BDO News

This is a feed of the latest BDO USA Tax Publications.

North Carolina enacts market-based sourcing, adopts marketplace facilitator rules, and more

Summary

On November 8, 2019, North Carolina Governor Pat McCrory signed S.B. 557 into law.  These new rules (i) enact market-based sourcing rules for corporation income tax purposes; (ii) make various changes to the allocation and apportionment of income for specific industries; (iii) add a sales and use tax requirement for ... read more

The BDO 600 – 2019 Study of CEO/CFO Compensation Practices

Executive compensation weighs heavily on the minds of most companies todayas external pressures scrutinizing executive pay practices continue to intensify. Designing a smart, well-balanced compensation strategy and program requires careful consideration of internal and external factors.

The BDO 600 CEO/CFO Study is unique in the industry because it focuses on middle ... read more

Treasury Finalizes Regulations for Certain Ownership Attribution Rules and the Active Rental Exception to Subpart F Income

Summary

On November 19, 2019, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) published final regulations regarding the attribution of ownership of stock or other interests for purposes of determining whether a person is a related person with respect to a controlled foreign corporation (CFC) under Section ... read more

Remote Sellers Assessed Sales Tax for Pre-Wayfair Periods

In the wake of the U.S. Supreme Court’s 2018 decision in Wayfair, every state that imposes a general sales tax (except Florida and Missouri) now require remote sellers to administer sales taxes on sales shipped to customers in the destination state.[1] Many remote sellers have complied with the post-Wayfair world ... read more

Year-End Reminder Regarding Common Fringe Benefits, Special Treatment for 2-Percent Shareholders and Changes Under TCJA

Summary

As 2019 draws to a close, we remind you about the proper inclusion of common fringe benefits in an employee’s and/or 2-percent shareholder’s taxable wages, as well as changes made under the 2017 tax reform, referred to herein as the Tax Cuts and Jobs Act (TCJA). Fringe benefits are defined ... read more

California OTA Rules That Member with 50-Percent Interest in a California LLC is “Doing Business” in California

On August 21, 2019, the California Office of Tax Appeals (OTA) ruled that an out-of-state member that owned a 50-percent interest in a limited liability company (LLC) doing business in California was also considered as doing business in California.  (In the Matter of Appeal of Wright Capital Holdings LLC, OTA ... read more

More Exclusions Granted by USTR for List 3 China Duties

On November 13, 2019, the Office of the United States Trade Representative (USTR) published a Federal Register notice granting more exclusions of products from the 25-percent duty imposed on the third tranche (List 3) of Section 301 tariffs on goods worth approximately $200 billion. The published notices can be read ... read more

Wayfair – It’s Not Just for Sales and Use Tax

Summary

In light of Wayfair, state legislatures and administrative agencies are re-evaluating and updating their nexus standards to adopt economic presence nexus. These new nexus standards are not just for sales and use taxes: Beginning with Hawaii, states are also implementing bright-line economic nexus rules for income and franchise taxes in ... read more

Updated List of Automatic Accounting Method Changes and Proposed Regulations for Eligible Terminated S Corporations

Subject

The IRS and Treasury have started off the month of November by issuing two pieces of guidance related to accounting methods. One, Rev. Proc. 2019-43, updates the list of automatic accounting method changes previously provided in Rev. Proc. 2018-31. The other consists of proposed regulations under Section 481(d), providing guidance ... read more

Treasury Removes Section 385 Documentation Regulations and Announces Intent to Issue Proposed Section 385 Distribution Regulations

Summary

On November 4, 2019, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) published in the Federal Register T.D. 9880, which removed final regulations setting forth minimum documentation requirements that ordinarily must be satisfied for certain related party interests in a corporation to be treated as indebtedness ... read more