On July 23, 2020, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) published in the Federal Register final regulations under the global intangible low-taxed income and Subpart F provisions of the Code regarding the treatment of income that is subject to a high rate of foreign ... read more
IRS recently issued Notice 2020-54 regarding employers’ requirement to report the amount of qualified sick leave wages and qualified family leave wages paid to employees under the Families First Coronavirus Response Act (FFCRA), (P. L. No. 116-127). The reporting requirement applies notwithstanding the fact that the employer’s out-of-pocket cost is ... read more
On June 30, 2020, Governor Cooper signed House Bill 1080 (HB 1080) into law. The omnibus tax bill contains many updates to the various taxes imposed by North Carolina. However, this alert primarily focuses on changes to North Carolina’s corporate and personal income taxes. Notably, the bill updates North Carolina’s ... read more
Article four of a four-part series discussing ways to reduce risk and increase controls related to income tax accounting
Often viewed as a “public company problem,” private organizations may want to consider implementation of internal controls similar to Sarbanes-Oxley (SOX) Section 404 requirements. The inherent benefits of a strong control environment ... read more
Why should companies care about tax internal controls? Because they are complex in nature, and with an evolving tax compliance landscape, regulators continue to find weaknesses. Without proper internal controls in place, companies may be susceptible to reporting errors, which can lead to reputational risk and financial burdens related to ... read more
Article three of a four-part series discussing ways to reduce risk and increase controls related to income tax accounting.
Almost two decades after the enactment of Section 404 of the Sarbanes-Oxley Act (SOX), income tax-related material weaknesses continue to be a major issue for companies. With the costly ramifications of a ... read more
Article two of a four-part series discussing ways to reduce risk and increase controls related to income tax accounting.
As discussed in Three Ways to Reduce Income Tax Reporting Risk, income tax-related restatements account for approximately 14% of all restatements. Additionally, in 2018, 81 SEC registrants cited a material weakness because ... read more
New research finds that boards of directors who play an active role in the risk management of their company’s tax function, and who know which questions to ask and when, are often rewarded with more favorable effective tax rates for the company, lower tax uncertainty, and less risk to their ... read more
On July 15, 2020, the Department of the Treasury and the Internal Revenue Service (collectively, Treasury) published in the Federal Register final regulations under Section 250 that provide guidance regarding the deduction for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI). The final regulations also include guidance coordinating ... read more
The IRS has issued proposed regulations (REG-125716-18) providing guidance on the implementation of statutory amendments to Section 172 under the Tax Cuts and Jobs Act (TCJA) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act as they pertain to the absorption of consolidated net operating loss (CNOL) carryovers and ... read more