10.10.23
Current Expected Credit Losses (CECL) – What is That?!
In 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update changes the way an entity measures its credit losses (bad debts) for most financial assets, including trade accounts receivable. This Client Alert provides an overview of the new credit loss standard with a focus on the key provisions that will be common to most entities.

10.06.23
Chicago to Phase Out Subminimum Wage for Tipped Workers
Chicago has joined several states and Washington, D.C. in eliminating the lower minimum wage for tipped workers, sometimes referred to as the “subminimum” wage. The One Fair Wage ordinance, passed by the Chicago City Council on October 6, gradually increases the minimum wage for tipped workers, eventually requiring tipped workers receive the same minimum wage as non-tipped workers.

10.05.23
Illinois Office of the Attorney General Clarifies Revised Reporting Requirements
The Illinois Office of the Attorney General has provided additional information on recent amendments to the Solicitation for Charity Act that will be effective January 1, 2024. According to the Office, the new requirements will apply to annual reports that have an initial due date after the January 1, 2024 effective date.

09.20.23
IRS suspends processing of ERC claims
In the face of a flood of illegitimate claims for the Employee Retention Tax Credit (ERC), the IRS has imposed an immediate moratorium through at least the end of 2023 on processing new claims for the credit. The reason the IRS cites for the move is the risk of honest small business owners being scammed by unscrupulous promoters who submit questionable claims on their behalf.

09.19.23
IRS Issues Guidance on New Retirement Catch-Up Contribution Rules
In December 2022, President Biden signed the Setting Every Community Up for Retirement Enhancement (SECURE) 2.0 Act. Among other things, the sweeping new law made some significant changes to so-called catch-up contributions, with implications for both employers and employees.

09.18.23
Tax Relief for Hurricane Idalia Victims
The IRS postponed deadlines to file various individual and business tax returns and make tax payments for taxpayers affected by Hurricane Idalia in Florida and in South Carolina. Affected individuals and businesses in Florida will have until February 15, 2024 to file returns and pay any taxes that were originally due after August 26, 2023 in Florida and August 29, 2023 in South Carolina.

09.05.23
Accounting for Leases and Leasehold Improvements under Common Control Arrangements
In March 2023, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2023-01, Leases (Topic 842): Common Control Arrangements. This ASU includes an optional practical expedient for private companies and certain not-for-profit entities with leasing arrangements under common control. It also includes mandatory updates to the accounting for leasehold improvements when the related leases are with parties under common control. This Client Alert will explain in more detail the accounting impact of ASU 2023-01 on entities with leasing arrangements under common control and the transition options available when adopting the provisions of ASU 2023-01.

08.29.23
New Electronic Filing Requirements for W-2s and Certain Information Returns
Historically, businesses were not required to file information returns electronically unless 250 or more returns of one type were filed.  The Internal Revenue Service has now substantially modified the electronic filing threshold for information returns, including Form W-2, that are filed in calendar years after December 31, 2023.

08.23.23
The IRS Warns Businesses about ERC Scams
The airwaves and Internet are inundated these days with advertisements claiming that businesses are missing out on the lucrative Employee Retention Tax Credit (ERC). While some employers do indeed remain eligible if they meet certain criteria, the IRS continues to caution businesses about third-party scams related to the credit. While there is nothing wrong with claiming the credits that you are entitled to, those that claim the ERC improperly could find themselves in hot water with the IRS and face cash-flow problems as a result.

08.21.23
Extension of Federal Tax Deadlines for Taxpayers Impacted by Storms in Illinois
Based on the disaster declaration issued by the Federal Emergency Management Agency (FEMA) for the severe storms and flooding that occurred in parts of Illinois (DR-4728-IL) between June 29, 2023 and July 2, 2023, the Internal Revenue Service (IRS) announced (IL-2023-06) that federal tax filing and payment deadlines falling between the dates of June 29, 2023 and October 30, 2023 have been extended to October 31, 2023 for certain taxpayers, including taxpayers residing in or having their principal place of business located in Cook County, Illinois.