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Manufacturing and Distribution

Producing Success Together

Operating a successful manufacturing and distribution business today is more complicated than ever and it takes more than ordinary solutions to succeed. At Anchin, we understand the tough issues that you face - issues such as rising labor and production costs, increased competition, shrinking margins and rapidly changing technology. Facility costs can be analyzed, but do little without an understanding of your options. We know the challenges that you're faced with, from environmental concerns to dealing with lenders.

Services include:

  • Accounting and auditing
  • Cash flow projections
  • Flash reports
  • Gross profit by product lines
  • Chargeback analysis
  • Manufacturing and financial information
  • Systems recommendations
  • Mergers and acquisitions
  • Cost containment analysis
  • Tax planning
  • Tax credits and incentives
    • Research and Development tax credits

Does your company qualify for Research and Development (R&D) tax credits? Manufacturers perform two-thirds of all private-sector research and development in the nation, driving more innovation than any other sector. Most US manufacturing and distribution companies, even those that produce their products overseas, maintain technical design personnel, materials development and production process teams in the US whose activities may in fact qualify as R&D.

The professionals on Anchin’s manufacturing and distribution R&D team understand the important role the industry plays in keeping the US 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 team includes audit, tax and advisory professionals with years of experience identifying issues and solving problems for every type of business within the manufacturing and distribution industry subsectors, including:

  • Chemicals
  • Computer and electronic components
  • Consumer products
  • Food and beverage
  • Furniture and related products
  • Industrial machinery and equipment
  • Jewelry
  • Sheet metal and metal products
  • Paper and pulp
  • Petroleum, coal and related products
  • Plastic and rubber
  • Printing
  • Textile mills and apparel
  • Transportation equipment
  • Wood, leather and related products

Our manufacturing and distribution 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 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 credit calculation because the nature of their business has changed.

To learn more about Federal and State Research and Development tax credits.

Success Stories

News

  • Cerberus Exits Albertsons via Discounted IPOJune 29, 2020

    A reduced price for supermarket giant Albertsons Companies Inc. (ACI) by Cerberus Capital Management LP got the initial public offering from the supermarket giant to the finish line on Friday, June 26.  

    Cerberus sold all 50 million shares in the IPO for the Boise, Idaho supermarket chain for $800 million in proceeds, about seven years after the New York private equity firm acquired the company. 

  • Paycheck Protection Program (PPP) Loan Forgiveness Interim Final Rules ReleasedJune 26, 2020

    Additional guidance has been released on the PPP Loan Forgiveness process. This guidance is critical to converting PPP Loans into the “grants” that many businesses need to survive. Carefully following the guidelines will allow you to maximize loan forgiveness.

  • Will Americans keep snacking at higher levels post-lockdown?June 25, 2020

    Consumer packaged goods companies were realizing an “incredible bump to their business” in two ways, according to Greg Wank, practice leader in food and beverage for Anchin.

  • Economic Injury Disaster Loans (EIDL) Portal Reopening Offers Additional Relief For BusinessesJune 23, 2020

    Last week, the Small Business Administration (SBA) resumed accepting new online applications for EIDL and related emergency grants. 

  • New EZ and Revised PPP Forgiveness Applications for the Paycheck Protection Program (PPP) ReleasedJune 18, 2020

    On June 17, 2020, the Small Business Association (SBA) in consultation with the Department of the Treasury, posted a revised PPP loan forgiveness application and instructions (Form 3508 - revised June 16, 2020), which implements the PPP Flexibility Act of 2020 that was signed into law on June 5, 2020. In addition, the SBA also published a new “EZ” version of the loan forgiveness application – Form 3508EZ.

  • Seeing Around Corners: Positioning Your Business For A Post-Lockdown Environment June 11, 2020

    Co-Managing Partner Russell B. Shinsky shares what considerations business leaders should make as the economy gradually begins to reopen.

  • The Latest Updates on the Paycheck Protection Program Flexibility Act and the Main Street Lending ProgramJune 10, 2020

    Late Monday, the SBA and Treasury issued a joint press release that was followed by a press release from the Federal Reserve (“The Fed”).

  • PPP Flexibility Act Becomes LawJune 8, 2020

    The U.S. government has enacted changes to the Paycheck Protection Program (“PPP”) including the relaxation of PPP Loan Forgiveness rules with the goal of making it easier for many businesses to qualify for loan forgiveness on a larger portion of their loans. These changes were signed into law on Friday, June 5, 2020 through the Paycheck Protection Program Flexibility Act of 2020 (PPPFA). This new legislation contains many important changes to the PPP.

  • Congress Provides Welcome Modifications to PPP In New BillJune 4, 2020

    Congress has acted to change the Paycheck Protection Program (“PPP”) including to relax PPP Loan Forgiveness rules with the goal of making it easier for many businesses to qualify for loan forgiveness on a larger portion of their loans. The extended “shutdown” of many areas begged for an extension to the forgiveness period as well as an easing of other requirements of the program. The President’s approval is still required to enact this legislation.

  • Federal Reserve Releases Further Guidance on $600 Billion Main Street Lending ProgramJune 1, 2020

    On May 27, 2020, the Federal Reserve Bank of Boston released FAQs and form documents for the Main Street Lending Program, signaling that loans under this program will be made available soon.  This Anchin Alert updates and supplements our previous Anchin Alert regarding the Main Street Lending Program issued on May 5, 2020.

  • What the PPP Forgiveness Guidelines Mean For YouMay 18, 2020

    The long awaited forgiveness procedures have been released after much delay and offer new details, yet leave many questions open. Here is an overview of what we know so far. 

  • What Partnerships and Seasonal Employers Need to Know About Requesting Additional PPP Loan AmountsMay 15, 2020

    Anchin’s COVID-19 Resource Team continues to monitor ongoing updates to the PPP Program. Borrowers need to understand how these changes and clarifications may affect their application, loans and forgiveness. Here are new updates related to partnerships and seasonal employers.

  • For Companies Retooling to Fight COVID-19, R&D Tax Credits Are Important WeaponsMay 14, 2020

    For many companies, catalyzing successful innovation is already critical to long-term strategy and success. Companies recognize the importance of tax credits and incentives as critical weapons in remaining competitive and harnessing innovation. This R&D tax credit may be increasingly attractive for companies that are redesigning their business processes and/or product innovation in the face of the pandemic.

  • Important PPP Loan Update: FAQ #46 AND #47 Safe Harbor Guidance on Economic Uncertainty CertificationsMay 14, 2020

    Additional guidance has been released related to how borrowers' certification of necessity for Paycheck Protection Program (PPP) loans will be evaluated by the Treasury. This topic has caused concern among borrowers since additional restrictions and conditions have been placed on PPP loans throughout the application and borrowing process. Here is some key information to assist you.

    The Department of the Treasury (the “Treasury”) has issued further guidance to borrowers who are required to make good-faith certifications concerning the necessity of their PPP loan requests.  Since the passing of the CARES Act on March 27, 2020, the Treasury has issued 47 Frequently Asked Questions (FAQs) for PPP loans and responses. On May 13, 2020, the Treasury published FAQ #46: How will SBA review borrowers’ required good-faith certification concerning the necessity of their loan request?  The Treasury’s answer separates PPP borrowers into two groups based on their loan size: borrowers with loans less than $2 million and more than $2 million.

    In addition, the Treasury published FAQ #47 which addresses the interim final rule posted on May 8, 2020.  That rule provided that any borrower who applied for a PPP loan and repays the loan in full by May 14, 2020 will be deemed by SBA to have made the required certification concerning the necessity of the loan request in good faith.

  • Important PPP Loan Update: FAQ #46 Safe Harbor Guidance on Economic Uncertainty CertificationsMay 13, 2020

    Additional guidance has been released related to how borrowers' certification of necessity for Paycheck Protection Program (PPP) loans will be evaluated by the Treasury. This topic has caused concern among borrowers since additional restrictions and conditions have been placed on PPP loans throughout the application and borrowing process. Here is some key information to assist you.

  • What You Need To Know About Updates to the PPP Loan ProgramMay 6, 2020

    The Treasury and the Internal Revenue Service continue to issue guidance on the PPP Loan Program and other COVID-19 relief programs. The updates have included additional FAQs, program reports and statements from the Treasury.

  • Additional Relief: Federal Reserve Releases Additional Guidance on $600 Billion Main Street Lending ProgramMay 5, 2020

    On Thursday, April 30, 2020, the Treasury Department and the Federal Reserve (the “Fed”) released updated guidance on the Main Street Lending Program, which is comprised of the Main Street Expanded Loan Facility (the “Expanded Loan” or “MSELF”), the Main Street New Loan Facility (the “New Loan” or “MSNLF), and a newly added third option, the Main Street Priority Loan Facility (the “Priority Loan” or “MSPLF”).  Together, these three facilities comprise $600 billion of funding for loans to small and mid-sized companies on favorable terms in order to provide additional COVID-19-related financial relief. 

  • A Tax Credit for COVID-19 InnovationMay 5, 2020

    Manufacturers repurposing production and research to support the relief effort may qualify.

  • What to Know About the Research & Development (R&D) Tax Credit and the IRS’ New Compliance CampaignMay 1, 2020

    The R&D tax credit can be a powerful incentive, often providing a hidden source of cash from prior years’ expenses while also serving to significantly reduce current and future years’ federal and state tax liabilities. The R&D tax credit is also a tool for refueling a company’s R&D efforts. Planning ahead by creating an infrastructure that identifies qualifying research activities and collects contemporaneous documentation is essential to reducing future tax liabilities and synthesizing an R&D tax credit that will be sustainable on audit examination. There has been a new development related to this credit. 

  • IRS Update: Deductions Related to Forgiven PPP Loans Are Non-DeductibleMay 1, 2020

    Late yesterday, the Internal Revenue Service (“IRS”) issued Notice 2020-32, relating to the deductibility, for Federal Income Tax purposes, of the expenses paid with the proceeds of a PPP loan that is subsequently forgiven.  

  • Starting the Week with Critical Updates to the SBA Paycheck Protection ProgramApril 27, 2020

    There have been additional developments over the last several days regarding the Paycheck Protection Program (PPP) and the only thing we can say with certainty is that more changes will come!

  • Shared Work Programs Can Help Employers and Employees Navigate COVID-19 Business DisruptionApril 27, 2020

    In the past few weeks, much attention has been focused on programs established as part of The CARES Act to assist employers and employees suffering from the business disruption caused by COVID-19.  In addition to the new programs that have been created, existing unemployment programs can also benefit employers and employees in managing the current environment. 

  • An Update on PPP Loan ForgivenessApril 20, 2020

    The CARES Act provides that PPP loans can be forgiven, on a federally tax-free basis, up to 100% of the amount borrowed if the company meets certain criteria.

  • Important Reminder – Update Your Calendar For New Tax DatesApril 14, 2020

    The COVID-19 pandemic has changed so much about our personal and financial lives. One item to keep in mind is that the Internal Revenue Service, along with most states, have changed the due date for filing income tax returns and paying your balances for 2019, as well as your 1st and 2nd quarter estimated tax payments for 2020.

  • Important Guidance on Calculating PPP Loan Forgiveness and Related Documentation RequirementsApril 13, 2020

    Now that many eligible companies have applied for a PPP loan, and some have started to receive their loan proceeds, it is time to turn our attention to the rules for loan forgiveness. 

  • Additional Business Relief: Federal Reserve Releases Guidance on $600 Billion Main Street Lending ProgramApril 13, 2020

    On Thursday, April 9, 2020, the Treasury Department and the Federal Reserve (the “Fed”) released details of the Main Street Lending Program, which is comprised of the Main Street Expanded Loan Facility (the “Expanded Loan Facility”) and the Main Street New Loan Facility (the “New Loan Facility”).  Together, these two facilities will make up to $600 billion of funding available for loans to small and mid-sized companies on favorable terms in order to provide additional COVID-19-related financial relief.  The Main Street Lending Program should provide much-needed liquidity to businesses that may not have qualified for a PPP loan under the CARES Act by having a special purpose vehicle created by the Fed purchase 95% of each loan from eligible lenders made under this program through September 30, 2020.    

  • SBA Issues Interim Final Rule on PPP Loan ProgramApril 3, 2020

    Last evening, the Treasury Department issued its first formal Rule related to the PPP Loan Program created by the CARES Act.  In it, the SBA has waived the comment period and the normal 30-day delayed effective date, making this Rule effective immediately.  The Interim Final Rule clarifies certain key components while other items remain unclear. Borrowers will need to carefully evaluate direction from the CARES Act, the Interim Final Rule and the Loan Application Instructions to determine the position that best fits their circumstances.

  • PPP Loan Update – Urgent MatterApril 2, 2020

    There are several areas of the PPP loan application process that are uncertain and that may require additional guidance. Until the Treasury and/or lenders provide additional clarification, business owners must evaluate whether they are able to file accurate applications which maximize benefits.

  • Treasury Provides Clarity on the Paycheck Protection Loan ProgramApril 1, 2020

    Further clarity from the Treasury Department was released yesterday on the PPP Loan Process.

  • Understanding How the Paycheck Protection Loan Program Can Provide Support For Your BusinessMarch 31, 2020

    On Friday, March 27, 2020, The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), a $2 trillion stimulus bill, was signed into law. The CARES Act allocated approximately $350 billion to help small businesses keep workers employed and cover certain expenses while dealing with the impact the pandemic has had on the United States’ economy and its citizens’ health.  The CARES Act established the Paycheck Protection Program (“PPP”) that enables qualifying small businesses to borrow up to $10 million.  These loans are eligible to be forgiven, if the loan proceeds are used pursuant to criteria as defined in the CARES Act, and other requirements are met.  Loans are available to eligible borrowers under this program through June 30, 2020.  The CARES Act requires the Small Business Association (SBA) to draft regulations around implementation including a list of lenders regarding these loans.  In addition, businesses who have taken out SBA Economic Injury Disaster Loans have further considerations as discussed here.

  • Navigating Uncharted Waters: Responding to the Business Impact of COVID-19March 31, 2020

    While all organizations are in uncharted waters in dealing with the resulting economic turmoil, professional firms such as ours have a responsibility to help clients navigate through the crisis. Many businesses have addressed the immediate needs created by the pandemic: implementing remote workplace regimens, revising paid-time-off and other policies to assist employees, enacting customer support programs, etc. Having addressed the most urgent needs, it is now time to focus on issues that pose an existential threat to long-term business continuity and viability. Here is some advice that we’re sharing with our firm’s clients.

  • Introducing Anchin’s COVID-19 Resource TeamMarch 30, 2020

    To assist you with evaluating the broad range of programs now available, we have established the Anchin COVID-19 Resource Team, a coordinated group of experienced professionals that will work alongside your engagement teams, in claiming the benefits you need to meet your cash flow, maintain your workforce and handle other critical challenges.

  • Senate Approves Over $2 Trillion in Relief to Ease Economic HardshipMarch 26, 2020

    The Senate finally approved legislation providing over $2 trillion of relief designed to ease the hardship caused by the coronavirus outbreak. This legislation still requires approval from both the House and President. Approval from both is expected over the next few days.

  • The Impact of the New Revenue Recognition Standard for You and Your Consumer Products BusinessNovember 12, 2019

    Resources from our 11/12 session covering the five-step model and industry specific considerations for Consumer Products companies. 

  • Tips for Emerging Consumer Brands Focused on High GrowthJanuary 11, 2019

    Even the biggest industry players were once emerging brands. It is a success story that we have seen time and time again, yet no two cases are quite the same. In our years of work with emerging brands, certain themes have presented themselves, and while your goals are unique to you, you may be able to benefit from some of these lessons learned.

  • 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:

  • 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.

  • The Tax Cuts and Jobs Act Doesn’t Cut the R&D Tax CreditDecember 27, 2017

    On December 22nd, President Trump signed the Tax Cuts and Jobs Act of 2017 (“TCJA”) into law, setting the stage for the most sweeping update to the U.S. tax code since 1986 tax reform enacted under President Reagan.  The centerpiece of the TCJA, is a permanent reduction in the corporate tax rate from approximately 35% to 21%. Thankfully, as expected, the final law has preserved the research and development (“R&D”) tax credit, which was made permanent in the Protecting Americans against Tax Hikes (“PATH”) Act of 2015. 

  • 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.

  • 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.

  • 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.

  • 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. 

  • COVID-19 Update Center

    The Anchin COVID-19 Update Center is available to simplify your access to critical financial information. It is updated regularly to supplement your communications with your…

  • How Does Tax Reform Impact You?

    6 Recent Tax Law Changes That Technology Companies Need to Know07/25/2019 Automatic Extension Available for Making Portability Election1/31/2019 What Should Businesses Know About Qualified Opportunity Zones?1/15/2019 How Can…

Whitepapers

  • A Tactical Approach to R&D Tax Credits for Defense ContractorsNovember 12, 2018

    The purpose of this article is to help private military defense contractors obtain a better understanding of the federal R&D tax credit and how it may help enable military defense innovations. This article also explores recent defense innovations for land, air, sea, cyberspace, and outer space threats and how the federal R&D tax credit incentive offered may be able to save a business money when developing these solutions.

  • Improving Packaging Design ROIMarch 29, 2016

    Yair Holtzman of Anchin, Block & Anchin examines how expenses to improve packaging design can qualify for research and development tax credits. As new materials,…

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