When expanding operations into the U.S. market, business owners must learn about the federal, state and local tax systems they will encounter. Sales tax in the U.S. is quite different from a value-added tax (VAT) or a goods and services tax (GST) assessed by many other countries. Companies selling goods and some services must comply with a sales tax system that can vary across thousands of taxing jurisdictions. The U.S. federal tax system can also be challenging for companies new to this country.  Companies and their tax advisors are currently busy working towards the March and April dead ..read more

The New Markets Tax Credit (NMTC) program has been issuing tax credits for more than two decades as a driving force for investors to aid low-income communities across the United States. In September 2023, Cherry Bekaert’s The Innovate Fund, a Community Development Entity (CDE), received a $50 million allocation in NMTC. With this money, The Innovate Fund will continue to support and enhance community development projects in North Carolina, South Carolina, Tennessee and Georgia low-income communities. Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with ..read more

The Tax Cuts and Jobs Act (TCJA) was enacted in 2017, and part of this bill amended the lifetime exclusion amount for estate and gift tax planning. Over the last 6 years, the lifetime exclusion has ballooned from $10 million to over $13 million in 2024. Together, a married couple could leave $26 million of asset value to their family or other beneficiaries, free of federal estate tax. However, at the end of 2025, this increased lifetime exclusion will sunset and revert to a lower amount. What can taxpayers do now to enhance their estate planning, and how do recent Tax Court cases impact estate ..read more

The Inflation Reduction Act of 2022 (IRA) bolstered existing clean energy tax credits and incentives and added new ones. Looking forward to 2024, it is important to stay up to date with the qualifications for these various tax credits and incentives and the growing marketplace for transferring credits between buyers and sellers. The Internal Revenue Service (IRS) regularly releases notices and proposed regulations to provide guidance to help taxpayers benefit from these clean energy credits. Cherry Bekaert’s Energy Credits and Incentives team stays on top of these important alerts to ensure ou ..read more

When thinking about not-for-profit or tax-exempt organizations, abiding by strict tax rules is probably not top of mind. However, it is important for members of the board of directors and organization leaders to stay informed about tax laws, regulations, and Internal Revenue Service (IRS) reporting guidelines for not-for-profit organizations. Form 990 is the annual information return for most tax-exempt entities. The IRS uses Form 990 to collect information about the annual financial activity and good governance practices of the organization. Brooks Nelson, Partner and Strategic Tax Leader, a ..read more

Often, after much negotiation, debt may be reduced on various projects to realign debtor and equity holders' interests in properties. Property owners restructuring debt should be wary of tax consequences that could occur. Debt cancellation, foreclosures and short sales can often increase tax liability for cancellation of debt income. On this episode of the Tax Beat Podcast, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, discuss the tax cost and potential opportunities of cancellation of debt, particularly in the context of real estate transactions, with Laur ..read more

Wayfair v. South Dakota was a landmark case that clarified how sales tax is determined and collected. Brought about by a group of online retailers that challenged a South Dakota law, the case has had major impacts on how state and local jurisdictions throughout the U.S. establish physical presence or nexus. Since the initial ruling of the Supreme Court case, states have begun to set up their own sales tax laws. On this episode of the Tax Beat Podcast, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, discuss the Wayfair decision’s lasting impact with Cathie Sh ..read more

Section 179D Energy Efficient Commercial Buildings Deduction (Section 179D) was significantly enhanced through the Inflation Reduction Act (IRA), offering commercial building owners and designers, like architects and engineers, potential lucrative tax credits. The tax credit rewards qualifying energy-efficient commercial buildings to encourage clean energy and offset the costs of the improvements. Energy Tax Credits & Incentives team members, Bill Harbeson, Manager, and Andre Kohn, Senior Associate, share their knowledge on Section 179D with Brooks Nelson, Partner and Strategic Tax Leader ..read more

U.S. taxpayers that own or control certain foreign corporations, foreign partnerships or foreign trusts are required to disclose the activities, usually with forms attached to a tax return. If not reported timely or properly on the designated forms, these U.S. taxpayers may be subject to significant penalties. A recent Tax Court Ruling for Farhy v. Commissioner brought to light how the Internal Revenue Service (IRS) applies these penalties. The main issue argued whether the law actually grants the IRS the authority to assess and collect these penalties.  Listen as Brooks Nelson, Partner a ..read more

The Internal Revenue Service (IRS) made headlines this past year with the news that they would be receiving an additional $80 billion towards their budget over 10 years through the Inflation Reduction Act of 2022. With the IRS facing many of the same issues they have been dealing with for more than six decades, the question remains: what will be different this time?  There has been much discussion as to how the IRS would utilize this budget increase to: Update technology infrastructure,  Attract and retain talent,   Strengthen enforcement and taxpayer services,  And more ..read more