Marc Azar Provides Insights on Uncertainty Regarding the Tax Cuts and Jobs Act
Jul 11,2018
In a recent collaboration with Accounting Today, Smith & Howard Tax Partner, Marc Azar, discussed how CPAs are planning around the recently enacted Tax Cuts and Jobs Act of 2018. “We’re having conversations with all our clients as to the effects of tax reform on their 2018 taxes. It’s enough to get their 2017 taxes done, let alone figure out the implications of the TCJA on their 2018 taxes,” said Azar. To read Marc’s article, Two Tax Seasons at Once, click here.
June 30 Deadline Approaches to Take Advantage of Georgia HEART Tax Credit
Jul 09,2018
The Georgia HEART (Helping Enhance Access to Rural Treatment) program awards Georgia income tax credits to taxpayers who contribute to qualified rural hospital organizations located in Georgia. Much like the Georgia income tax credits for School Scholarship Organizations, the amount available for tax credits is limited and has a filing deadline. That deadline is June 30 and is fast approaching. You and/or your business may be able to take advantage of these credits. Here’s what you need to know: What’s the Advantage for Me? The HEART credit can help offset your state income tax liability. For instance, if you are a married couple, filing jointly and your state tax liability is $9,000, the credit would allow you to offset your liability by donating $9,000 (or the amount available when all applications are submitted – see below) to a qualified rural hospital organization (RHO). For high income wage-earners, the benefit is...
Georgia Changes Tax Credit Process for Companies Performing R&D Activities in the State
Jul 09,2018
Summary On February 7, 2018, the Georgia Department of Revenue released revised regulations on Rule 560-7-8-.42  of the Rules and Regulations of the State of Georgia. These revised regulations, regarding certain filing procedures of the Georgia Form IT-WH Notice of Intent, affect all companies eligible to use Georgia Research Tax Credits to offset their Georgia payroll tax withholding liabilities. Details Background The Georgia Research Tax Credit is available to business enterprises who pay employees or third parties to develop, or try to develop, a product, process, software, technique, invention, or formula, for example, by trying to make it better, faster, cheaper, or greener.  A tax credit is allowed for a business enterprise that has qualified research expenses in Georgia in a taxable year exceeding a base amount, provided that the business enterprise for the same taxable year claim and be allowed a research credit under Section 41 of the IRS Code of 1986, as...
Six Tax Reform Issues Impacting Nonprofit Organization
Jul 09,2018
The Tax Cut and Jobs Act of 2017 (the “Act”) will have a profound impact on tax-exempt organizations. Even those that don’t report unrelated trade or business income or pay their executives over $1 million may still be affected. Here are the top six tax reform-related issues nonprofits will need to address: 1. Internal Revenue Code (IRC) Section 512(a)(7): Certain qualified transportation fringe benefits, including those relating to parking garages, must be reported as unrelated business income (UBI). All tax-exempt organizations will have to include as unrelated business taxable income (UBTI) any amount paid or incurred for any qualified transportation fringe benefit or any parking facility used in connection with qualified parking. If an organization has a parking garage that offers free parking to its employees, the new law says that the costs paid or incurred by the organization for providing the parking must be included in its UBTI. However,...
Georgia to Require Online Sellers to Collect & Remit Sales Tax
Jul 03,2018
On Tuesday, May 8, 2018, Georgia’s Governor Nathan Deal signed House Bill 61 (HB 61) into law. HB 61 requires online retailers who make at least $250,000 or 200 sales a year in Georgia to either collect and remit state sales tax on purchases or send “tax due” notices annually to customers who spend at least $500 on their sites. The bill provides for collection of sales tax by remote sellers starting January 1, 2019. As we’ve mentioned in our previous updates about the online sales tax case before the U.S. Supreme Court, state and local governments have been clamoring to capitalize on significant online sales tax collections, previously prohibited by a 25-year old ruling by the Supreme Court that nexus determined applicability of sales tax collection. Passage of HB 61 is a preemptive move by the state, and correlates to our previous alerts discussing “accelerated timetables” for state implementation of...
November 17th Tax Reform Roundup Update
Jun 11,2018
On November 16th, the “Tax Cuts and Jobs Act” tax reform bill was passed by the House of Representatives, making its way to the Senate Finance Committee. That evening, the Senate Finance Committee approved its tax bill, sending it to the full Senate where consideration of a tax reform bill is not expected until after Thanksgiving. Here are the key provisions of the House tax bill:Key Business Provisions of the House BillCut corporate income tax rate from 35% to 20% and repeal Alternative Minimum Tax (AMT) - both beginning in 2018Modify the current worldwide taxation system to exempt from US tax dividends from foreign subsidiaries from foreign earnings and tax on a current basis potentially significant amounts of foreign incomeImpose a one-time 14% tax on accumulated foreign earnings, reduced to 7% for illiquid assetsAllow businesses to expense the cost of certain new property placed in service after September 27, 2017,...
The End of the Internet Tax-Free Zone?
Apr 09,2018
With South Dakota vs. Wayfair on the docket for the Supreme Court this month, the Court is expected to agree with South Dakota that it is time for the internet sellers to operate like brick & mortar stores and collect sales tax on all sales. However, there has been growing noise from some politicians and retailers opposing the possible decision. Click here to read a brief overview on the South Dakota vs. Wayfair case. For some politicians, they believe the determination of sales tax collection is a legislative matter. The Washington DC publication, The Hill, wrote on April 4: “A group of lawmakers that includes House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Senate Finance Committee ranking member Ron Wyden (D-Ore.) said in their brief that ‘it is for Congress — not the Solicitor General, this Court, or the States — to decide the best interstate taxation scheme for Internet sales’.” If the Supremes rule...
2018 Tax Cuts & Jobs Act Overview
Mar 27,2018
On December 22, 2017, the most sweeping tax legislation since the Tax Reform Act of 1986 was signed into law. The Tax Cuts and Jobs Act of 2017 (TCJA) makes small reductions to income tax rates for most individual tax brackets and significantly reduces the income tax rate for corporations. It also provides a large new tax deduction for owners of pass-through entities and significantly increases individual alternative minimum tax (AMT) and estate tax exemptions. And it makes major changes related to the taxation of foreign income. It’s not all good news for taxpayers, however. The TCJA also eliminates or limits many tax breaks, and much of the tax relief is only temporary. Here is an overview of some of the key changes affecting individual and business taxpayers. INDIVIDUALS The TCJA includes significant changes for individual taxpayers, most of which take effect for 2018 and expire after 2025. Here are...
Tax Treatment for C Corporations and S Corporations Under the Tax Cuts & Jobs Act
Mar 21,2018
One of the most significant changes coming from the Tax Cut and Jobs Act (TCJA) is the tax treatment of businesses. Selecting an entity type is among one of the most important decisions taxpayers can make when doing business. Now, more than ever, selection and/or changing entity type can have significant implications on the tax situation of the business and/or its owners. The following entity types are selected based on a number of factors: Sole Proprietorships / Disregarded Entities Partnerships S Corporations (also known as pass-through entities)C Corporations  Changing entity classification may carry an immediate tax burden, but future tax reductions may offset the cost of conversion. Please note that it is important to speak with a tax professional before taking any action. The chart below illustrates the tax rates prior to the TCJA and the rates under the new law. As shown, the corporate tax rate has been reduced from 35% to 21% and...
Two Tax Seasons at Once | Accounting Today
Mar 12,2018
In an article published on March 6, 2018, Smith & Howard tax partner Marc Azar provides insight into expectations for this year’s tax filing season, including ongoing efforts to understand the impact of the Tax Cuts and Jobs Act on 2018 taxes. “It’s almost like dealing with two tax years at the same time during busy season,” Azar told the publication in a recent interview. Azar also discusses the identity protection initiative launched by the IRS in recent years, allowing taxpayers in Georgia, Florida and Washington, D.C., to apply for a six-digit PIN. He recommends that businesses keep their tax preparers aware of the PIN to ensure tax returns are accepted. You may read the full article here.

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