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Fight Back Against Internal Fraud

Internal Fraud

Internal fraud can take a toll on your operation. Here are some tips to fight against it.

Internal fraud drains approximately $4 trillion annually from global businesses, according to an estimate by the Association of Certified Fraud Examiners (ACFE).

The median loss from internal fraud at companies in the construction industry is $227,000, according to ACFE’s latest Report to the Nations. Read more

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Foreign Taxation Technical Update: Section 965 Guidance

Summary

On October 1, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) issued Notice 2018-78 (the Notice). The Notice provides guidance with respect to the basis election under Prop. Reg. §1.965-2(f)(2), the application of rules for disregarding certain assets for determining aggregate foreign cash position in Prop. Reg. §1.965-3(b) to consolidated groups and relief in connection with Hurricane Florence. Read more

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Apply the Critical Path Method to Manage Cash Flow

Cash Flow

One way to help ensure your company meets it’s cash flow and financial goals is to apply a form of critical path analysis.

Construction project financing and cash flow management are unique for several reasons.

First, start-up construction companies are very easy to form with the “two men, tools, and a truck” business model. Because of this, credit and business history often are not extensive as the positive histories that typically give businesses access to large sums of capital to start the business. Read more

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Tax Law Allows Employees to Defer Income from Equity-Based Pay

Equity- Based Pay

Qualified employees may now be able to defer tax hits from equity-based compensation for up to 5 years.

Equity-based compensation can be a great way to reward and retain valued employees, especially for companies with limited cash on hand. And the Tax Cuts and Jobs Act (TCJA) makes it even more advantageous by offering a new tax-favored alternative to employees who receive these awards. Read more

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Employers: IRS Updates Business Travel Per Diems

per diems

Formal expense reimbursement policies may now be necessary. The process can be simplified by paying travel per diems instead of going through submitted receipts.

Under current tax law, employees aren’t allowed to claim miscellaneous itemized deductions — including unreimbursed business expenses — on their personal tax returns for 2018 through 2025. So, it may be more important than ever for employers to set up expense reimbursement plans for business-related travel costs. Read more

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Create an Accountable Plan to Reimburse Employees for Business Expenses

Accountable Plan

An “Accountable Plan” can minimize the effects of the tax laws’ changes to itemized deductions for business expenses incurred on behalf of employees.

Did you know that the Tax Cuts and Jobs Act (TCJA) eliminated itemized deductions for employees who incur unreimbursed expenses for company business for 2018 through 2025?

Fortunately, you can set up a so-called “accountable plan” to minimize the adverse effects of this TCJA provision. Here’s how the accountable plan deal works. Read more

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Tax Reform’s 199A Redefines “Consulting” For Government Contractors

199A

Government contractors who are listed as ‘consultants’ may want to reconsider their terminology under section 199A of the new tax reform.

By Meredith Pilaro and Jeff Bilsky

Government contractors provide many different types of services across many different industries, such as IT, R&D, operations and professional services. In the past, many of these contractors may have used the term “consultant” or “consulting” to describe the wide range of services they provide. Yet this 2018 tax season, it may be time for contractors to revisit this terminology, particularly if they are structured as a flow‑through entity for tax purposes (i.e., an S corporation, a partnership, or an LLC taxed as a partnership). Read more

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International Tax Technical Update- October

TREASURY ISSUES PROPOSED REGULATIONS FOR GLOBAL INTANGIBLE LOW-TAXED INCOME, SECTION 951A

Summary

On September 13, Department of the Treasury and the Internal Revenue Service (collectively, Treasury) issued proposed regulations (REG-104390-18, hereinafter, the Proposed Regulations) implementing Section 951A. Read more

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Claiming the New Employer Tax Credit for Family and Medical Leave

Medical Leave

A new tax credit sweetens the deal for companies offering paid family and medical leave.

The Tax Cuts and Jobs Act (TCJA) establishes a new federal income tax credit for employers that provide qualifying paid family and medical leave benefits to their employees. This credit is only available for two employer tax years — those beginning between January 1, 2018 and December 31, 2019 — unless Congress extends the deal. Here are some FAQs about this tax break.   Read more

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International Tax Technical Update- September 2018

MOVING EXPENSESTHE DISALLOWANCE OF MOVING EXPENSES AND ITS IMPACT ON DOMESTIC AND GLOBAL MOBILITY PROGRAMS

On December 22, 2017, the enactment of tax reform (also known as the Tax Cuts and Jobs Act) brought about widespread changes to includable and excludable items, with moving expenses being one of the most notable. Read more