National Association of Manufacturers - NAM’s Post

With quite a few tax updates and changes occurring in 2023 that affect the manufacturing and distribution (M&D) industry, it’s a challenge to make sure you stay up-to-date.

Head up for Manufacturing companies. You could soon enjoy instant tax deductions for R&D costs. But be ready to track and report changes, like time invested and updates to Form 6765. 👇 Read more: https://okt.to/Q43btk

➡ Action Needed: As many of you know, several organizations are working to restore three critical manufacturing tax policies that are important to help support US #manufacturing. If you haven't already it is important to contact ✍ your local senators and representatives and show your support for the bill that was recently passed by a key committee. All the information you need can be found in the link below.

The perception that the retail sector doesn't pay taxes often stems from a lack of visibility into informal or unregistered businesses operating within it. In reality, many retail businesses do fulfill their tax obligations, but there are certainly those that operate outside the formal tax system, thus evading taxation. This not only deprives the government of much-needed revenue but also creates an uneven playing field for law-abiding businesses. To address this issue, it's crucial to emphasize tax compliance and bring all retail businesses into the formal tax framework this way the government can enhance revenue collection, promote fairness in the marketplace, and create a level playing field for businesses. By controlling spending, governments can mitigate the need for frequent tax hikes, thereby alleviating the burden on existing taxpayers. #TaxSystem #Budget #taxes #Retail

Q2 Compliance deadlines are approaching! Have you reviewed the important dates and deadlines for April, May, and June? #Compliance - April 1: The first required minimum distribution (RMD) is owed to participants who have reached age 73 or retired (whichever happened later) in the previous year - April 15: Processing corrective distributions for participants whose 401(k) deferrals exceed the annual 401(k) deferral limit under IRC Section 402(g) - April 15: Filing individual and corporation tax returns - April 15: Contribution deadline for deductibility for self-employed individuals (without extension) - April 15: Requesting automatic extension to October 15 for individual and corporate tax returns - May 31: Filing HSA contributions and participant statements if applicable, review instructions for Forms 1099-SA and 5498-SA - June 30: Processing corrective distributions for failed ADP/ACP test from plan with EACA without 10% excise tax (if applicable)

Independent adjustment of controlled transaction prices: key conclusions from the Individual Tax Consultation. If the terms of controlled transactions adhere to the "arm's length" principle, everything is in order. Otherwise, adjustments may be necessary. Taxpayers have the right to independently adjust the price of a controlled transaction and the amount of tax obligations, provided this does not result in a reduction of tax to the budget. Adjustments are made to either the maximum or minimum value of the price range (profitability), depending on the circumstances. Each controlled transaction is considered separately when determining the price range and adjustment amount. The Code does not provide for offsetting positive and negative adjustments of separate transactions; therefore, an increase in tax obligations is only considered for those transactions that increase the taxable income. Taxpayers have the right to independently adjust the price of a controlled transaction according to Article 39 of Section I of the Code, even after the deadline for submitting the tax declaration has passed. In the case of independent adjustment, a clarifying calculation can be submitted, and the underpayment amount can be paid without a penalty if done no later than October 1 of the year following the reporting year. Income tax payers who have conducted controlled transactions must complete the TC Annex to the tax declaration, where differences for adjusting the taxable income are calculated. IPC from 25.05.2023 №1272_ІПК/99/00-21-02-03-0672 #ControlledTransactions #ArmLengthPrinciple #IndependentAdjustment #TCAnnex #UkraineTaxCode

A Quick Overview Of The Important Tax-Related Aspects Of Nonqualified Stock Options (NQs) From A U.S. Perspective Are you familiar with Nonqualified Stock Options (NQs) and their tax implications? 📈 Here's a quick U.S. tax breakdown: - Tax Treatment: Ordinary income (treated like an employee’s salary, with applicable federal, FICA, state and local taxes) - Tax on Grant Date: No - Tax on Exercise: Yes (on the “spread”, aka fair market value at the time of exercise – exercise price) - Tax on Future Sale of Security: Yes (short or long-term capital gains), on the difference between the fair market value at the time of sale - fair market value at the time of exercise  - How Much Tax Paid: Ordinary income rate for recipient (Federal 22% if < $1MM, otherwise 37%) - Tax Reporting Form: W-2 for employees, 1099-NEC for non-employees - Corporate Tax Deduction: Company can take a tax deduction corresponding to the spread Understanding these can help you maximize your benefits and stay compliant. Learn more about NQs and other equity awards on our website. #EquityAwards #StockOptions #TaxPlanning

Don’t leave manufacturing tax exemptions on the table. Learn how a reverse sales and use tax audit can uncover potential tax savings. https://hubs.la/Q02v2K0r0

Q2 Compliance deadlines are approaching! Have you reviewed the important dates and deadlines for April, May, and June? #Compliance • April 1: The first required minimum distribution (RMD) is owed to participants who have reached age 73 or retired (whichever happened later) in the previous year • April 15: Processing corrective distributions for participants whose 401(k) deferrals exceed the annual 401(k) deferral limit under IRC Section 402(g) • April 15: Filing individual and corporation tax returns • April 15: Contribution deadline for deductibility for self-employed individuals (without extension) • April 15: Requesting automatic extension to October 15 for individual and corporate tax returns • May 31: Filing HSA contributions and participant statements if applicable, review instructions for Forms 1099-SA and 5498-SA • June 30: Processing corrective distributions for failed ADP/ACP test from plan with EACA without 10% excise tax (if applicable)

For small manufacturers that are organized as pass-throughs, a critical tax deduction is set to expire at the end of 2025. Manufacturers are sounding the alarm as part of the NAM’s #ManufacturingWins tax campaign. Learn more: https://bit.ly/3SFUoMH