Cherry Bekaert: Tax Services Cherry Bekaert

Following other jurisdictions that created a workaround from new requirements in the Tax Cuts and Jobs Act of 2017, North Carolina first enacted their pass-through entity tax (PTET) election through North Carolina Bill 105. These elections became available to businesses on January 1, 2022. Businesses operating as partnerships or S Corporations and filing a Federal Form 1065 or 1120-S, are potentially eligible to take advantage of the North Carolina PTET election. 
Cathie Stanton, State & Local Tax Leader, and Tony Konkol, State & Local Manager, are back on Cherry Bekaert’s Tax Podcast to discuss North Carolina’s PTET elections. Together, they unpack how businesses can capitalize on this benefit, utilize this election, tackle its intricacies and comply with each jurisdiction’s varying requirements when filing.

Related Resources:
State Pass-Through Entity Tax Elections – Don’t Leave Cash on the Table!North Carolina Department of Revenue Issues Guidance & Updated FAQs on the State’s Pass-Through Entity TaxPass-Through Entity Tax UpdatePass-Through Entity Tax Services

Georgia House Bill 149, that went into effect January 1, 2022, created the opportunity to make pass-through entity tax (“PTET”) elections in the state. PTET elections provide a workaround of the $10,000 limitation for the amount of state and local taxes that individuals can deduct from federal taxes. Businesses that operate as S-corporations, pass-through entities, partnerships, and LLCs treated as partnerships, are all potentially eligible to take advantage of these savings.
Join Cathie Stanton, State & Local Tax Leader, and Tony Konkol, State & Local Manager, on Cherry Bekaert’s latest podcast as they discuss the intricacies of how PTET elections can benefit Georgia businesses.
Related Resources:
 State Pass-Through Entity Tax Elections – Don’t Leave Cash on the Table!Georgia & South Carolina Enact Pass-Through Entity Tax ElectionPass-Through Entity Tax UpdatePass-Through Entity Tax Services

On June 1, 2022, the Internal Revenue Service (“IRS”) released the latest edition of the audit technique guideline (“ATG”). The recent round of updates take a look at the complexity around cost segregation studies and provide more guidelines and clarity for these studies.
In Cherry Bekaert’s latest Tax Credits and Incentives Advisory’s (“TCIA”) podcast, Ron Wainwright, a Strategic Tax Partner and Leader of the Cost Segregation Practice in the TCIA group, and Sean O’Leary, a Senior Manager, dive into these cost segregation study updates and provide deeper guidance, discuss the new audit technique guideline (“ATG”) for cost segregation. 
Chapter Markers:
1:24 – What is the Cost Segregation ATG?2:15 – Background on ATG4:30 – Latest ATG Changes7:47 – Areas of Focus for IRS11:21 – What to Expect from an IRS Audit23:30 – Impact of Cost Segregation on Taxpayers26:33 – Concluding ThoughtsRelated Guidance:
Hot Topics in Cost SegregationCost Segregation Services

Our Tax Credits & Incentives Advisory podcast dives into the current hot topics our knowledgeable leaders have been seeing around cost segregation. This podcast covers the basics of cost segregation with a focus on the updated Audit Technique Guideline (ATG) for cost segregation. Our speakers will also provide clarity around how bonus depreciation can help with a cost segregation study and how qualified improvement property can help taxpayers that own real property.


Chapter Markers


1:29 - What Is Cost Segregation?


4:02 - Bonus Depreciation


7:43 - Qualified Improvement Property


11:04 - ATG Updates


18:32 - ATG for 179D

In this episode of Cherry Bekaert’s Tax Credits & Incentives Advisory Podcast, Martin Karamon welcomes Tax Credits & Incentives Advisory leaders Dan Mennel and Vivian Kohrs to talk about R&D documentation as you make investments in technology or look at the ROI of making such an investment.
The R&D Tax Credit is one of the most lucrative incentives available to taxpayers and provides a permanent offset to tax liabilities. This credit is an activity-based credit – meaning that if a taxpayer is performing specific types of activities, the costs incurred to perform those activities go into a separate tax credit calculation.
As it relates to the R&D Tax Credit, Cherry Bekaert’s Tax Credits & Incentives practice is primarily focused on helping companies identify and document qualifying R&D costs. 
Discussion includes:
Types of investment and the four-part test to determination qualificationHow to properly document support for R&D activities, which may qualify as these types of investmentsReal-life examples of qualified R&D investmentsIRS ASC 730 directiveIf you have any questions specific to your business needs, Cherry Bekaert’s Tax Credits & Incentives Advisory team is available to discuss your situation with you.
If you haven’t already, catch up on other podcasts covering the R&D topic:
What’s New with R&D Tax Credits in 2022
Tax Beat: Digital Transformation and R&D Tax Credits
The Benefits of using a CPA Firm to Perform Credits & Incentives Projects

R&D tax credit studies help companies secure cash from credits and incentives in recognition of their innovative products, services and activities. When a R&D study is well prepared, it represents a low-risk endeavor that usually generates a strong ROI for the taxpayer. However, when the study is not well prepared, it can be high risk and have a low ROI.
This podcast shares what to consider when selecting your R&D study provider to ensure you receive the best quality services at fair prices. It also revisits the relevance of Circular 230 as well as IRS guidance on amended returns, contrasting the approaches taken by a CPA firm and a boutique firm.  Marty Karamon, Leader of Cherry Bekaert’s Tax Credits & Incentives Advisory Group, is joined by Ron Wainwright and Dan Mennel, both Tax Partners in the Firm’s Tax Credits & Incentives Advisory Group, to discuss the benefits of working with a CPA firm to perform your tax credits and incentives projects. 
This podcast is the first in a series of episodes focusing on the news and nuances of tax credits and incentives for businesses.
Related Guidance:
Podcast: 2022 Update on the Employee Retention Credit
Podcast: What’s New with R&D Tax Credits in 2022