Guest Nathan Clark joins host Damien Martin to review the recent recommendations made by the AICPA's Tax Methods & Periods Technical Resource Panel on challenges associated with making accounting methods changes to adopt the favorable small business taxpayer provisions in the Tax Cuts and Jobs Act (TCJA). Nathan also reviews key takeaways from the recent guidance provided in Revenue Procedure 2018-40

TIME STAMPS OF WHAT'S COVERED

• [01:59] Overview of what changed under the TCJA
• [04:47] What's an accounting method again?
• [06:10] The resource panel's July 23 letter
• [07:51] Guidance under Revenue Procedure 2018-40
• [12:01] Key takeaways from the guidance received
• [15:16] Section 481(a) explained
• [18:47] The opportunity to plan for lower tax rates under the TCJA
• [20:40] Section 263A uniform capitalization calculations
• [21:28] Changes in methods to account for inventories under the TCJA
• [25:09] Challenges in implementing the changes
• [32:48] Section 460 and accounting for long-term contracts
• [34:28] Need for clarification on the interest deduction limitation
• [36:16] Qualified Improvement Property
• [42:13] Other items in the July 23 letter
• [43:08] Training for marathons while keeping up with the pace of tax change

BIO FOR GUEST

Nathan is a tax partner in Dixon Hughes Goodman's firm headquarters in Charlotte, North Carolina—SouthPark. He has a deep focus on accounting method changes and specializes in capitalization, depreciation and revenue recognition. Nathan has spoken for AICPA conferences, state CPA societies, and other continuing education events. He has published Tax Alerts and articles for AICPA's The Tax Adviser, CCH's Corporate Business Taxation Monthly, CFO.com, AccountingWEB and has been cited by CFO.com and CCH.

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ADDITIONAL RESOURCES

AICPA Tax Methods & Periods Technical Resource Panel

AICPA Comments on Impact of Pub. L. No. 115-97 on Accounting Methods for Small Business Taxpayers

Revenue Procedure 2018-40

Simply Tax Episode 21: TRPs After Tax Reform

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The proposed regulations under Internal Revenue Code Section 199A are finally here! Guest Tony Nitti returns to the podcast to cut through the 184 pages of recently released guidance to share his highly sought insight on the doors that were shut (and those that opened) in the proposed regulations.

TIME STAMPS OF WHAT'S COVERED

• [02:40] Initial reactions to the proposed regulations
• [05:48] Challenges in implementing the proposed guidance
• [11:09] What's a trade or business and when does a rental activity raise to the level of one?
• [16:16] Increased penalty associated with being aggressive
• [18:21] Aggregation rules
• [22:00] The tax law confidence bell curve
• [25:15] How #TaxTwitter contributed to the proposed regulations
• [30:48] We need a roadmap for QBI
• [33:25] Absent action, the deduction sunsets after 2025
• [37:03] Tony's take on the treatment of §1231 assets
• [38:39] My head hurts!
• [41:49] UBIA and other terms of art from the proposed regulations
• [44:36] Approach the TCJA-related guidance as a marathon not a sprint
• [48:27] Advice for a successful tax career in tax

BIO FOR GUEST

Tony is a tax partner based in WithumSmith+Brown's Aspen, Colorado office and is a certified public accountant in the states of New Jersey and Colorado. Tony's practice focuses primarily on corporate and partnership tax planning, with a special focus on the consolidated return regulations and the reorganization provisions, including the structuring of acquisitions, mergers, reorganizations, spin-offs and other restructuring transactions. Tony is a contributor to Forbes and his opinions and commentary on important tax issues have been quoted in Bloomberg, CNN Money and the BNA Daily Tax Report.

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ADDITIONAL RESOURCES

Mentioned in the episode

• Qualified business income deduction flowchart
• Simply Tax Episode 8: The Nitty Gritty—of Section 199A—with Tony Nitti
• Simply Tax Bonus Episode: CPA to CPA with Tony Nitti
• Proposed regulations: Qualified business income deduction

More on §199A from Tony

• IRS Provides Guidance On 20% Pass-Through Deduction, But Questions Remain (Forbes)
• 5 Passthrough Deduction Questions the IRS Must Answer (Tax Notes, subscription required)
• Understanding the New Sec. 199A Business Income Deduction (The Tax Adviser)
• The New 'Qualified Business Income Deduction Varies Based on your Business Type - Or Does It? (Forbes)
• Making Sense of the New '20% Qualified Business Income Deduction' (Forbes)

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After months of waiting, the IRS and U.S. Department of the Treasury began releasing the highly anticipated guidance on implementing the Tax Cuts and Jobs Act (TCJA) earlier this month. With a little help from Ed Karl, Tony Nitti, Glen Birnbaum, Nathan Clark and Jesse Palmer, host Damien Martin gives an overview of the guidance we've seen so far and previews what's ahead on TCJA-related guidance week!

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What does swimming with sharks have to do with the future of tax accounting? Find out as guest Danetha Doe—host of the Future of Accounting podcast—shares her insights on the tax trends beyond tax reform that businesses and their advisors should focus on.

TIME STAMPS OF WHAT'S COVERED

• [ 00:36 ] Who is Danetha Doe
• [ 05:25 ] Trends in the accounting profession
• [ 10:38 ] If you don't manage changing technology, it can get in the way
• [ 15:56 ] The focus is becoming more on managing people and organizations
• [ 18:47 ] Challenging yourself outside the office helps you be more open-minded in your work
• [ 21:57 ] Developing a personal brand is important for accountants and business owners alike
• [ 25:42 ] Creativity is especially important
• [ 27:04 ] Put the moose on the table
• [ 28:20 ] Women in the workplace
• [ 31:33 ] Danetha's advice for Damien on mentoring women on his team
• [ 37:19 ] Creativity, communication and empathy are key
• [ 39:21 ] We can all learn from each other's perspectives
• [ 41:03 ] Focus on motivation

BIO FOR GUEST

Danetha Doe is CEO and president of The Doe Collective. Based in the San Francisco Bay Area, she manages a collection of brands that share the mission of promoting creativity, collaboration and economic empowerment. As a blogger and influencer, she and the team collaborate with financial institutions and lifestyle brands to produce unique content and live events catering to women's empowerment.

Connect with Danetha on LinkedIn

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ADDITIONAL RESOURCES

More from Danetha: The Doe Collective | Money & Mimosas | Future of Accounting

McKinsey & Company study: Women in the Workplace 2017

BKD's SKY 2017 Impact Report

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Confusion has been swirling after the recent U.S. Supreme Court ruling on South Dakota v. Wayfair, Inc. (Wayfair). Guest Ken Taylor joins host Damien Martin to break down this landmark decision, clear up misconceptions and explain the potential effects on businesses large and small.

TIME STAMPS OF WHAT'S COVERED

• [1:26] The significance of the U.S. Supreme Court decision in Wayfair
• [8:44] Nexus?
• [12:14] A lot has changed since Quill Corp. v. North Dakota, 504 U.S. 298 (1992)
• [15:07] The difficult business decision
• [18:30] You need good information to comply with sales and use tax rules
• [21:15] What Wayfair means for purchasers
• [23:32] Now is the time make changes to your systems and processes
• [26:00] Failing to properly address sales and use taxes can affect mergers and acquisitions
• [29:54] Advice for businesses and their owners in responding to Wayfair
• [34:51] What happens if you wait to comply?
• [38:21] That's a lot to consider, and you need perspective

BIO FOR GUEST

Ken Taylor is a senior managing consultant in BKD's State & Local Tax Services (SALT) division. He provides indirect tax consulting services to both public and private companies, including facilitation of automating sales/use tax compliance, technical assistance and research, audit defense, opinion memos, due diligence reviews for purchasers, identification and recovery of overpayments and sales/use tax function effectiveness reviews.

Connect with Ken on LinkedIn

ADDITIONAL RESOURCES

Background article: U.S. Supreme Court to Review Nexus for Sales Tax

Article: Quill Is Overturned – A New Era in Economic Nexus for Sales Tax

Webinar: What Does the Wayfair Ruling Mean for Your Organization?

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Chad Moutray—chief economist for the National Association of Manufacturers (NAM)—joins host Damien Martin to discuss what he's seeing in the data and hearing from members about the Tax Cuts and Jobs Act's (TCJA) effect on manufacturers.

TIME STAMPS OF WHAT'S COVERED

• [1:56] Why understanding the economy is important right now
• [3:06] How tax reform is affecting manufacturers
• [5:27] The TCJA provisions Chad sees as driving economic growth
• [8:53] How to approach areas of uncertainty in the economy and the TCJA
• [11:12] Key economic indicators Chad's watching
• [13:25] It's your bottom line that really matters
• [14:58] The number one challenge for manufacturers right now
• [17:02] What NAM is hearing from members about hiring and capital spending after tax reform
• [18:09] Making productivity-enhancing technology investments
• [20:02] Ways to cut through the economic noise
• [20:53] Why Chad's bullish on manufacturing over the long term
• [21:53] Advice for manufacturers that are waiting to take action after tax reform

BIO FOR GUEST

Chad Moutray is chief economist for the National Association of Manufacturers, where he serves as the NAM's economic forecaster and spokesperson on economic issues. He frequently comments on current economic conditions for manufacturers through professional presentations and media interviews. He has appeared on Bloomberg, CNBC, C-SPAN, Fox Business and Fox News, among other news outlets.

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Read more from Chad on NAM's Shopfloor Blog

ADDITIONAL RESOURCES

2018 Second Quarter Manufacturers Outlook Survey

NAM's Center for Manufacturing Research

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Like tax, leadership is complicated and plays a crucial role in the long-term success and value of a business. Host Damien Martin sits down with guest Amy Franko to discuss the role leadership plays in an organization, the importance of creating employee loyalty and ways to cultivate leaders of influence.

TIME STAMPS OF WHAT'S COVERED

• [3:09] Amy's definition of leadership
• [4:59] The importance of a leadership pipeline
• [6:28] Ways to cultivate frontline leaders
• [7:59] Why someone that's not fit to be a leader might end up in a leadership role
• [10:11] Making the switch from individual contributor to leader
• [12;27] Should business owners be concerned with creating employee loyalty?
• [14:19] The role of a leadership ambassador
• [17:02] Building leadership success through a learning culture
• [19:11] Moving people out of leadership roles that don't "fit"
• [23:25] Get help from a coach
• [25:53] Developing organizational flexibility that creates an environment of employee loyalty
• [28:51] How to move the needle on leadership when you're in growth mode
• [30:44] Amy's recommendations on leadership for executives and business owners

BIO FOR GUEST

Amy Franko is founder and president of Impact Instruction Group. She drives results for organizations by elevating their most important asset—their people—and helps companies create high-value growth by improving sales performance and sales leadership. Amy's experience within large global organizations, such as IBM and Lenovo, has shaped her skills as a futuristic thinker and leader. She brings new perspectives to her clients with a sharp focus on achieving strategic goals.

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The centralized partnership audit regime (CPAR) changes the way the IRS conducts partnership audits for tax years beginning after December 31, 2017. The AICPA's Jonathan Horn joins host Damien Martin to share what we know (and don't know) about this significant change and explain how it will impact partners and partnerships.

TIME STAMPS OF WHAT'S COVERED

• [0:21] What were the TFRA rules?
• [2:12] How did we get CPAR?
• [4:45] What changed under CPAR?
• [6:48] What's a partnership representative?
• [8:32] Who should and shouldn't be a partnership representative?
• [13:42] What are the requirements to elect out?
• [15:08] How do you count S corporation shareholders for purposes of the election out of CPAR, and why is it important?
• [17:15] Why is there a need to amend partnership agreements?
• [19:29] What's the status of guidance on CPAR?
• [23:43] What are the key areas the AICPA is requesting guidance on?
• [32:18] Will we see a delay in CPAR?
• [35:28] What should partners, partnerships and tax practitioners be doing now?
• [37:51] Why isn't CPAR being discussed very much right now, despite its significance?
• [38:21] How does CPAR affect states?
• [41:16] What's Jonathan's key takeaway on CPAR?

BIO FOR GUEST

Jonathan Horn is a senior manager on the AICPA's Tax Policy & Advocacy Team, based in Washington, D.C. He is responsible for the development and submission of comments to Congress, Treasury and the IRS and developing alerts for members. Prior to joining the AICPA, he was a sole practitioner for over 20 years, providing tax services to clients of all sizes from around the globe. In 2015, Jonathan received the AICPA Tax Division Distinguished Service Award for his extraordinary contributions to the work of the AICPA Tax Division.

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ADDITIONAL RESOURCES

AICPA Resource Center: Partnership Audit & Adjustment Rules

AICPA comment letter dated May 16, 2018: Proposed Regulations Regarding the Centralized Partnership Audit Regime: Adjusting Tax Attributes

BKD Thoughtware article: IRS Partnership Audits Will Likely Increase Under New Rules

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The Tax Cuts and Jobs Act (TCJA) has been around for several months now, but state efforts to respond and adopt state-level reform is just getting started in many jurisdictions. Host Damien Martin cuts through the static of the SALT world with guest Mary Reiser by discussing the differences in state conformity and what the highly anticipated Supreme Court decision in South Dakota v. Wayfair, Inc. could mean for you and your business.

TIME STAMPS OF WHAT'S COVERED

• [01:35] State conformity to the TCJA
• [02:04] Rolling conformity
• [03:04] Fixed state conformity
• [05:08] Selective conformity
• [07:06] The effect of the international provisions on states
• [09:15] State and local considerations play an important role when analyzing choice of entity
• [12:59] Pass-through business deduction at the state and local level
• [13:39] What Mary is watching for in SCOTUS's decision in South Dakota v. Wayfair, Inc.
• [20:13] Mary's advice to businesses and business owners on approaching SALTed uncertainty

BIO FOR GUEST

Mary Reiser is a member of BKD's State and Local Tax (SALT) Services division. She focuses on compliance and consulting for various SALT issues involving multistate entities, including audit defense, nexus analysis, voluntary disclosure and buy- and sell-side due diligence. Her primary experience is in the areas of income and franchise tax and sales and use tax.

Connect with Mary on LinkedIn

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Parts of the Tax Cuts and Jobs Act (TCJA) limit some taxpayers' ability to deduct their state and local taxes (SALT) for the next seven tax years. Tax professor Annette Nellen provides some background on this temporary limitation and breaks down the efforts several states are undertaking to provide relief to their residents.

TIME STAMPS OF WHAT'S COVERED

• [4:16] Annette's overview of the objectives and process of enacting the TCJA
• [8:41] Some local and state officials talk of dire consequences
• [9:30] How to tell if you're a net winner or loser under the TCJA
• [12:23] The cap on the SALT deduction explained
• [13:21] The state reaction to the cap
• [15:11] What's important to know if you itemize
• [17:54] Are the SALT workarounds too good to be true?
• [21:26] What does previously issued informal guidance from the IRS say?
• [24:35] Recent IRS notice 2018-84 and the substance-over-form principle
• [26:58] Risks and what to look at when evaluating your options
• [30:01] What other types of workarounds have been introduced?
• [36:19] The importance of understanding what's on your tax return and your full tax picture
• [38:15] Sense of bewilderment on how to approach the federal and state changes
• [39:39] What else Annette's looking for

BIO FOR GUEST

Annette Nellen is a professor of accounting and finance and director of the SJSU Graduate Tax Program. Prior to joining SJSU, she was with a tax manager with Ernst & Young and an IRS revenue agent and lead instructor. Annette has testified before the U.S. House Ways and Means Committee, U.S. Senate Finance Committee, California Assembly Revenue and Taxation Committee and tax reform commissions and committees on various aspects of federal and state tax reform.

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Annette's blog: 21st Century Taxation

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