Category: Professional Services

CBM has published guidance for businesses that receive a notice from the IRS (Letter 226J) relating to penalties associated with compliance with the Affordable Care Act. Click here to read our guidance. Please also keep in mind the important deadlines below. Don’t Miss Early 2020 Due Dates February 28, 2020 – Paper copies of Forms 1094-C and 1095-C must be filed with the IRS by this date. Employers with less than 250 employees can paper file. March 2, 2020 –… Read more ›

The IRS is currently issuing the Letter 226J proposed employer-shared responsibility payment (ESRP) notice to businesses they suspect of having not complied with the 2017 tax-year Affordable Care Act requirements. The Letter identifies the amount of the proposed penalty that the business would be responsible for paying— an amount which can be steep. CBM has seen penalty amounts ranging from $3,160 to over a million dollars. CBM advises businesses that receive such a letter to respond promptly, especially since Letter… Read more ›

New regulations published by the IRS and U.S. Treasury in January 2018, provided much-needed guidance for partnerships to determine how they might opt out of the partnership audit regime that went into effect following the Bipartisan Budget Act of 2015. The 2015 Act overhauled prior rules set in 1982 that governed the taxability of partnerships. One significant concern addressed by the Bipartisan Act was the lack of a system for addressing any underpaid tax from the partnership entity. The IRS… Read more ›

Abbie Niehoff, financial planning and litigation support paralegal at CBM – Councilor, Buchanan & Mitchell, P.C., has received her paralegal graduate certificate from George Washington University. The achievement represents demonstrated competence as a paralegal, and is a core component of the education and training program in which she is enrolled through a Master of Paralegal Studies course of study at GWU. She expects to graduate in December 2018. In her role at CBM, Ms. Niehoff delivers financial planning expertise to… Read more ›

When it comes to setting up a tax-favored retirement plan — such as a 401(k) plan, a pension or profit sharing plan, or a simplified employee pension (SEP) plan — law firm partnerships must follow essentially the same federal income tax rules as other employers. A partnership retirement plan can potentially cover both partners of the practice and eligible firm employees. However, partnership plans can be a bit confusing because partners are considered to be employees of the firm for… Read more ›

The U.S. Tax Court ruled that state non-resident income taxes paid by an attorney on his law firm’s income sourced in four states cannot be deducted on Schedule E of his Form 1040 and are not deductible in arriving at adjusted gross income (AGI). These taxes can only be claimed below the line as itemized deductions. Tax Law Basics Under Internal Revenue Code Section 62(a)(2), deductions are allowed “above the line” as an adjustment to arrive at gross income if… Read more ›

CBM is pleased to announce the expansion of their professional services division. The firm’s depth of experience goes back to its inception in 1921. Since opening its doors, CBM has served a variety of professional services clients throughout the Washington, DC and Baltimore metropolitan areas. “As a CPA and business advisory firm, we understand the unique needs and day-to-day challenges that other professional service firms encounter,” said Peter B. Reilly, CPA, CVA, President and Managing Partner of CBM. “Our clients vary… Read more ›

After nearly 40 years, CBM will be back in Washington, DC as a result of their merger with Washington, DC-based Drolet & Associates PLLC, Certified Public Accountants. Effective November 1, 2014, the combined firms will operate as Councilor, Buchanan & Mitchell, PC (CBM). “We at CBM are delighted with our merger with Drolet & Associates,” said Peter B. Reilly, CPA, CVA, President and Managing Partner of CBM. “Pat Drolet and her team share CBM’s passion for providing responsive, individualized service…. Read more ›