COVID-19 Resources for You
In times of great uncertainty, there is power in knowledge and preparation. In response to the coronavirus (COVID-19) outbreak throughout the United States and beyond, we’ve assembled industry experts to give you guidance and solutions to combat the ramifications on your business.
Continue to visit the Friedman COVID-19 Resource Center for breaking...
5 Challenges E-Commerce Companies Can Expect in 2021By Michael Sacco, CPA, Partner
While companies in the travel and hospitality sector continue to face the brunt of the impact from the COVID-19 pandemic, e-commerce companies have flourished. Consumers are spending more time at home and retail trends continue to shift away from brick and mortar stores towards online shopping.
The Census Bureau of the...
Post-Economic Shutdown: Cybersecurity DebriefBy Michael J. Schenck | Friedman CyZen LLC
In February 2020, safety and legal decrees forced many businesses to shut down their offices as part of a greater effort to minimize and contain the spread of COVID-19. Now, nearly a year later, we are left to wonder: in our response, have we effectively utilized our security frameworks?
COVID-19, the Public Support Test and your Nonprofit’s StatusBy Marie DeCicco, Denise McKnight and Sarah Avery
COVID-19 has had a vast and varied impact on our economy. Unfortunately, in many ways nonprofits are bearing the brunt of a post-COVID economy characterized by tightening of wallets and reduced cash flow. Among the many unexpected challenges it has introduced, a post-pandemic economy could contribute to an unanticipated change...
FireEye Hacked! What this means for the rest of us.
Everyone is susceptible to successful cyber-attack, even one of the world’s best cybersecurity firms: FireEye. You may have heard the name prior to the recent reports of a breach, as people from FireEye are frequently guests on national news shows or quoted in national and international publications.
Let’s take a closer look at...
FireEye Breach: Three Key Lessons
On December 8, 2020 FireEye, a respected global cybersecurity firm, announced that it had been breached by a sophisticated hacking group using novel tools. That makes FireEye the latest cybersecurity company to suffer from an attack, with past victims including Symantec, Kaspersky and RSA, among others. Read the full article,...
What Public Companies Need to Know About CAMsBy Amber Czulada, Audit Manager and Brian Kearns, CPA, Partner
Three years after the Public Company Accounting Oversight Board’s (PCAOB) new auditing standard on the auditor’s reporting model became effective for large accelerated filers on December 15, 2017, auditors are now preparing to communicate critical audit matters (“CAMs”) for non-large accelerated filers. Communication of CAMs for audits of non-large accelerated...
What You Need to Know about State vs. State Telecommuting Rules During the PandemicBy Tom Corrie JD, LL.M., Principal
As employees continue to work remotely through the COVID-19 pandemic, some states are concerned about potential lost tax revenue with respect to non-residents who normally live in a neighboring state, but work in the subject states.
Since my previous article about the state tax issues created by the extended period of...
How Current Tax Laws, the CARES Act and an Election Year Have Made 2020 an Ideal Time to Give.By Jo Anna M. Fellon, CPA, Co-Lead Partner, Private Client Services
Individual and corporate taxpayers historically look to the fourth quarter to solidify charitable giving opportunities and crystalize tax-efficient strategies. Although 2020 has been unprecedented in many ways, and even with ever-present socioeconomic unrest which has given many Americans great pause, there has been an unexpected uptick in year-to-date charitable giving....
Substantially every DC Plan Document will require restatement by July 31, 2022By David I. Waddington CPA, Partner
Approximately every six years, the Internal Revenue Service (“IRS”) requires significantly all company-sponsored, pre-approved DC (“defined contribution”) retirement plans to update their documents through a “restatement” process. DC plans include 401(k), Profit Sharing and Money Purchase, among others. This current restatement is commonly referred to as “Cycle 3 Restatement.”
Client Alert: IRS Announces 2021 Limits Affecting Qualified Plans
Dear Clients and Friends, each year, the IRS announces tax inflation adjustments for the following year.
The tax inflation adjustments are based on changes to the Consumer Price Index (CPI). Illustrated below are the differences from last year to this year.
If you have any questions about this alert, please contact David...
Mergers and Acquisitions During COVID-19: Challenges and Opportunities
Experts from Friedman LLP, HSBC, MMG Advisors and Morrison Cohen recently came together for a special webinar, Mergers and Acquisitions: Business Growth in a Time of Upheaval. Panelists explored the state of mergers and acquisitions amid COVID-19 – laying out a strategic roadmap for navigating today’s ‘new normal.’ Attendees were invited...
Tax Planning Guide 2020 - 2021
Tax planning in unprecedented times
If You Incentivize Them, They Will Come: How Urban Landlords are Offering Perks to Fill UnitsBy Michael Stoler, Real Estate Expert
Landlords of residential apartment buildings across New York City’s five boroughs are offering “friends and family discounts” to incentivize prospective tenants to sign a one- or two-year lease.
During the early days of the pandemic, it was impossible for a tenant to personally visit an apartment. With in-personal tours and open...
Careful What You LEASE for: Knowing when IRC Sec. 467 applies to your leasing agreement
The current economic downturn caused by the COVID-19 pandemic has greatly impacted the commercial real estate industry. Even the most seasoned experts are left scratching their heads, trying to determine which direction the real estate market is heading. Taking matters into their own hands, tenants and landlords are modifying leases...
SPACs, IPOs – What to Know About Going Public By Maggie Chiang, CPA, Senior Audit Manager
Special Purpose Acquisition Companies ("SPAC") are companies created solely for the purpose of raising capital via Initial Public Offerings (“IPO”) and in pursuit of transactions. These entities have grown in popularity, particularly over the past two years. Statistics show that 62 SPACs went public in 2019, collectively raising approximately $11.2...
Are Your Internal Controls Strong Enough to Withstand the Impact of COVID?By Marie DeCicco, CPA, Partner and Denise McKnight, CPA, Partner
Beyond business closures, widespread unemployment and entire industries staggered by depressed spending, savvy boards and owners are carefully tracking an unheralded but insidious threat to their reputation and financial standing. Like the film cliché of the call that’s coming from inside the house, fraud is a haunting reminder that those...
How COVID-19 is Impacting Life Science Real Estate in the Greater New York City AreaBy by: Michael Stoler, President, New York Real Estate TV, LLC
The tremendous growth of the global life sciences sector, and its real estate property needs (including construction, leasing activity and funding for new projects), has garnered significant attention from commercial real estate investors.
Currently, between 800,000 and 900,000 square feet of lab space is in demand throughout New York City. According...
SEC Staff Provides Guidance on COVID-19-Related DisclosuresBy Willem van der Berg, CPA, Partner
While you are busy working on your filings, remember that the Securities and Exchange Commission (SEC) staff provided new guidance on COVID-19-related disclosures for companies like yours to consider.
In June 2020, the staff in the Division of Corporation Finance (Corp Fin) of the SEC released “CF Disclosure Guidance Topic: COVID-19...
The Impact of COVID-19 on Financial Reporting TrendsBy James Reynolds, CPA, Audit Senior Manager and Editor-in-Chief Michael Cohen, CPA, CGMA, Partner
The COVID-19 pandemic has rapidly impacted companies in unprecedented ways and given rise to extraordinary economic and commercial uncertainty. Given this environment, and the likelihood that such uncertainty will remain for the foreseeable future, companies need to be proactive in assessing risks to their businesses and changes to their financial...
Uncovering Cryptocurrency Investments during DivorceBy Susan Miano, CPA, ABV, CFF, Partner, Danielle Bellomo, CPA/ABV, FLVS Manager.
“Cryptocurrency” has become a part of our vocabulary and plays an increasingly important role in our economy year after year. In 2020, the asset class is still considered relatively new and the term is often misunderstood. In this article, we hope to offer clarity by presenting some basic crypto facts,...
[Update June 2020] Accessing Disaster Assistance Opportunities and Tax Relief
Disaster relief provisions are traditionally triggered when forces of nature are unleashed-- such as, a severe storm causing flooding, landslides or mudslides; hurricanes; wildfires; tornadoes or earthquakes. A global pandemic, of course, qualifies as a disaster.
This exclusive Nonprofit Advisor will help you to identify powerful assistance options for disaster victims—ensuring...
The Wayfair Decision: Two Years Later and More Important Than Ever
It’s hard to believe that we are approaching the second anniversary of the U.S. Supreme Court’s ruling in South Dakota v Wayfair, the most significant development in state and local taxation in decades. Since its release on June 28, 2018, the decision has had far-reaching implications across state lines. To...
Hong Kong COVID-19 Subsidy for Employers to Fund Wages of Employees
On May 18, 2020, the Hong Kong Government announced an updated version of the implementation plan for the Employment Support Scheme (“ESS”), with an approved fund of HKD 80 billion, which provides wage subsidies to eligible employers to retain their employees, with the goal of avoiding lay-offs. Parts of the...
New Information on SBA Stimulus Funding and the Uniform Guidance
Due to the far-reaching economic impact of the COVID-19 pandemic, many nonprofit organizations have turned to the emergency funding streams issued by the U.S. Small Business Administration (SBA). These streams include, the Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program Loans (PPP).
Shortly after these relief opportunities became available, the...
When Asset Values Fall, Tax Opportunities Arise
[This article was updated on April 29 to reflect the IRS’ §7520 for May 2020]
While it is worrisome to watch the value of securities, real estate and businesses dramatically decline, those with long-term assets that are expected to appreciate beyond their current valuations should know that the present climate does...
Your Nonprofit and COVID-19: Adapting Practices, Qualifying for Credits and Embracing ExtensionsBy By Partners: Amish Mehta, Marie DeCicco and Denise McKnight; and Directors: Sarah Avery and Ralph Citino
Industries across the world are being forced to alter operations, adopt new policies or apply for relief programs following the outbreak of COVID-19. Unfortunately, nonprofits are no exception. The professionals leading Friedman’s nonprofit group have compiled an overview of the issues, legislative statutes and practical considerations you should be aware...
How COVID-19 and the CARES Act Will Affect DivorcesBy By Randall M. Paulikens, CPA/ABV/CFF/CITP, Partner
As the global pandemic reshapes our world introducing unexpected economic and social challenges - divorces, and other family law matters will continue. There are a myriad of predictions of what will happen and when it will happen. While time will tell the accuracy of these predications, COVID-19 is already having...
Tying Loose Threads: Fortifying Your Consumer Goods Business Against the Ramifications of COVID-19By Raelyn Davis, CPA, Audit Senior Manager and Michael Sacco, CPA, Partner
Gaining PerspectiveOn March 4, U.N. economists announced that, once the dust has settled, global manufacturing exports will have dropped by $50 Billion in February alone, precipitated by COVID-19.(1) This caps off a short month mired by:
The stock market experiencing one of its worst weeks since the 2008 recession with the...
Is Your Company at Risk of a Security Breach?
It is not a question of if you should brace for potential security breaches, but how?
To survive in the 21st century digital era, you need to amplify your IT department’s efforts. From Q4 2019 to Q1 2020, the average cost of managing the aftermath of ransomware attacks has doubled. To give...
SEC Order Offers 45-Day Extension for Companies Affected by Coronavirus
On March 4, 2020, the SEC announced the availability of conditional relief for publicly traded companies, including U.S. companies, with filing deadlines complicated by the emergence of the COVID-19 coronavirus.
The Commission will offer affected companies an additional 45 days to file reports with original due dates falling between March 1...
Which Four Issues Frequently Trigger SEC Comment Letters?By Johnathan Culbreath, CPA, Senior and Michael Cohen, CPA, CGMA, Partner
SEC Filing Review Process / Background
The SEC Division of Corporation Finance selectively reviews public filings by SEC registrants to monitor and evaluate compliance with applicable disclosure and accounting requirements. Each reporting entity is reviewed, in some respect, at least once every three years. SEC reviews focus on critical disclosures...
Post Tax Reform Rules for Deducting Business Travel, Job Relocation, Meals and Entertainment: What can I expense?By Michael Pace, CPA,Senior Manager and Michael J. Greenwald, MPPM, CPA, Partner, Business Entity Tax Practice Leader
The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the entertainment deduction but kept the deduction for travel expenses generally intact. Major changes to business meal expense deductions were initially introduced by the IRS without providing clear and comprehensive guidance, leaving business owners uncertain about what can be deducted...
Qualified Opportunity Zones: Final Regulations Explained
Qualified Opportunity Zones (QOZ) were first introduced as part of the Tax Cuts and Jobs Act and provide significant tax breaks for those real estate investors and businesses who invest in economically distressed areas. On December 19th, 2019, the Internal Revenue Service (IRS) and the Department of the Treasury (Treasury)...
Closing Thoughts: February 2020
The burgeoning coronavirus health crisis emanating from China is steering rates lower
Impact of Wayfair Laws on Your Wholesale Business
By now, most businesses have heard of, or even experienced firsthand, the implications of the US Supreme Court’s ruling in South Dakota v Wayfair. The challenge for many businesses in trying to comply with these Wayfair laws is understanding the varying state provisions. This lack of uniformity creates confusion for...
Which New IRS Rules Introduce Refund Opportunities or New Requirements for Tax Exempt Organizations?
The Internal Revenue Service (“IRS”) recently introduced several changes that could have a material impact on not-for-profit organizations in 2020 and beyond. This article will highlight a few of these new developments and offer insight into how your nonprofit can adapt.
Repeal of the Tax on Transportation Fringe Benefits
Under Internal Revenue...
The Wayfair Decision: Issues on the Horizon and the Impact on States and SellersBy Alan Goldenberg, JD, MBA, LL.M., Principal
The US Supreme Court ruling in South Dakota v Wayfair was the most significant development in state and local taxation in decades – with implications reaching across state lines. In its decision, the Court provided that states can impose sales tax requirements on remote sellers so long as those requirements do...
Philadelphia Use and Occupancy Tax
Since the financial crises of the late 2000s, out-of-town developers and institutional funds have flooded Philadelphia to capitalize on real estate opportunities. However, few out-of-state developers knew about the city’s hefty and rather confusing School District Business Use and Occupancy tax—also known as “U&O.” This article takes a closer look...
Closing Thoughts: January 2020
The hottest 2020 markets are in the South, forcing lenders to reexamine their priorities
How Changes to New York State Transfer Taxes Impact New York City
Just when you thought we’ve covered all there is to know about New York real estate transfer taxes, including the basics, gifts and leaseholds, the state gave us another reason to bring our attention back to these taxes.
New York lawmakers included a provision in the fiscal-year 2020 budget that increased transfer...
2019-2020 Tax Guide
The elimination of familiar tax planning strategies under the Tax Cuts & Jobs Act (TCJA) in addition to potential changes due to the 2020 elections may be weighing heavily on your mind. Fortunately, this online guide is designed to help you prepare for your particular situation and maximize your tax...
The Taxpayer First Act and What it Means for Your Nonprofit
The passage of the Taxpayer First Act (“TFA”) in 2019 redefines some of the IRS’ processes and structure, with the stated aim of “expanding and strengthening taxpayer rights” and “reforming the IRS into a more taxpayer friendly agency.” The TFA introduces changes to the way nonprofits file information returns with the...
Closing Thoughts: December 2019
Avoid the Temptation of "The Future is Now"
Closing Thoughts: November 2019
Welcome to the second edition of Closing Thoughts, Friedman’s dedicated look at news and trends in the mortgage sector.
The Wall Street Journal reports that Zillow will rake in more than a billion dollars this year from its home-flipping business. The company now not only lists homes for sale but buys...
Recently Issued Accounting Standards: Staying Current and Ensuring Accurate Disclosures
As year-end approaches, calendar-year public companies are gearing up to prepare annual financial statements that will be included in their Form 10-K filings.
Keeping up to date with the current reporting standards is essential for all filers. While some standards are widely covered because they have onerous requirements and apply to...
Adaptive Reuse, the Process of Repurposing a Shopping MallBy Michael Stoler
Adapt or fail. That is the reality for retail malls operating in the U.S. and around the world.
In September, the CCIM Institute published “Retail e-Volution: Predictions for 2025,” a special report authored by K.C. Conway, CCIM’s Chief Economist and director of research and corporate engagement for the Alabama Center for...
CyZen Blog: 5 Techniques to Get You Ransomware-Ready
Most of us have heard of “ransomware,” but what is it? Who does it impact? How can you protect your business?
Think of ransomware as the smoke and mirrors of cyberattacks; the last ditch effort to take as much loot and valuable intel as possible before heading to the next victim....
Eight Ways to Jumpstart Your 2019 Year-End PlanningBy Andrew Cohen, JD, LL.M
The leaves are changing, the kids are off to school and 2020 is right around the corner — what better time to consider your year-end tax planning? We know that the elimination of familiar tax planning strategies under the Tax Cuts & Jobs Act (TCJA) as well as additional changes that...
SALT Deduction Workarounds: Where are We Now?By Alan Goldenberg, JD MBA, LL.M., Principal
More and more taxpayers are beginning to feel the impact of the Tax Cuts and Jobs Act’s $10,000 cap on the federal income tax deduction for state and local taxes (SALT). As taxpayers start finalizing their tax returns previously on extension, many are seeing their federal taxes rise with the...