The Internal Revenue Service has announced that its Employee Plans Compliance Unit (“EPCU”) will be mailing out a letter and instructions to a random sample of 1,200 employers that filed a Form 5500, Annual Return/Report of Employee Benefit Plan, for the 2007-plan year. [...]
Affecting: Taxpayers with assets over $10 million and with at least one uncertain tax position that is required to be disclose Details: On April 19, 2010, the Internal Revenue Service released a draft Schedule UTP, Uncertain Tax Position Statement, for use in taxable years beginning [...]
Affecting: Multinational Companies Filing Financial Statements for the 2010 First Quarter. Details: In January 1, 2010, several taxpayer-favorable provisions of the Internal
Revenue Code expired. [...]
The application of FICA tax to severance pay in connection with certain events
such as a reduction in force or plant closing has been hotly contested in the courts for a number of years. With the recent economic decline, many companies have had reductions in force and plant closings and [...]
On March 23, 2010, the President signed the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 (the “Act”). The Act created Internal Revenue Code section 48D, which provides a tax credit equal to 50 percent of the “qualified investment” of
[...]
Affecting:
Companies that receive subsidy payments for qualified retiree prescription drug plans and exclude these amounts from taxable income while also taking a business deduction for the associated costs. [...]
On March 18, 2010, President Obama signed H.R. 2847, the Hiring Incentives to Restore Employment (HIRE) Act (the “Act”), as Pub. L. No. 111-147. The Act contains a number of tax provisions intended to promote hiring and encourage business investment. The Act also contains substantial new compliance requirements [...]
On February 25 and 26, 2010, the Treasury Department and Internal Revenue Service issued three items of guidance concerning the filing of Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (“FBAR”). The Service first issued Notice 2010-23 [...]
On February 1, 2010, the Treasury Department released General Explanations of the Administration’s Fiscal Year 2011 Revenue Proposals ("Green Book"), which provides a description of the Obama Administration’s budget proposals affecting revenues. These proposals are an outline of the Administration’s policy initiatives [...]
In Notice 2010-6, the Internal Revenue Service announced a new document correction program for deferred compensation plans that violate section 409A. This Tax Alert will briefly describe the issue, the terms of the Notice, and what action a taxpayer should [...]
All forms 5500 (Annual Return/Report of Employee Benefit Plan), except 2008 plan year filings, are now required to be submitted by the plan sponsor via the Department of Labor's (DOL) new electronic filing system called EFAST 2. Paper copies of the Form 5500, other than 2008 plan year filings, will not be [...]
Some of these opportunities may apply regardless of whether your business is conducted as a sole proprietorship, partnership, limited liability company, S corporation, or regular corporation. Other opportunities may apply only to a particular type [...]
This 1-hour webinar takes a look at key items in the Federal Tax Code that will affect 2009 business income tax returns as well as a number of popular but temporary tax incentives that are on their way to being extended through 2010. The webinar also touches upon several important international tax developments [...] (39-minute recording)
Individual income taxes, whether paid through employer withholding or quarterly estimates, are probably one of your largest annual expenditures. So, just as you would shop around for the best price for food, clothing or merchandise, you want to consider opportunities [...]
On November 6, 2009, President Obama signed H.R. 3548, the Worker, Homeownership and Business Assistance Act of 2009 (the “Act”). The Act contains a number of tax provisions. [...]
The Internal Revenue Service (IRS) has announced a one-time extension to the deadline for special voluntary disclosures by taxpayers with unreported income from foreign banking and financial accounts. These taxpayers now have until October 15, 2009. [...]
On July 20, the United States Department of Labor released Field Assistance Bulletin No. 2009-02 (“FAB”). The bulletin provides benefit plans subject to section 403(b) of the Internal Revenue Code (“403(b) plans”) with additional guidance and transitional relief [...]
On May 18, 2009, FASB issued a proposed FASB Staff Position, FSP FIN 48-d, "Application Guidance for Pass-through Entities and Tax-Exempt Not-for-Profit Entities and Disclosure Modifications for Nonpublic [...]
In October 2008, the Internal Revenue Service ("IRS") released a revised version of Form TD F 90 22.1, Report of Foreign Bank and Financial Accounts (the so-called "FBAR" form), for the reporting of foreign banking and financial accounts held by a US citizen or entity. [...]
In October 2008, the Internal Revenue Service ("IRS") released a revised version of Form TD F 90 22.1, Report of Foreign Bank and Financial Accounts (the so-called "FBAR" form), for the reporting of foreign banking and financial accounts held by a US citizen or entity. [...]
Recently the Internal Revenue Service released Notice 2009‐46, Substantiating Business Use of Employer‐Provided Cell Phones, regarding the taxation of employer provided cell phones and proposals consisting of procedures to document and
substantiate an employee’s business use of [...]
Have you ever wondered what the bonding requirements for your plan under ERISA are or the impact of the PPA on such requirements, or if your company’s fiduciary liability insurance covers ERISA’s bonding requirements (it may not)? [...]
In November 2007, the DOL issued amendments to the Form 5500 – Annual Return/Report of Employee Benefit Plan – for the 2009 plan year. One of the changes eliminated the exemption granted to Internal Revenue Code (“IRC”) 403(b) retirement plans of IRC 501(c)(3) organizations, from the Form 5500 reporting [...]
On January 5, 2009, the Treasury Department and the Internal Revenue Service published substantial temporary cost sharing regulations in the Federal Register. [...]
The American Recovery and Reinvestment Tax Act of 2009, signed into law by President Obama on February 17, 2009, generally extends the 50-percent first-year bonus depreciation deduction on qualifying property through 2009. [...]
The 2009 cost-of-living adjustments to the dollar limitations for qualified retirement plans and other items for the 2009 Tax Year, by both the Internal Revenue Service and the Social Security Administration have been updated. [...]
Last week Congress passed and yesterday the President signed the American Recovery and Reinvestment Tax Act of 2009 (the “Act”).The Act contains approximately $300 billion of net tax cuts. [...]
On December 23, 2008, the President signed the Worker, Retiree, and Employer Recovery Act (the “2008 Act”) into law, which provides for a suspension of the 2009 required minimum distribution (RMD) payments for certain retirement plan accounts. [...]
The new Congress and the new Administration have quickly turned their focus to the weakened economy. As can be expected, tax provisions are a major component of the economic stimulus legislation. [...]
On August 10, 2010, President Obama signed into law H.R. 1586 as Pub. L. No
111-226 (the “Act”). Although the Act is popularly referred to as the Education, Jobs and Medicaid Assistance Act, it was officially enacted without
a title. Included in this legislation are specific international tax provisions that will affect United [...]
After many years of litigation regarding the sourcing of stock option gains of mobile employees, the French Supreme Court issued a ruling that provides definitive guidance for option income that results when a French resident exercise an employee stock option (ESO) and the related employment activity is performed in [...]
Affecting: Taxpayers with certain foreign activities. Details: Section 513(c) of the Hiring Incentives to Restore Employment (“HIRE”) Act provides that the three-year period of limitations during which the Service may assess additional tax does not begin to [...]
Affecting: Businesses conducting activities in France through a commissionaire structure. Summary: On March 31, 2010, the French Supreme Court released its opinion in the Zimmer Ltd. case. The opinion was important for many international [...]
The tax political measures of the Chinese government and the financial administration obviously reflect that China can no longer be considered as a low tax country. An essential part of the latest tax decrees and administrative directives has been passed in order to ensure that the tax base in China is preserved. Furthermore, they are supposed to counteract a [...]
Overview: On January 8, 2009, the Chinese State Administration of Taxation (“SAT”) released national transfer pricing documentation guidelines contained in the Implementation Rules for Special Tax Adjustments (“Guoshuifa [2009] No. 2”). These guidelines are effective retroactively, as of January 1, 2008. [...]
Issue: On February 20, 2010 the Chinese State Administration of Taxation (“SAT”) issued Guoshuifa [2010] No. 19 (“Circular 19”), which provides new guidelines for the application of deemed profit methods to calculate the enterprise income tax (“EIT”) for nonresident enterprises. [...]
Overview: On March 22, 2010, the United States Court of Appeals for the Ninth Circuit reversed its previously withdrawn opinion in the Xilinx case, deciding this time in favor of the taxpayer. In the original tax dispute, the Internal Revenue Service issued a notice of deficiency against semiconductor company Xilinx, Inc. for its taxable years 1997, 1998, and 1999, contending [...]
Summary:
Significant United States International Tax Changes Proposed Affecting:
All taxpayers with international business operations and investments Proposed Date:
Taxable years beginning after [...]
A potential refund opportunity exists for excess withholding tax on dividends and royalties as a result of the entry into force of the United States – France Treaty Protocol. [...]
On December 16, 2009, the United States Treasury Department announced that representatives of the United States and Italy completed the exchange of
instruments of ratification and that the United States-Italy Income Tax Treaty has entered into force. [...]
On December 10, 2009, the United States Tax Court ruled in favor of VERITAS Software Corp. (“VERITAS U.S.”) in its case against the Internal Revenue Service, stating in its ruling that the Service's $1.675 billion valuation of the buy-in payment related to VERITAS U.S.’s cost-sharing arrangement (“CSA”) with its [...]
On December 4, 2009, the Tax Court of Canada decided in favor of General Electric Capital Canada Inc. (“GE Capital Canada”) in General Electric Capital Canada Inc. v. Her Majesty The Queen, a case related to the deduction of guarantee fees paid by GE Capital Canada to its parent company in the United States [...]
After Mexican President Calderon’s signature, the revenue provisions of the 2010 Mexican Budget were published in the Official Bulletin on November 25, 2009.
With the publication, the tax reform package (Mexico Tax Reform of 2010 or “2010 Tax Reform”) that is part of 2010 revenue within the Mexican Budget was enacted
into law. [...]
This 1-hour webinar takes a look at key items in the Federal Tax Code that will affect 2009 business income tax returns as well as a number of popular but temporary tax incentives that are on their way to being extended through 2010. The webinar also touches upon several important international tax developments [...] (39-minute recording)
The new protocol provides zero withholding tax on dividends paid to eligible IRAs and pension plans, new exchange of information, and mandatory arbitration provisions. [...]
On May 11, 2009, the US Treasury Department released General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals (the ‘Green Book’), a document that provides a description of the Obama Administration’s budget proposals affecting revenues. In a May 4, 2009, news release, President Obama had announced, and the US Treasury Department had [...]
On June 19, 2009, the German Bundestag (Lower House) passed the Citizen Relief Act proposing some relief from the country's harsh loss limitation rules. If approved by the German Bundesrat (Upper House) this month the new law would temporarily permit the use of loss carryovers in connection with the [...]
The United States Department of the Treasury and the Hungarian Finance Ministry agreed on a new income tax treaty with a comprehensive limitation on benefits ("LOB") provision. [...]
This issue of Expatriate News has a European flavor. The UK government continues to introduce changes that affect expatriates, while at the same time the European Commission is taking action against the United Kingdom’s discriminatory pension-fund legislation. The Supreme Court in the Netherlands has examined the practical operation of the double tax treaty [...]
In October 2008, the Service released a revised version of Form TD F 90 22.1, Report of Foreign Bank and Financial Accounts (the so called “FBAR” form), for the reporting of foreign banking and financial accounts. [...]
The Internal Revenue Service has issued revised Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation, to report exchanges of property with or transfers of property to a foreign [...]
The Internal Revenue Service has issued a new form, Form 8926, Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information, to compute disqualified interest expense under section 163(j). [...]
Over USD 300 000 million of tax cuts are included in the American Recovery and Reinvestment Tax Act 2009, signed by President Obama on February 17th. The Act
is one of the first steps taken by the Administration and Congress to revive the US economy. [...]
Foreign Dividends to be Exempt for Larger Companies
On December 9, 2008, the government issued draft Guidance Notes and legislation, confirming the introduction of an exemption system for foreign dividends received by larger UK companies. [...]
The United States and France signed a new treaty protocol on January 13, 2009, providing significant changes to the existing income tax treaty as amended by the 2004 protocol. [...]
The Internal Revenue Service further relaxes section 956 rules and allows certain loans from controlled foreign corporations (“CFCs”) to United States taxpayers without deemed income inclusions. [...]
On December 24, 2008, the Internal Revenue Service and the Treasury Department issued final regulations on the application of subpart F to certain contract manufacturing arrangements. [...]
The European Commission has put the United Kingdom on formal notice properly to implement the judgment of the European Court (ECJ) on crossborder losses in the Marks & Spencer case. [...]
In general, the Fifth Protocol is effective for taxable years beginning on or after January 1, 2009. However, certain provisions may have different effective [...]
On November 27, 2008, the High Court in London ruled in favor of British American Tobacco Group (“BAT”) (the principal test claimant), in the case of The Test Claimants in the FII Group Litigation v. The Commissioners for Her Majesty’s Revenue and Customs (“HMRC”) [...]
Affecting: I. General Corporation, Banking Corporation, and Unincorporated Business Tax rules have been amended to provide guidelines, applicable during the phase-in period to a single receipts factor, for allocating income when any of the three allocation factors is missing.
II. Unincorporated Business Tax (“UBT”) rules [...]
A significant case has recently been decided relating to the repealed Michigan
Single Business Tax (“SBT”). The case dealt with the proper SBT treatment of entities that are disregarded for federal income tax purposes. In the past, the Michigan department of Treasury (“Treasury”) issued Revenue Administrative [...]
On December 4, 2009, Governor David Paterson signed into law a revenue measure that allows the Department of Taxation and Finance to administer a penalty and interest discount program for certain outstanding taxes, fees, or surcharge liabilities. Taxpayers with older, unpaid New York State assessments or final [...]
Massachusetts Privacy Law- December 2009 If You Own, License, Store or Maintain Personal Information Belonging to a Resident of Massachusetts, the New Massachusetts Privacy Law will Affect Your Company
In August of 2009, the Massachusetts Office of Consumer Affairs and Business Regulation announced further changes to the regulations contained within the [...] (43-minute recording)
The Massachusetts Office of Consumer Affairs and Business Regulation (“OCABR”) has filed its final amendments to its information security regulations which take effect on March 1, 2010. [...]
The California Franchise Tax Board (“FTB”) issues FTB Notice 2009 4 addressing refund claims for Limited Liability Company (“LLC”) fees imposed under Section 17942 of the California Revenue and Taxation Code. [...]
May is a busy month for states offering amnesty programs. Several currently active amnesty programs either begin or end in May 2009. This Tax Alert serves as a summary of the amnesty programs currently being offered by Alabama, Arizona, Connecticut, and New Jersey. [...]
California has recently held various meetings and issued numerous Notices, Rulings and Bills regarding various California corporation franchise tax topics. The following is a brief overview of some of the most important issues discussed in recent months. [...]
During 2008, "An Act Providing for the Investment in and Expansion of the Life Sciences Industry in the Commonwealth" was enacted which provides Massachusetts-based life science companies with $1 billion in benefits over the next 10 years. [...]
On November 25, 2008, in an attempt to eliminate Connecticut’s 2009 fiscal year budget shortfall, Connecticut Governor M. Jodi Rell signed into law House Bill 7601 (“H.B. 7601”) which adopts a state tax amnesty program, as well as Senate Bill 1200 Section 5 (“S.B. 1200”) which adopts a one-time local tax amnesty program. [...]
As part of the Economic Stimulus Plan of 2008, New Jersey Governor Jon Corzine signed into law Senate Bill 2130 (“S.B. 2130”) which extends the net operating loss (“NOL”) carryforward period from seven to 20 taxable
years. [...]
On July 21st, 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Reform Act") which, among other things, amends Section 404(b) of the Sarbanes-Oxley Act of 2002 ("SOX 404") which permanently exempts non-accelerated, publically traded companies [...]
Significant 2009 Developments
In 2009, the Securities and Exchange Commission devoted much of its attention to the financial crisis and the regulatory shortcomings it exposed. The Commission focused on:
• Participating in efforts by the Obama administration and Congress to reform the U.S. government’s [...]
The annual AICPA National Conference on Current SEC and PCAOB Developments held on December 7-9, in Washington, DC, provided insights into the Securities and Exchange Commission (SEC) staff’s views on various accounting and reporting issues.The remarks made by SEC Commissioner Elisse Walter and members of [...]
This Financial Reporting Alert was prepared to help our clients anticipate and respond to questions that may arise with the implementation of Accounting Standards Update Nos. 2009-13, Multiple-Deliverable Revenue Arrangements and 2009-14, Certain Revenue Arrangements That Include Software Elements. [...]
FASB Staff Position APB 14-1 (ASC 470-20), Accounting for Convertible Debt Instruments That May Be Settled in Cash Upon Conversion (the FSP), changed the accounting and disclosure for convertible debt instruments that permit or require the issuer to pay cash upon conversion. The FSP eliminated the [...]
Revenue Recognition- November 2009
New Accounting Guidance Significantly Changes Revenue Recognition for Many Multiple Revenue Arrangements
FASB recently ratified new revenue recognition standards regarding multiple element arrangements that will impact a broad range of companies, especially especially those in the technology [...] (38-minute recording)
FAS 166 & FAS 167- November 2009
Changing the Rules of the Consolidations Game
The new FASB regulations released this past June, Statements of Financial Accounting Standards Nos. 166 and 167, change the rules of the consolidations game. This 1-hour seminar provides insight into the crucial points of the amendments and how [...] (43-minute recording)
FAS 141R, FAS 160 & FAS 157 - November 2009
How These Standards Impact Accounting, Financial Reporting and, Ultimately, Your M&A Strategy
The past year has seen major developments to key financial standards associated with business combinations, non-controlling interests and fair value measurements. This 1-hour seminar reviews recent developments and implementation issues surrounding three key standards (FAS 141R, FAS [...] (41-minute recording)
GAAP/Tax Reporting Updates - November 2009 Key Pronouncements That Impact Financial Reporting for Income Taxes
With 2009 coming to a close and tax planning in full gear, several key FASB pronouncements will play an important role in financial reporting for income taxes. This 1-hour seminar walks through FAS 109, FIN 48 and FAS 141(R), and demonstrates how to [...] (39-minute recording)
On Friday, October 2, 2009, the SEC announced an extension for small public companies to comply with Section 404(b) of the Sarbanes-Oxley Act. Companies with a market cap of less than $75M (“non-accelerated filers”) and their independent auditors will need to report on the effectiveness of their internal [...]
At its meetings on September 9 and 10, 2009 FASB’s Emerging Issues Task Force (EITF) reached final consensus on EITF Issues No. 08-1, "Revenue Arrangements with Multiple Deliverables" (EITF 08-1) and No. 09-3, "Certain Revenue Arrangements That Include Software Elements" (EITF 09-3). [...]
Effective July 1, 2009, the FASB Accounting Standards Codification is approved by the Financial Accounting Standards Board (“FASB”) as the single official source of authoritative, nongovernmental U.S. U.S. Generally
Accepted Accounting Principles (GAAP), superseding existing FASB AICPA, EITF, and related literature. [...]
As the world struggles to balance the dream of international accounting standards with the realities of national customs and laws, the Emerging Issue Task Force (EITF) of the Financial Accounting Standards Board (FASB) is stepping up to new issues with answers that might affect you. [...]
The annual AICPA National Conference on current SEC and PCAOB developments held on December 8-10 in Washington, D.C., provided insights into the Securities and Exchange Commission (SEC) staff ’s views on various accounting and reporting issues. The remarks made by the SEC Chairman and members of the Office of [...]
This letter summarizes many of the 2008 activities at the Securities and Exchange Commission that affect financial reporting. We begin with an overview and then discuss many of the activities in greater detail. Although not the focus of this letter, we also briefly discuss the 2008 activities of the Public Company Accounting Oversight Board, the SEC’s Advisory Committee on [...]
The Pension Protection Act of 2006 mandated that organizations required to file Form 990 series informational returns would automatically lose their exempt status if the forms were not filed for three years in a row (section 6033(j)(1)). The Act also created a new form, the Form 990-N, Electronic Notice ...]
We are pleased to share with you the following MFA Nonprofit Alert. This issue highlights a number of key pronouncements affecting nonprofit entities, including FAS 157, FSP 117-1, GAAP Codification and FBAR. This alert also includes an informative article on budgeting in the current economic environment. [...]
On July 20, the United States Department of Labor released Field Assistance Bulletin No. 2009-02 (“FAB”). The bulletin provides benefit plans subject to section 403(b) of the Internal Revenue Code (“403(b) plans”) with additional guidance and transitional relief from certain Form 5500 filing requirements. [...]
After a lengthy drafting and review process, the IRS released the final redesigned 990 instructions for the 2008 tax year on December 19th. The new form 990 and its 16 schedules will apply to Form 990s filed for calendar year 2008 returns and fiscal year 2009 returns (2008 tax year/2009 tax season). [...]
The IRS just released the final version of a redesigned Form 990 that will be used for the 2008 tax returns that are filed in 2009. The initial draft was released in the summer of 2007 and was the subject of extensive public comment. [...]
About MFA - Moody, Famiglietti & Andronico, LLP
MFA – Moody, Famiglietti & Andronico, LLP is a proactive CPA and consulting firm located North of Boston with National and Global reach. Founded in 1982, the firm is comprised of nearly 100 professionals including 15 partners whose speed, precision, and commitment to client success results in proven best value solutions that offer the ideal combination of expertise, service and price.
Preparing for FASB Accounting Standards Codification
Recording of the MFA Webinar: 
