SERVICES    INDUSTRIES    TEAM    NEWS    CAREERS    ABOUT


Welcome to winter in Minnesota! We hope your holidays were wonderful and you've recovered fully. At SDK, we are looking ahead to that time of year we refer to as "busy season," when the hours get a little longer and the client contacts are a bit more frequent.
We have a number of items for you to consider in this issue, some are more complex than others, so feel free to give us a call or send an email with any of your questions.
Affordable Care Act Reporting
Extended due dates set
The IRS extended the due dates for the 2015 ACA information reporting requirements. Below shows the original due dates and the extended due dates for both distributing to individuals and filing with the IRS.
  1.  For distributing to individuals the 2015 Form 1095-B and the 2015 Form 1095-C:
     
    • From February 1, 2016 to March 31, 2016, and
       
  2. For filing with IRS the 2015 form 1094-B, the 2015 Form 1095-B, the 2015 Form 1094-C, and the 2015 1095-C:
    • From February 29, 2016 to May 31, 2016, if not electronically filing
    • From March 31, 2016 to June 30, 2016, if electronically filing
Contact your SDK tax representative with any questions.
Financial statements -New revenue standard needs to be considered soon
Five steps to revenue recognition
On May 28, 2014, the FASB and the International Accounting Standards Board (IASB) issued converged guidance on recognizing revenue in contracts with customers. The new guidance is a major achievement in the Boards' joint efforts to improve this important area of financial reporting. The change will be implemented in 2018 for public companies and 2019 for non-public.
The objective of the new guidance is to establish the principles to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue from contracts with customers.
 
So why think about it today? First, the changes are at the very basic level and are not intuitive.  Additionally, there are more disclosures yet to be determined, that will be required for full financial statements. With this much change, you may be blind-sided if you don't analyze what is needed until you have to implement it.
 
Under the new standard, the five steps to revenue recognition are as follows:

Your SDK representative will be able to help you determine the impact this will have on your business. Contact John Lawson with specific questions.
Restaurant and Retail Remodel-Refresh 
New Safe Harbor Rule -- Rev. Proc. 2015-56
The IRS released Rev. Proc. 2015-56, which provides a safe harbor method for determining whether expenses incurred during a remodel-refresh are deductible or must be capitalized by qualified retail and restaurant businesses. To qualify, the taxpayer must have applicable financial statements, incur remodel-refresh costs, and operate a retail establishment or restaurant  that primarily reports or conducts activities under a qualifying NAICS code. chef-wine-dining.jpg
 
The new safe harbor method requires 75% of the qualified costs of the refresh-remodel to be expensed in the current year and the remaining 25% capitalized. There are some requirements which includes forgoing the partial disposition treatment and electing a general asset account for the qualified building covered by the safe harbor. 
 
This method should minimize the need to perform a detailed factual analysis to determine whether a cost is considered a repair and maintenance expense or an improvement to the building. This also eliminates the need to apply the UNICAP rules separately.
 Read the IRS publication here
Phishing and Fraud Alerts 
A Warning to Taxpayers
Phishing is a scam where unsuspecting victims are lured into revealing personal and financial information which then can be used to steal their identity.
 
smart_flipphone.jpg All taxpayers should beware of automated phone calls and voice messages saying legal action is being taken against them by the IRS. The IRS will never initiate contact with taxpayers by telephone or text message, email, or social media channels to request personal or financial information. Use caution and never provide this information unless you are sure the situation is legitimate.
 
More information about these types of scams and how to report suspicious activity can be found on the IRS website. Report all unsolicited emails claiming to be from the IRS or an IRS-related function to phishing@irs.gov. If you have any questions, please contact your SDK representative. 

Business Apps to help you when year-end rolls around

While SDK does not endorse specific apps, we've done research on some that have gotten good reviews in business magazines. 
MileIQ: Looking to turn your miles into money? MileIQ uses smart drive detection technology to asia-cellphone-people.jpg automatically log your drives and calculate their value. Your complete drive history will be stored, as well as access to regular drive reports. The IRS deduction rate is .54 cents per qualifying mile in 2016, so don't miss out on claiming your miles! Learn more at www.mileiq.com
SDK's Michele Jensrud featured speaker at MWMC
Accounting tips for marketing professionals
SDK's accounting services team will be presenting a workshop: MANAGING YOUR SMALL BUSINESS, for the members and friends of Minnesota Women in Marketing & Communications. Join the women of SDK CPAs to learn about effective budgeting and accounting practices, tips and tricks for record keeping, and over a dozen smart apps to keep you on track and on target with your goals.  

January 21, 11:30 am to 1:30 pm
The Depot Minneapolis
More information here:
Happening at SDK
Ring in the New Year with our movers and shakers!
Congratulations to some great members of our audit team on their recent promotions!
Alex Scheinost and Nick Held are now senior accountants on our team, and Brandon Reinschmidt has joined the ranks of the senior managers.  Well done guys!
 
We also wish to extend a warm welcome to our newest team member, Ron Zilka.  Ron has over 20  years of tax experience in the Twin Cities and Florida, and an extensive history consulting with closely held businesses and high net worth individuals.  We are excited to bring in his skills and experience to continue serving our clients!

In the news. . . 
One of our shareholders, Ronald Kelner,  was selected for the second year in a row for the professional distinction as a Five Star Financial Services Professional  in the Tax services division.  It was featured in the January 2016  edition of the Mpls St. Paul Magazine.

We welcome your comments and feedback, and will do our best to answer your questions. Contact your SDK representative or send a note to one of us and we'll be sure to find the right person to assist you.

 

SDK's Editorial Board

Emily Engels, Accounting Services

Beth Johnson, Marketing

Ron Kelner, CPA, Tax

John Lawson, CPA, Audit

Allison McCloskey, Tax

Casssandra Elgersma, CPA/ABV/CFF, CFE, Forensic & Valuation Services
Like us on Facebook     


Copyright © 2015. All Rights Reserved.