Tax and Finance Management

Tax Tips Make Great Stocking Stuffers

Well, not really.  However, OMA Connections Partner, MCM CPAs & Advisors, has posted some year-end tax guidance, including some details on depreciation tax breaks available for the 2015 tax year and beyond.  And here is a post about the comprehensive new lease accounting standard issued in early 2016.

And OMA Connections Partner, RSM, has considered some actions companies and individuals may want to take in anticipation of potential tax reforms under the Trump administration. 12/20/2016

IRS Extends ACA Reporting Deadline

The IRS has again extended the deadline for employers subject to the Affordable Care Act’s (ACA’s) information reporting requirements to meet their obligations to employees.  This is generally applicable to employers with 50 or more employees, or the equivalent.

Last year, the IRS extended the 2016 deadlines for reporting 2015 information, giving employers an additional two months to provide employees Form 1095-B, “Health Coverage,” and Form 1095-C, “Employer-Provided Health Insurance Offer and Coverage.”

The latest extension, however, extends the deadline for reporting 2016 information only 30 days, from January 31, 2017, to March 2, 2017.  And, unlike the last extension, this one doesn’t include the deadline for filing the required forms with the IRS.

Read more from OMA Connections Partner Clark Schaefer Hackett.  12/13/2016

OH 2016 Income Tax Forms & Instructions Available Now

2016 Individual and School District Income Tax forms and the instruction booklet are now available on the Ohio Department of Taxation’s webpage under the “Forms” tab.  12/15/2016

Ohio Court Upholds Economic Nexus Standard

On November 17, 2016, the Ohio Supreme Court issued three decisions in which it held that remote sellers with no physical presence in the state were nevertheless subject to Ohio’s commercial activity tax (CAT).

OMA counsel, Mark Engel, Bricker & Eckler, provides this short summary of the case, which OMA considers a win.

Engel wrote that the court “… rejected the taxpayers’ arguments that the federal commerce clause required a physical presence in order to impose a tax for the privilege of doing business in the state and held that the substantial nexus requirement under the dormant federal commerce clause jurisprudence was satisfied by the substantial sales made by the taxpayers into the Ohio market.”

This is one to keep an eye on as the taxpayers will have 90 days from the date the court issues its mandate to decide whether to seek a discretionary review by the U.S. Supreme Court.  11/22/2016

OMA Gets Win in Supreme Court

On Thursday Nov. 17, the Ohio Supreme Court issued its long-awaited decisions in three cases involving the application of the commercial activity tax to remote sellers.  In a 5-2 decision, the court upheld Ohio’s economic nexus standard and rejected the argument that a physical presence in the state was required by the commerce clause before a  remote seller could be subject to the tax.

In part, the court held that the $500,000 threshold of receipts was sufficiently substantial for commerce clause purposes.  OMA filed an amicus brief in the cases, urging the Court to uphold the economic nexus provisions. The court’s decision in the lead case, Crutchfield, Inc. v. Testa, can be found here.  11/17/2016

What does a Trump Presidency Mean for Your Taxes?

OMA Connections Partner, Clark Schaefer Hackett, posts what President-elect Trump’s tax reform plan for individuals and businesses might include.  Read it here.  11/10/2016

New Tax Guides Offered

OMA Connections Partner, RSM US, has compiled 2016 Year-end Tax Considerations for Businesses to help companies make informed decisions related to year-end tax planning.

RSM has also published this 2016 Year-end State and Local Tax Considerations guide as well as this 2017 Tax Planning Guide.  11/1/2016

Final and Temporary Section 385 Regulations Published

OMA Connections Partner, GBQ, writes that on October 21, 2016, final and temporary regulations under Section 385 were published which address related party financing instruments.

Per GBQ: “The regulations were much-anticipated and contain numerous changes from their original proposed form, addressing comments and concerns raised by practitioners. The initially proposed regulations, released April 4, 2016, were intended to address earnings stripping and the use of cross border debt to reduce U.S. income tax. But, it is important to note that the proposed regulations were not limited to these transactions and could also have an impact on related party debt transactions structured exclusively in the U.S. or solely outside of the U.S.”

Here’s more from GBQ.

And, this will be a topic of discussion when the OMA Tax Committee meets on Wednesday, November 9.  Dorothy Coleman, Vice President of Tax and Domestic Economic Policy at the National Association of Manufacturers (NAM) will present.  Register here for in-person or phone-in participation.  10/25/2016

S Corp. vs. C Corp. – Time to Switch?

OMA Connections Partner, MCM CPAs & Advisors, writes that the Protecting Americans from Tax Hikes (PATH) Act of 2015 made some taxpayer-friendly provisions permanent — including the shortened recognition period for companies that convert from C Corporation to S Corporation status.

According to MCM, this change is causing many manufacturers and distributors to re-evaluate their corporate status, and many companies are electing Subchapter S status to gain enhanced flexibility in business decisions and to lower taxes.

MCM offers these important issues to consider before you convert.  10/25/2016

IRS Issues New Regs for Partnerships

OMA Connections Partner, Clark Schaefer Hackett (CSH), posts that the IRS targets partnership transactions and liabilities with new regulations:  “Under the new guidance, more property transactions between partners and partnerships are likely to be classified as disguised sales — and, therefore, subject to taxes — than under the previous IRS guidance. The guidance also curbs the use of so-called leveraged partnership transactions to avoid paying taxes.”

Read more from CSH about the new regulations here.  10/19/2016