25 Jun 2024

Enterprise 720 Quarterly Excise Tax E-File Now Available

Don’t wait until the IRS mandates e-file for forms 720 and 8849. Act now to stay ahead of the game.

Visit and Contact us Today at https://akorefederal.com

Still, filing your Excise Tax Returns through paper? It’s time to switch to digital e-filing and eliminate paper returns. The IRS offers an e-filing option for excise tax forms 720 and 8849, and only Akore Federal Excise Tax E-File Software has the enterprise-level solution.

TaxConnections is excited to introduce AKORE Federal Tax Software by Richard Carrier (CEO):

IRS Authorized: Akore is the only e-file Provider with enterprise-level security for excise tax e-filing.
Top-rated Security: Backed by an AKORE Trust Document, ensuring critical security checks and reliability.
e-File 2024 Q3 and Q4: Get e-File ready now with introductory pricing through 12/31/24.

Flexible E-filing Solutions: Akore Federal provides an e-filing service tailored for everyone—individual tax experts, CPA firms handling hundreds of returns, and large corporate filers. No matter the volume, Akore has you covered.

Join the expanding number of companies utilizing Akore’s Federal e-Filing service to not only expedite your refunds and streamline your tax processes, but also to experience the peace of mind that comes with choosing certified, secure excise tax software. Akore’s existing clients are primarily large enterprises that demand professional support and trusted security certification.

Visit and Contact us Today at https://akorefederal.com

Written by TaxConnections Admin

25 Jun 2024

Is Your Research & Development (R&D) Provider The Right Fit For You?

The Research & Development (R&D) tax credit enables companies of all sizes across various industries to reduce their federal income tax for qualified research expenses. Claiming this credit can potentially result in significant cost savings and an increase in cash flow, making it highly beneficial for startup and existing companies.

Working with an R&D tax credit provider well versed in its nuances is crucial to companies wishing to claim this credit. When seeking credible providers to assist in claiming the credit, keep these questions in mind:

Does Your Provider Assess Their Fee Based on Project Scope or a Percentage of Variable Benefit?

When seeking R&D providers, it is important to understand how their pricing is structured. Most providers expect either a fixed or contingency fee—knowing the difference between the two will assist in selecting the provider that will best suit your budgetary needs.

Fixed Fees: This pricing structure is a predetermined charge that the party receiving the service agrees to pay to the party performing the service, regardless of the time or resources expended. Fixed fees are often scoped out by the provider and provide a clear picture of the costs associated with the service. Fixed fee arrangements simplify budgeting for the agreed-upon work.

Contingency Fees: In this pricing structure, a client is charged a percentage of the outcome of the R&D services performed. Contingent percentages generally range between 25% to 40% of the recovered amount. This structure offers less predictability when it comes to budgeting, as there is no guarantee of the amount that may be recovered after the work has been performed.

The main distinctions between these pricing structures lie in how the payments are organized and the various levels of risk they pose to clients engaging in services. Inquiring about a provider’s payment expectations is crucial in selecting the best provider to align with your company’s budget.

Does Your Firm Defend Its Work During an Audit, and Is It Included in Its Fee?

Written by Deborah Roth

25 Jun 2024

Treasury Department And IRS Target Partnership Basis-Shifting Transactions

On June 17, 2024, the Treasury Department launched “a new regulatory initiative to close a major tax loophole exploited by large, complex partnerships.”[1] The loophole: partnership basis-shifting transactions.

In these transactions, a single business that operates through many different legal entities . . . enters into a set of transactions that manipulate partnership tax rules to maximize tax deductions and minimize tax liability. . . . For example, a partnership might shift tax basis from property that does not generate tax deductions (such as stock or land) to property that does (such as equipment). Taxpayers may also use these techniques to depreciate the same asset over and over.[2]

Treasury claims that such “transactions defy congressional intent to avoid tax liability with little to no other economic consequences for the participating businesses.”[3]

To try to fight this problem, the Treasury is issuing Notice 2024-54, announcing its intent to publish proposed regulations to eliminate the tax benefit from these transactions, Proposed Regulation 1.6011-18, which would require taxpayers and their material advisers to report their participation in partnership basis-shifting transactions, and Revenue Ruling 2024-14, which finds that certain partnership basis-shifting transactions lack economic substance and will not be respected.

Treasury believes that this initiative could raise more than $50 billion in tax revenue the next 10 years.[4] These moves come as the Internal Revenue Service has been increasing audit activity involving partnerships after years of such efforts being “severely underfunded.”[5]

Written by TL Fahring

25 Jun 2024

Is It Too Late To Claim the Stimulus Checks? Details Inside

Is it too late to get your stimulus check? The answer is yes for the checks issued in 2020, but there’s still a window of opportunity for the check issued in 2021. Whether you’re a U.S. citizen living abroad or someone who hasn’t yet filed, you need to act swiftly to meet the IRS deadline and claim what you’re owed. This article will help you understand “is it too late to get stimulus check” and the immediate steps to take to ensure you don’t miss out on the 2021 stimulus payment.

KEY TAKEAWAYS

U.S. expats must file their 2021 tax return by June 15, 2025, through the IRS Streamlined Procedure to claim the missed 2021 stimulus check without penalties.
To be eligible for stimulus payments, individuals must meet criteria such as having a Social Security number, income thresholds, and not being claimed as a dependent on someone else’s tax return.
The unclaimed stimulus check can be recovered by filing a tax return with the Recovery Rebate Credit for the relevant tax years and ensuring all personal information matches Social Security records.

UNDERSTANDING THE STIMULUS CHECK DEADLINE FOR EXPATS

The clock has run out for U.S. expats to claim their 2020 stimulus checks. However, the deadline to claim the 2021 stimulus check is still open until June 15, 2025. If you’re a U.S. expat and haven’t claimed your 2021 stimulus check yet, it’s time to take action.

The U.S. government issued three rounds of stimulus checks as part of its COVID-19 relief measures. While the opportunity to claim the 2020 checks has passed, you can still claim the 2021 check if you meet the eligibility requirements.

THE FINAL COUNTDOWN: LIMITED TIME LEFT

Written by TaxConnections Admin

21 Jun 2024

Courtesy Notice: Prepare For Upcoming IRS Mandate: Get E-File Ready Filing Excise Taxes

This is a courtesy notice regarding IRS mandate requiring e-filing on excise tax filings.

Prepare For Upcoming IRS Mandate: Get E-File Ready Filing Excise Taxes

It’s hard to imagine that many large multinational corporations are still preparing excise taxes manually on paper. This is, in fact, the case and previously left large organizations with few choices solving the challenge of filing excise tax returns. Many of the providers were previously small organizations who could not pass the IT security questions required before their software was implemented in a large enterprise software. Finally, an enterprise software solution vetted and approved by large multinational organizations, and approved by the IRS for enterprise size organizations has been successfully developed.

TaxConnections is pleased to announce AKORE Enterprise Excise Tax Software is IRS approved: https://akorefederal.com/wp-content/uploads/2024/06/Akore-Federal-E-File-Brochure.pdf

AKORE’s Enterprise Excise solution is recognized and rated with high approval given AKORE Trust Document certification. This security guarantee involves passing a security questionnaire that most enterprise software companies will ask prior to implementing an outside organizations software. When you are dealing with elite professionals and software this is just good business. Many small mom and pop organizations may not have passed the security test. Be responsible and check for Trust Document Certification and ensure software is approved by the IRS before you buy any excise tax service from an organization.

The IRS will soon mandate that excise tax returns must be e-filed. Now is the time to position your organization at the front of the line for IRS APPROVED e-filing excise tax return support.

Learn More: https://akorefederal.com/

Know The Benefits:

https://akorefederal.com/wp-content/uploads/2024/06/Akore-Federal-E-File-Brochure.pdf

Please Forward And Share This Courtesy Notice With Tax Colleagues

Written by TaxConnections Admin

21 Jun 2024

Proposed Regulations On Loans Of Cash And Property From Foreign Trusts

On May 8, 2024, the Treasury Department issued proposed regulations regarding the classification, taxation, and reporting of foreign trusts. The proposed regulations were issued for sections 643(i), 679, 6039F, 6048, and 6677 of the Internal Revenue Code. The proposed regulations would largely incorporate guidance that the IRS provided in Notice 97-34, with some modifications.[1]

In this post, we’ll take a look at the proposed regulations for section 643(i).

Background

Original Enactment

As first enacted in 1996, section 643(i) of the Internal Revenue Code provides that if a non grantor foreign trust directly or indirectly makes a loan of cash or marketable securities to a United States person who is a grantor or beneficiary or who is related to a grantor or beneficiary of the foreign trust, then that loan is treated as a distribution by the foreign trust to that grantor or beneficiary (a “Section 643(i) distribution”).[2]

A Section 643(i) distribution is treated as having been made by a trust that doesn’t distribute only current income.[3] If adequate records are not provided to determine the proper treatment of a distribution from a foreign trust, then the distribution is treated as an accumulation distribution subject to taxation under subpart D of the trust provisions.[4]

Section 643(i) allows the Treasury Department to make exceptions to this treatment by regulation.[5] The legislative history for Section 643(i) indicates that Congress intended that the Treasury Department issue regulations providing an exception for loans of money or marketable securities with arm’s length terms.[6]

Notice 97-34

On June 23, 1997, the IRS issued Notice 97-34, which provided guidelines an exception to section 643(i) for loans of cash or marketable securities in the case of a “qualified obligation.” [7] The notice defined a “qualified obligation” and provided rules for additional loans between the same parties as well as for the distribution that would result when an obligation ceased to be a qualified obligation.[8] The notice also provided guidance on how to determine the tax consequences of a Section 643(i) distribution.[9]

Written by TL Fahring

21 Jun 2024

Texas Comptroller’s Voluntary Disclosure Process

It is not uncommon for Texas taxpayers to engage in a transaction in which they do not collect or pay Texas sales tax, believing the transaction to be nontaxable, only to later find out they had a tax responsibility. Other taxpayers may be entirely unaware that a Texas sales tax or franchise tax responsibility exists at all. In these and other cases, taxpayers may find relief by taking advantage of the Texas Comptroller’s “voluntary disclosure” program.

What is a Voluntary Disclosure?

As discussed in Comptroller Publication 96-576, the Comptroller’s Voluntary Disclosure Program provides taxpayers with an opportunity to voluntarily report and pay taxes owed for prior periods. [1] As the name suggests, the key here is that participation must be voluntary – taxpayers will only qualify if they have not been previously contacted by the Comptroller, either verbally or in writing, concerning a liability or estimated liability.

If admitted to the program, the Comptroller and taxpayer will enter into a “Voluntary Disclosure Agreement” (“VDA”) that will provide specific terms such as the period for which the taxpayer must report transactions, payment terms, and deadlines. The taxpayer will then list all taxable transactions for the specified period, and make a payment (either partial or full, depending on the specific VDA terms) of the related tax amount.

The taxpayer may also be able to streamline and speed up this process by entering into a “Fast-Track VDA.” This essentially requires that all documents, including the VDA and list of taxable transactions, as well as payment, be submitted up front. While not advisable in all cases, there are circumstances where this option has substantial merit.

What are the benefits of a Voluntary Disclosure?

Written by Jason Hendrix

21 Jun 2024

Form 8908: Instructions Regarding Prevailing Wages

The IRS Form 8908 (also referred to as the Energy Efficient Home Credit) states that “eligible contractors can claim a credit for each qualified energy-efficient home sold or leased to another person during the tax year for use as a residence.”

This tax credit is a fiscal incentive designed to encourage residential construction practices contributing to energy conservation, environmental sustainability, and energy savings.

Prevailing Wages

The Inflation Reduction Act of 2022 introduced specific provisions related to prevailing wages that impact various tax credits and incentives, particularly those associated with energy-efficient projects. Under this act, a taxpayer must ensure that any laborers and mechanics employed by the taxpayer or any contractor or subcontractor are paid wages at rates not less than the prevailing rates for construction, alteration, or repair of a similar character in the locality in which such facility is located.

Filing Requirements for Form 8908

Form 8908 is included with the builder’s or contractor’s tax return for the year in which the qualifying homes are sold. This form is essential for reporting the number of eligible homes and calculating the total credit amount. Multi-family projects must comply with the prevailing wage requirements to receive the increased credit amount of $2,500 or $5,000 per unit; otherwise, they may only qualify for $500 or $1,000 per unit.

Additional information must be attached to your timely filed return (including extensions) to substantiate that you meet the prevailing wage requirements and to claim the increased credit amount for each home. A separate attachment must be included for each home with the following information:

Written by Imran Syed

19 Jun 2024

Good News For Corporate Tax Departments! Enterprise 720 Quarterly Excise Tax E-File Now Available

Great News For Corporate Tax Departments: Enterprise 720 Quarterly Excise Tax E-File Now Available

Don’t wait until the IRS mandates e-file for forms 720 and 8849. Act now to stay ahead of the game.

Visit and Contact us Today at https://akorefederal.com

TaxConnections is excited to introduce AKORE Federal Tax Software by Richard Carrier (CEO):

IRS Authorized: Akore is the only e-file Provider with enterprise-level security for excise tax e-filing.
Top-rated Security: Backed by an AKORE Trust Document, ensuring critical security checks and reliability.
e-File 2024 Q3 and Q4: Get e-File ready now with introductory pricing through 12/31/24.

Visit and Contact us Today at https://akorefederal.com

Written by TaxConnections Admin

19 Jun 2024

What Is Cost Segregation?

Cost Segregation is a highly beneficial and widely accepted tax strategy utilized by owners of commercial and residential rental property to accelerate depreciation deductions, defer taxes, and improve cash flow. A quality study provides the appropriate documentation needed to support the correct classification of depreciable assets related to a building and exterior improvements. It is important to note that a Cost Segregation study does not create new deductions, it simply increases deductions in the early years of ownership. This front-loading of depreciation allows the taxpayer to take advantage of the time value of money.

From a tax perspective, Cost Segregation should be considered routine for all property owners who own or manage real estate. Not only will a study support accelerated depreciation by reclassifying eligible assets into shorter lives it but can provide valuable data to support important tax-centric initiatives during the holding period of the property.

Life Cycle Of Real Estate

Written by TaxConnections Admin

19 Jun 2024

Navigating Restaurant Sales Tax With The 80/80 Rule And Automation

Running a restaurant comes with its fair share of challenges, and one of the often-overlooked complexities is sales tax. Failure to navigate the intricacies of sales tax regulations can lead to costly fines and penalties. California Regulation 1603 and its 80/80 rule stands out as a key determinant in sales tax application for food establishments.

In this article, we’ll unpack the 80/80 rule when applied to sales tax, explain how it works, and how you can ensure all your bases are covered, with regard to your business’s compliance. Here’s what you can learn:

Understanding the 80/80 Rule: Explains the 80/80 rule in restaurant sales tax, determining tax application for food sales.
The Nuance of Restaurant Taxes: Discusses the complexities of restaurant tax compliance, considering factors like food temperature and sales method.
The Role of Automation in Tax Compliance: Highlights the use of automation solutions, like Avalara, to manage sales tax compliance efficiently in restaurants.

Written by Monika Miles

14 Jun 2024

Which Activities Create State Tax Issues?

Multi-State Tax Consulting

In this day and age, nearly every company conducts business across state lines. Are you aware of all the additional taxes and fees you may be liable for?

We assist companies with state sales tax and income tax matters. As companies expand their operations and send salespeople across the country, or sell to consumers in other states via the internet, they create into nexus (or taxable presence) and have to think about filing in other states. That’s where Miles Consulting Group comes in.

We help companies answer questions on multi-state tax compliance: