Effective for tax years beginning on or after January 1, 2018, a new audit regime for examining partnership tax returns and collecting any related tax will apply, replacing the old process known generally as the TEFRA rules. Click here for more information.
For any questions, please contact John Rittichier, CPA at jrittichier@hsccpa.com or 800.880.7800 ext 8484 or Mike Vogel, CPA at mvogel@hsccpa.com or 800.880.7800 ext 1358.
A recently issued IRS private letter ruling gives new hope to former students working to pay off their student loan debts. Student loan debts have been on a rapid rise, nearly tripling over the last decade. Former students are looking for help from whatever corner possible, and may now have a tangible solution by collaborating with their employer.
Private Letter Ruling 201833012 affirmed that employers can substitute qualifying student loan repayments made by employees in place of employee matching contributions for company 401(k) plans. Under the typical 401(k) structure, employees must contribute a portion of their earnings to their 401(k) in order for the employer to contribute an employer match. This alternative system under the letter ruling gives employees the option to both pay off their student loans and receive retirement benefits at the same time. This change in employer match should have a net zero impact to the employer’s bottom line.
Employers who wish to provide the benefits described above will need to amend their existing 401(k) plan documents to account for the change. Having the ability to assist employees in paying off their student loans can make a potential employer very attractive in the competitive hiring marketplace.
To learn more about 401(k) student loan benefits from MarketWatch, click here or contact Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322, awilzbacher@hsccpa.com.
The IRS is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year. Click here for more information.
For any questions, please contact John Rittichier, CPA at jrittichier@hsccpa.com or 800.880.7800 ext 8484 or Mike Vogel, CPA at mvogel@hsccpa.com or 800.880.7800
ext 1358.
Do you want to know about regional trends? We invite you to participate in Harding, Shymanski & Company, P.S.C.’s Ohio Valley Construction Market Outlook Survey.
WHO: Construction business executives with businesses headquartered or performing construction work in the Ohio Valley Region.*
WHAT: 15-minute online survey reporting current financial data and market perspectives.
WHEN: The survey is open now through April 12, 2019. Participants will receive a free bound copy of the results that will be presented at the Ohio Valley Construction Market Outlook Forum this summer.
WHERE: Take the survey now at:
https://www.surveymonkey.com/r/OhioValleyConstruction2019
The survey is being conducted by Harding, Shymanski & company, P.S.C., and all responses will be held in the strictest confidence.
*Ohio Valley Region includes: Southern Illinois, Southern Indiana (from Marion County south), Southwestern Ohio, Western and Central Kentucky as far east as Fayette County.
The IRS confirmed that the tax filing season will begin January 28, 2019, despite the current federal government shutdown. Click here for more information.
For any questions, please contact John Rittichier, CPA at jrittichier@hsccpa.com or 800.880.7800 ext 8484 or Mike Vogel, CPA at mvogel@hsccpa.com or 800.880.7800 ext 1358.
Since the Tax Cuts and Jobs Act of 2017 was passed, many businesses have begun to analyze the new law to determine how it may impact their businesses, their partners and their shareholders. In addition to the broa
der questions related to choice of entity, businesses must also consider how key changes to the tax code affect their businesses, partners and employees. Click here for more information.
For any questions, please contact John Rittichier, CPA at jrittichier@hsccpa.com or 800.880.7800 ext 8484 or Mike Vogel, CPA at mvogel@hsccpa.com or 800.880.7800 ext 1358.
TSK of America Inc. (a manufacturer of automotive parts) included tooling costs for metal stamping and plastic injection molding in the calculation of its 2013 Research Tax Credit. The tools were purchased from a third party with the intent of being used in production processes.
TSK’s customers usually require TSK to sell any unique tools to them. However, in this case TSK kept the tools due to an extensive trial and error process involved in refining the effectiveness and efficiency of the tools. Despite being purchased from a third party, the tools did not immediately perform at optimal effectiveness and efficiency and had to be altered.
In 2013, TSK included $9.3 million in supplies and materials as part of its qualified research expenses. The IRS initially only allowed approximately $1.2 million of expenses, which would have reduced the Research Credit by $500,000. The IRS’s ultimate concession in this case strengthens the arguments of manufacturers with similar fact patterns, but does not provide any precedential value as it never went to court.
For more information on the case or Research Credits in general, click here or contact John Rittichier, CPA at 800.880.7800 ext. 8484 or at jrittichier@hsccpa.com.
Harding, Shymanski & Company, P.S.C has been honored with the 2019 Girl Scouts of Southwest Indiana’s (GSSI) Advancing Women 
Company of the Year award for its dedication to advancing women in their industry and by encouraging a healthy work-life balance.
The proceeds from this event support the Girl Scout leadership program, ensuring that ALL girls in our local communities have the support, experiences, and opportunities they need to realize their potential.
The Advancing Women Company of the Year award winner criteria lie at the core purpose of the Firm, which is “to help our clients, our people and the firm be more successful.” This annual event honors outstanding female leaders and businesses for their accomplishments, community stewardship, and commitment to making a positive difference. In effort to support female employee’s work-life balance, a flexible work schedule exemplifies the dedication of the Firm to empower healthy leadership within the home and workplace. Shannon Brewer, a Vice President and CPA for over 20 years, shared, “my experience here at Harding Shymanski is maybe a bit unique in that I am a vice president who also works an alternative schedule. What that means is that I work normal accountant hours during busy season, and the rest of the year I work three days a week in the office. Of course there are times when I am working on my ‘off days,’ but the flexibility allows me to be with my family.”
Leading by example is a sure way to properly equip and empower aspiring female leaders and professionals to confidently achieve their goals. Women of both today and tomorrow can be encouraged by the Firm’s CEO, Trudy Stock, who said “be bold and know you have control over your destiny. Find good mentors that will help you along the way. Remember it isn’t just about keeping your head down and working hard – make sure you are regularly communicating your desire to continue to grow and advance your career.”
Visit https://youtu.be/7XpXs3sY3e4 for one on one interviews and more about the award!
The Tax Cuts and Jobs Act included a change to preclude employers from deducting qualified transportation fringe benefit expenses, including qualified parking, paid or incurred after December 31, 2017.
Yesterday, the Internal Revenue Service (IRS) issued interim guidance regarding the treatment of these fringe benefit expenses paid or incurred after Dec. 31, 2017. The guidance will help taxpayers determine the portion of parking that is nondeductible. The guidance also helps tax-exempt organizations determine how these nondeductible parking expenses create or increase unrelated business taxable income (UBTI) for not-for-profit organizations. In some cases, the organization may avoid having to file a Form 990-T, Exempt Organization Business Income Tax Return, altogether.
The guidance issued by the IRS includes examples for employers with third party contracts as well as employers who own or lease the parking lot, including a four-step reasonable method for completing the calculation. The IRS acknowledges that this guidance falls late in the year and taxpayers that own or lease parking facilities may have already adopted reasonable methods in 2018 to determine the amount of their nondeductible parking expenses. Taxpayers may rely on the guidance or use any reasonable method for determining nondeductible parking expenses related to employer-provided parking until further guidance is issued.
A key part of this guidance is a special rule, enabling many employers to retroactively reduce the amount of their nondeductible parking expenses. Under this rule, employers will have until March 31, 2019, to change their parking arrangements to reduce or eliminate the number of parking spots they reserve for their employees. Such a change made in parking arrangements will apply retroactively to Jan. 1, 2018. By making this change, many churches, schools, hospitals and other tax-exempt organizations may be able to reduce their associated UBTI.
The IRS also announced yesterday that it will provide estimated tax penalty relief in 2018 to tax-exempt organizations that offer these benefits and were not required to file a Form 990-T last filing season. Additionally, some tax-exempt organizations will not exceed the $1,000 threshold below which an organization is not required to file a Form 990-T or pay the unrelated business income tax.
For additional information, contact Michael Vogel, CPA or John Rittichier, CPA.
With most of the Tax Cuts and Jobs Act (TCJA) going into effect this year, taxpayers will navigate the most sweeping tax legislation changes since the Tax Reform Act of 1986. Each year we offer a Tax Planning Guide to assist with end of year planning which is perhaps even more important today. This guide provides and overview of the most consequential changes under the TCJA and other key tax provisions. It offers a variety of strategies for minimizing your taxes in the new tax environment.
It will be particularly important to work closely with your tax advisor this year. He or she can help you identify which changes affect you and the best strategies for maximizing the new tax law’s benefits and minimizing any negative tax ramifications. Should new tax legislation be signed into law or new guidance be issued from the IRS, our tax advisors can guide you through the implications of those changes.
