You are a savvy business owner. Part of your business acumen includes knowledge of potential tax credits that can benefit your bottom line. However, the words “potential for audit” linger in the back of your mind.
On the heels of the record-setting incentive package of more than $1.5 billion in grants and tax breaks from New York state that Amazon stands to get for bringing at least 25,000 workers to a new campus in Queens, New York Gov. Andrew Cuomo was quoted as saying, “All things being equal, if we do nothing, they’re going to Texas.”
There is no shortage of famous movie quotes in the lexicon of pop culture, and the phrase “You complete me” uttered by Tom Cruise in the film Jerry Maguire certainly belongs somewhere at the top of the list. While expressed with complete sincerity in the film to his love interest, the phrase has enjoyed longevity having been oft quoted, sometimes as a comedic device, such as in the film Austin Powers and the TV show The Office, and in the deranged rantings of the villainous Joker in the Batman film The Dark Knight.
Today President Trump signed into legislation H.R. 1892 which ended the government shutdown earlier this morning. Included in the legislation are a number of tax extenders and new tax provisions – more notably the extension of the Federal Empowerment Zone Employment Credit and the Federal Indian Employment Credit and the introduction of the Employee Retention Credit for Employers Affected by California Wildfires.
Manufacturing and distribution companies are being challenged today, both domestically and globally, by growth in the industry and competition. Companies are scrambling to deliver quality products and service to meet customer needs and demands. Faced with rising operating costs and increasing minimum wage rates, it can be difficult for manufacturers to stay profitable without comprising the quality of their products or compromising employee retention and morale. Fortunately, there are tax incentives programs offered on the federal and state level that include targeted employment incentives (like the Federal Work Opportunity Tax Credit), state employment-based incentives and training-based incentives that can be advantageous to manufacturers.
A new credit has been introduced to an already sizable list of credits offered by the State of GA. The Georgia Qualified Parolee Jobs Tax Credit, effective January 1, 2017 – December 31, 2019, is an income tax credit available to employers who hire individuals who have recently been granted parole.
The landscape of cost segregation and depreciating fixed assets is vast, complex and constantly changing, due to governmental regulations. Cost segregation studies (and the subsequent work involved) require expertise in both tax guidance, construction and facilities engineering – this isn’t something you should expect your CPAs or clients to grasp without some level of guidance.
And yet, the “new normal” for CPA firms today is centered squarely within a client centric environment with the challenge of fulfilling traditional core accounting services, while also providing knowledge, information and services to capture every allowable tax benefit.
An outsourced tax consultant offers CPA firms guidance in areas of tax credits and incentives where your accountants may not be knowledgeable enough. Typically, this is a partnership that’s ongoing and facilitates a sustained approach to maximizing tax savings for your clients.
However, a tax consultant could play an even more important role within your firm.
If your CPAs are currently helping clients apply for business incentives, it’s not uncommon for something to go wrong in the process. Capturing credits is extremely complex, and one little slip up could cost a client thousands of dollars in tax savings.
As the owner of a CPA firm, you know you need more efficient workflows to meet client demand for improved tax return outcomes. Helping clients navigate the complex world of tax credits and incentives ensures maximized tax savings (which improves the outcome of their tax return).
The right tax credit software system enables you to house all of your client projects and information in one place. With a singular standard for organizing your client project information, you encourage a collaborative environment with high visibility into client projects.
A CPA firm had a client with an unexpected state tax liability. The firm was unsure of how to handle this delicate matter with the client, especially in terms of how to minimize the liability by utilizing available tax credits the client may qualify for.
The CPA firm had already advised the client on the amount of their estimated tax payment and were concerned about communicating this unexpected bad news. The tax liability could have resulted in underpayment tax penalties.