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Navigating the American Rescue Plan Act: A Guide to Obligation Deadline Readiness

Cherry Bekaert

Examine Financial Records Access financial records related to the ARPA funding, including records from an accounting system, grant management system, payroll system, purchasing system, etc. The ARPA SLFRF expenditures deadline is December 31, 2026. Ensure an eligibility review is conducted before obligations are incurred.

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Additional IRS Guidance Surrounding 174 R&E Capitalization Requirements

Withum

Even more of the TCJA provisions expire in 2026, including the elimination of the pass-through (199A) deduction and an increase in the top individual income tax rates to 39.6%. If the capitalization of IRC §174 research and experimental expenditures is also pushed to 2026, the stage will be set for significant federal income tax reform.

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Friday Footnotes: EY Can’t Hire Tech; John Doe Sues the PCAOB; Auditors Can’t Find Torpedoes and Missiles | 1.20.03

Going Concern

ESG Companies parachute accountants in to fix flawed ESG data [ Financial Times ] Accountants and auditors are muscling in on the preparation of climate data amid concern that companies are still far from ready for disclosure rules being drawn up by regulators around the world. In 2020, it said the process would be complete by 2026.

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