Fashion companies are competing in a global marketplace. Our fashion clients represent a cross section of the industry and include some of the most successful companies. These companies include manufacturers, wholesalers, importers, designers and retailers with national and international reach.
As advisors to the fashion industry, we have experienced the global and local issues that affect the way they do business and are well positioned to help them deal with changing conditions. Cash flow planning, gross profit by product line, chargeback analysis, assistance with access to capital, and operational improvements are just a few ways we help fashion companies gain an edge. Our clients benefit from our strong relationships in the financial community, as banks and factors respect the quality of our financial statements.
Tax planning is essential to the fashion industry, as opportunities such as research and development tax credits and other tax credits and incentives are explored for potential benefits. We understand the owners’ goals and help establish a strong estate planning strategy, building around profitability and long term plans.
- Financial and cash flow projections
- Gross profit by product lines
- Chargeback analysis
- Manufacturing and financial information systems recommendations
- Tax planning
- Estate and distribution planning
- Information systems management
“It has been over 10 years since we began our relationship with Anchin, Block & Anchin. They not only provide us with our accounting and tax preparation needs, but also act as a true business advisor and sounding board on a regular basis. Anchin’s services are comprehensive, professional and timely. Marc and his team pay attention to detail, are always accessible to us and their approach to new issues and problems have been a great value to our company. We look forward to continuing our relationship for many years to come.”
-Lynn, Steven and Dorothy Roberts, The Echo Design Group
Research and Development
Does your company qualify for Research and Development (R&D) tax credits? The fashion industry is an essential component of the U.S. economy, consisting of 7,000 firms and employing in excess 130,000 employees. Innovation has long been considered a cornerstone of growth for the industry, leading to new products and processes to meet market requirements and demands. Accelerated growth is again expected due to lower input costs and the realization of rewards associated with prior investment in direct-to-consumer sales channels.
Anchin’s professionals understand the important role the fashion industry plays in keeping the U.S. competitive in an increasingly global economy. Our industry experience, attention to detail and expert judgment result in accurate, highly defendable tax credit calculations. Our dedicated fashion industry team includes audit, tax and advisory professionals with years of experience identifying issues and solving problems for every type of business within the industry, including companies involved in footwear, textiles, formal wear and performance wear.
Our fashion industry R&D team ensures that our clients benefit from all of the incentives available to them. Anchin helps clients assess their R&D tax credits at all phases of their business, from the time they first consider entering a new market (white space evaluation) and throughout the product lifecycle. We are particularly skilled and experienced at identifying qualifying projects and initiatives in each area of your business and are experts at examining and capturing all allowable expenses towards your company’s research credit.
Anchin works with clients interested in claiming the R&D tax credit for the first time, and those who have difficulty meeting the contemporaneous documentation requirements needed to support their R&D claim. We also assist clients who have had a significant portion of their R&D claim disallowed, and those who need to reassess their R&D tax credit calculation because the nature of their business has changed.
- Testimonial: Michael C. Fina
“We have been a client of Anchin for more than 20 years. Mike and the team helped us navigate through succession planning for our family business, serving as a valuable sounding board and business advisor to our management team."
- Testimonial: Adjmi Apparel Group
“At Adjmi Apparel we do not take changing partners or advisors lightly. In June 2014 we did make a decision to move our business to Anchin, and we believe we made the right choice."
- Testimonial: The Echo Design Group
“It has been over 10 years since we began our relationship with Anchin, Block & Anchin. They not only provide us with our accounting and tax preparation needs, but also act as a true business advisor and sounding board on a regular basis."
- R&D Tax Credits Case Studies: Fashion
The following are two fashion company case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax
- Avoiding Double Taxation from Selling a C-Corp – Not Easy but PossibleOctober 15, 2018
When the owner of a C-Corporation sells their business for a profit, the profits will be taxed twice: once at the corporate level and again when money is distributed to the owner/shareholders as a dividend. However, in some circumstances there may be a way to avoid the double taxation. It’s a difficult strategy to pull off but could be possible under the right conditions.
- Finally Some Digestible Meal and Entertainment GuidanceOctober 3, 2018
On October 3rd, the Internal Revenue Service released Notice 2018-76 providing transitional guidance on how the Tax Cuts & Jobs Act changes to the deductibility of Entertainment expense affects the 50% deductibility of business Meals that taxpayers and professionals had been hungering for. While the guidance is transitional, it provides clarity on some of the issues we had previously provided comments on:
- More than HistoriansOctober 1, 2018
Almost by definition, most accounting firms are historians, simply reporting the results of a client’s recent past. But that’s not even half the job, according to Marc Federbush, leader of the Fashion Group at New York City-based accounting and advisory firm Anchin.
- Attention Amazon Vendors – Changes to Sales Tax Collection Policy in WA, MA and NYJune 19, 2018
Online retail giant Amazon reached an agreement this year with the states of New York, Washington and Massachusetts that may affect many of the site’s sellers and vendors from a sales tax perspective.
- Tax Cuts and Jobs Act Substantially Limits Meals and Entertainment DeductionFebruary 14, 2018
The 2017 Tax Cuts and Jobs Act introduced some significant limitations to the meals and entertainment deduction. The new law makes two major changes to the meals and entertainment rules, which can impact your business.
- Tax Cuts and Jobs Act Will Greatly Impact Consumer Product CompaniesFebruary 1, 2018
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, brings many changes to the tax landscape in which consumer product companies operate. Here are the most important changes in the new law that will impact your business.
- South Dakota v. Wayfair Inc. May Significantly Change How Retailers Collect Sales TaxJanuary 17, 2018
It is no secret that there has been a dramatic change in the system of collection of sales tax in the United States in recent years, partially due to trends such as online shopping. A recent court case that could dramatically change the laws on sales tax and have a potentially significant impact on businesses and consumers is progressing through the judicial system.
- Tax Cuts and Jobs Act Offers Favorable Tax Breaks for BusinessesDecember 28, 2017
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.
- Congress passes biggest tax bill since 1986December 21, 2017
On December 20, the House passed the reconciled tax reform bill, commonly called the “Tax Cuts and Jobs Act of 2017” (TCJA), which the Senate had passed the previous day. It’s the most sweeping tax legislation since the Tax Reform Act of 1986. The bill makes small reductions to income tax rates for most individual tax brackets, significantly reduces the income tax rate for corporations and eliminates the corporate alternative minimum tax (AMT).
- New York City Takes a Step Towards Tax Relief for Small Businesses in ManhattanDecember 1, 2017
The New York City Council passed a bill that will relieve many businesses in Manhattan of a portion of their tax expense.
- Tax Reform Proposals Affect Partnerships and S CorpsNovember 16, 2017
On November 9, 2017 the Senate Republicans released their version of tax reform. The Senate version has similarities to the House’s proposal, but there are some distinct differences, including the relief for small businesses.
- Compare and Contrast the House and Senate Tax BillsNovember 14, 2017
Many of the House and Senate provisions are similar. For example, both plans would repeal the alternative minimum tax and retain the charitable contribution deduction. However, there are a number of key differences. Here’s a look at some of the most significant.
- Senate GOP Releases Tax Reform PlanNovember 14, 2017
The Senate released its long awaited tax reform proposal. While many similarities exist with the House bill many differences also exist. Here are a few observations.
- Year-End Tax Planning for Businesses: Looming Tax Reform Creates Planning ChallengesOctober 30, 2017
As the end of 2017 approaches, the prospect of dramatic tax reform makes year-end tax planning especially challenging. In late September, the Trump administration and Republican congressional leaders unveiled their Unified Framework for Fixing Our Broken Tax Code. The framework proposes reduced tax rates for businesses as well as changes to a variety of business tax benefits. But there’s a great deal of uncertainty over when — and if — tax reform will be implemented and which proposals could make their way into possible new tax legislation.
- U.S. Research and Development Tax CreditOctober 30, 2017
Yair Holtzman, Leader of Anchin's Research and Development Tax Credits Group, explains how the credit works and shares his findings on the impact of the PATH Act.
- It’s Not Too Late to Amend Your 2016 Tax Return for the R&D Tax CreditJuly 5, 2017
Recently, the IRS issued interim guidance on how eligible small businesses can benefit from a new provision that enables them to apply their Section 41, Research and Development tax credit against their payroll tax liability instead of their income tax liability, allowing qualified companies to start using the credits before becoming profitable.
- Your Health Insurance Company May Ask for Your Social Security NumberOctober 8, 2015
Your health insurance company may request that you provide them with the social security numbers for you, your spouse and your children covered by your health insurance policy.
- Trade Preferences Extension Act: What Does it Mean for Your Company?July 9, 2015
On June 30, 2015, the President signed the Trade Preferences Extension Act ("The Act") into law. The Act will renew the Generalized System of Preferences (GSP), which provides duty-free treatment for selected goods from "beneficiary developing countries," such as Brazil, India, etc.
- Identity TheftJanuary 14, 2015
Identity thieves stole an estimated $5.2 billion from the Internal Revenue Service (IRS) this past year. The threat of identity theft and refund fraud has increased substantially over the past few years.
- How Does Tax Reform Impact You?
Examining Home Mortgage Interest and Home Equity Loan Interest Deductibility under the TCJA11/30/2018 Opportunity Zone Proposed Regulations Issued: What Was Answered10/22/2018 Finally Some Digestible Meal and Entertainment