IRS Provides a Significant Break for Small Businesses

KEY TAKEAWAY: Taxpayers without an Applicable Financial Statement are now granted a de minimis safe harbor expensing election of $2,500, up from $500.

Effective for tax years beginning on or after January 1, 2014, the IRS has issued significant final regulations relating to tangible assets, materials and supplies, and related repairs and maintenance items. As part of these Tangible Asset Regulations (“TARS”), a de minimis safe harbor was implemented to allow taxpayers to expense units of property that are below certain thresholds that would otherwise be subject to capitalization. Continue reading “IRS Provides a Significant Break for Small Businesses” →

IRS Extends due dates for ACA reporting (Forms 1094 and 1095 B & C)

Posted on December 29, 2015

On December 28, 2015, IRS issued Notice 2016-4, which extends the due dates for the 2015 information reporting requirements, both furnishing to individuals and filing with the Internal Revenue Service (Service), for insurers, self-insuring employers, and certain other providers of minimum essential coverage under I.R.C. § 6055, and the information reporting requirements for applicable large employers under I.R.C. § 6056.

Specifically, this Notice (1) extends the due date for furnishing the 2015 Form 1095-B, Health Coverage, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from January 31, 2016, until March 31, 2016, and (2) extends the due date for filing with the Service the 2015 Form 1094-B, Transmittal of Health Coverage Information Returns, the 2015 Form 1095-B, Health Coverage, the 2015 Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns, and the 2015 Form 1095-C, Employer-Provided Health Insurance Offer and Coverage from February 29, 2016, to May 31, 2016 if not filing electronically, and from March 31, 2016, to June 30, 2016 if filing electronically.

This Notice also provides guidance to individuals who, as a result of these extensions, might not receive a Form 1095-B or Form 1095-C by the time they file their 2015 tax returns.

Harding, Shymanski & Company Holiday Schedule

Posted on December 21, 2015

We will be closing our offices in celebration of the Christmas and New Year’s holidays. Our holiday schedule will be:

  • December 23rd – Offices will close at 4:00 p.m. local time
  • Christmas Eve – Closed
  • Christmas Day – Closed
  • New Year’s Day – Closed

From our family to yours, we wish you a very Merry Christmas and a prosperous New Year!

Taking Command of Your Equipment Fleet

(Published in Construction Accounting and Taxation, March/April 2013 issue.)
Total annual construction spending put in place in the United States has dropped from a high of over $1 trillion pre-2008 to below $800 billion in the last few years according to FMI Corporation 2012 data. This 20 percent drop in spending has caused most contractors to evaluate their costs more diligently and in many cases to make drastic expense cuts. For construction companies with a large equipment fleet, this can be a daunting task. Continue reading “Taking Command of Your Equipment Fleet” →

FASB Delays New Revenue Standard

The FASB has agreed to a one-year delay of the effective date for the new revenue reporting standard. Based on feedback from stakeholders and in light of forthcoming amendments to the new revenue standard, the FASB agreed to push back the implementation dates to allow adequate time for effective implementation. While the IASB is considering a similar one-year deferral of the new revenue standard, it has not released a final decision. Continue reading “FASB Delays New Revenue Standard” →

2015 McGladrey Manufacturing & Distribution Monitor Report

With over 1600 participants from 15 different countries, McGladrey’s 2015 Manufacturing & Distribution Monitor Report presents the perspectives and expectations of manufacturing and distribution executives based around the world. Of the companies represented, 65% are based in the United States. This year, the Monitor is a series of reports on topics of concern for manufacturers and distributors, including: the executive summary, global growth, investing for growth and innovation, and information technology and data security.

Continue reading “2015 McGladrey Manufacturing & Distribution Monitor Report” →

Several States to See Increasing Unemployment Taxes

Federal unemployment taxes could be on the rise for employers in several states. The 5.4% regular credit against FUTA tax is reduced for firms in states that don’t repay loans from the federal jobless fund by November 10. Employers in Indiana and South Carolina face a 1.8% cut in their FUTA credit, which means up to $126 in extra tax per employee. Firms in Kentucky, Ohio, California, Connecticut, New York, and North Carolina are in line for a 1.5% credit reduction, or up to $105 more in tax per employee.

For more information contact Aaron Wilzbacher, CPA at 800.880.7800 ext. 1322 or awilzbacher@hsccpa.com.

FASB Delays New Revenue Recognition Standard

Posted on July 21, 2015

The FASB has agreed to a one-year delay of the effective date for the new revenue recognition standard. Based on feedback from stakeholders and in light of forthcoming amendments to the new revenue recognition standard, the FASB agreed to push back the implementation dates to allow adequate time for effective implementation. While the IASB is considering a similar one-year deferral of the new revenue recognition standard, it has not released a final decision.

Key Provisions

Public Entities: The new revenue recognition standard is now effective for fiscal years and interim periods within those fiscal years that begin after December 15, 2017. For those who use a calendar year-end, the new revenue recognition standard applies in their 2018 interim financial statements.
Note: “Public entities” includes public business entities, not-for-profit entities that have issued, or are a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an over-the-counter market, and employee benefit plans that file or furnish financial statements with or to the SEC.

Non-public Entities: The new revenue recognition standard is now effective for fiscal years that begin after December 15, 2018 and interim periods within fiscal years that begin after December 15, 2019. For those who use a calendar year-end, the new revenue recognition standard applies to their 2019 annual financial statements and to their 2020 interim financial statements.

Early Adoption: Early adoption of the new revenue recognition standard is permitted except for entities reporting under U.S. GAAP who must wait to adopt the standard. These entities may not apply the new revenue recognition standard earlier than the original effective date for public entities or no sooner than 2017 for entities using a calendar year-end. All entities are permitted to adopt the new revenue recognition standard as early as annual periods beginning after December 15, 2016.

The delay is welcome relief for many as the implementation of the new revenue recognition standard requires substantial change for their organizations’ systems and procedures.

For questions or assistance in evaluating the appropriate implementation strategy, contact Greg Elpers, CPA, CCA at gelpers@hsccpa.com or 800.880.7800.