In a letter dated April 13, 2016, the American Bar Association (ABA) President Paulette Brown addressed the leaders of the House Ways and Means Subcommittee on Tax Policy. In the letter, she voiced opposition to the proposals that would require professional services firms to adopt the accrual basis of accounting as opposed to the more widely used and simpler cash basis method.
On March 23 and 24, 2016, the InvestMidwest Venture Capital Forum
was held in downtown St. Louis. The event featured dozens of early stage companies pitching to venture capital investors and was a great opportunity to showcase emerging companies in the life sciences, technology, and food/agriculture/bioenergy industries.
WOTC is a federal credit for employers that hire individuals from targeted groups and is currently extended through December 31, 2019. The IRS recently issued guidance and transition relief with Notice 2016-22 as a result of the PATH Act extending the WOTC retroactively for 2015 and adding a new targeted group for Long-Term Unemployed Recipients effective January 1, 2016.
A recent tax court decision was handed down to a law firm operating as a professional corporation (P.C.) in which the IRS held the firm liable for accuracy-related penalties for mischaracterizing payments made to shareholders. The firm initially paid amounts to shareholders and characterized them as year-end bonuses, the IRS argued they should have been classified as dividends. These dividends would have been taxable to the shareholders as well as not deductible by the corporation.