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In This Issue
Tax SCAM Alert
If you receive electronic correspondence proposing to be from the IRS, contact your tax advisor immediately to help determine its validity before attempting to respond in any way. Recent scams can be very convincing. 

According to the IRS, they will not initiate contact with taxpayers by email to request personal or financial information. See Phishing within the "Dirty Dozen" List of Tax Scams for the 2015 Filing Season.
Noteworthy Links
Taxwriters Seek Insight From Players in Last Code Overhaul
Recent Changes Affecting Partners and Partnerships 
Innovation Is the Key Trait Needed to Rise to the Top, Say CFOs
The CFO's role in the pursuit of growth - McKinsey & Company 
Banks and Government Struggle to Contain Growing Cyber-Threat
The Future of the Internet | Pew Research Center's Internet & American Life Project
Your BRC Team
Congratulations to Ben Ripple for being recognized as one of the Triad Business Journal's "40 Leaders Under Forty". 


Congratulations to Eric Bregman for being recognized by the BRC Council for outstanding service.


Super Foods for Super Performance: Sweet Potatos
Like advisors, not all foods were created equally, some just deliver more...  
Why They're Super

Need a beta-carotene fix? Just one medium sweet potato packs over four times the recommended daily amount. These tasty tubers are also rich in potassium, inflammation-fighting vitamin C, and vitamin B6, which may prevent clogged arteries.

How to Enjoy Them

Boiling sweet potatoes may cause some of the water-soluble vitamins to leach out, so try them baked, roasted, or cubed, and added to soups or stews. If you need a boost of fiber, make sure to leave the skins on.

-ABCNewsHealth

February 2015 
Opportunities & Compliance Issues Abound 
IRS Provides Limited Taxpayer Procedural Relief of the New Tangible Property Regulations
By Lory Kelley, CPA, Partner

In the fall of 2013, the Internal Revenue Service (IRS) issued the eagerly anticipated final tangible property regulations that were ten years in the making.  The purpose of these regulations is to provide clarity to the much litigated question of whether a repair should be capitalized or expensed.  With over 200 pages, these regulations provide a new set of standards to answer the repair capitalization or expense question, in addition to new rules covering the expensing of materials and supplies and establishing de minimis safe harbors for the capitalization of assets.  These regulations and related Revenue Procedures also initiated considerable procedural requirements in the form of new annual taxpayer elections and special Form 3115, Change of Accounting Method, filings in 2014 for all taxpayers with depreciable property.  It is not all bad news though. (Read more.)
Tax Talk - Planning Tips From Your Advisors
Take Care When Paying Alimony
By Genie Petrangeli, CPA, Senior Manager

Most people know that if you pay alimony, you get to deduct it on your individual income tax return, and your ex-spouse has to add it to his income tax return. What most people don't know is that certain facts must exist for payments to an ex-spouse to be considered deductible as alimony.

Failure to have a written divorce or separation document that specifically addresses alimony or separate maintenance payments can result in such payments being non-deductible for income tax purposes as the Tax Court recently reiterated in Milbourn v. Commissioner, T.C . Memo. 2015-13. Prior to signing a marital dissolution agreement, Mr. Milbourn made payments to Ms. Marshall. The Tax Court found that the lack of a written instrument specifically addressing alimony prohibited Mr. Milbourn from deducting those payments on his tax return. Since each state has its own requirements regarding the contents of a written divorce or separation document, the IRS looks to both state law and tax law to determine if payments are in fact deductible alimony.Remember to consult your tax advisor if you find yourself having to make alimony payments.

I Live and Work Abroad. Do I Have to Pay US Taxes?
By Christian Cederholm CPA, Supervisor

If you work and live abroad, you may qualify for a foreign earned income exclusion allowing you to avoid US taxes on that income. To receive this benefit, your "tax home" must be a foreign country. As well, you must either be a "bona fide resident" of, or be physically present in for no less than 330 days in a 12-month period, one or more countries. Your tax home is the country where your strongest ties, economic and personal, exist. If you return to the U.S. with great regularity, like the taxpayer in Evans v. Commissioner (T.C. Memo. 2015-12), then you likely have to pay US taxes on your foreign earned income. However, foreign income tax credits may reduce your U.S. tax liability. If you are considering moving to another country for a year or more and will be working, consult your tax advisor ahead of your move to properly plan to utilize the available tax breaks.
Vested in One Another
What Happens When You're Not There?
By Marsha Kunz, Director of Human Resources

If you own a company or are responsible for a team's overall performance, this is a question that has likely crossed your mind. Understanding what happens when you're not there can be helpful in assessing your effectiveness as a leader. These actions can contribute greatly to how external parties (i.e. clients,vendors, etc.) view your company based on interactions with your team. How would you answer the questions below about your team in your absence? (Read more.)
IRS Tax Calendar
Tax Calendar for Businesses & Self Employed - March 2015 

Mo 2 File Form 1096 with information returns, including Forms 1098, 1099 and W2G for payments made during
2014. 
Mo 2 File Form W3 with Copy A of all Forms W2 issued for 2014.
Mo 2 File Form 8027 if you are a large food or beverage establishment.
Mo 2 File Form 730 and pay the tax on wagers accepted during January.
Mo 2 File Form 2290 and pay the tax for vehicles first used in January.
Mo 2 Farmers and fishermen: File Form 1040 and pay any tax due. However, you have until Apr 15 to file if you
paid your 2014 estimated tax payments by Jan 15, 2015. We 4 Deposit payroll tax for payments on Feb 2527 if the semiweekly deposit rule applies.
Fr 6 Deposit payroll tax for payments on Feb 28Mar 3 if the semiweekly deposit rule applies.
Tu 10 Employers: Employees are required to report to you tips of $20 or more earned during February.
We 11 Deposit payroll tax for payments on Mar 46 if the semiweekly deposit rule applies.
Fr 13 Deposit payroll tax for payments on Mar 710 if the semiweekly deposit rule applies.
Mo 16 Corporations: File Form 1120 for calendar year and pay any tax due. For automatic 6month extension, file
Form 7004 and deposit estimated tax. 
Mo 16 Employers: Deposit payroll tax for Feb. if the monthly deposit rule applies.
Mo 16 S Corporations: File Form 1120S for calendar year and pay any tax due. Furnish a copy of Sch. K1 to each shareholder. File Form 2553 to elect S Corporation status beginning with calendar year 2015.
Mo 16 Electing Large Partnerships: Furnish Sch. K1 (Form 1065B) to each partner.
We 18 Deposit payroll tax for payments on Mar 1113 if the semiweekly deposit rule applies.
Fr 20 Deposit payroll tax for payments on Mar 1417 if the semiweekly deposit rule applies.
We 25 Deposit payroll tax for payments on Mar 1820 if the semiweekly deposit rule applies.
Fr 27 Deposit payroll tax for payments on Mar 2124 if the semiweekly deposit rule applies.
Tu 31 File Form 2290 and pay the tax for vehicles first used in February.
Tu 31 File Form 730 and pay the tax on wagers accepted during February.
Tu 31 Electronically file Forms W2, W2G, 1098, 1099, and 8027.

Bernard Robinson & Company | (336) 294-4494 | pmcmillan@brccpa.com |
1501 Highwoods Blvd, Ste 300
Greensboro, NC 27410
BRC Strategy is designed to provide information of a general nature and is not intended as a substitute for professional consultation and advice.  The opinions and interpretations expressed should not be construed or used as legal or tax advice, written or otherwise, and cannot be used for the purpose of avoiding any penalties that may be imposed under federal, state or local law.