Anchin’s Technology Industry Group is uniquely qualified to serve the diverse needs of entrepreneurial, venture capital and private equity-backed businesses ranging from start-ups to growing and established technology companies.
For nearly 100 years, Anchin has been advising businesses and investors on matters that mean the most to them such as maximizing stockholder value, realizing their financial vision, and organizing the company in the most efficient and advantageous ways for future growth, investments and exit strategies.
Our expert professionals help companies throughout their lifecycle obtain access to capital and financing, consider the most effective tax and equity structure, navigate national and international expansion, and provide due diligence for buy/sell side merger and acquisition opportunities. Our team also assists in developing key employee retention strategies, performing valuations, and providing clients with a seamless approach in generating and utilizing tax credits and incentives, including research and development (“R&D”) tax credits, and other state and local incentives.
Accounting and tax services
- Audit and attest services
- Revenue recognition (ASC 606) consulting
- Intellectual property and other intangible assets such as website and software development costs
- Equity based compensation analysis
- Tax planning and compliance
- Qualified Small Business Stock (“QSBS”) consulting
- Section 382 NOL analysis
- State and local tax services including nexus analysis
- Section 199a pass-thru deduction analysis
- International taxation strategies and transfer pricing studies
- Tax credits and incentives (including R&D tax credits)
Business advisory services
- Transaction advisory and due diligence services
- Pre-IPO services
- Client accounting advisory services (“CAS”)
- Cybersecurity protection and technology efficiency
- SOC and PCI readiness assessments
- Business valuations and related services
- Litigation and forensic services
- Risk assessment at strategic and operational levels
- Succession and estate planning
- Key employee retention and attraction strategies
- Wealth management and personal financial planning
- Overhead cost reduction
- Recruitment of C-Suite financial personnel
Research and Development
R&D tax credits are available to technology businesses that produce or develop new or improved products, processes, principles or methodologies. In addition to “revolutionary” activities, in some cases, the credit may be available if the company has performed “evolutionary” activities such as investing time, money, and resources toward improving its products and processes.
The Protecting Americans from Tax Hikes (PATH) Act of 2015 made the R&D Tax Credit permanent and made the R&D Tax Credit more available than ever to small and mid-sized businesses. The Tax Cuts and Jobs Act of 2017 lowered the corporate tax rate, while preserving and keeping permanent the R&D Tax Credit for qualifying US businesses. Changes to the PATH legislation include:
- US businesses and business owners with revenues less than $50 million can now use the R&D Credit to offset their alternative minimum tax (AMT) and
- Start-up companies with gross receipts less than $5 million can now use the R&D Credit to reduce their payroll tax liability
The R&D team at Anchin ensures that you can benefit from all tax credits and incentives available to you. Anchin helps you assess your R&D tax credits at all phases of your business, from the time you first consider entering a new market (white space evaluation) and throughout the product lifecycle. We work with clients interested in claiming the R&D credit for the first time, clients who have difficulty meeting the contemporaneous documentation requirements needed to support their R&D claim, and clients who need to reassess their R&D credit calculation because the nature of their business has changed.
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. Our dedicated team includes audit, tax, and advisory professionals with years of experience identifying issues and solving problems for every sector within the technology industry including:
- Communications Equipment
- Electronics Equipment, Instruments & Components
- IT Services
- Semiconductors & Semiconductor Equipment
- Technology Hardware, Storage & Peripherals
- R&D Tax Credits Case Studies: Technology
The following are two examples of client development efforts in the software and IT industry which further illustrate the types of projects and activities that
- What You Need to Know About Remote Work and Sales TaxOctober 19, 2021
We discuss some of the obstacles companies with remote employees confront when addressing their sales tax obligations in states in which they have not previously operated.
- Is Your Technology Company Missing Out On a Significant Tax Incentive?October 6, 2021
The Research and Development (“R&D”) Tax Credit (or “R&D Credit”) is an often an overlooked tax incentive due to many misconceptions regarding its applicability to those creating or introducing a new product or technology to the marketplace.
- Opportunity for Businesses: The COVID Economic Injury Disaster Loan (EIDL) Limit Increases by $1.5 million to $2 millionSeptember 22, 2021
On October 8, 2021, the Small Business Administration (SBA) will begin approving COVID EIDL applications for loans greater than $500,000, increasing the COVID EIDL cap to $2 million. COVID EIDLs are loans directly from the SBA that must be repaid. Proceeds from a COVID EIDL can be used for working capital to make regular payments of operating expenses, and to pay business debt incurred at any time in the past, present, or future.
- Paycheck Protection Program (PPP) - Key Updates on Loan Forgiveness FilingsAugust 19, 2021
Many Borrowers who took out their first draw PPP loans in April 2020 and May 2020, but have not yet filed for forgiveness, have likely been contacted by their bank regarding the due date of the loan forgiveness application. A PPP borrower typically has until 10 months after the end of its Covered Period (which lasted up to 24 weeks after the date that the loan was funded) to file for forgiveness before the Borrower is required to begin making payments on the loan.
- Puerto Rico Act 60: How You Can Lower Your Federal and State Tax Rates Under the Resident Tax Incentive CodeJuly 12, 2021
The Tax Incentive Code, known as “Act 60”, provides tax exemptions to businesses and investors that relocate to, or are established in, Puerto Rico. The incentives are particularly attractive to U.S. citizens who move to Puerto Rico because they do not need a residency permit, their Puerto Rico income is exempt from U.S. federal and state income taxes and they get to keep benefits such as Medicare and Social Security. Furthermore, the Puerto Rico tax code mirrors the U.S. Internal Revenue Code, making the transition much easier for those who become bona fide residents of Puerto Rico.
- Anchin: Personalized Accounting Services for Holistic GrowthJune 18, 2021
The COVID-19 pandemic has presented challenges to accounting firms and their clients, many of whom are still working on a strategy to combat this unprecedented situation. While CFOs and other finance professionals spent much of 2020 addressing the pandemic's hardships, in 2021 they will likely be shifting their focus toward implementing long-term plans to position their organizations for growth and profitability. Despite its toll on people and businesses, the pandemic has created an opportunity for accounting firm leaders to influence positive outcomes by reevaluating and adjusting their goals and executing wellthought-out strategies. As a result, advisory services are among the fastest-growing segments for firms such as Anchin, one of the country's leading accounting and advisory firms. Since the onset of the pandemic, Anchin’s team of professionals have made it a priority to assist their clients through COVID-19 related hardships including guiding clients through the transition to remote working, evaluating cash flow and costs, and providing them with continuous information and updates on the Paycheck Protection Program (PPP) and other incentives and programs.
- The Mergers and Acquisitions Market is Bouncing Back!June 16, 2021
Deals are back in full force! Global M&A activity through May 2021 was over $1.0 trillion, compared to just $550 billion over the same period in 2020.
- Can You Benefit from New Jersey’s New Emerge Program?June 9, 2021
On January 7, 2021, New Jersey passed the Economic Recovery Act of 2020 (the “Act”), which contains a comprehensive recovery package addressing the ongoing economic impact of the COVID-19 pandemic. Specifically, the Act includes over 15 different economic development programs incentivizing job creation, capital investment and community revitalization. Recently, the New Jersey Economic Development Authority (“NJEDA”) approved details regarding the Act’s new Emerge Program (the “Program”), a jobs-based tax credit program for businesses that invest private capital in the state and target priority industries. These tax credits are available for up to seven years.
- What Technology Companies Need to Know About the Enhanced NJEDA Technology Business Tax Certificate Transfer ProgramMay 12, 2021
The Technology Business Tax Certificate Transfer Program enables qualified, unprofitable, NJ-based technology or biotechnology companies with fewer than 225 U.S. employees (including parent company and all subsidiaries) to sell a percentage of their net operating losses (NOL) and research and development (R&D) tax credits to unrelated, profitable corporations.
- Is Your Business Eligible for the Employee Retention Credit under the New “Recovery Start-Up Business” Provision?May 11, 2021
The American Rescue Plan Act of 2021 enacted in March 2021 added the “Recovery Start-Up Business” provision so that a new business that could not get the benefit of the Employee Retention Credit (ERC) under the CARES Act or the Consolidated Appropriations Act, may now qualify for up to $100,000 in refundable payroll tax credits.
- Key Updates Regarding the Expansion of COVID-19 Economic Injury Disaster Loans (EIDL)April 22, 2021
The Small Business Association (SBA) has issued various updates related to the amount of disaster loans available to address the ongoing strife faced by many businesses in the wake of the COVID-19 pandemic, including the potential to request an increase to an existing loan.
- What You Need to Know About the American Rescue Plan Act of 2021March 12, 2021
On March 11, 2021, the American Rescue Plan Act of 2021 (ARP) was signed into law by President Biden. The contents of the $1.9 trillion bill are mostly in line with the plan set forth by President Biden before he was inaugurated on January 20. The package is intended to provide additional economic relief related to the ongoing COVID-19 pandemic, and the majority of funds are allocated towards enhanced unemployment relief, expanded funding for COVID-19 relief programs, aid to state and local governments, and assistance to schools. From a taxpayer perspective, the bill included tax provisions that provide relief both to businesses and individuals through enhancements, and expansions of credits and programs that were put in place to keep families and small businesses afloat through the ongoing crisis. This includes an extension of payroll tax credits first instituted at the start of the pandemic for businesses.
- Do You Qualify for the Tax Benefit of Home Office Deductions?March 9, 2021
Are you one of the millions of people working from home during the COVID-19 pandemic? To contain the spread of the COVID-19 virus, many business owners and their employees were required to work from home. After incurring the costs to set up a workstation, you may have noticed that you are using more electricity and water, talking more on the phone, and relying on an extra cost super-fast internet connection to get your work done. How should you treat these extra costs? Have you been wondering whether you can claim a federal tax deduction for home office expenses? Here is what you need to know about qualifying for home office tax deductions.
- Paycheck Protection Program (PPP) – What You Need to Know About the Certification for Economic Uncertainty for First Draw and Second Draw LoansMarch 8, 2021
On March 3, 2021, the Small Business Administration (SBA) updated its Frequently Asked Questions (FAQs) for Lenders and Borrowers. There are now 65 FAQs that address various issues impacting the PPP loan program. There is a separate set of FAQs specifically focused on PPP Loan Forgiveness. This Alert is focused on FAQ 46, which was revised on March 3, 2021 to include a response for Second Draw loans.
- Anchin Opens Long Island Office to Accommodate Growing Team of Industry Experts March 4, 2021
Anchin is pleased to announce that it has opened an office on Long Island, in Uniondale, New York.
- Anchin’s Olamide Ajibesin Named to 2021 Top 25 Most Influential Women in Mid-Market M&AFebruary 1, 2021
Mergers & Acquisitions names 2021 Top 25 Most Influential Women in Mid-Market M&A, including Anchin’s Olamide Ajibesin.
- Additional Relief For Businesses: First Draw PPP Loans and Changes to the Forgiveness RulesJanuary 12, 2021
The focus of this Alert is to summarize the rules and regulations for Borrowers who either will be applying for their First Draw PPP Loan or who want to amend their existing PPP loan by applying for additional funding. In addition, we will outline some changes to PPP loan forgiveness.
- Round 2 – What the Latest SBA Guidance on the Paycheck Protection Program (PPP) Means For You When It Comes to Drawing a Second LoanJanuary 11, 2021
The focus of this Alert is to summarize the rules and regulations for PPP Second Draw Loans regarding eligibility, applications, and forgiveness. This Alert will be followed with one that addresses rules and regulations for Borrowers who either will be applying for their First Draw PPP loan or for Borrowers who want to amend their existing PPP loan and apply for additional funding.
- New Stimulus: What You Need to Know about the Tax Provisions of the Consolidated Appropriations Act, 2021 (The Act) December 30, 2020
Additional relief is on the way for individuals and businesses. Here are the key provisions of the additional round of stimulus in The Act passed by Congress and signed by the President.
- Expenses Paid for with PPP Loan Funds are Now DeductibleDecember 28, 2020
After many months of debate and consternation, Congress has finally overridden the guidance issued by the IRS and Secretary Mnuchin regarding deducibility of expenses paid for with PPP loan funds.
- Paycheck Protection Program (PPP) – Round 2 December 28, 2020
On December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021, (the “Relief Act”), which includes a relief package consisting of $900 billion in aid to small businesses and individuals impacted by COVID-19. The focus of this Alert is to address changes made to the Paycheck Protection Program (PPP) through Title III – Continuing the Paycheck Protection Program and Other Small Business Support (Section 301-348) of the Relief Act.
- What IRS Guidance on Deductibility of PPP Expenses Means To YouNovember 30, 2020
The forgiveness of a Paycheck Protection Program (PPP) loan is excludible from taxable income. Earlier this year, the Treasury Department released Notice 2020-32 which states that expenses paid with the proceeds of a forgiven loan should not be deductible for tax purposes, as that would result in a double tax benefit. Many professional tax advisors thought the IRS reasoning behind Notice 2020-32 was not sound and did not match the original intent of Congress when they made forgiven PPP loan proceeds excludible from income. Indeed, the Congressional Budget Office had to “rescore” the cost of the legislation as they assumed the expenses would be allowed as a deduction. All are waiting for additional legislative guidance to clarify this matter. While certain members of Congress, on both sides of the aisle, have voiced opposition to the IRS position, no legislation has been forthcoming to date.
- Non-qualified Stock Options vs. Incentive Stock Options: Which is right for your company?November 12, 2020
Being able to attract and retain key talent can substantially aid a company’s ability to succeed and grow. There are many offerings that can appeal to key employees, and one that tends to be popular is a stock option plan. If you are looking to provide your employees with an incentive stock option (“ISO”) plan or a non-qualified stock option (“NSO”) plan, you will want to make a careful and informed choice.
- The SBA Issues PPP Loan Necessity Questionnaires for Loans of $2 Million or Greater for CommentNovember 10, 2020
On October 26, 2020, the Small Business Administration (SBA) announced in the Federal Register two new forms: Form 3509, PPP Loan Necessity Questionnaire (For-Profit Borrowers), and Form 3510, Loan Necessity Questionnaire (Non-Profit Borrowers). Although these forms have not been widely distributed, the SBA is accepting public comment on them through November 25, 2020.
- Paycheck Protection Program (PPP) Loan Forgiveness – A Focus on Calculating FTEs September 29, 2020
Many Borrowers are still in the process of gathering payroll data, health and retirement costs, rent, utilities and mortgage interest costs so that they can file their PPP Loan Forgiveness Application. Although there may be many questions on various facets of how to calculate eligible payroll and non-payroll costs, the focus of this Alert is on the definition of average Full-Time Equivalent (“FTE”) Employees and how this is calculated.
- The NY Shield Act: It’s Time to Take Things SeriouslySeptember 16, 2020
Effective as of March 21, 2020, New York enacted one of the most aggressive state data breach notification laws in the United States, the “Stop Hacks and Improve Electronic Data Security" (SHIELD) Act. This law applies to any person or business (even those operating outside of New York) that collects and maintains New York residents’ “private information.”
- Social Security Tax Deferral Raises Questions and ConcernsSeptember 8, 2020
In our previous communication, we wrote about President Trump’s executive order allowing a deferral of the employee’s portion of FICA or social security tax (6.2% of wages). The Treasury just released Notice 2020-65 providing some additional guidance on the topic. Unfortunately, many questions remain unanswered.
- INSIGHT: Financing Innovations in Emerging Technologies With R&D Tax CreditsAugust 27, 2020
The research and development tax credit can help finance emerging technologies. Yair Holtzman and Joseph Lally list multiple technologies that could be eligible for the credit and outline requirements to claim the credit.
- How the New Interim Final Rule May Impact Your PPP Loan ForgivenessAugust 26, 2020
This week, the SBA issued a new Interim Final Rule (IFR) on the Treatment of Owners and Certain Nonpayroll Costs that greatly impacts many PPP borrowers.
- What Does the Executive Order Deferring Payroll Tax Mean For You?August 18, 2020
President Trump recently released a memorandum on deferring the withholding, deposit and payment of the employee’s share of the 6.2% social security tax on wages paid during the period of September 1, 2020 through December 31, 2020. This deferral only applies to employees with bi-weekly pre-tax income of less than $4,000. This approximates an annual salary of $104,000. Treasury Secretary Mnuchin recently stated that participation in this program is optional for an employer. Should you participate? Here are a few concerns and considerations to help you make that decision while additional details are released.
- How the Most Recent FAQs on PPP Loan Forgiveness May Impact YouAugust 10, 2020
On August 4, 2020, the Small Business Administration (the “SBA”), in consultation with the U.S. Department of the Treasury (the “Treasury”), issued guidance in the form of Frequently Asked Questions (“FAQs”) on PPP Loan Forgiveness. Some longstanding questions were answered (e.g., what is transportation under utilities? See below for the answer), other questions were not, and some FAQ answers raise new questions. The FAQs are structured in four categories: (i) General Loan Forgiveness FAQs (3 in this section), (ii) Loan Forgiveness Payroll Cost FAQs (8 in this section), (iii) Loan Forgiveness Nonpayroll Costs FAQs (7 in this section), and (iv) Loan Forgiveness Reductions FAQs (5 in this section). In this outline, we will revisit how we got here and address some of the key FAQs that resolve questions related to the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
- INSIGHT: Taking Another Look at the Foreign-Derived Intangible Income DeductionJuly 24, 2020
The Foreign-Derived Intangible Income (FDII) income deduction is not the simplest of calculations. Gwayne Lai, Amanda Scott, and Yair Holtzman of Anchin show how some taxpayers can use existing R&D data to get a head start.
- 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.
- 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.
- Anchin: The Virtual Strategist CFOJune 12, 2020
Chris Noble explains how Anchin's outsourced accounting services group, now rebranded as the Client Accounting Advisory Services Group (CAS), is a natural extension of Anchin's proactive client service model.
- 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 You Need to Know about the Paycheck Protection Program (“PPP”) and the Tax Deductibility of Expenses Related to Loan ForgivenessMay 27, 2020
The PPP Loan Program offers much needed relief to qualified businesses struggling with the challenges of the COVID-19 crisis. Yet the ongoing changes to the rules for borrowing and loan forgiveness have made navigating the program and claiming benefits challenging as well. Let’s review a key topic - the taxation of both loan forgiveness and the expenses paid with PPP Loan proceeds.
- 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.
- 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.
- 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.
- The CARES Act: Commonly Asked Questions for Technology CompaniesMay 1, 2020
With Congress swiftly passing the largest economic stimulus package in history, it’s no surprise that the provisions of the CARES Act raised a significant amount of questions. In the past week alone we’ve seen more guidance and continued confusion amongst taxpayers. We hope the confusion subsides as more guidance is released over the coming days. Although we have received many questions, here are some of the most commonly asked questions we have recently discussed with technology companies.
- 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.
- 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.
- 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!
- 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.
- More Relief Available for Technology CompaniesApril 16, 2020
The Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) includes a wide range of financial and tax relief for businesses and individuals. The Paycheck Protection Program (“PPP”) has been the recent focus for “small” businesses. The PPP allows qualifying small businesses to borrow up to $10,000,000 based on qualified compensation paid to employees. These loans are eligible for forgiveness if the loan proceeds are used for qualified purposes during the 8-week “benefit period” that begins with receipt of the funds, based on criteria defined in the CARES Act. Evaluating your PPP spending options is crucial and could hold the key to the future survival and success of your business. Click here for more information on PPP loan forgiveness and related documentation requirements.
- 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.
- 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.
- 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.
- PPP Clarifications from Treasury DepartmentApril 7, 2020
The Treasury Department has released FAQs providing further clarification of the PPP loan program. We suggest that you review this update carefully to determine how it may affect your application and the calculation of your loan amount.
- Responding to COVID-19 Challenges of Technology FirmsApril 6, 2020
Our Technology Group has been closely monitoring the latest COVID-19 developments, particularly the recently enacted Paycheck Protection Program Loans (“PPP”).
- 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.
- Managing Cash Flow During COVID-19April 1, 2020
As COVID-19 is rapidly creating disruption in the economy, businesses of all sizes across the globe are facing severe economic challenges. Making smart strategic decisions now will better prepare you for the uncertainty and unpredictability of the future. Anchin has some helpful hints to minimize spending and maximize your cash flow.
- 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.
- 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.
- 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.
- Coronavirus Stimulus Act UpdateMarch 25, 2020
Congress and the White House have agreed on a comprehensive package of relief for business, individuals, state and local governments and hospitals. The proposed package is still pending subject to a vote by the House and Senate, and approval by the President.
- 5 Tips to Help You Build Your Five-Year Plan Now February 20, 2020
For a tech startup, the future may look nothing like the present. Those five years can move quickly – which is why it’s vital to start thinking about the answer now.
- The Impact of the New Revenue Recognition Standard for Public Relations, Advertising, Digital Media and Technology/Software CompaniesDecember 17, 2019
Resources from our 12/17 session covering the five-step model and industry specific considerations for Services companies, including PR/Advertising/Media and Technology.
- 6 Ways Accounting Firms Can Innovate SuccessfullySeptember 17, 2019
Anchin Partner Russell Shinsky is quoted extensively in this interview with BKR International's Aiysha (AJ) Johnson about accounting firms of the future and innovation.
- 6 Recent Tax Law Changes That Technology Companies Need to Know July 25, 2019
The Tax Cuts and Jobs Act (TCJA), which was signed into law over a year ago, has ushered in many changes that impact taxpayers, and in particular, technology companies. Following are six tax law changes that technology companies should be aware of before filing their annual income tax returns.
- Meet the Anchin R&D Tax Credits Team: Yair HoltzmanJanuary 29, 2019
As the Research & Development (“R&D”) Tax Credits Group Practice Leader, I am responsible for the leadership, strategic focus and business performance of the group. In this role, I oversee the R&D group’s growth, vision, diversification and development.
- 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:
- Impact of the Recent Tax Reform on the Private Equity IndustryMay 15, 2018
The Tax Cuts and Jobs Act (the “Tax Act”), which was signed into law on December 22, enacted a broad range of changes with most provisions taking effect for tax years beginning after December 31, 2017. This alert summarizes some of the key (federal) tax provisions of the Tax Act affecting the private equity industry.
- New Tax Law Provides Potential Deferral Opportunity for Equity Compensation Granted by Privately Held CompaniesMarch 9, 2018
The recently passed Tax Cuts and Jobs Act has attempted to cure a common problem that employees of privately held companies encounter when certain types of equity compensation convert and become income.
- 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 Bill Impacts Service FirmsDecember 28, 2017
On December 22, President Trump signed into law the “Tax Cuts and Jobs Act of 2017” (TCJA). The bill contains many provisions effective in 2018 that will significantly impact professional and non-professional firms.
- 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.
- 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).
- Taxes for LLC vs. C-Corp: Which is more beneficial for a Technology Company?December 14, 2017
When making the decision about the type of entity you will choose for your business, there are many factors that need to be considered. Whether it is legal structure and liability, current and future tax implications, set up and compliance costs, or flexibility and exit strategy, there are a variety of elements which will help guide the decision.
- 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.
- Techweek Recap: How to Successfully Execute Mergers & AcquisitionsNovember 10, 2017
Anchin recently sponsored Techweek New York, a week-long conference which exists to spread wealth creation to a diversity of places and people through supporting the emergence of substantial and sustainable businesses, which they call Hero Companies.
- 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.
- 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.
- Venture-Backed Activity Grows in 2017, but So Does the Average Investment LifeSeptember 26, 2017
While 2016 saw somewhat of a correction in Venture Capital activity from the highs of 2014-2015, 2017 has begun a rebound and is on pace to top 2016. However, data has shown a growing disparity between the number of VC investments and the number of exits by venture-backed companies, indicating that late-stage companies have increasingly chosen to continue raising capital rather than move forward with an exit.
- New Jersey Angel Investor Tax CreditMay 24, 2017
New Jersey has amended and expanded the rules for claiming the Angel Investor Tax Credit. The Angel Investor Tax Credit provides for a tax credit equal to ten percent (10%) of the qualified investment made by a taxpayer in a New Jersey emerging technology business.
- Trusting Leadership: Member Spotlight with Christopher NobleMarch 7, 2017
Technology Practice Leader Christopher Noble featured in a member spotlight by Thuzio Executive Club
- Balancing risk and reward: A roundtable discussion on fast growthJuly 1, 2016
Anchin Technology Practice Leader, Christopher Noble, shares his best strategies for managing technology change, attracting A players and bringing outside financing to the table.
- Managing growth: Growing a business from startup to finishSeptember 1, 2015
SmartCEO and Anchin Technology Practice Leader Christopher Noble gathered alumni of the Future 50 program which honors up-and-coming, fast-growth companies, to look back on past challenges and share future plans.
- Proposed Regulations Provide Clarity and Guidance Related to Computer Software as it Applies to the R&D Tax CreditJanuary 26, 2015
On January 16, the Treasury and IRS released proposed regulations (REG-153656-03) regarding internal use software ("IUS") expenditures as related to the Section 41 Research & Development ("R&D") tax credit. The proposed regulations contain several important changes related to claiming the R&D tax credit for IUS expenditures.
- 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
- 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.
- Software Development and the Research CreditMarch 1, 2017
This article discusses the definition, workings, recent history / developments, and calculation methodologies for the R&D tax credit. It then offers specific examples of qualifying
- The Research and Experimentation Tax Credit: A Credit Fraught with Uncertainty and in a Process of ExperimentationJanuary 1, 2011
Abstract Purpose – The purpose of this paper is fourfold: to provide an overview of the alternative simplified credit (ASC) and a basic understanding of how
- Utilizing Innovation and Strategic Research and Development to Catalyze Efficient and Effective New Product DevelopmentJanuary 1, 2010
Introduction The ability to effectively innovate and develop new products is a vital core competency that any company must possess if it is going to be
- Chris Noble, Leader of Anchin's Technology GroupMay 11, 2020
Chris Noble discusses Anchin’s Technology Industry Group and the services they provide for entrepreneurial, venture capital and private equity-backed businesses ranging from emerging start-ups to growing and established technology companies.
- Anchin Webinar: Tax Reform Discussion - How will the Bill Affect You? Get the Answers; Not Just the FactsJanuary 12, 2018
In this recorded webinar, Anchin assembled a panel of top professionals from varying viewpoints, including Real Estate, Financial Services, Professional Services, Technology, and Private Client to have a Q&A session on the effects of the new tax reform.