BDO News

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

Treasury Issues Final Regulations for GILTI High-Tax Exclusion and Proposed Regulations for Subpart F High-Tax Exception

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

Employers – Prepare to Comply with Year End Reporting of Qualified Sick and Family Leave Wages Paid Under the FFCRA

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

North Carolina Enacts Legislation That Updates IRC Conformity Date and Decouples From Some Provisions of the CARES Act

Summary

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

Five Reasons Private Companies Should Adopt Public Company Controls

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

Reduce Risk With Internal Controls

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

Four Common Flaws Related to Income Tax Controls (And How to Prevent Them)

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

Four Reasons to Strengthen Income Tax Accounting Internal Controls

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

Favorable ETRs Follow Boards Active Engagement in Oversight of their Company’s Tax Risk

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

Treasury Issues Final Regulations for FDII and GILTI Deduction

Summary

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

IRS Issues Temporary Regulations Regarding Consolidated Return Split-Waiver Elections

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