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Lately, it seems like everyone has jumped on the bandwagon in an attempt to combine a limited liability company’s coolness and flexibility with an S corporation’s simplicity and fragility to create the delicate flower known as the LLC taxed as an S corporation. However, trendiness often comes with a cost, and in the case of an LLC electing to be taxed as an S corporation, that cost could be corporate-level taxes.
If your company does not have the proper internal controls in place, you could be leaving your company vulnerable to employee theft. While no business owner wants to think it can happen to them, employee theft does occur and it can result in a great cost to your company.
It’s important for plan sponsors to remember that every service offered in a 401(k) plan has a cost. It’s up to the plan sponsor to determine whether the overall fees are reasonable. In today’s environment, plan sponsors who don’t address these issues or don’t conduct periodic reviews of service fees may likely find themselves in a very costly lawsuit.
The Research and Development Tax Credit (R&D) isn’t a new development, but some government contractors have yet to take full advantage of its benefits. For those who are, the credit provides a clear financial advantage in a highly competitive industry.
Privately held government contractors racing to implement new FASB and IASB standards for identifying and reporting revenue from customer contracts by the end of this year are wrestling with one overarching question—when?
Enacted as part of the Tax Cuts and Job Act (TCJA), the new “base erosion and anti-abuse tax” (BEAT) can apply to certain corporations that make “base erosion payments” paid or accrued in taxable years beginning after December 31, 2017.
Congress isn’t alone in offering tax breaks to most U.S. taxpayers this year. Back by popular demand, most states, including Virginia, will offer a sales tax holiday, right before the start of the new school year.
On June 21, 2018, the Supreme Court of the United States issued its widely anticipated decision in South Dakota v. Wayfair. In a 5-4 decision, the Court held that the physical presence rule for state tax jurisdiction is incorrect and not a requirement under the Commerce Clause of the U.S. Constitution. The decision will have wide-ranging implications for all businesses.
While taxpayers await further guidance from the IRS and Treasury Department providing specifics on the FDII deduction, corporations should begin assessing whether they may qualify for the benefit immediately for quarterly estimated payments and financial reporting purposes.
In response to new state and local tax (SALT) limitations included as part of tax reform, a number of states are getting creative in working around the limits to allow their taxpayers to have a deduction and to keep them from leaving their state.

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