Tax Credits Archives - Wiss & Company, LLP

Financial Reporting Considerations: Interest Rates and Inflation

Written on January 26, 2023. Posted in Assurance, General Business.

By Arnold Macalintal Overview As companies prepare for year-end financial reporting, it’s important to consider the implications of inflation and rising interest rates, which can affect financial reporting in many ways, as discussed below. Many of the financial reporting areas affected involve impairment or valuation analyses, which often hinge on discounted cash flow models. As a result, developing estimates of future cash flows and related inputs (e.g., discount rates) may be...

SECURE 2.0 Act of 2022 Introduces Key Changes for Workplace Retirement Plans

Written on January 17, 2023. Posted in Uncategorized.

The Consolidated Appropriations Act, 2023 (Public Law No. 117-328) that was signed into law on December 29, 2022, by President Joe Biden includes the SECURE 2.0 Act of 2022, which introduces over 90 changes to the federal rules governing workplace retirement plans. This landmark legislation builds on the original SECURE Act that was enacted on December 19, 2019, and aims to expand coverage and increase retirement savings while simplifying and clarifying retirement plan rules. Every...

2022 Year-End Tax Planning for Businesses

Written on December 19, 2022. Posted in Tax.

By Nicole DeRosa U.S. businesses are facing pressure to drive revenue, manage costs and increase shareholder value, all while surrounded by economic and political uncertainties. Disruptions to supply chains brought about by the pandemic have continued into 2022. Inflation and rising interest rates have made the cost of debt, goods and services more expensive and cooled consumer spending. The stock market has declined sharply, and the prospect of a recession is on the rise. What’s...

Your Guide to 1099s

Written on November 29, 2022. Posted in General Business, Tax.

by Tania Vallarta, Megan Goldstein & Leonor DiStefano Introduction Every January, businesses must issue Form 1099-Misc or 1099-NEC to non-incorporated entities or individuals who they paid at least $600 by a method of payment other than credit card for performing a service to their business. Keep reading for best practices to help you stay in compliance! Form W-9 As soon as you engage a service provider and before you pay them, have them complete a form W-9. This provides you...

Tax Implications of the Inflation Reduction Act

Written on August 17, 2022. Posted in Tax.

By Nicole DeRosa, CPA, MAcc Just a mere four days following the House passage, President Joe Biden signed the Inflation Reduction Act (IRA) of 2022 into law on August 16, 2022, which is projected to raise more than $700 billion in revenue through federal policy changes impacting U.S. energy, environment, and tax sectors. Several noteworthy items that are not included in the final bill include: A provision to remove the itemized deduction cap for an individual’s state and local...

Mandatory Capitalization of R&E Expenses – The Impact on Life Sciences Companies

Written on July 20, 2022. Posted in General Business.

Life sciences companies engage in considerable, and often exclusively in, research and development activity. Not surprisingly, these companies often face unique challenges relating to R&D — from make-or-build vs. buy decisions, contract research and contract development, and manufacturing arrangements — as they progress through the clinical stages to commercial operations. The R&D landscape for life sciences companies is further complicated by additional challenges brought...

Construction Ahead: Opportunities and Challenges in 2022

Written on June 22, 2022. Posted in Construction.

CONSTRUCTION AHEAD: OPPORTUNITIES AND CHALLENGES IN 2022 The Infrastructure Investment and Jobs Act (H.R. 3684) will inject approximately $3 trillion into upgrading and expanding U.S. infrastructure, presenting a long horizon of opportunity for the construction industry. But to what extent will ongoing supply chain disruption, labor shortages and competition for materials continue to pose challenges for developers and project owners? Investors, project owners and other stakeholders...

Mandatory Capitalization Of R&E Expenses – The Impact On Technology Companies

Written on April 27, 2022. Posted in General Business.

Featuring Frank Calabrese, CPA Businesses that invest in research and development, particularly those in the technology industry, should be aware of a major change to the tax treatment of research and experimental (R&E) expenses. Under the 2017 Tax Cuts and Jobs Act (TCJA), R&E expenditures incurred or paid for tax years beginning after December 31, 2021, will no longer be immediately deductible for tax purposes. Instead, businesses are now required to capitalize and amortize...

What is the Angel Investor Credit Program?

Written on March 15, 2022. Posted in Early Stage, Small Business, Startups, Tax.

What if there was a way to guarantee a return on an investment? If your business operates in one of the 29 states currently offering Angel Investor Tax Credit Programs, it may be possible. These programs are popular avenues by which states incentivize innovation, job creation, and economic growth in their region and, in some instances, encourage the development of growing neighborhoods and minority-owned businesses. Parameters of angel investor credit programs vary drastically from...

Can I Raise Cash Flow for My Small Business With Government Money?

Written on February 23, 2022. Posted in Early Stage, Small Business, State & Local Tax Services, Tax.

There’s nothing worse than finding out you could’ve qualified for government funding after it’s too late, especially when your business is in its infancy and you could use all the cash you can get your hands on. Most of the founders we advise aren’t aware of the financial help that’s out there, or which programs are available for their business. We introduce two specific opportunities for government funding that are important for startups to know about: national tax credits and...

Significant Change to the Treatment of R&E Expenditures Now In Effect

Written on January 27, 2022. Posted in State & Local Tax Services, Tax, Tax Alerts.

As 2022 kicks off and tax legislation continues to be stalled in Congress, the amendment to Internal Revenue Code (IRC) Section 174 originally introduced by the 2017 tax reform legislation, the Tax Cuts and Jobs Act (TCJA), is now in effect. TCJA’s amendment to Section 174 requires U.S.-based and non-U.S-based research and experimental (R&E) expenditures to be capitalized and amortized over a period of five or 15 years, respectively, for amounts paid in tax years starting after...

Interim IRS Guidance on Research Credit Refund Claims

Written on January 25, 2022. Posted in General Business, Tax, Tax Alerts.

By Frank Calabrese, Senior Tax Manager The IRS has released two pieces of interim guidance on its revised administrative policy regarding valid research credit refund claims, as originally announced on October 15, 2021. On January 3, 2022, the IRS issued procedural guidance for applying the revised administrative policy and, on January 5, the IRS published a corresponding set of frequently asked questions (FAQs) on the policy. Both the procedural guidance and the FAQs are effective...

2021 Year-End Tax Planning for Businesses

Written on December 20, 2021. Posted in Tax, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager As the U.S. entered 2021, many assumed that newly elected President Joe Biden along with Democratic majorities in the House and Senate would swiftly enact tax increases on both corporations and individuals to pay for the cost of proposed new infrastructure and social spending plans, potentially using the budget reconciliation process to do so. Since then, various versions of tax and spending measures have been negotiated and...

Preparing for Tax Season

Written on November 16, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

New for tax year 2021/tax season 2022: The IRS just released on November 8th their tips for getting ready for the upcoming filing season. Now is the time to start and make a list of the tax documents you are expecting and use that list to cross off the items as you receive them. Also keep in mind if you receive certain documents electronically or by mail so you can be on the lookout for these items. You can use your prior year tax returns and records as a guide for what to expect....

R&D Tax Credits for the Technology & Software Industry

Written on November 9, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts, Technology.

Generate cash from your past and future investments to develop or improve software. If your company has paid for software to be developed or improved in the U.S., you may be eligible for federal and state R&D tax credits equaling up to 25% of qualified spending. If your company is financing such activities outside of the U.S., the incentives may be even greater. These dollar–for–dollar offsets against regular income tax liability have enabled many startup and mature businesses...

R&D Tax Credits for the Manufacturing Industry

Written on November 2, 2021. Posted in Engineering, State & Local Tax Services, Tax, Tax Alerts.

The manufacturing industry alone claims annual R&D tax credits in excess of $7.4 billion. Innovation is driving the manufacturing industry, and the objective of R&D tax credits is to encourage exactly the type of efforts that are at the core of Industry 4.0. You don’t have to be developing new products or engineering brand new manufacturing processes to qualify for the R&D tax credit. If your company is attempting to develop or improve manufacturing processes or products,...

R&D Tax Credits for the Life Sciences Industry

Written on October 26, 2021. Posted in Healthcare, State & Local Tax Services, Tax Alerts.

Generate cash from your past and future investments in developing or improving products, formulas or devices, or advancing medical and pharmaceutical technology. In recent years, the Life Sciences industry has been under heavy pressure to drive innovation in an environment of escalating R&D costs, increasing scientific complexity and enhanced regulatory scrutiny. If your company has worked to develop new or improved pharmaceuticals or medical devices, formulas or technology,...

R&D Tax Credits for the Healthcare Industry

Written on October 19, 2021. Posted in Healthcare, State & Local Tax Services, Tax, Tax Alerts.

Capitalizing on evolving patient care through past, present, and future innovation. R&D is likely to be a continued priority for the healthcare industry, as organizations in the space work to address the emerging needs of the aging population, respond to trends in telehealth and value-based care and fend off competition from new entrants, like Amazon, which has signaled that healthcare is a key priority for growth. If your organization has worked to develop a new or improved...

Guidance from the IRS on COBRA & ARPA

Written on May 26, 2021. Posted in Human Resources.

In an earlier blog, we highlighted the COBRA premium subsidy that was provided under the American Rescue Plan Act. As expected, the IRS has now issued further guidance that provides additional clarification on the subsidy. Notice 2021-31 has been released and addresses some of the many questions that have been outstanding since the passage of the new law. There is an extensive list of questions and answers in the newly released notice, which employers are encouraged to review. Listed...

The Pass through Entity Tax (PTET) Now Applies to New York State – Here’s What You Need to Know.

Written on April 15, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

Featuring Phil London, Partner Emeritus Legislative changes in the New York State budget have created the highest combined local tax rate in the country for some New York City residents. At the same time, a Pass Through Entity Tax (PTET) was enacted in New York State. Below, Philip London, member of the New York State Society of CPAs, and the New York, Multistate and Local Taxation committee, provides insight on the new law. Tell us about your involvement in the passing...

The IRS Does it Again – Another Retroactive 2020 Tax Change

Written on April 12, 2021. Posted in American Rescue Plan, Tax, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager First the unemployment compensation exclusion…now this. With less than a week until the original tax filing deadline, the IRS announced the suspension of the requirement to repay excess advance payments of the 2020 Premium Tax Credit (“PTC”) which was a provision rolled out with the American Rescue Plan Act of 2021 (“ARPA”). Unfortunately, being that the unemployment compensation exclusion was at the forefront of the ARPA,...

COBRA Model Notices Issued by Department of Labor

Written on April 9, 2021. Posted in General Business, Healthcare, Human Resources.

The Department of Labor has now released model notices as well as additional guidance regarding the COBRA premium subsidies provided under the American Rescue Plan Act. You can review our recent blog for background on the original Act. The model notices and election forms can be found on the Department of Labor website, and are summarized below. These notices can be used to help employers satisfy the new notice requirements under ARPA. Model General Notice and COBRA Continuation...

FFCRA Update – Tax Credits Extended to September 30

Written on March 23, 2021. Posted in American Rescue Plan, General Business, Human Resources.

American Rescue Plan New Extensions One of the provisions of the recently passed American Rescue Plan covers paid sick and family leave, as originally provided by the Families First Coronavirus Response Act (FFCRA). While the requirement to provide leave under FFCRA expired December 31, 2020, the rescue package extends the tax credits until September 30, 2021 for employers who voluntarily continue to provide paid leave under the same terms as FFCRA. You may recall that the stimulus...

Got Unemployment Compensation? Don’t Rush to File or Amend Just Yet!

Written on March 15, 2021. Posted in American Rescue Plan, Financial Planning, State & Local Tax Services, Tax, Unemployment.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager Last week, the $1.9 trillion American Rescue Plan Act of 2021 signed into law by President Biden included a very welcome retroactive tax provision for unemployed workers. The bill provides that up to the first $10,200 of unemployment compensation benefits, paid to you in 2020, can now be excluded from taxable income, provided household income is under $150,000. Although a very welcomed provision for the unemployed, there...

American Rescue Plan: Free COBRA Coverage

Written on March 12, 2021. Posted in Financial Planning, Healthcare, Human Resources.

The American Rescue Plan Act (ARPA), now signed by President Biden, includes important changes which employers need to be aware of regarding COBRA coverage for certain eligible employees and their dependents. It provides up to 6 months of free COBRA coverage for Assistance Eligible Individuals, a special COBRA enrollment window, and new notice obligations. Premium Subsidy for Assistance Eligible Individuals One of the major provisions includes a new premium subsidy equal to 100%...

$1.9 Trillion American Rescue Plan Released – Perhaps the 3rd Time is a Charm!

Written on March 2, 2021. Posted in Financial Planning, Stimulus Package, Tax, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager The much anticipated $1.9 trillion American Rescue Plan was released by lawmakers last week and passed by House by a near party-line vote of 219-212 early Saturday morning. The third stimulus package is now on its way to the Senate, which is expected to pass in hopes to meet a mid-March deadline, albeit with some potential changes. Once signed into law by President Biden, this 592-page stimulus package will offer a wide range of...

PPP Processing Delays – More Communication Required from SBA

Written on February 5, 2021. Posted in Financial Planning, General Business, PPP, State & Local Tax Services, Tax, Tax Alerts.

By Travis Miskowitz, Manager CFO Advisory When the Small Business Administration rolled out the Paycheck Protection Program in 2020, there was an immediate need to stem the losses and financial difficulties that small business owners were facing due to the pandemic and government-mandated shutdown orders. The early days of PPP were fraught with processing issues, incomplete or inconsistent guidance, and a lack of reliable resources for small business owners to reference when applying...

Straight Outta Congress: How to Maximize the Employee Retention Credit (ERC) & Paycheck Protection Program (PPP)

Written on January 19, 2021. Posted in General Business, PPP, State & Local Tax Services, Tax, Tax Alerts.

By Travis Miskowitz, Manager, CFO Advisory This is a developing story; updates will be published as additional information becomes available. Update: March 3, 2021 As we enter March, we would like to remind our clients and friends that they may be eligible for 2 very beneficial programs: Employee Retention Credit (ERC) and a 1st Draw or 2nd Draw PPP loan. The ERC is a refundable credit which can now be claimed retroactively by PPP borrowers to 2020 if the company meets 2 main eligibility...

Using Form 941 For FFCRA Tax Credits

Written on January 14, 2021. Posted in Human Resources.

By Laura Melville, Manager, Outsourced Payroll This guide is to be a helpful resource to guide you through how to properly prepare your 4th quarter Form 941 should you have any paid sick or family leave wages under the Families First Coronavirus Response Act for which you are claiming refundable tax credits. For further information on the details of this Act, read this blog. Earlier this year, the IRS had updated Form 941 to allow employers to report wages paid under this Act. Be...

PPP “Yeah, You Know Me” – 3rd PPP Application Window Opening Soon

Written on January 8, 2021. Posted in PPP, State & Local Tax Services, Tax.

By Travis Miskowitz, Manager, CFO Advisory Late Wednesday evening, the U.S Small Business Administration (SBA) in coordination with the Department of Treasury, issued guidance for the revamped Paycheck Protection Program (PPP) authorized by the Economic Aid Act of 2020. The newly released guidance includes: Interim Final Rule (IFR) “Business Loan Program Temporary Changes; Paycheck Protection Program as Amended” an 82-page consolidation of existing PPP guidance in the form of 24...

Breaking Down the Employee Retention Credit in the New COVID Relief Bill

Written on January 6, 2021. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Ilya Brodetskiy, Tax Manager Some significant updates are affecting the Employee Retention Credit, but there are still some important unknowns. Businesses that were ineligible for the ERC because they applied for PPP funding or who had over 100 full-time employees should reevaluate their eligibility based on the expanded program. The Consolidated Appropriations Act of 2021 introduced major changes to the Employee Retention Credit (ERC). The first change allows businesses that...

Payroll/HR End of Year – What You Need To Know

Written on December 23, 2020. Posted in General Business, Human Resources.

It has been quite a year, and most of us are glad to see 2020 come to an end. Businesses have had to pivot pretty quickly in a number of areas due to the pandemic this year. Before we ring in the new year, it is important to note the following changes, many of which result from the stimulus relief bill passed by Congress. While this bill is not yet law, employers should be aware of the provisions that may be applicable to them if and when these measures are signed into law. Paid...

Show me the money…again! Congress agrees to $900B Emergency Coronavirus Relief Act of 2020

Written on December 21, 2020. Posted in General Business, State & Local Tax Services, Tax Alerts.

By Nicole DeRosa, CPA, MAcc, Senior Tax Manager, and Travis Miskowitz, Manager, CFO Advisory Congressional leaders are close to finalizing the next round of stimulus, referred to as the Emergency Coronavirus Relief Act of 2020 providing for $900 billion in government funds aimed at supporting small businesses and the ailing economy. The coronavirus relief bill is expected to pass with bi-partisan support, and the President is expected to sign the bill into law quickly. The relief...

Unintended Effect of PPP Loan Forgiveness: Reduction in R&D Credit

Written on November 19, 2020. Posted in Tax, Tax Alerts.

By Travis Miskowitz, Manager, CFO Advisory The Paycheck Protection Program (PPP) created by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) provides loans to small and mid-size businesses to cover payroll and other specific costs during the coronavirus pandemic. PPP loans may be forgiven under particular circumstances, and are typically excluded from taxable income. Sounds simple—and if you focus on the question of payroll costs, it is. But companies that are interested...

How a Biden Administration May Change the Tax Landscape

Written on November 11, 2020. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Laurie Smith With the presidential election in our rearview window (barely), next up on everyone’s mind is how president-elect Joe Biden’s tax proposals may impact you. Before we get into the details of some key proposals and planning opportunities, it is important to note there are still many unknowns. Crucially, it will not be clear until early-to-mid-January 2021 which party will control the Senate, the result of two run-off races in Georgia taking place on January 5. The outcome...

NJ Corporate Tax Update

Written on November 10, 2020. Posted in General Business, Tax.

by Azra Khan New Jersey enacted technical and substantive changes to 2018 Corporation Business Tax Reform On November 4, Governor Phil Murphy signed into law SB 3007 /AB 4809, which makes some significant changes to the Corporation Business Tax Act (“CBTA”) that may have both favorable and unfavorable results for corporate taxpayers based on specific circumstances. Many provisions of the bill are effective for the 2019 tax year so it will be important to analyze the impact as soon...

Get To Know Federal Tax Form 5471, and The Post-2017 Revisions

Written on August 7, 2020. Posted in State & Local Tax Services, Tax, Tax Alerts.

By Mary Vasilescu The IRS collects information about foreign corporations with substantial United States (U.S.) ownership interests using Federal Tax Form 5471, Information Return for U.S. Persons With Respect to Certain Foreign Corporations. Form 5471 is used by certain U.S. persons who are officers, directors, or shareholders of certain foreign corporations to satisfy the reporting required under the Internal Revenue Code (IRC) and the related Treasury Regulations. Beware Hefty...

SBA Releases Long-Awaited Loan Forgiveness FAQs

Written on August 5, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz At long last, the Small Business Administration (SBA) and the Department of the Treasury have released guidance addressing Paycheck Protection Program (PPP) loan forgiveness. This guidance can be relied upon as the SBA’s interpretation of Section 1106 of the Coronavirus, Aid, Relief, and Economic Security Act (CARES Act), as amended by the Paycheck Protection Program Flexibility Act (Flexibility Act). Consistent with previous updates, the SBA has decided to provide...

Frequently Asked Questions About the Families First Coronavirus Response Act

Written on May 4, 2020. Posted in General Business, Human Resources.

I’ve been forced to furlough my employees due to a slowdown in business operations. Are they still eligible for the leave entitlements as part of the Families First Coronavirus Response Act? Unfortunately no. If you have furloughed your employees because there is not enough work for them, they are not entitled to take paid sick leave or expanded family and medical leave under the Act. They may, however, be eligible for unemployment benefits through your State. Many of my employees...

Updated PPP Guidance: Self-Employed Business Owners and Partnerships

Written on April 16, 2020. Posted in Financial Planning, General Business.

By Travis Miskowitz Paycheck Protection Program Updates – April 14, 2020 NOTE: As of April 16, 2020 the SBA is advising applicants that funds for the PPP loan program have been exhausted. Congress is currently negotiating and working to infuse an additional $250 billion into the program. This guidance is applicable when the SBA begins accepting applications again. We will continue to provide updates as more information becomes available. On April 14, 2020 the U.S. Small business...

Loan Modifications and Options

Written on March 30, 2020. Posted in Real Estate.

By Tricia Meola With the effects COVID-19 has created for the US, federal, state and local governments are working hard to respond to the growing public health threats – but what about the financial uncertainties? As unemployment rates rise and millions of Americans continue to file for unemployment benefits, many are faced with the inability to satisfy their mortgage obligations and are aware of their options. Know your mortgage The most important place to begin is to be acquainted...

Key Tax Provisions of the $2 Trillion CARES Act

Written on March 26, 2020. Posted in General Business, Tax, Tax Alerts.

By Mike Bodrato The Senate voted last night, 96-0, to approve the Coronavirus Aid Relief, and Economic Security Act or the CARES Act, which has more than $2 trillion in spending and tax breaks to assist economically and fund a nationwide effort to stop the coronavirus. At this writing, the CARES Act is still awaiting House approval and the President’s signature, which is not expected until tomorrow. The bipartisan legislation includes about $500 billion that can be used to back...

Managing Cash Flow During Crisis

Written on March 23, 2020. Posted in Advisory Services, General Business.

By Travis Miskowitz, Manager, Wiss CFO Advisory Cash flow is the lifeblood of your business. During this (or any) time of crisis, it is imperative to keep an eye on your cash flow and regularly monitor your cash position. Instituting effective cash flow management may be the most important action you can take to navigate through challenging times. The Wiss team has put together this list of recommendations to help monitor your progress: Monitor your cash flow regularly With the...

Families First Coronavirus Response Act

Written on March 19, 2020. Posted in Healthcare, Human Resources.

President Trump has now signed into law the Families First Coronavirus Response Act, providing emergency economic relief and support to American workers who may be impacted by the COVID-19 pandemic. The Act applies to businesses with less than 500 employees and will take effect on April 2, 2020. There are two main aspects of the Act as outlined below: Emergency Paid Sick Leave This portion of the Act allows eligible employees to take two weeks of paid sick leave in the event they...

Coronavirus Relief Update for Employers in New York and New Jersey

Written on March 18, 2020. Posted in General Business, Human Resources.

Like many of you, we have been working to keep up with current news regarding information for businesses and their employees. The speed at which there are changes and announcements at the federal and state levels is rapid, and our goal is always to relay that information. Federal, state and local governments are working to develop financial aid packages to help businesses that are struggling as a result of the pandemic. As companies struggle with how to continue their business,...

Elective Business Alternative Income Tax for Pass-Through Entities to Address Federal Limitation on State and Local Deduction

Written on January 21, 2020. Posted in State & Local Tax Services, Tax, Tax Alerts.

On January 13, 2020, Governor Phil Murphy signed into law Senate Bill 3246 establishing the business alternative income tax, an elective New Jersey business tax for pass-through entities. A corresponding refundable state gross income tax credit is allowed for the owners of the pass-through entities to offset personal or corporate income tax liability. The pass-through entity tax applies to tax years beginning on or after January 1, 2020. The intent of the new legislation is to...

Retirement Savings and Tax Deduction Strategies for 2018 Filers

Written on January 15, 2019. Posted in Tax.

Whether you’re self-employed or working for someone else, tax filing season is a great excuse to start thinking about strategies to lower your taxable income and maximize your retirement savings. You still have time. You have until April 15 to make contributions to your retirement accounts and have it apply to the 2018 tax year. If you file for an extension, your deadline for doing this in 2019 is October 15. The following information will be especially useful if you discover or...

Denial of Expense Deductions for Marijuana Businesses Is Reinforced

Written on December 19, 2018. Posted in Food & Beverage.

In the most recent in a now developing line of Tax Court cases involving the application of Section 280E of the Internal Revenue Code, a hard blow struck the ever-expanding cannabis industry. In Patients Mutual Assistance Collective Corp. (dba Harborside Health Center) (“Harborside”), v. Commissioner, 151 T.C. No. 11 (November 29, 2018), the Tax Court rejected a variety of arguments in support of ordinary and necessary business deductions and costs of goods sold taken by a taxpayer...

2018 New Jersey Tax Amnesty Program

Written on November 15, 2018. Posted in Tax.

Starting on November 15, 2018 and ending January 15, 2019, the State of New Jersey will hold a 60-day tax amnesty program aimed towards taxpayers who have delinquent taxes owed to the state. This will provide taxpayers an opportunity to file past tax returns and/or pay outstanding taxes due to the state, including a one-half reduction of the interest due as of November 1, 2018. The amnesty program only applies to outstanding filings and payments due for tax returns which were due...

7 Common Mistakes Made by Early Stage Companies

Written on September 18, 2018. Posted in Technology.

By Donna Woronka, CPA, MBA Updated 7/30/2019. Early stage entrepreneurs have plenty on their minds, from developing and launching their new product or service, to establishing customer and vendor relationships, to hiring employees and raising capital to make it all possible. There’s a lot that can potentially slip through the cracks. Issues related to state and federal compliance is an area that is not frequently at the top of the list. In my 20+ years working with over one hundred...

Governor Murphy Signs State Budget

Written on July 2, 2018. Posted in Tax.

On July 1, 2018, Governor Murphy signed New Jersey’s 2019 budget. Here are a few highlights of which you should be aware. Main highlights: Increased income tax rate, effective for the 2018 tax year, to 10.75% for individual taxpayers whose incomes are at or above $5M A temporary corporate business tax surcharge of 2.5% for 2018 & 2019 and 1.5% for 2020 & 2021 Effective for the 2018 tax year, an increase in the state property tax deduction cap from $10,000 to $15,000 There...

Reading Financial Statements 101 – Quick Tips To Identify Potential Errors

Written on May 15, 2018. Posted in Tax Alerts.

The last thing your company or organization wants is unreliable financial statements. Your partners, investors, lenders and especially your company’s bottom line depend on numbers from your accounting department that you can comprehend and trust. To minimize the potential for errors, make sure that the following criteria are met when reporting your numbers: Balance Sheet Asset accounts should have debit balances and liability accounts should have credit balances. As long as your...

New Jersey & New York Attempt Work-around on the SALT Deduction Limitation

Written on May 7, 2018. Posted in State & Local Tax Services.

New Jersey Governor Phil Murphy signed legislation this past Friday (May 4, 2018) which attempts to work-around the state and local tax deduction limitation imposed by the Tax Cuts and Jobs Act, which was enacted in December of 2017. Under that federal legislation, the aggregate state and local tax deduction (which includes state income, property and sales tax) an individual taxpayer may claim is limited to $10,000 per year. New York already has their version of a work-around...

Potential 15% Increase in NJ Angel Investor Tax Credit Program

Written on March 20, 2018. Posted in Tax.

By Bill Beiermeister, CPA and Ryan Silva, CPA, CFE, CVA In January 2013, Governor Chris Christie signed legislation creating an angel investor tax credit program to spur job creation and growth in New Jersey’s current and next generation of high-skill, high-wage emerging technology industries. Under the current program New Jersey offers a 10% investor tax credit for an individual that invests in a New Jersey emerging technology company up to a maximum of $500,000 for the tax...

The New Partnership Audit Rules Effective January 1, 2018

Written on February 20, 2018. Posted in Tax Alerts.

By Mike Bodrato, CPA, JD As part of the Bipartisan Budget Agreement of 2015, Congress made significant changes in the procedures used by the IRS to conduct partnership audits (including LLCs treated as partnerships) and their partners. Proposed regulations were issued on January 19, 2017, but prior to being released were withdrawn by executive order. New proposed regulations were issued on June 14, 2017. The new partnership audit rules repeal the current regime under the Tax Equity...

Tax Reform Manifesto for the Real Estate Industry – Part 3

Written on February 5, 2018. Posted in Real Estate.

This posting is a part of a 3-part series. The full article will be available in the coming weeks. Click here to read Part 1. By Alexander J. Narcise, CPA and contributions from the entire real estate accounting services team: Michael Kroll, CPA Steve Warholak, CPA Michael Bodrato, CPA Kyle Pennacchia, CPA James Jenco, CPA Ken Trainor, CPA Phil London, CPA Chris Gati, CPA Charlie Komack, CPA The Internal Revenue Code has historically provided many planning opportunities for real...

Alleviate 1099 Reporting Stress

Written on January 24, 2018. Posted in Advisory Services.

By Wiss Advisory Associate If your company works with nonemployee service providers “in the course of business,” you may be subject to 1099 reporting requirements. Failing to file these forms may result in penalties, so here’s what you need to know to keep your business in compliance. 1099 reporting requirements You’re required to send 1099-MISC forms to vendors when payments to them total $600 or more during the calendar year for: Services performed for your business by someone...

Tax Reform Manifesto for the Real Estate Industry

Written on January 18, 2018. Posted in Real Estate.

This posting is a part of a 3-part series. The full article will be available in thecoming weeks. By Alexander J. Narcise, CPA, with contributions from the entire Wiss Real Estate Team: Michael Kroll, CPA Steve Warholak, CPA Michael Bodrato, CPA Kyle Pennacchia, CPA James Jenco, CPA Ken Trainor, CPA Phil London, CPA Chris Gati, CPA Charlie Komack, CPA My take on this whole thing: The Internal Revenue Code has historically provided many planning opportunities for real estate investors...

2018 National Manufacturing Outlook and Insights

Written on January 12, 2018. Posted in General Business.

The LEA Manufacturing Steering Group oversees the development of this annual report. It is made up of members from the following firms: ABBB Anders CPAs + Advisors Bennett Thrasher LLP Blue & Co., LLC EKS&H LLP KPM CPAs & Advisors LBMC Lutz PKF Texas Schenck SC William Vaughan Company More than 450 manufacturing executives participated in the survey, which includes the opinions of respondents who produce industrial/machining, transportation/automotive, construction,...

Refinancing Student Loans: Is It Worth It?

Written on January 10, 2018. Posted in Advisory Services.

By Rachel Kleiman A letter from a student loan refinancing company is placed on your desk. Have you wondered if refinancing is worth it or just a scam? Refinancing means taking on new debt with new terms in order to pay off older debt. By refinancing, you can reduce monthly payments, secure a lower interest rate, and renegotiate the term of your loan. Additionally, refinanced student debt is still student debt, meaning you will still receive a 1098-E for tax purposes. Refinancing...

IRS Serves Up Savings With the 45(B) Tax Credit

Written on December 11, 2017. Posted in Food & Beverage.

By James Jenco If you own a food and beverage establishment, you might be overpaying the IRS in payroll taxes. That could be the case if you’re not taking advantage of IRC 45(B). This rather little-known federal tax deduction could save you hundreds or even thousands of dollars a year, depending on the size of your tip-eligible workforce. Here’s how it works. Taxing Issues As you probably know, it’s your responsibility to pay the employer withholding tax on the FICA and Medicare...

Protect Your Identity: How to Recover from a Data Breach

Written on September 15, 2017. Posted in Technology.

By Wiss Associate If you maintain a credit score, there is a high chance you are one of the 143 million Americans whose sensitive information was uncovered in the recent data breach at Equifax, one of the country’s three largest credit reporting agencies. This breach, which lasted from May to July, swiped people’s names, birthdates, Social Security numbers, addresses, and in many cases, driver’s license numbers. What’s more, these cybercriminals accessed millions of people’s personal...

You Cannot Automate a Relationship

Written on August 8, 2017. Posted in General Business.

By Ruth Raftery “Hello! My name is Samantha and I am an automated voice recognition answering service. You can speak to me as you would with a live representative. Please tell me, what are you calling about today?” It seems many calls I make lately– whether to credit card companies or to other businesses – are answered by the type of technology that runs programs like “Samantha.” In my experience, these systems can never actually answer the types of questions...

Does Your Business Qualify for Lucrative R&D Tax Credits?

Written on March 23, 2017. Posted in State & Local Tax Services.

By Wiss Associate “My company’s not in the business of research and development, so how could we qualify for R&D tax credits?” If that’s what runs through your head when you think of this particular credit, it’s understandable – especially if you don’t have any scientists or many engineers on staff. Or a dedicated research and development department. The truth is, you could earn lucrative federal, state and local tax credits with work that you don’t even think of in conventional...

Borrowing from Your 401(k): What to Know Before Making the Decision

Written on March 21, 2017. Posted in Employee Benefit Plan Audits.

By Cindy Sandomenico Borrowing money from your 401(k) account can be tempting. You know the money is there, and it’s yours, so why not use it? Before you pull the trigger, however, consider the limitations and consequences. Here are some important points to keep in mind. Know the rules Generally, you can borrow from a 401(k) for any reason, such as paying educational expenses or buying a home for the first time — although employers are not required to offer a loan option within...

If You’re Self-Employed, You May Qualify for Insurance Deductions

Written on January 27, 2017. Posted in Tax.

By Wiss Associate For myriad professionals, becoming an entrepreneur can be a dream come true. Fortunately, health insurance deductions can make maintaining that dream much easier. The Self-Employed Health Insurance Tax Deduction within the Affordable Care Act can assist in lowering your adjust gross income by your payment quantity in premiums on dental, medical, and qualified long-term care insurance for you and your loved ones. For self-employers unable to access a partner’s insurance...

Plug in Your Car and Receive a Tax Break

Written on January 16, 2017. Posted in Tax.

By Wiss Associate Have you recently purchased an electric or hybrid car? If so, you may be eligible for a significant tax credit. Consumers of these energy-friendly vehicles can benefit from a tax break of $2,500 to $7,500, contingent on two essential factors: a car’s battery size and the amount of income taxes you owe during a specific year. Contrariwise, vehicles that have 4 kWh batteries can be eligible for a $2,500 tax benefit. In order to stay informed on the complex rules of...

New Doors, Windows, or AC Unit? Get ready to receive a tax credit!

Written on January 11, 2017. Posted in Tax.

By Wiss Associate If you made your home a little more energy efficient last year, you may qualify for a tax credit on your federal income tax return. In previous years, to encourage clean energy conservation in residences of Americans everywhere, the Department of Energy and the EPA have worked collectively to develop Energy Star, a program designed to promote business and home energy efficiency by deeming appliances like solar panels, air conditioning and heating systems, and windows...

Strengthening Millennials’ Financial Literacy: On the Road to Financial Success

Written on December 13, 2016. Posted in Financial Planning.

By Connor Doyle Updated 7/30/2019. So, you’ve crash landed in the middle of a city. There’s a funky road going somewhere and a lot of people you don’t know around you are singing and dancing. You’re confused. Last you remember you were safe at home, warm in your bed with your family surrounding you. What happened? College happened – a tornado. Winds whipped around you, you meet some odd characters, got turned in every direction, and have trouble remembering some of the finer details....

Preparing for Change: New Rules to Impact NJ Renewal Registration for Nonprofits

Written on December 6, 2016. Posted in Not For Profit.

By Linda Curro Effective Jan. 1, 2017, New Jersey will require that all charity registrations and annual renewals be submitted digitally, using a new online filing system. In many ways, this is good news: A process that once required up to 75 pages of documents to be sent via snail mail will now go paperless, saving tons of waste. The new system also promises to streamline renewal reviews, enabling the state to more efficiently verify that the forms are completed and accurate. And...

When 401(k) Loans are Considered to be in Default

Written on November 8, 2016. Posted in Employee Benefit Plan Audits.

By Laura Zindel Taking out a 401(k) loan can seem like a relatively simple way to borrow money. It is a very common practice, but many employees who borrow from their plans aren’t prepared for the financial consequences of doing so if a loan ends up in default. The most common reason for defaulting on a 401(k) loan is the loss of a job. If the employee loses his or her job, the plan document rule requires that any outstanding loan balance must be repaid within a certain timeframe,...

With the Gas Tax Bill Comes the Elimination of the NJ Estate Tax

Written on October 14, 2016. Posted in Estate and Business Succession Planning.

By Ruth Raftery The much discussed bill raising the New Jersey gas tax by 23 cents per gallon was signed by Governor Christie on Friday October 14th. Although not as widely publicized, the new law provides for another major change – the complete elimination of the New Jersey state estate tax. Up to now, and for the remainder of 2016, New Jersey has the lowest estate tax exemption in the country, subjecting estates worth more than $675,000 to estate tax at the time of death. By way...

Christie Launches NJ Gas Spike to End Road Funding Crisis

Written on October 7, 2016. Posted in State & Local Tax Services.

By Christopher Colyer After an extensive three-month long political and financial stalemate, New Jersey Governor, Chris Christie and Democratic leaders reached a deal to renew the Transportation Trust Fund, reviving dozens of construction plans that remained lifeless for months on end. By proposing to raise the gas tax by 23 cents a gallon to replenish the fund, which is recycled and applied to road, rail, and bridge improvements for the state, New Jersey’s transportation projects...

Income Tax Pact Dismantled: Gov. Christie Terminates Tax Covenant with PA

Written on September 15, 2016. Posted in State & Local Tax Services.

By Philip London Do you cross the Delaware River on the way to work? By next year, your commute will be even more expensive. For the past 38 years, neighbor states Pennsylvania and New Jersey have preserved a reciprocity pact that allows taxing solely where workers reside, not where they work. Thus, NJ does not collect tax on PA residents working in New Jersey, and vice versa. However, last week, Governor Christie withdrew from the tax agreement. Consequently, roughly a quarter-million...

New Jersey ERG Program can Prove Lucrative for Qualifying Redevelopment Projects

Written on August 2, 2016. Posted in Real Estate.

By Alex Narcise and Darin Valentine Updated 7/30/2019. Residential and commercial developers are constantly in need of funding and many qualifying New Jersey developers have taken advantage of a program offered by the New Jersey Economic Development Authority (NJEDA). If you’re considering undertaking a redevelopment project in a qualifying economic and redevelopment, and grant incentive area in New Jersey, a program offered by the NJEDA could generate a significant amount of cash...

How to Avoid Tax Penalties on Complimentary Hotel Breakfasts

Written on June 28, 2016. Posted in State & Local Tax Services.

By Mark Feldstein When is a free meal not really free? When a New York State hotel is offering a complimentary breakfast to its guests. While complimentary breakfasts are free – in a sense – to your guests, if your hotel is audited, you could get a tax bill. And the tax penalties for months – or years – of presumed “tax-free” food can add up. New York sales tax and occupancy tax returns are, in most circumstances, subject to audit for up to three years, longer if fraud is suspected....

How to Take Advantage of the Grow NJ Tax Credit

Written on June 26, 2016. Posted in State & Local Tax Services.

By Bill Beiermeister The only bad thing about tax credits is the possibility of missing out on one. To make sure that doesn’t happen to your business, here is some background on the Grow New Jersey tax incentive and how it could affect your company. Per-employee credits add up The Grow New Jersey Assistance Program is offered through the state’s Economic Development Authority (EDA) to encourage businesses in technology, manufacturing, warehousing, research and development and other...

Manhattan taxpayers, be aware of the Commercial Rent Tax

Written on June 14, 2016. Posted in State & Local Tax Services.

By Kyle Pennacchia and Paul Ursich In New York City, the Commercial Rent Tax (CRT) is often overlooked, and many of those who miss it face penalites and interest for late or missed filings. Here’s a brief introduction to the tax, basic qualifications and links to more detailed information. Are you subject to the CRT? The CRT applies to Manhattan tenants who occupy or use property south of 96th Street for most trade, business, professional and commercial transactions. As with most...

How to Make 2016 Your Most Organized Tax Year Ever

Written on May 5, 2016. Posted in Tax.

By Paul Ursich So you and your company survived another tax deadline. Congratulations. Now, while the memory is still fresh, is the ideal time to conduct a post-mortem of your current process to identify shortcomings and strategies that will help you boost efficiency and accuracy next year. Here are a few suggestions you can use to kick-start your new processes. Review withholding allowances Large tax refunds seem like a good thing when you get them, but it means the government has...

The Internship Experience: A Peek Inside the Lives of Four Wiss Tax Interns

Written on April 19, 2016. Posted in Human Resources.

By Danielle Patton, former Marketing intern For many young professionals, an internship cements the foundation for a prosperous business career. When immersed in this unparalleled experience, an internship can offer tremendous knowledge from beyond the lecture hall: evolving your academic ambitions, strengthening your network, and assisting you in acquiring valuable tools that can be used throughout your profession. But when undertaking this occupation, what can a young professional...

IRS Phone Frauds Echo into the New Year

Written on February 11, 2016. Posted in Tax Alerts.

Magnifying the communication scam nightmare As tax season prepares for launch, countless Americans are at climbing risk for falling victim to unsolicited telephone calls, texts, and emails from individuals falsely claiming to be Internal Revenue Service and Treasury workers. Though phone scams have progressively been ceaseless year-round, the Treasury Inspector General for Tax Administration (TIGTA) is careful to stress this particular year as prey to the greatest attack ever beheld. Each...

The 45L Energy Efficient Home Tax Credit and How to Take Advantage it

Written on September 15, 2015. Posted in Real Estate.

When and why residential real estate developers should consider it By Alexander Narcise The Federal Section 45L Energy Efficient Home Tax Credit is relatively new and little known, but those who take advantage of it can reap substantial benefits. Here are two examples of 45L tax outcomes: After due diligence, a housing developer in Connecticut received a tax credit of $2,000 for each of its 144 units. A 296-unit development in New Jersey is in the process of receiving a $592,000...

An Evolving Role

Written on February 10, 2015. Posted in Advisory Services.

Look for a diversified skill set when choosing a CFO By Paul Ursich Today’s CFOs need a firm grounding in accounting, financial reporting and tax planning as a starting point. They also need an understanding of computer software systems, a good working relationship with your company’s IT department and the ability to develop company strategies. An effective CFO must also be a smart manager and a team builder who can engage your controller and accounting department. This combination...

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