The knowledge you need

Atlanta based online businesses and remote sellers may soon be required to register, collect and remit sales tax to the Tennessee Department of Revenue. The need for companies to collect sales tax for these transactions was ushered in by the 2018 Supreme Court ruling in the South Dakota v Wayfair ruling. The Court changed the long-held guidance that a company needed to have a physical presence in a state before nexus (trigger for sales tax collection) was established. After the ruling, many states have implemented regulations similar to the one upheld in the case, including Texas, Alabama and North Carolina to name a few. On July 1, 2019, Tennessee will join the long list of states requiring out of state online retailers, meeting certain criteria, to collect sales tax on qualifying transactions with in-state customers.

Atlanta business owners have several responsibilities to focus on, from directing the management team to supporting employees and maintaining focus on the strategic objectives and growth goals of the organization. It’s clear to see time is precious, and when not used properly, it can be a precious resource that is wasted. That’s why a difficult relationship with the company’s financial statement auditor can be so challenging. A relationship that is characterized by poor communication, missed deadlines and an inflexible approach may be signs that a change is needed. While there are certainly challenges in every relationship, business owners need to candidly evaluate their relationship to determine if a change is needed.

Two economic nexus sales tax bills – House Bills 182 and 276 – passed both houses of the Georgia General Assembly on March 29th of this year. Georgia has now officially embraced the nationwide trend of adopting economic nexus standards as a way to capture lost sales tax revenues from out-of-state retailers. More and more states are instituting bills similar to Georgia’s House Bills 182 and 276; at the time of this blog, about half of the 50 states have done so. What do Georgia’s sales tax bills – and similar bills in other states – mean to Georgia business owners? To help you understand how these bills will impact you and your business...

Atlanta nonprofits are focused on serving their mission of ensuring the programs, services, and benefits offered to deliver the highest value and organizational return on investment. To accomplish this goal requires to focus on program management, volunteer recruitment, staff development, robust marketing, and fundraising. While all are vital to the health of an organization, fundraising is the one area where organizations spend significant time looking for innovative ways to identify new sources of funding. Many go online to bolster fundraising through activities such as social media, email marketing, and even digital advertising to get the attention of potential donors. While the strategy has been effective, it appears that online fundraising is quickly slowing.

The various rules and regulations associated with maintaining a 401(k), 403(b) or other retirement plan can often be overwhelming and challenging to follow. That’s why the IRS allows plan sponsors to disclose and resolve various plan errors using the Employee Plan Compliance Resolution System (EPCRS). The system which includes three types of correction programs and is designed to allow plan sponsors to correct errors before plan disqualification occurs. For minor issues, plan sponsors are allowed to correct basic mistakes using the self-correction program (SCP). While helpful for many Atlanta plan sponsors, in early April the IRS (EPCRS Revenue Procedure 2019-19) made additional changes that expand the scope of errors which can be resolved using the program. It’s now easier to fix certain plan document issues and operational failures, including plan loan issues, without having to make disclosures.

In an effort to improve the quality of retirement plan audits, the Auditing Standards Board (ASB) introduced a new auditing standard last year. When passed, this new standard is predicted to impact almost all audits of benefit plans that are subject to the Employee Retirement Income Security Act of 1974 (ERISA). Although the change does not concern plan management directly, benefit plan sponsors will feel its effects. Their auditors will ask new and different questions, and the reports they produce will look quite different. The final draft of the new standard should be released shortly, and the ASB is expected to finalize the Statement on Accounting Standards (SAS) at its meeting in October later this year.

The construction industry was dealt a difficult hand when the new revenue recognition standard was first introduced in 2014. As contract-based businesses, they had to take a close look at almost all their revenues streams and challenge some long-held assumptions in order to comply with the new accounting standard. Since many construction contracts span multiple reporting years, the process was especially daunting. Now that the revenue recognition standard is in effect, we wanted to take a step back and see how construction companies have been faring under this new accounting system.

Virtually every Atlanta area company offers employees a retirement savings or employee benefit plan option. These plans are essential to attracting employment candidates and to help existing employees save for retirement. In fact, these plans have become a regular part of the benefit offerings of many companies, and are an expected component of the benefits package. While necessary, 401(k), 403(b) and other retirement plans present a compliance challenge for companies as they grow and increase the number of employees and total plan participants.

Last week, just a few days after tax season ended, the IRS released their second round of proposed regulations for the tax reform’s Opportunity Zone Program. This program, which was passed as part of the Tax Cuts and Jobs Act of 2017, incentivizes taxpayers to fund investments in economically depressed areas by offering significant tax credits. Late last year, the IRS released their initial set of proposed regulations. These regulations were helpful, but they did not answer every question investors had, and many taxpayers were hesitant to invest in a qualified opportunity zone (QOZ) without more information. Fortunately, this second round of proposed regulations delves even deeper and addresses most taxpayers’ questions

Managing a successful nonprofit organization requires passion, hard work and the desire to serve. While there are many similarities between for-profit and nonprofit organizations, there are also important differences. For example, managing volunteers, refining programs to deliver maximum value, identifying new services based on member or community needs are challenges unique to nonprofits. As an organization grows and evolves, it’s important to have access to a wide variety of resources and tools to allow you to navigate the process to a successful outcome. The good news for Atlanta area nonprofits is there are several associations and foundations that offer resources, education and funding opportunities to help nourish and sustain organizations.