News
-
PPP Deductions May Be Coming for California
- April 8, 2021
- Posted by: Hood & Strong
- Category: COVID-19
No CommentsThe IRS and the Treasury have announced that states can conform to recent federal tax benefits (such as the allowance of deductions for amounts paid with forgiven PPP debt) and still benefit from the federal funding provided to states through the American Rescue Plan Act (ARPA). This eliminates the concern about whether California would lose
-
Restructuring in Today’s Regulatory Climate
- April 8, 2021
- Posted by: Hood & Strong
- Category: Nonprofits
Some nonprofits have been forced to restructure their organizations due to the economic challenges of the COVID-19 pandemic. Fortunately, IRS rule changes from a couple of years ago make the restructuring process far easier than it once was. If you’re considering such a change, here’s what you need to know. How Have the Rules Changed?
-
IRS Clarifies Royalty Exception to UBIT
- April 8, 2021
- Posted by: Hood & Strong
- Category: Nonprofits
Provisions in the Tax Cuts and Jobs Act have brought renewed attention to nonprofits’ potential liability for unrelated business income tax (UBIT). Organizations generally are subject to a 21% tax on unrelated income, but exceptions apply — including one for royalties. Although “royalties” aren’t defined in the U.S tax code or regulations, a recent IRS
-
COVID-19 Relief Benefits Donors
- April 8, 2021
- Posted by: Hood & Strong
- Category: Uncategorized
The COVID-19 relief legislation signed into law in December 2020 includes some provisions that could be a boost to donors and the nonprofits they support. For example, it extends the temporary “universal charitable deduction” for taxpayers who don’t itemize their deductions through 2021. The deduction was limited to $300 for cash contributions to qualified charities
-
Working Remotely: Don’t Neglect Internal Controls
- April 8, 2021
- Posted by: Hood & Strong
- Category: Nonprofits
The pandemic has forced many nonprofits to change to work-at-home mode for extended periods, and some may remain there even as COVID-19 recedes. This shift in operations offers potential advantages, but it’s critical that organizations institute new, or adapt existing, internal controls to protect their finances and accounting-related data. Here are some of the most
-
FASB Plans to Keep Robust Segment Reporting Rules
- April 1, 2021
- Posted by: Hood & Strong
- Category: FASB
On March 10, 2021, the Financial Accounting Standards Board (FASB) met to discuss segment expense disclosures. The FASB announced plans to add more disclosures, rather than to eliminate any disclosures. Specifically, each significant expense category would need to be reconciled to the corresponding entity-wide total amount. In addition to the reconciliation issue, the FASB agreed
-
Convertible Instruments: FASB Encourages Early Adoption of New Rules
- April 1, 2021
- Posted by: Hood & Strong
- Category: FASB
In August 2020, the Financial Accounting Standards Board (FASB) issued updated guidance to simplify the accounting rules for convertible instruments and contracts in an entity’s own equity. The changes will provide investors with less-costly, more-comparable information that’s easier to understand. The updated guidance allows for early adoption but generally no earlier than fiscal years beginning
-
Nine Important Tax Topics for Individuals and Business Owners In 2021
- April 1, 2021
- Posted by: Hood & Strong
- Category: Uncategorized
The COVID-19 pandemic and resulting economic uncertainty of 2020 left many business owners and individuals steering an unpredictable course, and though the instability is less, key questions remain in 2021. When considering issues of liquidity, workforce planning and individual tax planning, there are nine tax issues individuals and business owners should know. Managing significant tax
-
FASB Approves New Rules for Goodwill Triggering Events
- April 1, 2021
- Posted by: Hood & Strong
- Category: FASB
In February, the Financial Accounting Standards Board (FASB) voted 6 to 1 to finalize its December 2020 proposal on the assessment of events that may trigger a goodwill impairment test. However, the scope of the guidance has been expanded to cover a broader number of private companies and not-for-profits in the final rules. Triggering Events
-
President Biden Signs American Rescue Plan Act of 2021
- April 1, 2021
- Posted by: Hood & Strong
- Category: COVID-19
The $1.9 trillion relief and stimulus package known as The American Rescue Plan Act of 2021 was signed into law by President Joe Biden in March after Senate amendments were passed by the House of Representatives. The legislation provides funding for coronavirus-related relief to millions of families, state and local governments, small businesses and exempt