Tax and Finance Management

State Revenue Continues to Outpace Estimates

The State of Ohio’s tax receipts exceeded estimates by $82.7 million (3.4%) in August, according to preliminary revenue data from the Office of Budget and Management. The overage last month was due in large part to personal income tax collections, which were $54.2 million (6.8%) above the estimate.

Year-to-date tax receipts are $4.5 billion (1.9%) above the official forecast.

Meanwhile, Fitch Ratings has upgraded Ohio’s bond rating to AAA from AA+, reflecting improved budget management, according to state officials. 9/8/2022

Taxes and the Inflation Reduction Act: What Middle Market Businesses Should Know

Middle market businesses and their owners who understand how they might be affected by the federal Inflation Reduction Act can take advantage of new credits and incentives, avoid unpleasant income tax surprises, and minimize IRS scrutiny, according to OMA Connections Partner RSM.

The firm has published this guidance highlighting five things mid-sized companies should know about the tax components of the new federal law. 9/8/2022

Employee Retention Credit Refunds Subject to Lengthy Processing Time

The IRS is struggling to process hundreds of thousands of employee retention credit (ERC) refunds. In this guidance, OMA Connections Partner Plante Moran says taxpayers have reported waiting anywhere from 10 to 12 months — and in some cases longer — for their ERC refunds. 9/6/2022

RSM: Taming Inflation May Cost to 5.3M U.S. Jobs

“We are in the midst of a serious cost-of-living crisis that cannot be ignored — and the Fed needs to do all that it can to stabilize prices.”

That commentary is from OMA Connections Partner RSM, which published this insight explaining that the U.S. will need to trim between 1.7 million and 5.3 million jobs to reduce inflation to an acceptable level. 8/30/2022

Comparing Beer Taxes by State

Ohio’s beer brewing tradition dates back to the arrival of German immigrants in the 1800s. Today, the state produces a wide variety of beers — from hundreds of craft brews to traditional favorites such as Miller Lite, Budweiser, Coors, and Samuel Adams.

Because beer is a key player in Ohio’s food and beverage manufacturing industry, how it’s taxed is of interest. According to this new ranking by the Tax Foundation, the Buckeye State imposes a relatively smaller tax burden on beer (18 cents a gallon) than many other states. 9/1/2022

Webinar: Employees Who Embezzled From Their Employer

A Sept. 21 complimentary webinar will spotlight cases involving employees who pleaded guilty to — or were indicted for — embezzling from or defrauding their employer. OMA Connections Partner GBQ Partners will recap these real-life frauds, how they were caught, and what employers can learn from them — including how to decrease the likelihood this happens to your business. 9/1/2022

A Look at Tax Credits in the CHIPS Act

As reported earlier, the federal CHIPS Act, which is now law, contains $52 billion in incentives to increase domestic production of semiconductors, including at Intel’s Ohio operations. OMA Connections Partner Clark Schaefer Hackett has published this insight into the new law’s tax credit and funding provisions. 8/22/2022

Analysis: Ohio’s New Property Tax Transparency Law

Earlier this summer, Gov. Mike DeWine signed a bill that changes how voters will see proposed property tax levies described on the ballot. OMA Connections Partner Dinsmore has published this in-depth analysis describing how House Bill 140 — which will be in effect for 2023 elections — will increase transparency. 8/24/2022

Webinar: Guidance on New Leasing Standards

OMA Connections Partner William Vaughn Company has made available this on-demand webinar to address the Financial Accounting Standards Board’s new lease standard (ASC 842), which will impact many manufacturers. To successfully comply, the firm says companies need to be pro-active in understanding the new standards, how they apply to your business, and the tools available when developing a strategy to report these changes. 8/25/2022

Key Details on New Climate, Tax Law

Despite opposition from the business community, Congress recently approved and President Joe Biden signed the $740 billion budget reconciliation bill — called the Inflation Reduction Act of 2022. The new law includes a 15% corporate minimum tax, government price controls on prescription drugs, and massive new federal spending for climate-related programs and IRS enforcement.

Multiple OMA Connections Partners have published summaries of the legislation, providing the following insight:

• Barnes Denning: The bill increases the amount of the research tax credit that may be applied against the payroll tax liabilities of certain small businesses.
• CliftonLarsonAllen: The law includes a less-publicized tax increase on business owners operating as a sole proprietor or pass-through entity (i.e., entities taxed as partnerships, S corporations, or LLCs) by imposing a limit on excess business losses.
• Plante Moran: The legislation includes impactful tax changes, but the delayed effective dates for most changes provide taxpayers with at least four months to evaluate these rules and determine appropriate next steps.
• Schneider Downs: The carried interest provision desired by most Democrats was eliminated and was replaced with a provision calling for a 1% excise tax incurred on corporate stock repurchases, with the tax set to go into effect in 2023.
• Shumaker, Loop & Kendrick: The bill will be the largest climate investment in U.S. history by raising $739 billion in revenue over the next 10 years.

OMA Connections Partner RSM has posted this on-demand webinar — with accompanying slides — to provide an overview of the legislation’s tax provisions. 8/15/2022