Sales tax automation provides numerous advantages, simplifying the complex process of calculating sales and use taxes. By leveraging advanced tax technology, such as Avalara, businesses can streamline tax compliance and rely on accurate tax calculations that can withstand the scrutiny of an audit.

Additionally, automation simplifies tax management across multiple platforms, channels, and enterprise resource planning (ERP), allowing businesses to scale without worrying about sales tax. With real-time updates and precise tax calculations, businesses can focus on strategic activities, confident that their sales tax compliance is accurate and efficient.

On this episode of Cherry Bekaert’s Tax Services Podcast, Sales & Use Tax Leader Lauren Stinson and Sales & Use Tax Senior Manager Tiffany Rodi are joined by Avalara’s Global Head of Strategic Accounting Partnerships Sona Akmakjian. Together, they explore the transformative impact of technology on sales tax compliance and discuss insights on automated tax solutions. Discover the strategic partnership between Cherry Bekaert and Avalara, which merges technology with professional guidance to optimize tax processes for businesses.

Related Insights

• Case Study: From Overlooked Liability to Optimized SaaS Sales Tax Compliance in Avalara
• Article: The Vital Role of Accurate Product Tax Codes
• Article: Why Your Business Needs a Sales Tax Software Tune-Up
• Article: Vermont Sales Tax Laws: Pre-Written Software Sellers With Nexus Must Collect and Report Sales Tax
• Article: How Sales Tax Complications Are Stalling Tech Acquisitions

In the most recent episode of Cherry Bekaert’s Tax Services podcast, we focus on the Virginia pass-through entity tax (PTET) election. Join Cathie Shaw, partner at Cherry Bekaert, and Tony Konkol, State and Local Tax Manager, as they navigate the intricacies of this important topic.

The Virginia PTET election is a crucial consideration for businesses operating in the state. Throughout the podcast, our knowledgeable speakers address common questions and concerns and provide clarity on key issues, such as cash flow implications, refundability and the interplay with federal tax regulations.

Cathie and Tony explore the benefits of making the election, including potential tax deductions and credits, as well as the practicalities of filing and deadlines. They also cover the retroactive nature of the election and tips on navigating the complexities of state tax law.

Whether you're a business owner, tax professional, or simply interested in the intricacies of state tax law, this episode offers valuable insights to help you navigate the complexities of the Virginia pass-through entity tax election.

Related Thought Leadership

• Article: Top 10 States for Credits and Incentives Opportunities
• Article: How To Determine if Your Company Is Eligible for State Credits and Incentives
• Podcast: How To Take Advantage of Pass-Through Entity Tax in North Carolina
• Podcast: How Does the Georgia Pass-Through Entity Tax Election Work?

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 Tax
• Pass-Through Entity Tax Update
• Pass-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 Election
• Pass-Through Entity Tax Update
• Pass-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 ATG
• 4:30 – Latest ATG Changes
• 7:47 – Areas of Focus for IRS
• 11:21 – What to Expect from an IRS Audit
• 23:30 – Impact of Cost Segregation on Taxpayers
• 26:33 – Concluding Thoughts

Related Guidance:

• Hot Topics in Cost Segregation
• Cost 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 qualification
• How to properly document support for R&D activities, which may qualify as these types of investments
• Real-life examples of qualified R&D investments
• IRS ASC 730 directive

If 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