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September 2015 
In This Issue
Bernard Robinson & Co. earns National Ranking
Inside Public Accounting recently named Bernard Robinson & Company as one of the nation's Top 300 accounting firms!


Your BRC Team
Sarah Turner,
BRC's incoming
Marketing Coordinator 

On September 14th, we welcomed our new Marketing Coordinator, Sarah Turner to the BRC team. She comes to us us from the American Heart Association in Greensboro. She holds a Bachelors Degree from UNC-Chapel Hill and a Masters Degree from UNC-Greensboro. Sarah will be implementing BRC's marketing strategies, leading community relations efforts, and coordinating events such as the Financial Symposiums. She lives in Greensboro with her husband Eric and one year old daughter Carson. Welcome Sarah! 
Noteworthy Links
How Far Back Can the IRS Audit You? 
Your Partnership Employment Tax Debt: Are You Liable?
Helpful Search Engine Filters
Happy Fall!
The first day of Fall was Wednesday, September 23rd. Enjoy the cooler air, colorful foliage, and pumpkin flavored everything with this Fall Bucket List.

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Symposium Spotlight
What To Do When The IRS Comes Knocking
By Genie Petrangeli, CPA, Senior Manager

Do you own a rental property that generates losses on a continuous basis? Are you a self-employed individual who has a large amount of business expenses in proportion to your income? Do you have a bank account in a foreign country and you're unsure of the requirements to report it to the IRS?

Join us to discuss these tax scenarios and others which may raise a red flag with the IRS and cause you to be a target of an IRS tax audit. Ashley Khan and Genie Petrangeli will present the latest "hot topics" on the IRS's radar for audits, describe the various types of audits, and what to expect during the audit process at each of our Financial Symposiums. Click the links at the bottom of the newsletter to learn more and register!
Understanding Tax Deductions
Tax Deductions For Sports Tickets
By Olga Oganesov, CPA,
Senior Manager

With football season heating up, many businesses are offering sports tickets to their customers and employees.  For tax purposes, the deduction for the cost of sports tickets may be limited. 
 
1)  When an organization provides regular sports tickets (not a skybox or other luxury box) to a business customer, proper tax treatment depends on whether an employee of the corporation attends the event.  If an employee attends the event and business is discussed with the customer during the event, the expenses are treated as entertainment and are subject to 50% limitation (the limit also applies to taxes and tips relating to a meal or entertainment activity).  If the customer is not accompanied by an employee, the tickets may be treated as either a business gift or entertainment: 
  1. a.  Tickets treated as business gifts:  Deductions for business gifts are limited to $25 per year per individual donee.  Any amount over $25 is disallowed.
  2. b.  When an organization has an option on whether to treat the expenses as gifts or entertainment, the maximum tax deduction is attained when expenditures totaling $51 or less are treated as gifts (limited to $25 as discussed above) and those equaling more than $51 are treated as entertainment expenses since 50% of $52 is greater than $25.
2)  A deduction for rental of a skybox or a private luxury box at a sports stadium for more than a single event is limited to the number of seats in the skybox times the face value price of a non-luxury box seat ticket.  The deduction is further limited to 50% of the computed amount. 

3)  Tickets provided as incentives to staff:  Occasional sporting event tickets provided to employees may be treated as a "de minimis fringe" benefit. A "de minimis fringe" is any property or service whose value, taking into account the frequency with which the employer provides similar fringe benefits to other employees, is so small that accounting for it would be unreasonable or impractical.  De minimis fringe benefits can be deducted in full by a corporation (e.g. as employee benefits) and are not required to be included in an employee's wages.  But to qualify for the 'de minimis' treatment, both the frequency that the benefit is provided, and the value of the benefit are relevant.  The tickets must be given to employees occasionally and be small in value.
ACA Update
ACA Funding
By Tracey Flynn Martin, CPA, Partner

The Centers for Medicare & Medicaid Services (CMS) released a Fact Sheet this month announcing that they plan to award $67 million in Affordable Care Act funding to help consumers sign-up for affordable Health Insurance Marketplace coverage in 2016.  According to CMS, this three year funding, referred to as Marketplace Navigator grants, will fuel efforts to help consumers enroll in a health plan that fits their budget and best meets their family's needs.  There were four North Carolina recipient agencies who in total received in excess of $3.6M (2015 Navigator Grant Recipients).

Marketplace Open Enrollment for 2016 is set to begin on November 1, 2015.  For 2015, North Carolina had 492,014 people enrolled through our Federally-Facilitated Marketplace with 93.2% of those enrollees receiving an advanced premium tax credit to make their premiums more affordable.  In fact, according to CMS, North Carolina had the third highest percentage of consumers who received financial assistance behind Mississippi (94.5%) and Florida (93.5%).  The 2015 average monthly advanced premium tax credit for North Carolina enrollees was $316.   

North Carolina rates for 2016 have not yet been released.  After analyzing the 2016 premium changes in the states where complete data has been released, The Kaiser Family Foundation determined that, on average, premiums will increase 3.1%.  We will update you further when we learn North Carolina's rates.

If you have questions regarding the tax implications of the ACA, make sure to consult a tax professional well-versed in the topic.
Please Join Us for the 2015 Financial Symposiums!

FINANCIAL EXECUTIVES - Concerned about ACA reporting requirements? Looking for tax planning tips? Seeking the latest practices in defending you and your clients from cyber attacks? Need to know how revenue recognition changes will affect your business? Want to know the economic outlook for your local area?
 
Click on the location of your preference to register.

Only $45 for 8 hours of CPE, breakfast and lunch will be provided.

Starmount Forest Country Club, 1 Sam Snead Drive, Greensboro, NC 27410

Raleigh - Thursday, October 29, 2015
North Ridge Country Club, 6612 Falls of Neuse Rd., Raleigh, NC 27615

Forsyth Country Club, 3101 Country Club Rd., Winston-Salem, NC 27104


Bernard Robinson & Company | (336) 294-4494 | sturner@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.