Cherry Bekaert: Tax Services

Our Tax Credits & Incentives Advisory podcast dives into the current hot topics our knowledgeable leaders have been seeing around cost segregation. This podcast covers the basics of cost segregation with a focus on the updated Audit Technique Guideline (ATG) for cost segregation. Our speakers will also provide clarity around how bonus depreciation can help with a cost segregation study and how qualified improvement property can help taxpayers that own real property.

Chapter Markers

1:29 - What Is Cost Segregation?

4:02 - Bonus Depreciation

7:43 - Qualified Improvement Property

11:04 - ATG Updates

18:32 - ATG for 179D

In this episode of Cherry Bekaert’s Tax Credits & Incentives Advisory Podcast, Martin Karamon welcomes Tax Credits & Incentives Advisory leaders Dan Mennel and Vivian Kohrs to talk about R&D documentation as you make investments in technology or look at the ROI of making such an investment.

The R&D Tax Credit is one of the most lucrative incentives available to taxpayers and provides a permanent offset to tax liabilities. This credit is an activity-based credit – meaning that if a taxpayer is performing specific types of activities, the costs incurred to perform those activities go into a separate tax credit calculation.

As it relates to the R&D Tax Credit, Cherry Bekaert’s Tax Credits & Incentives practice is primarily focused on helping companies identify and document qualifying R&D costs. 

Discussion includes:

• Types of investment and the four-part test to determination qualification
• How to properly document support for R&D activities, which may qualify as these types of investments
• Real-life examples of qualified R&D investments
• IRS ASC 730 directive

If you have any questions specific to your business needs, Cherry Bekaert’s Tax Credits & Incentives Advisory team is available to discuss your situation with you.

If you haven’t already, catch up on other podcasts covering the R&D topic:

What’s New with R&D Tax Credits in 2022

Tax Beat: Digital Transformation and R&D Tax Credits

The Benefits of using a CPA Firm to Perform Credits & Incentives Projects

R&D tax credit studies help companies secure cash from credits and incentives in recognition of their innovative products, services and activities. When a R&D study is well prepared, it represents a low-risk endeavor that usually generates a strong ROI for the taxpayer. However, when the study is not well prepared, it can be high risk and have a low ROI.

This podcast shares what to consider when selecting your R&D study provider to ensure you receive the best quality services at fair prices. It also revisits the relevance of Circular 230 as well as IRS guidance on amended returns, contrasting the approaches taken by a CPA firm and a boutique firm.  Marty Karamon, Leader of Cherry Bekaert’s Tax Credits & Incentives Advisory Group, is joined by Ron Wainwright and Dan Mennel, both Tax Partners in the Firm’s Tax Credits & Incentives Advisory Group, to discuss the benefits of working with a CPA firm to perform your tax credits and incentives projects. 

This podcast is the first in a series of episodes focusing on the news and nuances of tax credits and incentives for businesses.

Related Guidance:

Podcast: 2022 Update on the Employee Retention Credit

Podcast: What’s New with R&D Tax Credits in 2022

Now is the time to take a first, second or third look at the Employee Retention Credit (“ERC”). It’s not too late for employers to qualify for significant tax credits due to partial shutdowns or declines in gross receipts during 2020 and 2021. Cherry Bekaert’s Jamie Walker, Tax Services Partner, and Martin Karamon, Tax Services Principal and leader of the firm’s ERC Team, clear up the confusion about the ERC. Find out if your company may qualify for the ERC, tips to monetize the credit and insight into the refund process. 

Additional Guidance:

• Tax Beat Podcast: Employee Retention Credit Guidance
• Article: Four Ways to Monetize the Employee Retention Credit
• Podcast: Employee Retention Credit for Law Firms
• Podcast: Employee Retention Credit for Portfolio Companies

Don’t miss the opportunity for PPP loan forgiveness! Payment deferral periods are ending for many loan recipients. Find out when you need to apply for forgiveness and learn how the application process works. Cherry Bekaert’s John Carpenter, Managing Director and leader of the firm’s PPP Loan Assistance team, is joined by Evan Usry, Senior Associate, to discuss what you need to know about PPP Loan Forgiveness. 

Chapters:

1:10 - Address the postponed deadline for Form 1040
6:45 - Walk through key individual tax provisions contained in ARPA
14:55 - Continue to business tax provisions contained in ARPA
17:40 -Identify changes to the Employee Retention Credit program
25:37 - Highlight state and local income tax implications

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Join us and listen in as our roundtable of tax leaders discuss the American Rescue Plan Act, 2021 (“ARPA”) and comment on the recent announcement from the IRS postponing the tax filing due date.  The team will address which taxpayers are impacted and what additional issues are raised by the new legislation.  

• Walk through key tax provisions contained in ARPA 
• Identify changes to the Employee Retention Credit program 
• Highlight state and local income tax  compliance issues

Speakers:

• Brooks Nelson, Tax Partner, Tax Advisory Group Leader
• Catherine Stanton, Tax Partner, State and Local Tax Group Leader
• Martin Karamon, Tax Principal, Federal Tax Credits and Incentives
• Sarah McGregor, Tax Director, Federal Tax Services

COVID-19 Employee Retention Credit (“ERC”) has Applicability to Law Firms

The Consolidated Appropriations Act, 2021 (“the Act”) expanded and extended the Employee Retention Credit (“ERC”) provisions making this payroll tax refund available to a broader range of employers. The Act also increased the credit rate from 50% of Qualifying Wages during the year (2020) to 70% of Qualifying Wages in both Q1 and Q2 of 2021. Resulting in a maximum refundable payroll tax credit of $5,000 per employee in 2020 and $14,000 per employee in 2021.

The other change that the Act provided was the ability for firms to claim both Paycheck Protection Program (“PPP”) and ERC benefits, as long as both benefits are not related to the same wages. Firms that received PPP funding in 2020 never considered whether they were Eligible Employers for purposes of the ERC due to the prior prohibition of claiming both benefits. Now, many firms are analyzing the government orders affecting court closures and limitations on jury trials to consider whether they experienced a partial shut-down for purposes of the ERC.

Join Jamie Walker, a leader in our Professional Services Industry practice and Martin Karamon, a Principal in the Firm’s Tax Advisory Services practice for a podcast where they discuss the Employee Retention Credit (ERC), how law firms may qualify and what firms must demonstrate in order to claim the credit.

Employers that have been affected by COVID-19 that experienced a significant decline in revenues, or that had to comply with government mandates restricting travel, commerce, operating hours, may qualify for a refundable Employee Retention payroll tax credit, even if the Employer previously applied for PPP benefits.

This podcast provides a complete and concise explanation of the Employee Retention Credit (“ERC”), including who qualifies and how to claim the credit. Two of Cherry Bekaert’s Credits and Incentives professionals will describe the credit benefits, what you need to do to take advantage of the credit, and how Cherry Bekaert can help.

Presenters: Martin Karamon and Anne Yancey

Moderator: Sarah McGregor

Following the presidential inauguration on January 20, 2021, Ron Wainwright, Tax Partner and Sarah McGregor, Tax Director, took to the waves to discuss President Biden’s initial tax plans for the first 100 days and look back at proposals from his campaign. During this week’s podcast, Ron and Sarah discussed planning opportunities for both businesses and individuals as they examined the tax proposals for changes in business tax rates and possible individual taxes changes, including changes to the corporate tax rate, itemized deductions, and limitations to small business deductions, as well as other key initiatives such as Coronavirus relief, clean energy production (renewable and alternative energy sources), Made in America supply chain incentives, new infrastructure projects, enhanced and extending Opportunity Zone benefits and New Markets Tax Credits and assisting small business with credits, incentives and financing.