|
|
|
|
|
UHY LLP Michigan Practice
FEBRUARY 2016
|
|
ARCHIVE
| |
Missed an issue? New subscriber? Visit our
news archive.
| |
|
|
|
|
FOLLOW UHY CARES ON SOCIAL MEDIA Keep up with us on Facebook, Twitter and LinkedIn to see what our team is up to, and hear about our latest charitable giving initiatives, contests, photos, fundraising opportunities and more!
Facebook: UHY Cares
Linkedin: UHY Cares
Twitter: @UHYCares
UHY LLP operates its charitable giving activities through UHY Cares, an independent nonprofit 501c3 organization. Cares, which was incorporated in 2008, 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. Cares has provided assistance to hundreds of charities and families and continues to grow this list every year.
|
WORK OPPORTUNITY TAX CREDIT: THE FORGOTTEN TAX BENEFIT By Matt Munn, CPA
The Protecting Americans from Tax Hikes Act of 2015 (PATH) was signed by President Obama on Dec. 18, 2015. Included in the many tax breaks and incentives that were "extended" by this bill was the reinstatement of the Work Opportunity Tax Credit (WOTC). The WOTC is a credit to employers who hire certain targeted groups of employees and is based on a percentage of the wages paid to those employees. The PATH Act even added a new category that will be available in 2016.
The WOTC was first authorized in 1996, but was very narrow as to who it applied to. Since that time, the WOTC has expired, been revised and extended on numerous occasions. It has also added several new groups that qualify an employer for tax credits up to $9,600 for each qualified new hire (without being capped). The nine targeted groups include vocational rehabilitation referrals, qualified ex-felons, families receiving benefits under the Temporary Assistance to Needy Families, long-term family assistance recipients, designated community residents, families in the food stamp programs, qualified SSI recipients, qualified summer youth, and qualified veterans. In addition, "qualified long-term unemployment recipients" will be a qualifying group for new hires after Dec. 31, 2015.
The process to determine who qualifies for the tax credits is fairly straightforward, but has stringent timing rules in place. IRS Form 8850 should be completed by every new hire when the offer for employment is made. The completed forms must be submitted to the state workforce agency (SWA) within 28 days of the employee's start date. The SWA processes these forms and upon approval will provide the employer a "certification" of the employees' status to a certain targeted group. The employee must work at least 120 hours to qualify for the credit. The credit percentage increases from 25% to 40% or more if the employee works more than 400 hours. The employer claims the tax credit with the filing of their respective tax return for that year on Form 5884.
The WOTC faced similar expiration in 2014. When the "Extenders Bill" was passed in late 2014, the IRS issued Notice 2015-13 that provided additional time for employers to complete Form 8850 and submit the completed forms to their SWA. It is expected that the IRS will issue a similar rule for the 2015 credit since is originally expired on Dec.31, 2014. It is recommended that employers should begin this process now so that they can submit the completed Form 8850's to the SWA as soon as possible.
For more information or questions on this topic, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com. |
|
PRELIMINARY APPROVAL REACHED FOR NEW LEASE ACCOUNTING STANDARD
By Michael A. Baum, CPA
In 2015, the Financial Accounting Standards Board (FASB) drafted an updated lease accounting standard to recognize lease liabilities on the balance sheet with corresponding right-of-use assets. In May 2013, The FASB issued a proposed Accounting Standards Update, Leases (Topic 842). Since the proposed standard was issued, FASB deliberated proposals in the May 2013 Exposure Draft. Recently, the Board updated the Standard for two items: an exception to the lease classification test and an effective date for adoption of the standard.
According to the FASB minutes from its last meeting in November 2015, the FASB decided to provide an exception to the lease classification test whereby entities will not consider the lease term criterion when performing the lease classification test for leases that commence "at or near the end" of the underlying asset's economic life. The Board also decided that the final leases standard should include implementation guidance that one reasonable approach to determining the applicability of this exception would be to conclude that a lease that commences in the final 25 percent of an asset's economic life is "at or near the end" of the underlying asset's economic life.
In addition, the FASB decided that for (1) public business entities, (2) a not-for-profit entity that has issued, or is a conduit bond obligor for, securities that are traded, listed, or quoted on an exchange or an-over-the-counter market, and (3) an employee benefit plan that files or furnishes statements with or to the SEC (collectively referred to as "public business entities"), the final leases standard will be effective for fiscal years beginning after Dec. 15, 2018. For private companies, the standard will be effective for annual periods beginning after Dec.15, 2019. Early application will be permitted for all entities upon issuance of the final standard.
The FASB voted 6-1 to send its proposed leases standard for final drafting. The new lease standard includes significant changes in the recognition of leases for lessee accounting, which could result in substantial additions of lease obligations to companies' balance sheets.
For more information on the new lease standard, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at www.uhy-us.com.
|
STEPS TO TAKE TO ADDRESS POTENTIAL TAX-RELATED IDENTITY THEFT
By Janelle Saylor, CPA
As tax-related identity theft has become more prevalent over the past five years, the IRS is taking steps to stop these fraudulent returns. Nonetheless, there are a few warning signs to look for that can indicate you may be a victim:
- E-filing of return rejected, often the code indicates a return has already been filed under your SSN
- Correspondence from IRS regarding a filed return before filing a return for that tax year
- A bill or refund check from the IRS when no return has been filed
- A notice from the IRS indicating you may be a victim
If any of the above occur, there are steps you can and should take to address the potential identity theft:
- Contact your tax professional, as they can help you navigate these steps.
- File IRS form 14039, Identity Theft Affidavit - The IRS will then mark your account and look for questionable activity.
- Contact the IRS at the number on the notice, if you received one.
- Contact the Social Security Administration
- Review your Social Security account online
- Notify the three major credit reporting companies - Equifax, Experian and TransUnion
- File a complaint with the Federal Trade Commission
- File a police report
- Close any accounts that are not yours
Once the IRS confirms you are a victim, they will issue an Identity Protection PIN (IP PIN) for the taxpayer to use when filing their return, whether they file electronically or on paper. The IP PIN is a six digit number, and is sent in a letter each December. Identity theft victims will receive a new IP PIN for each tax year; know that if for any reason you misplace your IP PIN, you can request a new one online. This IP PIN is how the IRS verifies that it's truly the taxpayer filing a return; if you file without it, they will assume it's a fraudulent return. Please also note that the IRS has sent the letters for 2015, but made a subsequent announcement that the incorrect year of 2014 was printed on the letter.
The IRS also has a pilot program where any taxpayer, including dependents, can request an IP PIN if you reside in the following locations: the District of Columbia, Florida and Georgia. It is highly recommended that if you qualify under this program, you do request an IP PIN as an added layer of protection against identity theft.
Finally, the IRS will provide copies of fraudulent returns to taxpayers filed under his/her SSN for the current year and up to six previous years. To obtain a copy, the taxpayer must submit a written request including the following information:
- Name
- SSN
- Mailing address
- Tax years requested
- Copy of government issued ID (driver's license or passport), and
- The statement, "I declare that I am the taxpayer."
The statement must be signed by the taxpayer or by his/her authorized representative. We recommend also attaching a copy of the signed Power of Attorney, if signed by an authorized representative.
Requests should be mailed to the IRS at:
PO Box 9039
Andover, MA 01810-0939
The IRS will acknowledge receipt of your request within 30 days and will provide the requested returns or follow-up correspondence within 90 days.
Additional information, resources and tools are available here:
If you suspect you are a victim, contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us online at www.uhy-us.com
|
STANDARD MILEAGE RATES DOWN FOR 2016
Before the New Year the IRS issued Notice IR 2015-137, updating optional standard mileage rates for business, charitable, medical or moving purposes. As of Jan. 1, 2016 the standard mileage rates for the use of a car, van, pickup or panel truck are as follows:
- 54 cents per mile for business miles driven (down from 57.5 cents for 2015)
- 19 cents per mile driven for medical or moving purposes (a four cent decrease from 2015)
- 14 cents per mile driven in service of charitable organizations (remains unchanged from 2015)
Taxpayers have the option to deduct the actual costs of using their vehicle, rather than the IRS standard mileage rates.
Taxpayers may not use the business standard mileage rate for a vehicle after using any depreciation method under MACRS or after claiming a Section 179 deduction for that vehicle. The standard rate cannot be used for more than four vehicles used simultaneously.
|
2/23 NINTH ANNUAL D.M.G.C. TEXAS HOLD 'EM TOURNAMENT
We hope you can once again join us for a fun night of cards and networking for a great cause! This year's charity poker tournament will be held on Tuesday, February 23 at Star Lanes Royal Oak. Registration is at 6. Game starts promptly at 7.
$100 buy-in and $50 re-buy. VIP prizes for finalists. Chips have no cash value. Must be 18 to play and 21 to consume alcohol.
Contact Jessica Dalessandro to save your spot! Cash, check or credit card contributions accepted in advance or at the door. Sponsorship opportunities available.
UHY Cares in cooperation with UHY LLP, the D.M.G.C. and the McCarty family hope to see you there!
|
SPECIAL ANNOUNCEMENTS
UHY ADVISORS APPOINTS FIVE NEW MANAGING DIRECTORS, TWO FROM MICHIGAN PRACTICEUHY Advisors announces the appointment of five new managing directors: Brad Baer, Harold Mohn, Robert Scope, Mehmet Sengulen and Aaron Witalec. Scope and Witalec are both from the Michigan practice. Click here to view full press release. RECENT PROFESSIONAL AND CIVIC BOARD AND COMMITTEE APPOINTMENTSSachin Mehta, associate at UHY Advisors Corporate Finance, welcomed as newest board member of the Indo-American Chamber of Commerce Scott Miller, partner of UHY LLP, appointed to the Ascension Michigan Market Finance Committee by the board of trustees 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 listings or contact Yolanda Rountree. Current opportunities in our Michigan offices include:
- Audit Manager, 7+ years of experience, manufacturing experience is highly preferred
- Audit Manager, 7+ years of experience, SEC experience is highly preferred
- Audit Senior Accountant, 5-7 years of experience, CPA required
- Internal Audit Risk & Compliance Manager, 7+ years of experience
- R&D Tax Specialist, 7+ years of experience
- Tax Manager, 7-10 years of experience
- Director of Litigation, testifying experience required municipalities
- Senior Associate (Corporate Finance), 2-4 years of Big 4 experience highly preferred
- Marketing Associate, bachelor's degree required, 1-3 years of experience preferred
Back to top
|
|
|
|
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.
|
|
|
|
|
|
