New Jersey Removes Requirement to Affirmatively Make Separate State S Corporation Election; Provides Opt-Out
January 12, 2023New Jersey enacted a new tax law (A.B. 4295) on December 22, 2022, that accomplishes three things: (1) eliminates the requirement to affirmatively elect New Jersey S corporation status, while including an opt-out provision; (2) adopts the federal centralized partnership audit regime, with certain modifications; and (3) ends certain COVID-related extensions.
Brazil’s Proposed Transfer Pricing Legislation Has U.S. Foreign Tax Credit Implications
January 10, 2023The Brazilian government on December 29, 2022, published draft legislation to align Brazil’s transfer pricing rules with the Organization for Economic Cooperation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. This potential change in Brazilian transfer pricing policies could have significant consequences from a U.S. transfer pricing and international tax perspective.
IRS, Treasury Release Corporate AMT Interim Guidance
January 10, 2023The Inflation Reduction Act (IRA) enacted on August 16, 2022, created a new corporate alternative minimum tax (AMT) for taxable years beginning after December 31, 2022. On December 27, 2022, the Treasury Department and the Internal Revenue Service issued interim guidance in the form of Notice 2023-7, addressing how the new corporate AMT applies to partnership interests, consolidated return groups and other significant events that affect corporations, including merger and acquisition activities and excepted cancellation of debt income.
IRS, Treasury Issue Interim Guidance on Stock Repurchase Excise Tax
January 10, 2023The Inflation Reduction Act (IRA) enacted on August 16, 2022, created a new corporate excise tax on stock repurchases for taxable years beginning after December 31, 2022. On December 27, 2022, the Treasury Department and the Internal Revenue Service issued interim guidance -- Notice 2023-2 -- on the corporate excise tax. The notice addresses time-sensitive issues with the expectation that forthcoming proposed regulations will provide clarity on the statutory provision
Secure 2.0 Act of 2022 Introduces Key Changes for Workplace Retirement Plans
January 9, 2023The Consolidated Appropriations Act, 2023 (Public Law No. 117-328) that was signed into law on December 29, 2022 by President Joe Biden includes the SECURE 2.0 Act of 2022, which introduces over 90 changes to the federal rules governing workplace retirement plans.
Emerging Issues Task Force Issue No. 21-A, Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method
December 19, 2022On December 1, 2022, the Financial Accounting Standards Board’s (FASB’s) Emerging Issues Task Force (EITF) reached a final consensus on the expanded use of the proportional amortization method (PAM) for certain tax credit investments. Currently, the use of the PAM is only available for low-income housing tax credit (LIHTC) investments as an alternative to either the cost or equity method. Consistent with stakeholder comments, the consensus expands the use of the PAM to a much larger population of tax credit investments, which should provide for more consistent accounting and allow investors to better evaluate returns on their investments.
What it Takes to Be a Successful Family Business CEO
December 19, 2022In a webinar moderated by BDO’s Brooke Anderson and Jeffrey Kane and hosted by Family Business Magazine, leading CEOs answer questions on “What it Takes to Be a Successful Family Business CEO”. Watch the recording.
Rev. Proc. 2023-8 Provides Favorable Automatic Consent for Section 174 Accounting Method Changes
December 18, 2022On December 12, 2022, the IRS released Rev. Proc. 2023-8 containing long-awaited procedural guidance concerning the 2017 amendment to Section 174, which requires the capitalization and amortization of specified research or experimental (R&E) expenditures paid or incurred in taxable years beginning after December 31, 2021.
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