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In This Issue
Your BRC Team
All registration fees from the BRC Not-for-Profit (NFP) Board Effectiveness Seminars were awarded, via drawing, to one attendees' NFP organization. $1,000 was awarded to Diane Evans for the NC Housing Foundation in the Triad and $200 was awarded to Nell Barnes for Learning Together in the Triangle. 
 
Diane Evans, Director of Real Estate Development, NC Housing Foundation and Erica Vernon, BRC Partner
  
Nell Barnes, Executive Director, Learning Together  
BRC Tax Planning Guide
Click here to access our Tax Planning Guide:

BRC Web Estate Guide
Click here to access our 2014 WebEstateGuide: 
 
Noteworthy Links
Noteworthy Links
How to Rev Up Your Finance Team's Skills
IRS Needs to Take More Steps to Ensure Health Insurance Exchanges are Safe
Corporate Tax Reform Likely No Matter Who Runs the Senate
The Many Benefits of Zero-Based Budgeting
Why Using Social Media to Vet Job Candidates May Be Risky
NC's Affordable Care Act Rates Will Rise 13.5% on Average
November 3, 2014 
Always Top of Mind

We hope you were able to join us for one of the seven seminars we either sponsored or participated in this month. Vigilantly committed to helping you maximize potential, we are ready to engage with you in these ways and others. Working with you to identify opportunities to maximize competitive advantage, streamline processes, minimize taxes and more is our passion and our privlege. Your success is our success. - Wade Pack, CPA, Managing Partner

 

BRC Financial Symposium - Triad

 

BRC Financial Symposium - Triangle

 

BRC NFP Board Effectiveness Program - Triad

 

 BRC NFP Board Effectiveness Program - Triangle 

 

Tax Talk - Planning Tips
Keeping up with the code... Below are some favored tax planning tips your team wants to make you aware of...
  
Streamlined Rollover Process
- Heads Up from Scotti Teschke, CPA, Senior Manager: 
 
The IRS recently made it much easier to convert after-tax pay-ins within a 401(k) plan to a Roth IRA tax-free. Employees taking distributions eligible to be  rolled over  can direct the plan administrator to send the pretax dollars to a regular IRA or another plan and roll  the after-tax payins into a Roth IRA tax-free.

This favorable tax treatment was possible under prior rules, but required a series of complex steps. It is now much easier, as long as the transfers to separate retirement accounts are  done simultaneously
and the  employee specifically states  that the after-tax funds go to another account.

These streamlined steps do not apply to after-tax funds in  a regular IRA. It is not permissible to roll over just the nondeductible contributions tax-free to a Roth. In  that case, only a portion of the amount rolled over to the Roth will  be tax-free, based on the ratio of nondeductible contributions to the total amounts in  all regular IRAs.

 

  

Tenant's Payment for Landlord Improvements Isn't Taxable
- Heads Up from Brittany Grubbs, CPA, Supervisor:

 

Landlords should carefully consider amounts received from tenants to pay for tenant improvement costs incurred by the landlord.  In a recent case, the IRS ruled that these payments did not constitute rental income to the landlord, but rather reduced the landlord's basis in the assets it capitalized on its books.

Tax Trends
Business Electronic Filing Continues to Increase Dramatically  
by Ron Kuyath, CPA, Principal

We continue to see an increase in corporate and partnership returns filed electronically. The IRS reported an additional 600,000 corporations and partnerships e-filed their tax returns this year with number of businesses e-filing increasing by almost 10 percent this year - resulting in double the amount they reported just four years ago.

According to the IRS:

As of Sept. 21, more than 7 million corporations and partnerships e-filed, an increase of almost 10 percent over the prior year's total, and twice the nearly 3.5 million returns e-filed during the 2010 fiscal year. About 70 percent of all corporate and partnership returns have been e-filed during 2014. Many corporations and partnerships operating on a calendar year receive filing extensions. The extended due date is usually Sept. 15.
Most large corporations and partnerships are required to e-file.

Large and mid-size corporations, generally those with $10 million or more in total assets, are required to electronically file their Forms 1120 or 1120S. Partnerships with more than 100 partners (Schedules K-1) are also required to e-file their tax returns. The IRS is seeing growth in e-filing by these businesses and by businesses not required to e-file.

This year, 92,494 large corporations e-filed their returns, an increase of 8.6 percent compared to the same time last year. The greatest rate of growth in e-filing among these businesses is by large partnerships. This year, 122,879 large partnerships e-filed, up more than 14 percent from the same time the year before.
Affordable Care Act Update
Finding Your Way Through the Rules and Reporting Requirements
by Tracey Flynn-Martin, CPA, Partner  
  
To help with the twists and turns related to ACA rules and forms, the Internal Revenue Service has created a series of new forms. Below are the new proposed information reporting forms for employers, their purposes and filing requirements (draft forms can be viewed on the IRS website):
  • Form 1095-A, Health Insurance Marketplace Statement - Marketplaces will report information on coverage provided to each enrollee; Filing begins in 2015 for the 2014 tax year
  • Form 1095-B, Health Coverage - Insurers will report information on coverage provided to each enrollee; Optional for the 2014 tax year and mandatory for 2015
  • Form 1094-B, Transmittal of Health Coverage Information Returns - Will serve as the method of transmitting all Forms 1095-B to the IRS; Optional for the 2014 tax year and mandatory for 2015
  • Form 1095-C, Employer-Provided Health Insurance Offer and Coverage - Applicable large employers (ALEs) will report information on coverage for each employee with identification of the category of coverage offered and data on the employee's share of the lowest cost monthly premium for self-only minimum value coverage.  Reporting also includes Social Security numbers and the months covered for each family member covered under the group plan.; Optional for the 2014 tax year and mandatory for the 2015 tax year
  • Form 1094-C, Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns - Will serve as the method of transmitting all Forms 1095-C to the IRS. Reports monthly breakdown of the number of employees, whether affordable minimum essential coverage was offered during each period and identification of whether ALE is a member of an Aggregated ALE Group; See filing requirements for Form 1095-C

Reporting deadlines mirror those for W2s. This means 2015 forms are due to employees by January 31, 2016 and to the IRS by March 31, 2016, if filed electronically.


Those employers with between 50 and 99 full-time equivalent employees are not subject to the Employer Mandate until 2016 (as a result of "transition relief" noted under final regulations issued in February 2014). Eligibility for this transition relief is reported on Form 1094-C, Part II.  To be eligible for this relief, these employers must certify that they have not reduced their workforce and aggregate hours of service to qualify for this exception and have not eliminated or materially reduced the health coverage offered prior to February 9, 2014 (final regulations date).  


 

Planning Tip: Because coverage is reported by month, employers with 50 or more full-time equivalent employees must have data collection and recordkeeping set up by January 1, 2015.  

IRS Tax Calendar
Tax Calendar for Businesses & Self Employed - November 2014 
  • We 5 - Deposit payroll tax for payments on Oct 29-31 if the semiweekly deposit rule applies.
  • Fr 7 - Deposit payroll tax for payments on Nov 1-4 if the semiweekly deposit rule applies.
  • Mo 10 - File Form 941 for the third quarter if you timely deposited all required payments.
  • Mo 10 Employers: Employees are required to report to you tips of $20 or more earned during October.
  • Th 13 - Deposit payroll tax for payments on Nov 5-7 if the semiweekly deposit rule applies.
  • Fr 14 - Deposit payroll tax for payments on Nov 8-11 if the semiweekly deposit rule applies.
  • Mo 17 - Deposit payroll tax for Oct if the monthly rule applies.
  • We 19 - Deposit payroll tax for payments on Nov 12-14 if the semiweekly deposit rule applies.
  • Fr 21 - Deposit payroll tax for payments on Nov 15-18 if the semiweekly deposit rule applies.
  • We 26 - Deposit payroll tax for payments on Nov 19-21 if the semiweekly deposit rule applies. 

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

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