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In This Issue
Your BRC Team
To show support for the communities in which we work and live, we participated in a firm-wide CPA day of service on Friday, September 19, 2014. Our 115 employees left their offices and headed out in the community to help ten different not-for-profit organizations for the day. Read more.
BRC Tax Planning Guide
Click here to access our Tax Planning Guide:

BRC Web Estate Guide
Click here to access our 2014 WebEstateGuide: 
 
Raleigh Office Move & Open House
It was great to see so many clients and friends at the BRC Raleigh Open House on Sept. 25th! What a turnout! Thanks for stopping by!

Noteworthy Links
Advisers worry about cyberattack vulnerability
China plans tax breaks for companies investing in tech, R&D 
Fed assures it isn't close to raising interest rates 
World leaders silent on ECB's moves to depreciate euro 
OECD reduces U.S., global growth projections for 2014 and 2015 
September 30, 2014 
Strategic Guidance & Updates

As a result of the great discussion at our recent program, Succession Planning - Transferring the Values & Desires Beyond the Documents this month, we have been approached about delivering the information to two additional groups and would be happy to explore meeting with others... 


 
We hope you will join us for one or more of the information-packed sessions below:


-Seldon Patty, JD, CPA, CVA, Consultant
Tax Talk - Planning Tips
Keeping up with the code... Below are some favored tax planning tips your team wants to make you aware of...
  
Employer-Provided Free Meals are Drawing IRS Attention 
- Heads Up from Olga Oganesov, CPA, Manager: 
 
Employers can generally deduct the costs of providing occasional snacks, coffee, soda and other drinks as business expenses while employees don't need to include the cost of those perks in income.  When it comes to meals, they may be excludable from income if they satisfy several criteria: 1) the meals are furnished on the business premises of the employer, and 2) the meals are furnished for the convenience of the employer and there is a valid noncompensatory business reason related to the meal provided, such as a designated lunch period.  In addition, this exclusion doesn't apply if employees are allowed to receive additional pay instead of meals.  The IRS auditors tend to scrutinize the elaborate meals provided by big firms for their employees. Questioning the business reason for these more lavish meals, IRS may impose penalties on employers not withholding taxes on meals that should be included in employee's wages. This is an area where we may see further limitations in the future.

 

  

The One-Rollover-Every-12-Months Rule Tightens in 2015
- Heads Up from Mike Atkins, CPA, CFP, Manager:

 

Taxpayers with multiple IRAs should take note that a rule change was decided at the beginning of this year that applies on an aggregate basis to all IRAs (and not on an IRA-by-IRA basis). If you tap into an IRA and timely roll the funds back, you cannot withdraw the funds from any other IRA during the following 12 months and do another tax-free rollover. However, note that trustee-to-trustee transfers avoid this rule, because the IRS doesn't treat a direct transfer between IRA trustees as a rollover that starts the 12-month clock running. This is also true if you, as the IRA owner, are given a check payable to the new IRA for your benefit.
Staying Vigilant Against Fraud
IRS Telephone Scams on the Rise  
by Rhonda Skiles, CPA, Partner

Recently, we encouraged you to be vigilant concerning tax-related scams. Since then, we have continued to see an increase in these activities. This month alone, we have received two separate reports on these scams from the IRS and heard from multiple clients who have received telephone calls orchestrated by criminals impersonating government employees.

The IRS cautioned that the scam is growing and urged taxpayers to be vigilant. The IRS reports that the Treasury Inspector General for Tax Administration (TIGTA) has received 90,000 complaints about telephone scams resulting in approximately 1,100 individuals losing an estimated $5 million in losses. Read more.
Keeping Tax Dollars in the U.S.
U.S. Treasury Department Announces Plan to Stop Corporate Inversions
by Freddy Robinson, CPA, Partner

Many members of Congress are concerned about the growing number of instances where U.S. companies merge with much smaller foreign firms organized in countries with significantly lower tax rates.

By employing this strategy, these businesses ultimately pay less income tax on their foreign profits. Furthermore, the foreign parent often loans funds to the U.S. firm to allow for an even  greater reduction of the subsidiary's U.S. tax bill. 

Out of concern for the impact on future corporate tax revenue, the Treasury Department and IRS issued guidance to reduce the tax benefits of corporate inversions. Read more.
Affordable Care Act Update
According to the Kaiser Family Foundation: Employer-sponsored family health premiums have risen 3 percent in 2014. Average annual family premiums stand at $16,834, with workers contributing $4,823. Workers now face deductibles averaging $1,217, up 47 percent since 2009. Read about this and more in the Kaiser 2014 Employer Health Benefits Survey. Also note: Kaiser Health Tracking Poll: August - September 2014designed and analyzed by public opinion researchers at the Kaiser Family Foundation (KFF).

Bernard Robinson & Company | (336) 294-4494 | pmcmillan@brccpa.com |
1501 Highwoods Blvd, Ste 300
Greensboro, NC 27410

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