Tax Law Blog
A new phishing email scheme that purports to be from company executives and requests personal information on employees was identified by the IRS. This email scheme, known as "spoofing," will contain for example the actual name of the CEO. The "CEO" sends an email to payroll or HR and requests a list of employees and information including social security numbers. For more information on this scheme, click here.
Foster Swift has also covered schemes regarding fake charities and discussed how to protect yourself from identity theft.
Each year the IRS alerts taxpayers about potential tax scams, and publishes its list of the “Dirty Dozen” problem areas. In its 2016 list, the IRS warns taxpayers about fake charities, identified as “groups masquerading as charitable organizations to attract donations from unsuspecting contributors.”
According to IRS Commissioner John Koskinen, “Fake charities set up by scam artists to steal your money or personal information are a recurring problem. Taxpayers should take the time to research organizations before giving their hard-earned money.”
Do you believe you are a victim of identity theft? The IRS recently released tips for using credit bureaus to help protect your financial accounts. If you believe you are a victim of identity theft, the IRS suggests that you contact one of the three major credit bureaus to place a "fraud alert" on your credit account.
The three main credit bureaus are:
- www.Equifax.com/CreditReportAssistance; 888-766-0008.
- www.Experian.com/fraudalert; 888-397-3742.
- www.TransUnion.com/fraud; 800-680-7289.
Owners have a great reason to work hard to grow their business—they’ll make more money. Do your employees have the same motivation? If not, you should consider improving your business’s compensation strategy.
Typical compensation strategies often motivate employees to do just enough to keep their jobs. An example is the strategy of combining a competitive base salary with a discretionary annual bonus program. Although the resulting competitive pay should help to attract and retain employees, it will often fail to align your employees’ goals with the goals of the business.
Identity theft can be frustrating and time-consuming. It is always important to be on guard, especially online.
The IRS put together seven steps that you can make part of your routine to protect your tax and financial information:
The holiday season is well underway and if you plan on donating money or property to a charity this year, you are going to want to know these six tips before you give. The IRS recommends that you should keep these in mind:
- Give to qualified charities.
- Keep a record of all cash gifts.
- Household goods must be in good condition.
- Get an acknowledgement form from a charity for each deductible donation of $250 or more.
- Deduct contributions in the year you make them.
- Special rules apply if you give a car, boat or airplane to charity.
The U.S. Securities and Exchange Commission "SEC", in a 3-2 vote, recently adopted final rules implementing “CEO pay ratio” disclosure requirements (the “Rules”). The Rules were proposed in 2013 and mandated by Congress pursuant to Section 953(b) of the Dodd-Frank Act, and require public companies to disclose how their principal executive officer’s pay compares to that of all company employees. Companies will be required to begin complying with the Rules during a company’s first full fiscal year beginning on or after January 1, 2017 (the 2018 proxy season for calendar fiscal year companies).
Before adopting the Rules, the SEC solicited comments on the proposed pay rules. Despite considerable negative feedback, the SEC - voting along party lines - adopted Rules that are consistent with its initial proposal, leaving largely intact many of the most debated and controversial issues.
The Rules require public companies to disclose:
The Michigan Department of Treasury has published its Other Deductions Manual (the “Manual”). The Manual provides a listing and analysis of the common sales and use tax exemptions.
If you are a business subject to Michigan sales or use tax, then the Manual is a helpful resource to have on file.
The Manual can be downloaded by clicking this link.
Are you an out-of-state business making Internet sales into Michigan? If so, take notice.
The Michigan Main Street Fairness Act (the “Act”) is now effective. Designed to level the playing field between “brick and mortar” retailers and out-of-state Internet sellers, the Act creates two new tests whereby out-of-state sellers are presumed to have Michigan nexus.
A quick reminder – if an out-of-state seller has Michigan nexus, then it is required to collect and remit 6 percent Michigan sales tax on all sales to Michigan residents.
Test #1 is the affiliate nexus test. Under the affiliate nexus test, an out-of-state retailer will be presumed to have Michigan nexus (i.e., required to collect and remit 6 percent Michigan sales tax on all Michigan sales) if the seller or an affiliate of the seller:
Under a new law effective October 1, 2015, an out-of-state seller may be required to remit sales or use tax on sales into Michigan if the seller has nexus under amendments to the Michigan General Sales Tax Act (MCL 205.52b) and Michigan Use Tax Act (MCL 205.95a). The new law creates a presumption that a seller is engaged in the business of making sales at retail in Michigan if the seller, or another person on the seller’s behalf, engages in certain activities in Michigan. In addition, a seller will be presumed to be making sales in Michigan if the seller enters into an agreement with one or more Michigan residents under which the resident, for a commission or other consideration, refers potential purchasers to the seller, such as by a link on a website). This is sometimes referred to as “click-through” nexus. If you are a seller that sells into Michigan on or after October 1, 2015, and you are not already registered with the Department of Treasury and remitting sales or use tax, you may need to register for Michigan sales and use tax. For information regarding Michigan’s tax registration and remittance requirements, please contact a member of Foster Swift's State and Local Tax group.
