Tax and Finance Management

OMA on the Record for Federal Corporate Tax Reform

This week the Cleveland Plain Dealer published a letter to the editor from OMA’s Rob Brundrett, Director, Public Policy Services, urging the next president to undertake corporate federal tax reform.

He said:  “Until we unshackle the nation’s job creators from the costly, complex and outdated tax code, the U.S. will continue to lose out on new investment.

“The U.S. has the highest corporate tax rate among the industrialized world. Our businesses are burdened with a combined federal and state rate of 39.1 percent. Compare this to the global average rate of 24.1 percent and it’s no surprise that American businesses are reducing investment at home and moving overseas for more favorable tax conditions.”

Read the full letter here.  10/13/2016

U.S. Supreme Court Declines Manufacturer’s Appeal

This week, the U.S. Supreme Court declined to accept an appeal of a California Supreme Court decision brought by the Gillette Company.  The case sought to resolve whether the State of California could retroactively revoke its participation in the multistate tax compact and deny taxpayers the choice of schemes to apportion income among the states in which they do business.

The OMA had prevailed upon Ohio Attorney General Mike DeWine to file an amicus brief with the high court in support of Gillette’s request, which he did. The court’s refusal to hear the case means that the California decision remains the law of that state.

This issue arises in several other states as taxpayers seek to take advantage of the apportionment method that most beneficially reduces their income in high-tax states.  10/13/2016

“Pro Growth” vs. “Fair Tax”

OMA Connections Partner, GBQ Partners, summarizes highlights of Trump’s and Clinton’s tax policy proposals here.  10/11/2016

You Can Get R&D Tax Credit Retrospectively

Manufacturers now know that developing new or improved products or processes can qualify them for the Research & Development Tax Credit, but did you know that eligible companies generally have at least 3 years from the date you filed your tax return to claim the credit via an amended return?

This means you may be able to regain funds paid from 2015, 2014, and 2013 to the federal government.

In addition, Ohio offers an R&D tax credit incentive.  If your business qualifies for the federal credit, there is a chance you may also qualify for state tax savings.

Read more from OMA Connections Partner, Tax Credit Group.  10/3/2016

Ohio 2020 Tax Policy Study Commission Holds Hearing

This week the Ohio 2020 Tax Policy Study Commission and its freshly appointed co-chairman, Rep. Tim Schaffer (R-Lancaster) held its first hearing since the spring.  The commission, which was created in the last budget bill, continues to hear from groups and individuals regarding all matters of Ohio tax policy.

This week the commission heard from a variety of witnesses testifying on multiple aspects of Ohio’s tax code including income tax, sales tax, business taxes, and tax credits.  The witnesses included OMA friend and respected economist Dr. Ned Hill, who testified on (1) Ohio’s fiscal system, (2) the quality of local government fiscal data, (3) tax revenue and future business cycles, and (4) tax credit programs.

Testimony was also provided by the Ohio Municipal League, Policy Matters Ohio, Council of State Taxation, and a coalition of Ohio mayors.  Hearings are scheduled to continue through the remainder of the year.  9/29/2016

Due Date Changes for 2016 Tax Returns

OMA Connections Partner, GBQ Partners, posts this:  “As part of the short-term highway funding extension passed by the Senate in late July, tax return due dates for certain filers have changed for the 2017 filing season (2016 tax returns). The new law applies to returns for tax years beginning after December 31, 2015 with one exception: C-Corporations with fiscal years ending on June 30th have ten extra years to make the change.”

Read more from GBQ here.  9/27/2016

What? No lab coats?

Despite the value the R&D tax credit can offer, many businesses that have qualifying expenses incorrectly assume they don’t qualify.  You don’t need sophisticated research facilities or PhDs in lab coats to be eligible.  This overview from OMA Connections Partner, Clark Schaefer Hackett, can help you determine whether your company could be missing out on this profit boosting opportunity.  9/27/2016

Members Give Tax Reform Input to Commissioner Testa

This week Ohio Tax Commissioner Joe Testa visited with OMA members to discuss how the state’s tax policy impacts Ohio manufacturers.

The group advanced concepts for consideration in Ohio’s operating budget which will be written next year as well as ways to improve the tax code to make Ohio more competitive for manufacturing.

Members reiterated the OMA tax principles and described how the 2005 tax reforms continue to benefit manufacturing in the state.  9/22/2015

Tax Changes for Ohio Businesses and Individuals

OMA Connections Partner, Clark Schaefer Hackett, posted this item about tax changes that occurred in 2016 that affect Ohio businesses and individuals.  Among them are municipal tax reforms and occasional entrant treatment.  9/6/2016

New Deadlines for 2016 Wage Reports

The new Jan. 31, 2017, deadline for filing W-2s, W-3s and 1099-MISC (Box 7) reports with the Social Security Administration or the IRS may catch many companies unprepared this year.  The new deadline was enacted as part of HR 2029, the Consolidated Appropriations Act of 2016, late last year.

The new filing deadline now matches the deadline for providing information to employees or independent contractors so that the IRS is armed with employer information to confirm individual income tax reporting.

Read more from OMA Connections Partner, RSM US, here.  9/6/2016