Advertise on podcast: Cherry Bekaert: The Tax Beat

As cross-border activity becomes increasingly common for middle-market companies, international tax considerations are no longer limited to large multinationals. From transfer pricing and tariffs to global tax compliance and planning, businesses expanding overseas face greater complexity and heightened scrutiny from tax authorities worldwide. Understanding where value is created, how intercompany transactions should be priced, and how global tax rules interact is critical for managing risk and supporting sustainable international growth. In this episode, Brooks Nelson, Tax Partner, and Sarah McGregor, Tax Director, are joined by Nelson Yates, Partner and International Tax Leader, to discuss key cross-border tax issues middle-market CFOs and business leaders should have on their radar. They break down transfer pricing fundamentals, explore how tariffs intersect with intercompany pricing, and share practical considerations for companies entering or expanding in foreign markets. Listen to learn more about: 02:30 – Transfer pricing basics and why it matters04:10 – How governments view cross-border profit allocation06:27 – Intercompany services, IP, and value drivers10:38 – Marketing intangibles and local market investment11:55 – Practical steps CFOs can take today14:45 – Transfer pricing documentation and penalty protection16:35 – Tariffs and their interaction with transfer pricing20:20 – Global tax planning and compliance implications22:42 – International expansion costs and best practicesRelated Guidance  Article: Navigating the International Tax Landscape After 2025 Tax Reform

Stay informed on the latest tax policy changes and economic trends with Cherry Bekaert’s Tax Beat Podcast. In this episode, hosts Brooks Nelson, Tax Partner, and Sarah McGregor, Tax Director, talk with Kasey Pittman, Managing Director of Tax Policy, about the sweeping P.L. 119-21, or the “One Big Beautiful Bill Act.” They also discuss Internal Revenue Service (IRS) guidance and what businesses and individuals need to know heading into 2026. In This Episode:  2025 Tax Reform Explained: $4.5 trillion in tax cuts and key provisions for taxpayersGovernment Shutdown Effects: IRS operations, filing season delays and electronic payment changesEconomic Outlook: Interest rate trends, inflation risks and planning opportunitiesLegislation Watch: Cryptocurrency tax rules, tax extenders and bipartisan billsDiscover actionable insights to navigate uncertainty, optimize tax planning and prepare for upcoming changes in legislation and economic conditions. Connect With Us Related Through Leadership Newsletter: Tax Policy Review: November 2025 UpdatesAlert: 2025 Government Shutdown FAQs: What To Expect in the Second WeekWebinar Recording: Beyond the Bill: Tax Insights for the 2025 ReformArticle: Tracking Tax Reform: A Closer Look at the Final 2025 Budget Reconciliation Bill

As we navigate through changes brought by the new administration in 2025, there are significant developments within the Internal Revenue Service (IRS) that will impact taxpayers and tax professionals. The IRS is aiming to streamline its operations while facing the challenge of reduced staffing levels. With proposed federal workforce reductions and shifts in technology modernization efforts, understanding how these developments will affect IRS operations is crucial for maintaining compliance and efficiency in tax practices.  In this episode, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, are joined by Ron Wainwright, Tax Partner, and Kasey Pittman, Tax Managing Director. Together, they delve into the announced changes to the IRS workforce, discuss potential impacts on taxpayers and explore the ongoing technological transformations within the agency.  Listen to learn more about: 02:02 – IRS workforce reductions05:02 – Changes in IRS leadership08:39 – IRS Priority Guidance Plan12:33 – Technology modernization17:19 – Impact on taxpayers19:12 – Taxpayer assistance proposal22:14 – Best practices with the IRS  Related Guidance  Article: Tracking Tax Reform: The Reconciliation ProcessArticle: Recent IRS Guidance for the Definition of EmployeeArticle: IRS Issues Final Regulations Impacting Micro-Captive Insurance ArrangementsArticle: IRS Guidance for Theft Losses From Online ScamsWebinar Recording: Clean Energy Incentives, Prevailing Wage & Apprenticeship: IRS Insights     

Earlier this year, final regulations were issued under Prop. Reg. Section 1.6011-10, setting forth the criteria that classify certain micro-captive insurance arrangements as listed transactions or transactions of interest. These designations require extensive tax return disclosures and impact all parties, including related entities.  As micro-captives continue to be a focal point for Internal Revenue Service (IRS) enforcement, understanding these regulations is crucial for businesses aiming to maintain compliance and avoid potential penalties. Micro-captive insurance arrangements have long been a topic of concern for the IRS due to their potential for abuse in tax planning. The recent regulations aim to address these concerns by providing clear guidance on what constitutes a reportable transaction.  In this episode, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, are joined by Rick Woods, Tax Partner. Together, they dive into the implications of these regulations, discuss IRS enforcement efforts and explore what constitutes a listed transaction versus a transaction of interest. Listen to learn more about: 04:11 – IRS interest in micro-captives06:01 – Section 831(b) in micro-captives08:29 – IRS history with micro-captives11:48 – Criteria for micro-captive transactions17:13 – Reporting micro-captive transactions19:49 – Exceptions in micro-captive coverage21:24 – Exiting micro-captive arrangements22:37 – Economic reasons for micro-captives24:30 – Risk management in micro-captives Related Guidance  Article: IRS Issues Final Regulations Impacting Micro-Captive Insurance Arrangements

Navigating the complex terrain of financial statement reporting and income tax disclosures is a major challenge for companies as they face heightened regulatory scrutiny and evolving standards. The Financial Accounting Standards Board (FASB) continues to introduce significant updates, including ASU 2023-09, which requires greater transparency and more detailed reporting of tax provisions. These changes reshape how companies present their tax positions within financial statements, emphasizing the need for robust systems and strategies to manage increased disclosure requirements. As organizations continue adapting to these standards in 2025, understanding tax provisions and their implications remains essential for maintaining compliance and demonstrating financial integrity. In this episode, Brooks Nelson, Partner and Strategic Tax Leader and Sarah McGregor, Tax Director, are joined by William Billips, Tax Partner, and Lisa Macri, Tax Director. Together, they explore key tax legislation updates from 2024 and strategies for navigating the road ahead.  This discussion is crucial for finance professionals seeking to build on last year’s adjustments and ensure their organizations remain prepared for the evolving landscape of tax reporting. Listen to learn more about:  03:30 – Understanding ASC 74004:25 – Common challenges with ASC 74005:44 – Upcoming changes with ASU 2023-0907:21 – Rate reconciliation and disaggregation requirements08:33 – Preparing for ASU 2023-09 implementation09:32 – Transferability of energy credits10:45 – Acquisitions and dispositions key considerations11:50 – Pass-through entities and tax reporting14:20 – Anticipating future tax law changes16:37 – Planning for legislative changes  Related Guidance  Newsletter: The Rundown: Fourth Quarter 2024 GuideArticle: Unlocking Opportunities: The Evolving Market for Clean Energy Tax Credits

In 2024, a year marked by numerous natural disasters, the IRS has stepped up to provide taxpayers with crucial relief measures. More than 60 disaster relief notices have been issued, offering postponement of tax return filing and tax payment due dates for individuals and businesses across various U.S. counties. This relief is vital as individuals and businesses begin the challenging recovery process, which often involves navigating insurance claims and understanding loss deductions for the first time.  The federal tax law provides rules for those claiming losses as a result of damages to business, investment and personal use property. Federal tax rules also benefit those who might realize a casualty gain when insurance proceeds exceed the cost or basis of damaged property. In this episode, Tax Services Partner Brooks Nelson, Tax Director Sarah McGregor, and Tax Services Partner Mark Giallonardo join together to discuss IRS disaster filing relief, tax gains and losses resulting from property damage in federally declared disasters, and the impact of the TCJA on these claims.  Listen to learn more about:  03:47 – How the TCJA Affects Casualty Loss Deductions05:32 – Methods for Assessing Fair Market Value07:20 – Individual Loss Claims: TCJA Limitations Explained08:40 – Business Loss Claims: Navigating TCJA Restrictions09:55 – Understanding Timing Rules for Casualty Losses12:45 – Strategies to Prevent Tax Gains When Claiming Losses14:12 – Navigating the IRS Disaster Relief Funding Process Related Insights Article: Navigating Hurricanes and Tax Relief: Guidance from the IRS and State Tax AuthoritiesArticle: The Trump-Era Tax Cuts Expiring in 2025

The employee retention credit (ERC) remains a hot topic as the Internal Revenue Service (IRS) has opened a new window for its voluntary disclosure program, allowing employers to withdraw their claims. While the IRS is processing and paying out refunds for the ERC, it has also introduced new conditions that seem to disqualify certain wages from eligibility. In response, some eligible employers are beginning to take legal action to compel the IRS to address their pending refund claims. In this episode, Tax Services Partner Brooks Nelson and Tax Director Sarah McGregor are joined by Partner and Tax Credits & Incentives Advisory Practice Leader Martin Karamon. Together, they discuss the complexities of the ERC and the IRS's actions to address both legitimate and dubious claims. Listen to learn more about:  02:23 – ERC overview04:34 – IRS moratorium updates06:32 – IRS timeline for resuming new claims09:06 – 8/15 ERC voluntary disclosure program 10:58 – Sources for employer VDP info12:48 – IRS 12 signs of incorrect ERC claims 14:56 – ERC claim payment status amid IRS audits15:58 – Trends in employer lawsuits for refunds Related Insights Article: Avoiding the Risk of Incorrect Employee Retention Credit ClaimsWebinar: The Employee Retention Credit: 2024 UpdatesArticle: 2024 Most Frequently Asked Questions about the Employee Retention Credit (ERC)Article: Understanding IRS’ Voluntary Disclosures Program for Employee Retention Credit (ERC) Claims 

The Section 179D Energy Efficient Commercial Building Deduction (Section 179D) and cost segregation studies can help commercial building owners save significantly on taxes. Section 179D provides a tax deduction for new construction and renovations to the HVAC, interior lighting and building envelope, while cost segregation studies help identify assets with shorter depreciable lives. When paired together, they create the best opportunity for building owners to maximize tax savings and increase cash flow by identifying and accelerating depreciation on energy-efficient assets.  The expansion of the Section 179D deduction through the Inflation Reduction Act (IRA) offers even more incentives for building owners, architects, engineers and design-build contractors who create technical specifications before and during the construction process. Utilizing these options can significantly reduce a building owner's tax liability and improve cash flow. Cost segregation studies analyze the parts of a commercial building to identify assets with shorter depreciable lives allowing owners to accelerate their depreciation deductions and reduce taxable income.  In this episode, Brooks Nelson, Tax Partner and Sarah McGregor, Tax Director, are joined by Glenn LeMieux, Tax Credits & Incentives Advisory Director, and Andre Kohn, Tax Credits & Incentives Advisory Senior Associate. Together, they discuss federal tax credits and incentives related to clean energy, energy-efficient buildings and cost segregation opportunities. Listen to learn more about:  03:28 – Cost segregation study background07:02 – Applications of cost segregation 08:52 – Cost segregation study process 10:42 – Section 179D background 14:57 – Qualifying for Section 179D17:01 – Energy-efficient improvements  18:58 – Prevailing wage updates23:51 – Strong candidates for these incentives27:20 – Combining Section 179D and cost segregation  Related Guidance  Article | Designing for Efficiency: How the 179D Tax Deduction Benefits A&E Firms and the EnvironmentPodcast | 179D Energy-Efficient Commercial Buildings Deduction for Not-for-ProfitsWebinar | Maximize Tax Savings Through Cost Segregation, Section 179D, and Section 45L Approach and Client Success StoriesArticle | Factors to Consider When Seeking Cost Segregation and Section 179D Study Service Providers

For fast-growing companies, becoming a C corporation for income tax purposes can offer significant tax savings for their shareholders. Section 1202 of the Internal Revenue Code (IRC) is a powerful tool for attracting investors with funds to fuel a company's growth.  To qualify for these tax benefits, both the company and shareholder must meet specific requirements, and non-compliance can result in missed opportunities for savings. It is crucial for businesses to have a comprehensive understanding of the qualifications and technical aspects of Section 1202 to make the most of this tax law. In this episode, Brooks Nelson, Tax Partner and Sarah McGregor, Tax Director, are joined by Barry Weins, Tax Director and Molly Gill, Transaction Tax Senior Associate. Together they discuss how qualified business stock offers a valuable opportunity to exclude capital gains from taxation, making it a powerful tool for attracting investors and fueling the growth of small to mid-sized businesses. Listen to learn more about:  02:11 – Section 1202 background04:57 – Businesses that qualify for Section 120205:47 – Beneficial transaction examples06:42 – Recurring questions regarding Section 1202 10:37 – Difficulties of collecting client information13:31 – Factors investors should consider18:02 – How to become eligible for Section 1202 20:03 – How state provisions vary  Related Guidance  Article: LLC vs. S Corp: Which Offers Better Tax Savings?Webinar: Maximize Tax Savings Through Cost Segregation, Section 179D, and Section 45L Approach and Client Success Stories

Public Law 86-272 (PL 86-272) offers limited protection to out-of-state companies that solely solicit sales for tangible personal property within a state. Small and medium-sized businesses in the manufacturing, distribution and retail sectors have heavily relied upon this state protection since it was enacted in 1959 to decrease overall tax liability.  In 2021, the Multistate Tax Commission (MTC) released a controversial reinterpretation of what activities may be considered more than mere sales solicitation. The MTC guidance suggests that some internet-based activities such as post purchase chats, online tutorials and cookies used for data mining may cause a business to no longer qualify for the protection of PL 86-272. In this episode, Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, are joined by Louis Cole, Partner and State & Local Tax Services Leader, and Cathie Shaw, National Tax  Partner. Together they discuss the current challenges surrounding PL 86-272 and the increasing pressure stemming from the evolution of modern-day business practices.  Listen to learn more about:  04:07 – PL 86-272 background05:25 – MTC authority06:45 – Businesses that have adopted MTC interpretations10:07 – MTC impact on small businesses 12:45 – Determining nexus without the sale of tangible goods14:59 – Relevance of nexus studies16:59 – Record keeping and internet activity analyses 19:43 – Mitigating compliance burden  Related Guidance  The Income Tax Nexus Battle and Federal Public Law 86-272

Private aircraft ownership can be a great asset for companies, providing convenience, flexibility and efficiency for business travel. However, ownership also comes with significant costs, including purchase, maintenance, fuel and insurance. In addition to these expenses, companies that own private aircraft must also comply with various tax regulations, including properly reporting any personal use of the aircraft by company owners and executives, as the Internal Revenue Service (IRS) has recently been targeting this area for audits. To further examine compliance with tax regulations, the IRS has initiated a pilot program to audit tax returns associated with up to 48 corporate-owned jets. The results of these initial examinations will help the IRS determine where to focus further attention. Despite the potential tax implications, owning and operating a private aircraft can still be a valuable business tool if managed properly. Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with Mike Grim, State & Local Tax Director, about how companies can navigate the intricate IRS tax regulations associated with owning a private aircraft to maintain compliance and maximize tax savings.  Listen to learn more about:  02:41 – Federal private aircraft regulation background06:36 – Key IRS tax issues09:24 – Tax reporting key areas11:14 – Disallowance of expense deductions14:22 – IRS pilot audits17:37 – Questions to consider before purchasing a private aircraft   Recent Tax Beat Episodes Inbound U.S. Tax ServicesAccounting Standards Update 2023-09: New Income Tax Disclosure RulesIRS ERC Voluntary Disclosures ProgramNew Markets Tax Credits and Innovate Fund AwardTCJA: Estate & Trust Planning Update

When expanding operations into the U.S. market, business owners must learn about the federal, state and local tax systems they will encounter. Sales tax in the U.S. is quite different from a value-added tax (VAT) or a goods and services tax (GST) assessed by many other countries. Companies selling goods and some services must comply with a sales tax system that can vary across thousands of taxing jurisdictions. The U.S. federal tax system can also be challenging for companies new to this country.  Companies and their tax advisors are currently busy working towards the March and April deadlines for filing tax returns, applications for additional extensions of time to file returns, and reporting income tax withholding. Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with Lauren Stinson, Sales and Use Tax Leader, and Brian Dill, International Tax Leader, about the tax reporting complexities that international companies encounter when carrying on business in the U.S. Listen to learn more about:  03:54 – GST tax vs. U.S. sales tax05:24 – Compliance differences06:43 – Nexus 12:02 – Preparing for March 15 deadline14:54 – Important foreign subsidiary owner discussions17:14 – Outsource solutions   Related Guidance Article: Tax Insights for Indian Companies in the U.S. MarketArticle: Beneficial Owner Information Reporting Final Rule for FinCEN Entity IdentifiersArticle: ASU 2023-09: FASB’s New Income Tax Disclosures for Private EntitiesArticle: ASU 2023-09: New FASB Rule Enhances Income Tax Disclosures for Public CompaniesPodcast: Accounting Standards Update 2023-09: New Income Tax Disclosure Rules

On December 14, 2023, the Financial Accounting Standards Board (FASB) expanded income tax disclosure requirements for public and private companies. The expanded disclosure requirements are detailed in Accounting Standards Update No. 2023-09 (ASU 2023-09) and increase transparency of a filer’s global taxes. This will require filers to provide more details and be more descriptive in their financial statement income tax disclosures, which should enable business leaders and investors to make more informed investment decisions. Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with William Billips, Partner and Tax Provisions Leader, and Brian Dill, Partner and International Tax Leader, about ASU 2023-09 and how the new regulations will significantly impact multinational companies, particularly public and private entities.  Listen to learn more about:  03:49 – Background on ASU 2023-09  05:19 – Common requirements 07:47 – Rate reconciliation overview 09:48 – New challenges with tax disclosures in foreign jurisdictions13:14 – Steps to prepare for tax reporting next year16:38 – Affiliates in foreign jurisdictions Related Guidance ASU 2023-09: New FASB Rule Enhances Income Tax Disclosures for Public CompaniesASU 2023-09: FASB’s New Income Tax Disclosures for Private Entities 

The Internal Revenue Service (IRS) has taken several steps to tackle the millions of invalid Employee Retention Credit (ERC) claims. First, they temporarily halted all ERC claims until the beginning of 2024. Two new programs were introduced by the IRS to aid employers who may have filed ERC claims they didn’t qualify for without realizing it. The IRS announced the Voluntary Disclosure Program (VDP) on December 21, 2023, to aid employers who filed invalid ERC claims. The IRS created the VDP to allow taxpayers to report any potentially incorrect ERC claims by paying back 80% of the tax credit received by the company. Only available until March 22, 2024, employers should look into the VDP and determine if they should file for it. Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with Martin Karamon, Tax Credits and Incentives Advisory Practice Leader, about the recent guidance released by the IRS regarding the VDP and recommendations for employers as the deadline is quickly approaching to file ERC claims.  Listen to learn more about:  04:16 – Background on the ERC  06:42 – Overview of new IRS programs for invalid claims11:57 – What to consider before participating in IRS programs 13:29 – Other options available for ERC concerns18:19 – Recommendations for employers considering filing ERC claims before the deadlineRelated Guidance Understanding IRS’ Voluntary Disclosures Program for Employee Retention Credit (ERC) ClaimsNew IRS Employee Retention Credit (ERC) Claim Withdrawal ProcessDecember ERC Updates: Mastering Preparations for ERC 2024IRS Temporarily Suspends ERC Claims: What You Need to KnowIRS Update on ERC Eligibility: 5 Scenarios That Do Not Qualify as Supply Chain Disruptions

The New Markets Tax Credit (NMTC) program has been issuing tax credits for more than two decades as a driving force for investors to aid low-income communities across the United States. In September 2023, Cherry Bekaert’s The Innovate Fund, a Community Development Entity (CDE), received a $50 million allocation in NMTC. With this money, The Innovate Fund will continue to support and enhance community development projects in North Carolina, South Carolina, Tennessee and Georgia low-income communities. Brooks Nelson, Partner and Strategic Tax Leader, and Sarah McGregor, Tax Director, talk with Laurel Tinsley, Managing Director of Cherry Bekaert’s Strategic Financing Services group, about the obstacles and opportunities for those applying to the NMTC program and how The Innovate Fund is a key source of financing for lenders when taking on a community development project.  Listen to learn more about:  02:54 – Background on NMTC, CDE and CDFIs09:00 – What it means to be awarded NMTC allocations15:02 – Recent learnings from NMTC awards  17:46 – Navigating NMTC allocation complexities 22:46 – Key focus that would help people win future NMTC allowances  Related Guidance New Markets Tax Credit Case Study for 4Roots Farm CampusNew Markets Tax Credit Case Study for Welcome HouseNew Markets Tax Credit Case Study for Williams Adult Day Center