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 AS THE TREES BEGIN TO LOSE THEIR LEAVES, IT'S TIME TO DUST OFF Your TAX PLAN
By Larry Stoklosa, CPA, CMA
As the year comes to an end, this would be the best time to plan for your annual tax bill. Many wait to complete their tax planning in April, right before they foot the bill but by then it is too late. We all know this is not the best planning strategy, but then again neither is waiting for tax reform.
As October 15 (the last day to file 2013 personal income tax returns) has come and gone, it's a good time to make final adjustments and plans for 2014 taxes before December 31 arrives. Tax planning is a process which enables the most effective use of current laws, considering potential future legislation, and life changes.
Some of the life changes which effect taxes include:
- Getting married or divorced
- Having a child or having an adult child move out on their own
- Going to school or having a child go to college
- Taking care of an aging parent or a sick child
- Buying or selling a home
- New job or business
- Selling or purchasing a business
- Retiring
Although legislative changes are much less predictable, there are certain strategies we can still prepare for. Some planning strategies might include:
- Bonus payments or deferrals depending on your brackets
- Accelerating or deferring expenses such as property taxes or interest payments
- Maximizing losses to offset gains or vice versa
- Gifts of income producing assets to others in lower brackets
- Passive activity income and passive losses reviewed for possible netting opportunities
- Retirement plan contributions
- Fixed asset expenditures
- Estate planning
Meeting with a trusted advisor can help you get your tax planning in order. Contact your professional at UHY LLP in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.
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CORRECTION: FILING DEADLINES FOR DISASTER RELIEF
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CAN'T TOUCH THIS - PRIVATE COMPANY FINANCIAL REPORTING OF INTANGIBLE ASSETS AND POTENTIAL CHANGES
By Nick Junttila
The Financial Accounting Standards Board (FASB) recently issued exposure drafts of accounting standards updates designed to reduce the cost and complexity of accounting for intangible assets acquired by private companies in business combinations. A Private Company Council (PCC) advisory group to the FASB has been formed to improve the process of standards setting for private companies. The PCC has already made progress with the FASB's endorsement (December 2013) of goodwill impairment testing changes. In addition to the FASB endorsed simplified goodwill impairment testing rules, the PCC is gaining some traction with the FASB as it relates to potential rules changes in accounting for identifiable intangible assets. In January of 2014, the FASB identified three potential alternatives for the PCC's consideration, the alternatives are as follows:
No change
- The requirement to recognize and measure identifiable intangible assets acquired in a business combination in accordance with Topic 805 remains as exists today.
Some intangibles recognized (goodwill and monetizing intangible assets recognized separately)
- Only intangible assets that are saleable or licensed independently from other assets of the business would be ascribed value, beyond that of goodwill.
- Likely to exclude customer based assets and non-competition agreements.
- Likely to include technology and trade name and trademark related assets.
- Likely to include contingent consideration.
No intangibles
- Any excess value beyond the tangible asset base and working capital would likely be ascribed to goodwill.
Concerns by financial statements preparers of private companies as to the cost and complexity of the requirement for fair value measurements are being addressed and further changes seem more likely than not. It's imperative that you and your valuation specialist understand the impact of proposed changes. Contact your professional at UHY LLP in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040.
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| PROTECTING TAXPAYER IDENTITIES
By Steve Cheaney, CPA
Identity thieves seek taxpayer identification numbers (TINs) for many purposes. During 2014, the Department of Justice reported that from 2008 through May 2012, over 550,000 taxpayers had their identities stolen by thieves claiming false tax refunds. In 2009, the IRS has tested the use of truncated social security numbers on certain payee statements. The IRS issued final regulations in July 2014, to make this program permanent. On a recent 60 Minutes airing, it has been predicted that the IRS will issue over $21 billion in fraudulent tax refunds from the filing of electronic income tax returns for the 2015 tax year.
Since December 2006, merchants have been required to truncate credit and debit card numbers and to omit the expiration date on electronically printed receipts given to customers at the point of sale transaction. (Truncation means that the last 5 digits of the card number may be printed.) The IRS's new rule allows only the last four digits of your social security number to be used going forward on such documents such as Forms 1098 (mortgage interest) series and Forms 1099 (i.e. interest and dividend income) series. These new rules make it optional, not mandatory, to truncate taxpayer identification numbers (TTINs) for the payee copy, however, the full number must be used on documents filed with the IRS. Forms W-2 cannot use truncated TINs at all. The issuer's TIN may not be truncated on any form. These regulations apply on forms submitted after July 15, 2014.
The above optional law is one small step to prevent identity theft, however, the theft of social security numbers, credit and debit card numbers and passwords is a monthly occurrence. It can never be emphasized enough to keep your social security numbers, birth dates and other personal information protected. Make sure you are using complex passwords to protect access to your data online and change them frequently.
If you'd like to learn more about protecting your identity, please contact your professional at UHY LLP in Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.
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| Clients Share Value-Added Experiences In New UHY Capability Statement
Released annually, the UHY Capability Statement illustrates how member firms have continued to strengthen close working relationships with our clients locally, internationally or cross-border throughout sectors, specializations and geographical regions - and, more importantly, it includes what our clients say about our services. The latest 2015 edition includes eight great case studies, with a range of international clients across a variety of market sectors: automotive components, IT-ERP software, life sciences, manufacturing, medical, mining and renewable energy. One of which is right in our backyard - AGM Automotive, a client headquartered in Troy, MI.
UHY CAPABILITY STATEMENT 2015
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| CFOS NEED ENHANCED TRANSACTION SKILLS: UHY LLP SURVEY
Mid-size company CFOs need to improve their transaction skills to maximize their companies' opportunities in the coming years, a survey of Houston financial managers by Houston accounting firm UHY LLP and Financial Executives International (FEI) has found.
Almost two-thirds (60%) of financial executives pointed to transaction abilities as the skill area most needing improvement among CFOs of middle market companies in a UHY LLP-FEI survey conducted during the firms' CFO Summer Breakfast Series in Houston. Another 36% identified finance as the area most needing strengthening; only 4% saw accounting skills as an area of CFO weakness.
"The performance pressure on middle market companies today places extreme emphasis on the CFOs' ability to obtain the maximum value available from every transaction of significance - contracts, sales, purchases, integration, and alignment with corporate growth strategies," said UHY Advisors' principal, Dawn Williford. "These are not skills taught in business school, but rather the product of experience, industry knowledge and having access to astute advisors."
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| EVENTS CALENDAR
11/20 UHY LLP Annual Manufacturing Outlook
Join us at The Detroit Athletic Club for Manufacturing Outlook: An Era of Disruptive Transformation, featuring keynote Jacques Panis, president of Shinola. The schedule of events is as follows:
7:30AM-8:00AM Registration, breakfast and networking
8:00AM-8:10AM Opening commentary
8:10AM-8:35AM Manufacturing 2015 and beyond
8:35AM-9:05AM Global economic forecast
9:05AM-9:35AM Pros and cons of manufacturing in Detroit
9:35AM-9:45AM Refreshment break
9:45AM-10:15AM Transforming the shop floor
10:15AM-10:40AM Manufacturing a deal: M&A case study
10:40AM-11:10AM Manufacturing in Detroit "against all odds"
11:10AM-11:15AM Interactive discussion
CPE credit available. Shinola watch will be raffled off.
Pre-registration for this complimentary program is required. Breakfast will be provided. Space is limited. Multiple registrations are welcome. To RSVP contact Jessica Dalessandro.
12/4 UHY LLP Annual Accounting & Regulatory Update
Save the date for this year's Accounting & Regulatory Update at the MSU Management Education Center in Troy on Thursday, December 4 from 8:00AM-6:00PM, with keynote Mark Hackel, Macomb County executive.
This complimentary program is geared towards board members, audit committee members, CFO's, controllers and others who want to learn more about the latest accounting, regulatory, legal and SEC updates. Topics and speakers will be announced shortly. CPE credit will be offered.
Pre-registration for this event is required. Breakfast, lunch and cocktail reception with hors d'oeuvres included. Space is limited. Multiple registrations are welcome. To RSVP contact Jessica Dalessandro. Formal invitation to follow.
12/4 UHY Advisors Annual Tax Forum
Save the date for this year's Tax Forum at the MSU Management Education Center in Troy on Thursday, December 4 from 8:00AM-6:00PM, with keynote Mark Hackel, Macomb County executive.
This complimentary program will cover the latest tax laws, trends and developments impacting both individuals and businesses. Topics and speakers will be announced shortly. CPE credit will be offered.
Pre-registration for this event is required. Breakfast, lunch and cocktail reception with hors d'oeuvres included. Space is limited. Multiple registrations are welcome. To RSVP contact Jessica Dalessandro. Formal invitation to follow.
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| SPECIAL ANNOUNCEMENTS
UHY Volunteers And Their Families Turned Detroit School Parking Lot Into Playground
On Saturday, September 27, UHY LLP and UHY Cares Michigan teamed up with Playworks, a 501(c)(3) organization that believes in the power of play to bring out the best in every kid. Playworks creates a safe and welcoming place for every kid on the playground and teaches them how to take positive recreational experiences back to the classroom and their communities.
Over 30 volunteers including UHY employees, their families and friends spent the day at Academy of the Americas School, a Detroit Public School, helping draw and paint the playground with games and graphics. The kids were taught to play in a safe environment and learned how to resolve disagreements by using tactics like rock, paper, scissors.
The day turned out to be beautiful as did the playground.
"It is very obvious to me that UHY truly cares about the community", said Jeannine Grant, executive officer of Playworks. "To have over 30 volunteers come downtown on a beautiful Saturday and take on our largest project to date was amazing. We look forward to partnering with them again in the future and truly want to thank them for their outstanding work."
Everyone who participated made comments on what an amazing event it was and how great it was to take part in such an experience with their families. Many brought their children along. Debra Ritter, Director of Human Resources, shared with us a quote from her seven-year-old son that summed it up perfectly, "Mom, it sure does make my heart feel good to help others!"
UHY LLP, a certified public accounting firm, operates its charitable giving activities through UHY Cares, an independent nonprofit 501c3 organization. Cares, which was incorporated over five years ago, was an idea inspired by employees and is volunteer based. Through UHY Cares, employees are able to give back to the community, including helping individuals going through personal emergencies or hardships. UHY Cares Michigan has provided assistance to over 150 local charities and families and continues to grow this list every year.
UHY Opens Third Michigan Office In The Heart Of Downtown Detroit's Financial District
UHY LLP, a leading national CPA firm with over 300 employees in Oakland and Macomb counties, is opening its third Michigan office in the heart of downtown Detroit's financial district. UHY's first Wayne County office will be open for business on the sixth floor of the Chrysler House (previously known as the Dime Building) sometime in November. The 23-story historic skyscraper is located at Griswold and Fort streets near Campus Martius Park.
Ironically, this is the same building that founding partner, Gordon Follmer, first started his accounting career while going to night school at University of Detroit in 1960. "We're excited to expand operations in Detroit as the revitalization of business growth in the City is gaining momentum," Follmer said. He also feels the downtown addition will be excellent for recruiting and retention, "A lot of our new team members, the younger ones, the next generation of leaders, have expressed interest in working downtown".
Many of their Detroit-based clients including Hiram Jackson, CEO of Real Times Media and publisher of the Michigan Chronicle; Cindy Pasky, founder, president and CEO of Strategic Staffing Solutions and chair of the Detroit Downtown Partnership Board of Directors; Bridgewater Interiors' president and CEO Ron Hall; and John James, founder, chairman and CEO of James Group International have encouraged and supported the firm's move to the City. "We're delighted to see UHY open an office in Detroit. They've been our accounting firm for a very long time and done wonderful things for us. They will be a great addition to Detroit's growing financial community," said James.
UHY LLP is one of many companies who have moved into the 352,000 square foot building since it was acquired by Bedrock Real Estate Services in August 2011. The neoclassical Daniel Burnham-designed structure is within short walking distance from Campus Martius Park, Westin Book Cadillac Hotel, Cobo Center, PeopleMover station and sports venues.
"UHY joins an impressive list of more than 45 retail, professional services and corporate tenants," said Jim Ketai, co-founder and managing partner of Bedrock.
"We are really excited about this new beginning in the downtown area," said Tony Frabotta, CEO of UHY Advisors MI, Inc. and managing partner of UHY LLP. "This is a great opportunity for UHY to be part of Detroit's comeback story."
Careers At UHY
Are you ready to take charge of your career path? Be sure to visit our careers page for the most up-to-date career listings or contact Amanda Sheets at asheets@uhy-us.com or 248 204 9482. Check out some of the current opportunities in our Sterling Heights and Farmington Hills locations:
- Tax senior staff accountant, 2-4 years of experience
- Audit senior staff accountant, 2-4 years of experience
- Tax senior accountant, 5-7 years of experience, CPA required
- Audit senior accountant, 5-7 years of experience, CPA required, working with municipalities a plus
- Audit manager, 7+ years of experience
- Director of litigation, testifying experience required
- Tax manager, 7-10 years of experience
- Marketing associate, 2+ years of experience, bachelor's degree in marketing or related field
- Marketing intern (PR and communications), pursuing marketing or related degree
- Experienced recruiter, 1-3 years of experience, preferably working within public accounting
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Published by UHY LLP News.
Copyright � 2013 UHY LLP. All rights reserved.
Our firm provides the information in this newsletter as tax information and general business or economic information or analysis for educational purposes, and none of the information contained herein is intended to serve as a solicitation of any service or product. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
UHY Advisors, Inc. provides tax and business consulting services through wholly owned subsidiary entities that operate under the name of "UHY Advisors." UHY Advisors, Inc. and its subsidiary entities are not licensed CPA firms. UHY LLP is a licensed independent CPA firm that performs attest services in an alternative practice structure with UHY Advisors, Inc. and its subsidiary entities. UHY Advisors, Inc. and UHY LLP are U.S. members of Urbach Hacker Young International Limited, a UK company, and form part of the international UHY network of legally independent accounting and consulting firms. "UHY" is the brand name for the UHY international network. Any services described herein are provided by UHY Advisors and/or UHY LLP (as the case may be) and not by UHY or any other member firm of UHY. Neither UHY nor any member of UHY has any liability for services provided by other members.
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