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Monday Morning Accounting News Brief: Semper Fi-nancial; EY Gets a D in Auditing; Deepfake CFOs Are a Thing | 2.26.24

Going Concern

National Review wins for best headline : The PCAOB has released EY Canada’s latest inspection report, they got a D : Big Four accounting firm Ernst and Young had multiple deficiencies in half the audits inspected by the Public Company Accounting Oversight Board in the United States in 2022. deficiencies).

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House Ways and Means Committee Introduces Potential Tax Extender Bill

Withum

The Build It In America Act (HR 3938) addresses business taxpayer concerns regarding rising interest expense rates and deduction limitations on research and experimental expenditures, which could lead to drastically increased cash federal income tax payments.

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Legal analysis: Implications of state tax exclusion of overtime wages for employers and employees

ThomsonReuters

While there are over 20 local jurisdictions with municipal income taxes, he noted that the law does not exclude overtime wages from municipal occupational license tax. Individual state income tax usually follows the federal adjusted income, Wertz said, and the exclusion creates a modification.

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Additional IRS Guidance Surrounding 174 R&E Capitalization Requirements

Withum

The Internal Revenue Service (“IRS”) released Notice 2023-63 , on September 8, 2023, providing guidance surrounding the requirement to capitalize Section 174 research and experimental (“R&E”) expenditures for the 2022 taxable year.While many tax accountants and business professionals welcome the additional guidance, the timing was not ideal.

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Chancellor's Autumn Statement.

Inform Accounting

Companies with profits between £50,000 and £250,000 will be taxed between 19% and 25%. Income tax and National Insurance contributions thresholds are staying the same until April 2028. The Upper rate tax band threshold will be lowered from £150,000 to £125,140 from 6th April 2023. Still support for energy bills.

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Year-End Tax Planning Strategies for Businesses

KROST

These two incentives can provide significant tax relief in 2020 if financed and placed in service by midnight, December 31, 2020. Accelerating income and postponing deductions. A 15% minimum tax on book income may also be imposed. California Competes Tax Credit. Both used equipment and new equipment qualify.