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The purpose of our Newsletter is to keep you informed and up-to-date on the latest regarding the R&D Tax Credit, Hiring and Location Tax Incentives (WOTC/HUD Zone/Ticket to Work), Grant and Other Non-dilutive Funding Generation, the IC-DISC (US Exporters' Tax Incentive), Cost Segregation Studies, other tax related issues, business development and personal development.
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CPE Webinars
Summer Schedule |
Paradigm Partners has just released the summer schedule for our CPE webinars.
Paradigm Partners is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.

Now is one of the best times of the year to fulfill your continuing education requirements, so check out our schedule below. There are four different webinars available:
- Introductory R&D Tax Credits Webinar
- Advanced R&D Tax Credits Webinar
- Introduction to IRS Audit and Dispute Resolution (Part 1) Webinar
- Introduction to IRS Audit and Dispute Resolution (Part 2) Webinar.
If you find the information helpful, you may want to forward it to a friend. Just click below.
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IRS Issues Final Regulations Relating to Election and Calculation of Alternative Simplified Credit |
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The IRS has issued final regulations relating to the election and calculation of the alternative simplified credit (ASC). Changes relating to the ASC were proposed and temporary regulations were published by the Treasury Department and the IRS on June 17, 2008. The final regulations implement those changes. The 2008 regulations are adopted as revised by this Treasury decision, after consideration of the written and electronic comments and the statements made at a public hearing.
However, IRS agreed with one commenter's suggestion to change the ASC short tax year rules to prorate short years by the number of days in the year, not months, in order to provide a more accurate calculation and remove uncertainty as to whether and how to include a partial month in the calculation.
Accordingly, the final regulations require short tax years to be prorated by the number of days in the year, and taxpayers that have already filed returns in which a short year was prorated on a monthly basis are permitted to amend their returns to reflect the daily calculation.
Paradigm Partners, in an effort to provide best-in-class R&D Tax Credit consulting services, has been utilizing the proposed and temporary regulations since 2008 in line with the now final regulations. |
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Bill Introduced Calling for a 3 Year Extension of WOTC |
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Congressmen Aaron Schock (R-IL) and Charles B. Rangel (D-NY) of the Ways and Means Committee have introduced a bill, H.R. 2082, Work Opportunity Credit Improvements Act, calling for a three-year extension of WOTC till December 31, 2014.
In addition, H.R. 2082 makes it easier to certify WOTC eligibility for target groups for which information is publicly available to an employer. This will result in quicker certifications and it will help reduce processing time from the states. The documentation obtained by the employer will remain on file as justification in case of an audit. The target groups include veterans, SSI recipients, summer youth, the disabled, ex felons and designated community residents.
The language of S. 146, Veteran Transition Act is incorporated into H.R. 2082, explaining WOTC and eligibility requirements for recently discharged veterans. This group will remain WOTC-eligible for five years preceding the hiring date. Veterans and National Guard members receiving Veterans' Administration compensation for a service-connected disability remain WOTC eligible as well as unemployed veterans in households receiving food stamps. Current law provisions allowing increased tax credits for disabled veterans remain the same.
The bill restores WOTC for "disconnected youth" hired after December 31, 2010 but renames it "at-risk youth." There was no change in the definition for this group.
Finally, the work opportunity tax credit is supported in the President's Budget for Fiscal Year 2012. White House support for WOTC is imperative to having WOTC renewed and extended. The passage of this bill is a win-win. It will increase employment while helping those in need especially our recently discharged veterans that have kept our country strong and safe. |
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Valant & Company's "Lead and Manage! The Definitive Guide for Getting the Results You Want" |
Editor's Note: We are pleased again this year to feature valuable how-to advice and counsel from one of America's leading business performance improvement experts, Laurence B. Valant, President & CEO of Valant & Company. Here and in future newsletters, we will be providing our readers with excerpts from Larry's new book, "Lead and Manage! The Definitive Guide For Getting the Results You Want", which he co-authored with Valant & Company Partner Gayle W. Hustad. "Lead and Manage!" is available through Barnes & Noble, or can be ordered at www.valantco.com.
Leadership Fundamental - Defining the Organization Strategy
There are four steps in developing an organization strategy: 1) determining the general structure of the organization; 2) defining the key functions and responsibilities assigned to each position 3) Identifying the key players to fill the critical positions (in some cases) and 4) outlining the general timetable required in implementing the strategic organization.
After the vision and overarching strategy for retaking Europe had been determined by the Allies, the questions regarding the structure of the organization required for accomplishing this massive strategy were not immediately answered. The Soviet Union's suspicions about the plans and motives of the Allies were only compounded by the fact that no one had been appointed to implement the plan upon which they had agreed. Determining that structure - what that organization would look like and who would ultimately lead the invasion of Europe - rested solely on America and Great Britain.
Roosevelt determined in his negotiations with Churchill that the Allied armies must be led by someone who shared his unyielding commitment to securing the unconditional surrender of Germany. (Churchill did agree that if the German people were to overthrow Hitler, there may be an environment created conducive to a negotiated peace). FDR insisted that the organization structure be built around one supreme commander who would have ultimate authority over all the Allied forces. Eventually, Churchill agreed that the supreme command would rest with an American; but he secured an agreement from FDR that the deputy and ground commanders would be British. After many months, the organization structure for implementing Overlord was in place.
Guidelines for creating an organization strategy:
- Define the general structure of the firm, the profit centers, and the key functions to be performed.
- Identify the functional responsibilities for each of the key positions.
- Where possible, identify specifically the people who will fill the key positions of the organization.
- Define quantitatively the macro expectations which must be met through the commitment of, and execution by, the key leaders.
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One of our missions as a company is to educate companies and CPA firms about the benefits of great tax incentives such as the R&D Tax Credit, Hiring and Location Tax Incentives (WOTC/HUD Zone/Ticket to Work), Grant and Other Non-dilutive Funding Generation, the IC-DISC (US Exporters' Tax Incentive), Cost Segregation Studies, and other niche tax incentives.
In addition to these services, Paradigm's Intellectual Property Attorneys provide patent services, tax controversy legal services, as well as audit defense services.
This newsletter is one medium we use; we also conduct CPE Webinars and make presentations to CPA associations and manufacturing associations.
Sincerely,
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