In this 2018 first quarter update, we cover some of the most important tax issues for companies in the technology, communications and media, and life sciences industries and highlight what your organization can do to stay ahead of them.
Tax Reform Resources
The impact of tax reform legislation, commonly referred to as the Tax Cut and Jobs Act, includes significant changes for businesses and individuals alike.
Here are some of the relevant areas impacted by tax reform:
- Technology, communications and media, and life sciences companies
- Multinational companies
- Individuals
- Accounting for income taxes
Payroll Tax Offset
Tax reform maintained the research credit and the ability to offset payroll taxes with research credits. In our Insight from 2016, we cover credit qualifications and how start-ups can benefit from offsetting payroll tax with the R&D tax credit. Learn more.
Medical Device Excise Tax
The suspension of the medical device excise tax, originally enacted as part of the Affordable Care Act, was extended for another two years—2018 and 2019—under the January budget deal HR 195. Our Alert covers the details. Learn more.
State and Local Taxes
In addition to navigating federal impacts, companies might need to account for their state’s approach to adopting tax reform, which can vary across states. Our Insight explores how different states adopt tax laws. Learn more.
Texas Tax Amnesty Program
Texas companies that haven’t filed their tax returns may qualify for a recently established amnesty program this year. Our Alert outlines qualifications and program dates. Learn more.
April 2, 2018, Deadline for Texas Refund Requests
Providers of cable television, internet access, or other telecommunications services have until April 2, 2018, to submit refund requests for taxes paid in 2017 on qualifying purchases. Learn more.
Washington B&O Tax Advisory
The Washington Department of Revenue released a tax advisory detailing business and operations tax classifications for telecommunications services. It’s important for providers to be aware of the following categories, as they may affect how they file taxes:
- Service and Other Activities B&O Tax
- Wholesaling B&O Tax
- Retailing B&O and Retail Sales Tax
Additional Accounting for Income Taxes Information
The Financial Accounting Standards Board, commonly referred to as the FASB, and the SEC have issued additional guidance addressing accounting, disclosures, and implementation issues related to tax reform. Our Alert provides background and highlights key provisions. Learn more.
SEC Quarterly Reporting
As public companies begin 2018 quarterly reporting, they’ll need to apply many of the new tax changes for the first time and might consider allowing for additional time to calculate their annual effective tax rate. In addition, companies may need to review their need for a valuation allowance for part or all of their deferred tax assets.
We’re Here to Help
Moss Adams continuously reviews the regulatory and tax landscape for technology, life sciences, and communications and media companies. For more information about any of the issues discussed above or for insight on how they may impact your business, contact your Moss Adams professional.