The New England Accounting Advisor

The Senate passed the final version of the bill introduced as the Tax Cuts and Jobs Act (TCJA) in the early hours of December 20, with the House of Representatives voting again the same day to pass the reconciled tax reform bill. President Trump signed the tax reform bill into law December 22, bringing home a major campaign promise.  Due to a violation of Senate procedural rules, the bill’s name reverted to the more ungainly title, "To provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018." We will refer to it merely as the tax reform bill, for ease of reference. As passed, the bill includes elements of both the House version and the Senate version of the tax reform bill.

Topics: Congress, Tax Reform, House Republicans, senate, tax reform bill

The conference committee’s reconciliation of the tax reform bill, formerly the Tax Cuts and Jobs Act (TCJA), passed by Congress on December 20, includes significant changes to the taxation of individuals as well as changes impacting estates, trusts, and gifts. For individuals, it is more difficult to state that these changes will provide significant tax benefits, particularly for low and middle-class workers, and especially if the act’s temporary provisions are allowed to expire. Although there are few provisions directly affecting the taxation of trusts, it is clear that fewer individuals will be burdened with estate and gift taxes due to increased exemption amounts. In this second part of our tax reform plan series, we will focus on provisions for individuals and for estates, trusts, and gifts. Our final upcoming article will feature international changes.

Topics: Congress, Tax Reform, House Republicans, senate, tax reform bill

After drafting legislation at a breakneck pace with little or no public input and speeding through the conference committee process, the House and Senate reached a compromise on their versions of the tax reform bill, formerly the Tax Cuts and Jobs Act, on December 15. The Senate passed the reconciled bill on December 19, and the House will vote soon followed by the signature from the President. 

Topics: Congress, Tax Reform, House Republicans, senate, Tax Cuts and Jobs Act, TCJA

By and large, Greater Boston Architecture firms have been doing well over the past several years. Their average billing has been greater than their direct labor and overhead costs, which has led to record-setting profit per direct hour rates since 2012. But how does your firm compare to the average?

Topics: David Swan, architecture firm, architecture, survey, 2017 architecture firms, 2017 arch survey, Greater Boston Architecture

Roughly 90,000 taxpayers in Rhode Island have a significant tax relief opportunity available to them. That’s the estimated number of taxpayers who owe the state taxes, and Rhode Island is offering a tax amnesty period to assist taxpayers with becoming compliant.

Topics: Tarra Curran, Tax amnesty program, Rhode Island, Overdue taxes

The research and development (R&D) tax credit is one of the most widely applicable tax credits available to businesses. It provides an incentive for most companies to bring new or improved products to the marketplace or to improve production processes. R&D tax credits may also be applied retroactively, which could result in cash refunds from previously filed tax returns. Smaller businesses benefit as well. Companies with gross receipts that are less than $50 million can use the credit to offset alternative minimum tax (AMT) liability, and qualifying start-up companies can use the credit to offset payroll tax.

Topics: Carl Giardino, research and development, Taxes, R&D, research and development tax credit, tax credit

Adopting the new revenue recognition standard introduced under ASC Topic 606 will be one challenge; being audited with the new standard will be another. The Public Company Accounting Oversight Board (PCAOB) has already identified some provisions of the revenue recognition standard that may be problematic for entities and their auditors.

Topics: Revenue Recognition Standard, Revenue recognition, David Lewin, ASC Topic 606

With the hustle and bustle of the holiday season in full gear, consumers and retailers need to be especially careful. Holiday sales and discounted prices on goods mean more transactions. More transactions mean more opportunities for cyber criminals to access potentially sensitive information. Consumers and retailers that understand the types of holiday risks they may be facing and how stolen information is being used might be able to avoid getting wrapped up in a scam.

Topics: cybersecurity, cyber risks, cyber attacks, Ray Gandy, cyber security, data breach, IT Security, IT Risk, Holidays, Holiday cyber risks

In September 2017, Rhode Island became the latest state to mandate paid sick time for employees who work within the state. State-mandated paid sick time is becoming more prevalent. Eight states across the country require it, including Massachusetts, Vermont, and Connecticut.

Topics: Massachusetts, Cap Willey, Grafton Cap Willey, Connecticut, Rhode Island, Vermont, Sick leave, paid sick time

Now is the time to get your financial reporting in order for year-end. Several major accounting standards took effect in 2017, and you will want to make sure you're prepared for them. Some of the changes may require updates to processes and controls as well as internal and external year-end reporting.

Topics: Joyce Masse Troy, financial reporting, accounting standards update, accounting standards, Accounting Updates, Joyce Troy

The Senate passed its version of the Tax Cuts and Jobs Act (TCJA) by a vote of 51-49, on the heels of substantial changes–some handwritten in the margins of the bill’s text–that pushed the vote into the pre-dawn hours of December 2. Senator Bob Corker (R-TN) was the only Republican to vote against the measure, citing concerns about the bill’s effect on the deficit. These last minute alterations dramatically reshape some of the bill’s initial provisions, but were necessary to secure the final votes required for passage. The changes moved the Senate bill closer to its House counterpart in some areas and further apart in others. Contrasted with the earlier version of the Senate’s tax reform plan, the key provisions changed in the final version of the Senate’s TCJA provide context for the ensuing reconciliation in a Congressional conference committee.

Topics: Tax Reform, House of Representatives, Business Tax Provisions, tax bill, senate