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Beware: New Form 8938 - Statement of Foreign Financial Assets

Certain U.S. individual taxpayers (as well as bona residents of American Samoa and Puerto Rico) holding financial assets outside of the U.S. must report those assets to the IRS for taxable years beginning after March 18, 2010. For most individual...

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Time to Come Clean with Cook County (and Chicago too?)

On Thursday, September 29, Cook County Board President Toni Preckwinkle announced a Cook County tax amnesty program. To qualify, taxpayers must pay all outstanding tax liabilities by October 31, 2011. In exchange, all penalties and interest will be abated and...

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SSAP 101 Adopted

Statutory Accounting Principles Working Group Adopts SSAP 101 Income Taxes, A Replacement of SSAP No. 10R and SSAP No. 10.  On August 31, 2011 the Statutory Accounting Principles Working Group adopted SSAP 101. As adopted this replacement of SSAP 10R...

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IRS Extends Deadline for Voluntary Disclosure Due to Hurricane Irene

The IRS extended the deadline for the Offshore Voluntary Disclosure Initiative (OVDI) to September 9, 2011 (the previous deadline was August 31, 2011). Our article “Second Chance for Voluntary Disclosure,” from the March 2011 Tax Highlights, describes that with the...

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FASB Amends Accounting Standard for Healthcare Entities (Topic 954)

The Emerging Issues Task Force (EITF) reached a consensus and the FASB approved Accounting Standards Update 2011-07 “Health Care Entities: Presentation and Disclosure of Patient Service Revenue, Provision for Bad Debts, and  the Allowance for Doubtful Accounts for Certain Health...

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Illinois Department of Human Services Financial Reporting Requirements Have Changed for FY2011

In an effort to reduce the number, variety, and redundancy of financial reports required of community service providers, Illinois Department of Human Services (DHS) has replaced the grant report and consolidated financial report (CFR) with an Annual Financial Report (AFR). ...

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Telecommuting Arrangements — State Tax Traps and Benefits

Telecommuting, a work arrangement in which employees have flexibility in their working location, has skyrocketed in recent years. Telecommuting can increase employee morale, better accommodate employees with child care needs, reduce the costs of keeping office space, and keep your...

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Congress Repeals 1099 Reporting Requirements Contained in the Health Care Bill

On April 5, the United States Senate passed H.R. 4, repealing the 1099 reporting requirements contained in the Patient Protection and Affordable Care Act (PPACA) that otherwise would have taken effect in 2012. H.R. 4 also repeals the 1099 reporting...

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NAIC Proposes Uncertain Tax Positions

Have you recently completed your annual statement and thought to yourself, when will these footnote disclosures end?At the National Association of Insurance Commissioners (NAIC) 2011 Spring Meeting held in Austin, TX, the NAIC proposed more potential disclosures in the area...

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More Options to Enhance Trust:
New Reporting Framework Provides Assurance on Service Organization Controls

A lot can go wrong when outsourcing functions to a third party. For example, a security breach can leak customers’ private information, or a server can go down and leave critical transactions unprocessed, or fraud at the service organization could...

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The 2011 Illinois Tax Hike and Other Changes — Just the Facts

Early in the morning of Wednesday, January 12, 2011, amendment #3 of Senate Bill #2505 was sent to Governor Quinn for signature. The bill, which the governor is anticipated to sign, is estimated to generate $6.8 billion of additional revenue....

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Tax Cuts and Unemployment Benefits Extended

The House of Representatives passed the Senate version of the tax bill late on December 16, 2010, without amendment, by a vote of 277-148. The "Unemployment Insurance Reauthorization and Job Creation Act of 2010", HR 4853, postpones the sunset of...

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Fall NAIC Updates: Potential Changes to SSAP 100 and SVO Task Force Status

Potential Changes to SSAP 100 – Fair Value MeasurementsOn Monday, October 18, 2010, the Statutory Accounting Principles Working Group (SAPWG) discussed potential amendments to SSAP 100 – Fair Value Measurements.Recurring vs. Non-Recurring SchedulesThe focus of the amendment surrounded the elimination...

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What ’s Cooking in Wisconsin? Food Processing Plant and Food Warehouse Investment Credits

Is your company making sausage? Processing cheese? Is it warehousing cranberries, corn or soy sauce? Starting with tax years ending after December 31, 2009, Wisconsin food processors or food warehouses (or their owners) may be eligible for a credit of up to 10%...

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New proposed electronic deposit mandates for most federal business taxes effective January 1, 2011.

Beginning January 1, 2011, the IRS is discontinuing their federal tax deposit coupon program and requiring businesses to pay all federal tax via the Electronic Federal Tax Payment System (EFTPS).These federal business taxes include all of the following:Nonpayroll taxes including...

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Illinois EFT deposit requirements effective October 1, 2010

Starting October 1, 2010, Illinois will require all businesses that have an aggregate tax liability of $20,000 or more to make income tax deposits via electronic funds transfer (EFT) though the Illinois WebFile and Pay or ACH credit. This $20,000...

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Illinois Tax Amnesty

On Monday, August 16, Governor Pat Quinn signed SB 377 and established Illinois tax amnesty. The bill establishes a tax amnesty program that runs from October 1, 2010 to November 8, 2010.What liabilities are eligible for amnesty? The bill certainly...

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Proposed Innovation Zone Bill To Provide Benefits for Certain Illinois Businesses

Illinois SB 3638 has been passed by the legislature and would create the Illinois Innovation Zone Act. Innovation Zones are certain areas in Illinois that would provide a variety of tax benefits for Illinois taxpayers. Benefits include an expansion of...

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Illinois Taxpayers Can Earn a $2,500 Tax Credit For Each New Employee Hired

On April 13, 2010, Illinois Governor Pat Quinn signed Senate Bill 1578 into law, creating the Small Business Job Creation Tax Credit Act. The $2,500 withholding tax credit is available for each new, full-time Illinois job created during the incentive...

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Health Care Reform Bills Create Significant Tax Implications for Individuals and Businesses

Late Sunday night the House of Representatives passed the Senate’s Patient Protection and Affordability Act (H.R. 3590) and the Health Care & Education Affordability Reconciliation Act of 2010 (H.R. 4872.) President Obama has signed H.R. 3590 into law, while H.R....

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IRS Exams of Trade Associations Planned

An IRS official recently stated that the IRS will be initiating 650 examinations of 501(c)(5) and 501(c)(6) organizations. The IRS official indicated that the exams would cover all 501(c)(6) organizations, but would be limited to only 501(c)(5) agricultural organizations. The...

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Congressional Inaction Creates Estate Planning Mess

By failing to act before December 31, 2009, the US Congress may have created a 2010 mess out of the vast majority of the Wills and Living Trusts that are currently in existence.What happened?Congress did not act. As a result...

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NAIC Adopts Temporary Changes to SSAP 10

Listen to or download the February 11, 2010 SSAP No. 10R webinar recording.At the winter meeting in San Francisco, California on December 5–9, 2009, the National Association of Insurance Commissioners (NAIC) adopted changes to Statutory Statement of Accounting Principles (SSAP)...

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Surviving the Upturn... Be "The Other"

In February 2008, Barry Cain and David Spitulnik provided a road map for surviving the impending recession in Getting Through 2008 and Beyond. Similarly, this article provides forward-looking strategies for seizing opportunity during the budding recovery.According to many economic pundits,...

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Foreign Investment Reporting Extended for Certain Taxpayers

On August 7, 2009, the Internal Revenue Service issued Notice 2009-62 (the Notice), which provides additional relief for persons (individuals, entities, tax-exempt organizations, IRAs and other taxpayers) regarding the filing of the Report of Foreign Bank and Financial Accounts (FBAR).The...

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Recovery Act Recipients: Understand Your Record-Keeping and Reporting Obligations

The American Recovery and Reinvestment Act of 2009 (ARRA) is capturing news headlines around the country. Approximately $300 billion of additional federal funds are being passed down from federal agencies to entities that are generally subject to single audits. ARRA...

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Illinois Ends Deduction for Reasonable Compensation Paid to Partners

On July 16, 2009, Illinois Governor Pat Quinn signed SB 1912 into law, which ends the deduction for the greater of personal service income or a reasonable allowance for the compensation of partners on Illinois partnership returns for tax years ending...

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Time-Sensitive FBAR Requirements

Recently, there has been a lot of discussion regarding foreign bank financial account reporting requirements (FBAR) and in what situations taxpayers are required to file Form TDF 90-22.1 (the FBAR form). The FBAR form is required to be filed with...

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Illinois Secretary of State Warns of Franchise Tax Business Scam

There is a new scam that attempts to get Illinois and Indiana businesses to file what looks like a franchise tax return and corporate minutes with a fee of $150. The Illinois Secretary of State Jesse White has posted a...

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Change in COBRA Rules for Employees Who Left After September 1, 2008

The American Recovery and Reinvestment Act of 2009 (the Stimulus Act) provides that the federal government will subsidize 65% of COBRA health insurance payments for eligible individuals. What the headlines did not mention was how that subsidy will be funded....

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Important SAS 70 Internal Control Reporting Changes and Their Impact on Service Organizations

Timothy R. Bowling, CPA, Partnertbowling@BlackmanKallick.com, 312-980-2927Significant changes to SAS 70 internal control reporting are in the works, and they'll impact not only the way the reports are used, but also how your auditor performs their tests and how your company...

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Emergency Economic Stabilization Act of 2008 Offers Many Tax Benefits

On Oct. 3, President Bush signed H.R. 1424, the Emergency Economic Stabilization Act of 2008 (the Act) into law. This 451-page bill establishes a $700 billion Treasury fund to purchase troubled assets from financial institutions.The Act also includes 41 pages...

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Stuck in 2008 or Moving Purposefully Into 2009?

The Recession Isn’t Waiting for You … What Are You Waiting For?In February, we authored an alert titled, "Getting Through 2008 … and Beyond," to help business owners and CEOs better see the coming economic storm and plan their way...

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Eclipse Builds Business in Asia Through Strong Relationships

Client Success Story Eclipse Inc., a 100-year-old worldwide maker of burners for industrial processes, has essentially followed its customers into Asia. "Our customers have taken us to all parts of the Far East—China, Japan, Korea, Taiwan, Thailand and Vietnam," explains...

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China Raises Income Tax to 25%

Effective Jan. 1, 2008, China has increased its income tax rate to 25%, and incentives routinely granted to foreign businesses are gone. This effectively changes China from a low-tax to a relatively high-tax jurisdiction.How will this tax law change affect...

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California Appellate Court Holds LLC Fee Unconstitutional

In a judgment filed on August 11, 2008 by the California Court of Appeal (the Court) in Ventas Finance, LLC (Ventas) v. California Franchise Tax Board (FTB), the Limited Liability Company (LLC) gross receipts fees were held unconstitutional. The Court...

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Getting Through 2008 ... and Beyond

Let's face it—2008, and possibly 2009, are going to be challenging at the very least, perhaps even worse if the economic climate continues to turn against us. Economists continue to argue over whether we are in a recession. Independent of...

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The Economic Stimulus Act of 2008

Tax law enacted to spur U.S. economyThe Economic Stimulus Act of 2008 (the Stimulus Act) is designed to boost the U.S. economy by providing tax rebates to individuals and tax incentives for businesses.Recovery rebatesTo encourage spending that stimulates economic recovery,...

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50% Bonus Depreciation on New Equipment Purchased in 2008

Similar to the old bonus depreciation rules, the new law allows a bonus first-year depreciation of 50% of the adjusted basis of qualifying property placed in service after December 31, 2007, and before January 1, 2009.To be considered qualifying, the...

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Section 179 Expensing Limits for Businesses Drastically Increased for 2008

For years beginning in 2008, the maximum Section 179 expense deduction is raised to $250,000. The $250,000 limitation is reduced by the amount by which the cost of Section 179 property placed in service during the tax year beginning in 2008 exceeds...

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Many Working Americans Will Get Tax Rebates

Under the new law, at least 117 million low- and middle-income households will receive one-time tax rebates, along with 20 million senior citizens living on Social Security and 250,000 disabled veterans. How do the tax rebates work?Single tax filers must have...

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Supply Chain Relationships Lead Oxford International Overseas

Blackman Kallick Client Success StoryBlackman Kallick client Oxford International, Ltd., a supplier to the automotive industry, found itself pushed into expanding overseas in the 1980s as its customers became more serious about international business."We had to go along for the...

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East Balt "Goes Local" in Locations Around the World

Blackman Kallick Client Success StoryBlackman Kallick client East Balt is a long-term supplier to McDonald's. "We actually served [McDonald's founder] Ray Kroc the first hamburger buns in his store here in Des Plaines in 1955," says John Borowski, the company's...

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Resources for Midsize Companies Doing Business Abroad

International accounting firms Blackman Kallick is a member of HLB International, a network of professional accounting firms providing audit, tax and business advisory services throughout the world.HLB's Web site offers "Doing Business in ..." booklets for most countries in which...

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What Should Midsize U.S. Manufacturers Know About Doing Business in China?

Is your company considering conducting business offshore? Consider the experience of one Blackman Kallick client, a mid-size manufacturer that has been sourcing product in China for more than 20 years. "Our company started doing business overseas primarily because of competition,"...

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.