1st Quarter, 2010
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1st Quarter, 2010 |
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5-Year NOL Carryback Extended and Expanded
By Lori Mettille, CPA, Senior Tax ManagerOn November 6, 2009, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009 (the “Act”). This Act provides cash-strapped businesses the ability to write off current losses against past profits by extending and expanding the 5-year net operating loss (“NOL”) carryback provision (from the current 2 years) enacted with the American Recovery and Reinvestment Act of 2009 (the “ARRA”). Under the ARRA, the 5-year carryback was available only to small businesses (those meeting a $15 million gross receipts test) and applied only to the 2008 tax year (with limited exception for fiscal year taxpayers). Read more >>> Fin 48 and Non-Public Entities
By Greg Pfahl, CPA, Senior Audit ManagerIn June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation number 48, entitled Accounting for Uncertainty in Income Taxes (FIN 48), which becomes effective for non-public entities for years beginning after December 15, 2008. Read more >>> The R&D Credit and the TG Missouri Case: An Asset in the Right Hands is Better Than Two Assets in the Bush
By David Luke, CPA, Tax ManagerStarting in 1981, Congress began to reward companies that engaged in research activities which would lead to new efficiencies in production and new product innovation. The vehicle used to encourage these activities is a twenty percent tax credit on qualified research and development (R&D) expenditures. In recent years the IRS has been very aggressive in disputing the R&D tax credit claims of taxpayers due to perceived abuses. In a recent U.S. Tax Court decision, the IRS was dealt a severe blow which may limit their ability to recharacterize expenditures eligible for the R&D credit as capitalize expenditures. Read more >>> |
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Happy New Year! We hope that 2010 will continue to see growth in the economy after a time of struggle for many of our clients and friends. Now more than ever, it is important to stay on top of the changes and trends affecting our industry. For starters this year, we look at the benefits of having an extended and expanded 5-year net operating loss (NOL) carryback provision. In addition, we examine the affects of FIN 48 on your organization - an important subject since it became effective for non-public entities for years beginning after December 15, 2008. Lastly, we look at a recent U.S. Tax Court decision which impacts the IRS’ ability to recharacterize expenditures eligible for the research and development credit as capitalized expenditures.