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Guidance for Handling Meals and Entertainment Under 2017 Tax Cuts and Jobs Act

August 3, 2018

From OMA Connections Partner Clark Schaefer Hackeet (CSH): “The change from 50 percent deductibility of entertainment costs to those costs being completely non-deductible falls under Internal Revenue Code (IRC) Section 274. The confusion about the change in this section involves how it impacts the deductibility of business meals with clients, customers and business partners. …

“Pending guidance from the IRS, we would like to advise you to separate meals with customers, clients and other business partners where business is discussed during the meal, into a separate general ledger account. Do not include these meals with entertainment costs like hockey tickets, golf, or show tickets. Also, do not combine these types of meal expenditures with travel-related meals, or in-house employee meals or meals associated with conventions or trade associations. If the costs are tracked separately in your system, it will be easier to apply the correct deductibility rule once we obtain the clarity needed.”

Read the entire post from CSH here. 7/30/2018

Interactive Tax Reform Playbook

August 3, 2018

OMA Connections Partner Plante Moran has created an interactive online tax reform playbook that enables users to take a detailed look at the tax reform opportunities and challenges most likely to impact them.

Use the playbook to prepare your business for 2018 and beyond. 8/2/2018

U.S. Chamber: State by State Impact of Tariffs

July 27, 2018

The U. S. Chamber has compiled state by state impacts of the recent wave of tariffs.

Here are its calculated risks to Ohio, labeled “very significant damage.” 7/26/2018

State Surplus Deposited in Rainy Day Fund

July 13, 2018

June 30 marked the end of the state’s 2018 fiscal year. This week Governor Kasich’s administration deposited $657 million of excess funds into the state’s budget stabilization fund.

The balance in the state’s savings account now sits at $2.7 billion. Ohio lawmakers are constitutionally required to run a balanced budget and Senate President Larry Obhof issued a statement touting the benefits of responsible budgeting and conservative policies.

Budget Director Tim Keen said in a press release, “The fiscal condition of the state is strong. We finished the year with a larger ending balance than planned due to state spending that came in below projections and income tax revenues that came in above projections. This makes it possible … to make a deposit into the Budget Stabilization Fund.”

The budget director also noted that when the Kasich administration came to office in 2011, it inherited a depleted reserve fund of only 89 cents. 7/12/2018

South Dakota v. Wayfair, Inc. – Frequently Asked Questions

July 13, 2018

With the recent Supreme Court ruling that overturned the physical presence standard for sales and use tax, many businesses wonder how this will affect them, if at all.

In this FAQ, OMA Connections Partner, Clark Schaefer Hackett, addresses the most common questions and answers. 7/9/2018

Ohio’s Modernized Business Gateway is Live

July 9, 2018

Visit the Gateway to see Ohio’s improved and modernized system. Check out this video for an orientation to the modernized Gateway’s user interface and functionality.

The Gateway Modernization Project has transformed the Gateway into a more user-friendly, reliable, and secure portal.

Information around the site is consolidated, making the most important information easier to find.

Pre-populated information and fewer required clicks reduce the time it takes to complete a transaction in the Gateway, resulting in more efficient and simplified filing processes. The Gateway also houses PDF versions of transaction confirmations and receipts that are easy to access and print.

The modernized Gateway’s Help Center houses hundreds of how-to articles, video tutorials and FAQs to assist users in completing their transactions on the Gateway. In addition, Gateway users now have the ability to request help or ask a question 24/7 by using the system’s online help case functionality. 7/4/2018

Don’t Forget to Pay PCORI Fees

July 9, 2018

Employers that sponsor certain self-insured health plans, including some health reimbursement arrangements (HRAs) and health flexible spending arrangements (health FSAs), are reminded that they are responsible for Patient-Centered Outcomes Research Institute (PCORI) fees.

Fees for self-insured plans with plan years that ended in 2017 are due July 31, and are required to be paid via IRS Form 720.

Employer-sponsored self-insured plans with plan years that ended between January 1, 2017 and September 30, 2017 must pay a fee of $2.26 multiplied by the average number of lives covered under the plan. Employer-sponsored self-insured plans with plan years that ended between October 1, 2017 and December 31, 2017 must pay a fee of $2.39 multiplied by the average number of lives covered under the plan.

Questions about this may be directed to OMA’s employee health plan partner, One Source Advisors. 7/4/2018

First Hearing for “MegaJobs” Bill

June 29, 2018

This week Senators Bob Peterson (R-Washington Court House) and Stephanie Kunze (R-Hilliard) gave sponsor testimony on Senate Bill 309 in the Senate Ways and Means Committee. The bill is designed to lure large business projects such as Foxconn or Amazon H2Q to Ohio.

The bill authorizes several special tax incentives for operators and certain suppliers of a “megaproject.” The bill does four things for these “megaprojects”:

  1. It increases the number of years an operator or supplier can receive the Job Creation Tax Credit (JCTC);
  2. It allows a supplier’s JCTC to be allocated to the megaproject’s operator;
  3. Offers a CAT exclusion for a supplier to a megaproject; and
  4. Authorizes local governments to grant a 30-year commercial reinvestment area or enterprise zone property tax exemption.

The bill does not take into consideration Ohio companies that have been operating and steadily growing their presence in both capital and jobs over the years. This bill is designed solely to lure “megaprojects.” 6/28/2018

Webcast: What Does the Wayfair Decision Mean to You?

June 29, 2018

On June 21, 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc., the highly anticipated challenge to the sales tax physical presence standard adopted through Quill v. North Dakota in 1992. The court overruled the Quill physical presence standard, thereby allowing states to impose economic sales tax nexus standards on remote sellers.

OMA Connections Partner RSM has planned a 60-minute webcast on Tuesday, July 17, at 1 p.m. EDT to take an in-depth look at this decision and how it will affect remote sellers. The webcast will cover:

  • A comprehensive overview of the case and what the decision means
  • What effect will the verdict have on middle market companies?
  • What should you do in light of the decision?

Register here. 6/28/2018

Landmark Decision Overturns 51-Year Physical Presence Standard for State Sales Tax Collection

June 22, 2018

The U.S. Supreme Court this week ruled in South Dakota v. Wayfair that states can require out-of-state online sellers to collect sales taxes, overturning precedent that held otherwise.

Brick and mortar retailers have sought for years to even the playing field with online merchants. The ramifications of the decision are far reaching. The decision should be mostly good for state governments also which have been shortchanged by online commerce transactions.

The controversial decision is still being reviewed but here is an initial summary by OMA tax counsel, Justin Cook, of Bricker & Eckler. And here’s more analysis about the case from OMA Connections Partner, Schneider Downs.6/21/2018