The R&D tax credit expired at the end of 2013 … again. It was the ninth time this has happened since the credit was first enacted in 1981. Although Congress is widely expected to renew it, uncertainty around the timing and length of that renewal is posing big challenges for tax and finance departments.
25 Feb 2014Joe Harpaz
As in years past, the expiration of the credit has sparked a litany of commentary about the inability of the U.S. government to pass a law. Some have argued that the lapse in the credit will hurt U.S. job creation. Others have used it as a political pawn to deflate President Obama’s State of the Union proclamation that: “We know that the nation that goes all-in on innovation today will win the global economy tomorrow.”
While these knee-jerk reactions are to be expected, they don’t get to the heart of the matter. The real issue here is: How, exactly, does the expiration of the R&D tax credit (temporary or not) affect businesses that invest heavily in R&D?
We have a unique perspective on this because our software is used by these businesses’ tax departments to calculate their various tax exposures around the world. Based on our conversations with these clients and our own software updates to accommodate the lapse of the R&D credit, the real challenge posed by this situation is accurate forecasting.
Consider the standard month-end workflow for a large corporate tax department. Whether the company is following GAAP or IFRS accounting standards, it would be expected to accrue its monthly results based on expected earnings and tax rate for the next 12 months. (more…)
Over the last couple of decades, open source code has grown increasingly popular among technology and development professionals. Open source is code that is available to the general public for use and/or modification.
GitHub is the preeminent online repository of open source code. This code community enables developers to provide feedback, contribute enhancements, fork the code to create new projects, or simply use something from GitHub’s enormous selection (over 10 million repositories as of December 2013).
While our Tax & Accounting business has consumed open source code from GitHub and similar sources for years, they just recently published their first open source code on GitHub. (more…)
Did you ever wonder how Hollywood (the industry) came to be located in Hollywood (the city)? It wasn’t just the weather. Though the temperate climate did help early movie makers shoot outside year-round, the real reason for the westward migration of the film industry in the early 1900s was to escape a tax of sorts. (more…)
Will 2014 be the year we trade in our credit cards and abandon our wallets in favor of virtual currencies? If you follow the recent hype surrounding bitcoin, the trendiest of the new crop of digital currencies, you could be swayed into thinking that good, old-fashioned cash was going the way of the dinosaur.
24 Jan 2014Joe Harpaz
According to The Wall Street Journal, over the course of 2013, the price of bitcoin rose from $13.50 to roughly $650, down from a high of $1,200 in November. By contrast, the U.S. dollar gained about 0.5% over the year, according to the ICE Dollar Index. Clearly, there is a growing interest in bitcoin. But it’s not just currency speculators, digital miners and early adopters driving the surge in interest. Regulators, banking institutions and tax authorities have also started paying attention to bitcoin and asking one big question: Who will regulate it?
This week, Wells Fargo called a “Bitcoin summit”, convening a group of finance executives, virtual currency experts and U.S. government officials to discuss the “rules of engagement” with bitcoin amid concerns that the currency could lead to money laundering and tax evasion. Wells Fargo chief executive John Stumpf was quoted:
“We want to make sure we understand what it is, what it does and what it does not… The world is changing and will continue to change. Whether bitcoin will be a big part of that, who knows?”
The team in Portage, Michigan team collected 140 toys and gifts to be donated to the Bronson Children’s Hospital and the Boys & Girls Club of Kalamazoo. The Toy Drive is the third charitable campaign that the Portage team conducted this year, which included the Open Roads Bike Program (in which they donated gently used bicycles) and the Loaves & Fishes program (which allowed them to donate two filled barrels of food for the needy).
“The Thomson Reuters Portage office is compassionate and committed to investing in our community,” said Pam West, senior executive assistant and one of the toy drive’s chief organizers. “We all know people who need help. For instance Stan Town (QA analyst), one of the toy drive organizers, had a grandson who was in Bronson Children’s Hospital for over a week this summer. He saw firsthand the need for toys and what smiles they can bring.” (more…)
We are honored to have two employees named as two of the most powerful women in accounting in 2013.
The 2013 Most Powerful Women in Accounting Award winners were named recently by CPA Practice Advisor. Director of Sales for myPay Solutions Elena Hesse and Director of Training and Consulting Jean Rakich were both among the list of honorees.
The annual awards originated last year when CPA Practice Advisor decided to recognize women who provide significant influence on the accounting profession. The 2013 honorees were chosen based on how they demonstrate true leadership and commitment, along with their professional contributions and initiatives, leadership and community involvement.
“To be recognized on a list containing so many accomplished women is an incredible honor,” Elena, a first-time recipient, said. “To represent Thomson Reuters is truly a privilege.”
“I am very excited to receive this award, especially when I see the other women who were also honored,” Jean said, who has now won the award for the second consecutive year. “To be part of such a powerful group of women and to be able to represent Thomas Reuters in this positive way is incredible, and I very much appreciate this recognition.”
Congratulations to Elena and Jean on their outstanding recognition. To see the full list of honorees, click here.
As a newly minted contributor to Forbes.com, he’s building on his industry reputation as the go-to-guy for corporate tax advice with thought-provoking blogs that speak to innovation and leadership.
Highly entrepreneurial, highly competitive and highly esteemed, few things stir the passion of Joe Harpaz more than delighting customers and producing great results. We asked Joe to riff on a variety of topics, including his team’s success, what he’s learned along the way, and what it means to be delighted.
Can you tell us about a time you yourself were delighted as a customer, and what you learned from the experience?
Harpaz: I think delight happens when you enjoy an experience because of an element of positive surprise – getting more than you could’ve expected. Sometimes this can be financially meaningless, but it makes a statement to show caring or sensitivity about the emotional aspect of a purchase. In today’s world, this is probably most apparent in consumer-related purchases where retailers are trying to really differentiate themselves through the experience and not just the product. (more…)
This annual award is bestowed by the NAAAP-DFW on those professionals in the Asian American community who have achieved noteworthy success in their professions and who have made a significant impact in their local communities. For this year’s award, five winners were selected from a pool of nominees in the Dallas-Ft. Worth area. (more…)
Jane Walshe Jane Walsh is a member of the regulatory intelligence team at Compliance Complete. A lawyer, she has worked for the Financial Services authority and JP Morgan Securities; the views expressed are her own.
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