The House Ways and Means Committee have released its first bill of the "Tax Cuts and Jobs Act." The 429 page proposed bill is the first look at the committee's proposed tax changes. There is still a long road until there is an actual bill passed by Congress. The bill still requires a vote in the House. The Senate then will attempt to pass a similar bill. Once both bills are passed, it will need to go through a process known as reconciliation where the House and Senate create a joint bill that will go to the President's desk for signature.
Topics: Tax Planning
From a regional perspective, the Shenandoah Valley has a diverse economy made up of numerous industries and no one dominant company. As a result, the Harrisonburg, Virginia, area is doing well economically.
For government contractors, compliance with the Truthful Cost or Pricing Data Act (TINA) is a critical part of staying on the right side of federal contracting and acquisition requirements. But what is the law, and what does it do? Here’s a brief primer.
Let’s start with the obvious: Why is the Truthful Cost or Pricing Data Act called “TINA”?
Because it started out as the Truth in Negotiations Act. TINA was passed in 1962 because government agencies were concerned that they were not getting a fair price from suppliers. However, it wasn’t until the mid-1980s that the government began treating defective pricing as an indication of criminal fraud, especially in single-supplier situations where the government doesn’t always know if it’s paying a fair and reasonable price. In 2013, the government renamed the law, but the old acronym stuck. Understandably, nobody chose to start calling it “TCoPDA.”
I continue to see and hear about issues that our clients and others in the nonprofit industry are having with their lenders with respect to financial statements. It is becoming more evident that many lenders do not understand nonprofit financial statements due to their unique financial reporting requirements. Below are the top 5 issues that nonprofits have with their lenders.
ASU 2017-02 was issued in January 2017 by the FASB to clarify when a not-for-profit entity (NFP) that is a general partner or limited partner should consolidate a for-profit limited partnership or similar legal entity.
Determining whether an event or an item was an extraordinary item has been a confusing and often burdensome determination for accountants and entities alike. Over the years, an item could be argued for and against the consideration to be treated as an extraordinary item. For example, Hurricane Katrina caused terrible damage and one might consider such an event would be an extraordinary item. However, a hurricane in and of itself is not considered to be unusual or infrequent in nature as hurricanes are a likely event. Although the damage was by the hurricane was catastrophic, it was not deemed and did not meet the requirements to be considered extraordinary. An extraordinary item was previously considered to be an item that was unusual and infrequent in nature. The gain or loss on these items was to be shown segregated from the results of ordinary operations on the statement of activities, net of any tax. In addition, the extraordinary item was to be disclosed in the accompanying notes to the financial statements describing the origin, nature and the amount.
One of the topics talked about all year is how our tax system needs to be greatly improved and just this week, President Trump and Republican Leaders released how they think it could be fixed.
Topics: Tax Planning
The federal government is, by law, exempt from paying state and local taxes. However, this exemption does not apply to organizations with federal or state government contracts, which are designated as agents of the government. In fact, government contractors are subject to specific state and local taxes simply because they are government contractors.
Contractors must be aware of the tax laws specific to the states they operate in, and any localities that impose taxes as well.