 13, 2016
Minimize the Hassle of Your Next Physical Inventory Count
A well-executed inventory count is more than a matter of compliance. It can also provide valuable insight into improving operational efficiency. Read this article for how to run your count to maximize the benefits and minimize the hassle. Don’t miss our follow up article, “Would Your Recognize Inventory Fraud?” Inventory is a prime target for fraud schemes, second only to cash. And it doesn’t always involve the physical theft of items. Here are some early warning signs that your inventory has been targeted.

November 29, 2016
10 Tips to Prepare for Your Next Audit
A little preparation can go a long way toward facilitating the external audit process, minimizing audit adjustments and surprises, lowering your audit fees in the future and getting more value out of the audit process. Here are 10 tips to help you plan ahead.

November 17, 2016
Trump's Tax Plan, New Tax Return Due Dates, and Expiring ITINs
President-elect Trump is expected to bring change to tax laws for both business and individuals.  During his campaign, Trump proposed the following changes to current tax law. Also, read about the new due dates for the 2017 tax filing season and changes to the Individual Taxpayer Identification Number (ITIN) program.

November 1, 2016
How the U.S. Presidential Election May Impact Taxation of Offshore Earnings
Under current U.S. tax law, U.S. companies are taxed on their worldwide income.  However, certain types of income earned by their foreign subsidiaries are not taxable in the United States until the income is brought back to the United States.  In other words, the tax on this income is deferred until it is repatriated to the U.S.  Upon repatriation, the income is subject to tax at a rate of up to 35%. As the presidential election nears, U.S. companies that have been deferring U.S. tax by keeping foreign earnings offshore should pay particular attention to the tax policies of the candidates.
 
October 20, 2016
IC-DISC: The Only Export Tax Incentive for Manufacturers and Distributors
The Interest Charge-Domestic International Sales Corporation (IC-DISC) is the only remaining export tax incentive available to U.S. manufacturers and distributors of U.S. made products and services.  Privately held U.S. companies with $1.5 million of qualified export sales and/or $150,000 of export profit should consider the tax saving benefits of establishing an IC-DISC. Read this article to learn how an IC-DISC works, how IC-DISC income is calculated, and tax filing requirements. Click here to see an example of the tax savings comparison. Click here to see an example of the pricing methods.
 
October 4, 2016
U.S. Inbound Investors: Beware of Harsh Debt Equity Rules
Proposed regulations could have a detrimental impact on planned US inbound investments, converting funding planned as debt into equity. Careful planning, analysis and documentation will be required for US inbound investors in funding their US operations. Here is a checklist to help you meet the new documentation requirements.
 
September 20, 2016
Common Cash Pooling Arrangements under Attack
Multinational companies with treasury centers may need to change how they do business because of proposed debt/equity rules. This can impact not only cash pooling arrangements, but also hedging transactions and intercompany receivables left outstanding too long. How may these proposed debt/equity rules impact your business? Contact us to discuss.
 
September 8, 2016
Country by County Reporting Regulations Finalized
For most OECD countries, the Country by Country (CbC) Reporting is required for controlled groups that have revenue in the group in excess of $850 million, starting for calendar year 2017. The reporting will be on a new Form 8975 (yet to be released). This may also impact US entities with foreign owners where the group exceeds this threshold, as implemented in the country of the foreign owner. The threshold for UK and EU entities is €750 million.
 
August 25, 2016
Financial statement disclosures: A closer look at materiality
Materiality helps management identify what warrants additional disclosures in financial statements. Materiality judgements have always been implicit in the preparation of footnote disclosures. However, the proliferation of disclosure requirements in accounting standards in recent years, along with heightened expectations for documenting the rationale for any excluded disclosures, has increased the volume and cost of disclosures with a perceived commensurate benefit in their effectiveness. The proposed amendments are intended to clarify that entities can apply judgement to eliminate immaterial information.
 
August 9, 2016
Profit and cash flow: What’s the difference?
We often hear from business owners who report a healthy profit at year end, but scramble to pay their bills on time throughout the year. This scenario is especially common for start-ups and companies that work on long-term projects. These types of businesses tend to have a long cash conversion cycle that causes a significant disconnect between cash in the bank and the profit reported on income statements and tax returns. Here’s why.
 
July 26, 2016
Penalties for Incomplete, Late Filed or Non-Filing of Form 5471
U.S. citizens serving as officers, directors, or shareholders in foreign corporations are required to file Form 5471 with income tax returns. While there might be a single form that is required to be filed, there can be more than one penalty assessed for failure to file depending upon the type of information that is being reported on the form.  For a new foreign corporation established by a U.S. person, there may be both a Form 5471 (two potential $10,000 penalties) and a Form 926 that is required. In addition, any U.S. individual who is an officer or director of the foreign corporation may also be required to file.  Here is a schedule of potential penalties for your convenience.