The knowledge you need

Beginning in January 2022, companies looking to claim a refund under IRS Section 41 – better known as the federal Research and Development tax credit – will now have to supply more documentation. Outlined in Office of Chief Counsel Memorandum – 20214101F the extra information, which must be submitted with the annual tax return, is expected to help process R&D credit refunds faster and more efficiently.  Now that the IRS has issued guidance for the new requirements, businesses claiming the credit can work closely with providers to ensure the proper documentation is submitted.

Now more than ever construction is an inherently risky industry. Whereas employees primarily face safety and health risks on the job, contractors and owners must also deal with cost and payment issues, project delays, compliance, and other risks. To make matter worse, the post-pandemic supply chain delays have made necessary materials more difficult to obtain and at a higher price. These liabilities, especially when taken together, can cause a construction project to lose money and increase exposure to legal and regulatory risks.

Since March 2020, it’s been one thing after another for North Carolina businesses. Government shutdowns, shelter in place orders, job losses, reopening and repeated closures, and countless other pivots including vaccine mandates and exclusions. Heading into 2022, businesses have been faced with even more challenges from labor shortages, supply chain disruptions, and rising material/supply costs. That’s why North Carolina’s Business Recovery Grant will be a lifeline to many struggling businesses.

On October 28, 2021, the IRS announced a new fee for executors seeking an estate tax closing letter. An estate tax closing letter specifies the estate tax amount and any generation-skipping transfer tax due. Additionally, it serves as an official certification the estate has been closed and all relevant taxes have been paid. Due to budget constraints and a high volume of estate tax return filings, the letter will now cost filers $67. While this is a nominal fee it represents the estimated direct and indirect costs of managing the totality of letter requests.  Executors, trustees, and other authorized representatives of an estate will need to follow these new requirements when requesting an estate tax closing letter.

What many not-for-profits may not be aware of is that accepting federal funds may trigger the need to comply with single audit requirements. Or, that some state funds may instead originate from the federal government, thus triggering the single audit. Especially with trillions in COVID-related funding having been distributed, not-for-profit executives and Board members may need to brush up on their knowledge of single audits – and what to do if the organization is subject to one. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.

Atlanta Employers with tipped employees on the payroll must be mindful of minimum wage requirements which can become complicated when an employee’s job consists of multiple duties. The Department of Labor (DOL) 80/20 rule provides compliance requirements that businesses must follow in such situations. As of December 28, 2021, the rules changed which will now require organizations to pay careful attention to the type and duration of work performed by certain employees. This change will force affected businesses to review and adjust policies to ensure compliance with the new rules.

The change of focus has created new challenges for independent auto dealers especially when it comes to inventory acquisition. As franchised dealers search for used car inventory, it makes it more difficult for independent dealers to keep lots full. According to the Cox Automotive Dealership Sentiment Index, 4th Quarter, inventory acquisition is the biggest challenge facing dealers.

The chaotic situation which followed the arrival of the pandemic created significant financial challenges for many Atlanta businesses. The variety of government orders combined with public concern about transmission changed the business landscape virtually overnight. The shift meant many businesses needed new and immediate capital infusions to make it through the transition. The Employee Retention Tax Credit (ERC) which was implemented as part of the CARES Act was one of several programs designed to help. Along with other federal relief programs, many were saved from financial uncertainty.

The abrupt arrival of the pandemic in Georgia required state and local governments to issue several orders to reduce the potential for virus exposure and transmission. These changes forced many businesses to consider alternate service models to operate within the new guidelines. Concurrently, stay-at-home orders resulted in a sharp decline in demand creating an additional problem for struggling businesses. Not only were business owners placed in a peculiar predicament, but so were government organizations.

Cryptocurrency is a high-risk investment option sought after by many institutional and individual investors (including Elon Musk). The risk profile is driven by the fact the digital currency is intangible, not insured by a federal institution, and is traded on non-regulated stock markets. Despite these obvious issues, cryptocurrency investments in Bitcoin, Ethereum, and others have reached a market cap of $2.57T. The acceptance of cryptocurrency as a payment option by Philipp Plein, Shopify, Whole Foods, Microsoft, AT&T, and Etsy has only increased its popularity.