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Chicago Addresses What Constitutes a “Chicago Address”

We recently represented a Florida-based company who leased property in the City of Chicago.  Being an out-of-state company with no Chicago location but a large number of Chicago customers, the company was aware of the Chicago Lease Transaction Tax and regularly collected and remitted it from its customers. Still, under audit, Chicago found a number of “error transactions” – instances where Chicago claimed tax should have been collected but was […]

February 1, 2016

True Insight: Mapping Your Way to Sales Tax Success

The average tax software has between 1,500 – 2,000 codes. Are you using the right one?  You’ve just invested in a tax-automation software. So now, you can sit back and let the tax decisions make themselves, right? Unfortunately, it’s not quite that simple. Two of the things we see most frequently are (1) clients who have purchased a tax software, but aren’t sure how to classify their products/services into the myriad of […]

February 1, 2016

Chicago Cuts a Break for Taxpayers Just in Time for the Holidays

Considering a Chicago VDA? Why it pays to act now. Taxpayers considering disclosing unpaid lease tax liability are incentivized to act fast. Any lessee or lessor filing a lease tax voluntary disclosure application (“VDA”) with the City of Chicago by January 1, 2016 will be eligible for special benefits under the city’s limited amnesty program. The program mostly benefits lessors and lessees with significant usage of remotely-accessed hardware or software. VDA Offer Terms No […]

December 7, 2015

New Partnership Audit Rules – The Tide Has Turned

The Bipartisan Budget Act of 2015 (the “2015 Budget Act”) signed by President Obama on November 2, 2015 includes provisions that significantly change the rules for partnership audits, making the process easier for the Internal Revenue Service to audit and collect taxes from partnerships. Repeal of Prior Law Currently, there exist three different regimes for auditing partnerships dependent mainly on the number of partners: TEFRA, Electing Large Partnership Rules, and […]

November 15, 2015

FASB—Accounting for Share-Based Compensation (Topic 718) Simplifications on the Horizon

On June 8, 2015 the Financial Accounting Standards Board (“FASB”) issued an exposure draft No. 2015-270 proposing to simplify the financial statement reporting of share-based compensation. The exposure draft is entitled “Improvements to Employee Share-Based Payment Accounting” and requests comments by August 14, 2015. The proposed modifications regarding Accounting Standards Codification 718 (“ASC 718”) will have significant implications  from both a public and private company financial statement reporting perspective. The […]

June 23, 2015

IPEs, EAEs and UDAs – The Alphabet Soup of Internal Control Audit Risk

As companies continue to rely more and more on electronic support and documentation, auditors are paying more attention to the resulting technology risks. In 2013, COSO issued an updated framework providing new guidance for companies related to internal controls reporting. One of the important updates relates to electronic information produced by entities (IPEs) commonly referred to as Electronic Audit Evidence (EAEs) or User Developed Applications (UDAs). Once focused primarily on spreadsheets, this […]

June 17, 2015