• COVID-19 Resources |
  • Client Login
    • ShareFile
    • Tax Caddy
    |
  • Consultation |
  • Request Proposal |
  • Pay Invoice

BKMSH

Accounting Firm, Dallas, Austin, Puerto Rico

Accounting Consultant
 consulting-partner-img

Consultation



    Consent
    To expedite our response, we ask that you consent to the storing of your personal information so we can get back in touch with you. We do not share your information with any 3rd parties.


    Please check here if you consent

    • home1
    • Industries
      • Construction
        • Architectural Firms
        • General Contractors
        • Interior Design
      • Manufacturing & Distribution
        • Logistics
        • Production
        • Transportation
      • Real Estate
        • Commercial Developers
        • Property Management
        • Residential Developers
      • Financial Services
        • Investment
        • Mortgage Banking
        • Private Equity
      • Natural Resources
        • Electric Utilities
        • Exploration and Production
        • Mining/Refineries
      • Settlement Trusts
        • Claim Processing
        • Personal Injury
        • Property Damage
      • Healthcare
        • Home Healthcare
        • Long Term Care
        • Physician Groups
      • Not-For-Profit
        • Charities
        • Social Clubs
        • Trade Organizations
      • Technology
        • Computer Hardware
        • IT Services
        • Software Developers
      • Hospitality
        • Golf and Country Clubs
        • Hotels
        • Restaurants
      • Professional Services
        • Business Consultants
        • Law Firms
        • Professional Staffing
      • Close
    • Services
        • Audit & Assurance
          • Employee Benefit Plan Audit
          • Financial Statement Audit
          • Financial Statement Review
          • SSAE18 / SOC 1 , SOC 2 , SOC 3
          Business Advisory
          • Internal Audit
          • Transaction Advisory
          • Accounting Services
          Tax Services
          • Accounting for Income Taxes
          • Cost Segregation
          • Estate Planning
          • Expatriate Tax
          • Federal Tax Services
          • International Tax Services
          • Mergers and Acquisitions
          • Resources
          • State and Local Tax Services
          Business Valuation Construction Cost Audit Forensic & Litigation IT Audit & Consulting
      • Close
    • Careers
    • News & Insights
    • About Us
        • Biographies
          • Amber Rhodes
          • Brad T. Marckx
          • Brian D. Simmons
          • Dan Quach
          • Hina Ahmed
          • Jill Carrier
          • Kevin B. Agno
          • Kevin M. Rockecharlie
          • Marci Stanley
          • Michael J. Barber
          • Michael Paddock
          • Richard J. Sowan
          • Timothy P. Horan
          • Trey Kennedy
          • Vanessa SinghDhillon
          • Wendy K. Harvey
          Of Counsel
          • John Heyman
          Community Involvement Frequently Asked Questions Peer Review & PCAOB Inspections Professional Affiliations
      • Close
    • Contact Us
        • Directions

          Headquarters

          BKM Sowan Horan, LLP
          14675 Dallas Parkway, Suite 150
          Dallas, Texas 75254
          Phone: 214-545-3965
          Fax: 214-545-3966
          BKM Sowan Horan, LLP
          8310-1 N. Capital of Texas Highway, Suite No. 497
          Austin, TX 78731
          Phone:512 412 3470
          View Larger Map
          BKM Sowan Horan, LLP
          Metro Office Park Metro Parque 7
          Street 1 Suite 204
          Guaynabo, San Juan Puerto Rico 00968
          View Larger Map
        • Contact Us

            Your Name (required)

            Your Email (required)

            Subject

            Your Message



            Consent
            To expedite our response, we ask that you consent to the storing of your personal information so we can get back in touch with you. We do not share your information with any 3rd parties.


            Please check here if you consent

        • Close

      Risk Alert: Review Advisory Fee Calculations for the 2021 Audit Season (before the SEC does)

      Securities and Exchange Commission (SEC)The U.S. Securities and Exchange Commission (SEC) has publicly stated that advisory fees and how fees are assessed, calculated, and disclosed to potential investors in the offering memorandums or financial statements will be an area of focus for 2022.

      In November 2021, the SEC Division of Examination issued a Risk Alert dealing with deficiencies noted in the examination of several hundred retail advisors. The SEC Staff believe that the issue arose because of poor policies and procedures over the advisory fee calculation and billing area. Numerous errors in the calculation, and disclosure-related issues, were discovered in the advisory fee area.

      In October 2021, after a separate series of examinations of advisors to registered funds, the SEC Staff observed again what they believe are poor policies and procedures over the allocation of fees and expenses from the advisor to the funds. The Staff seemed to have concluded that the discrepancies in the allocation and disclosure of fees and expenses were failures in the compliance programs employed by the advisor.

      While private fund managers may not believe that these risks relate to them, you should think again. One of Chairman Gary Gensler’s comments was that fees in the registered fund’s space have come down due to competition while advisor fees in private funds are still working off the old “2 and 20 model”. Hence, he is asking the SEC Staff to focus on the transparency of advisory fee arrangements thinking that transparency will encourage more competition among fund managers.

      In preparation for year-end, we are recommending those fund managers consider the following steps:

      • Review your disclosures and assure that the fees assessed are consistent with your offering memorandums and Form ADV Part II Brochure.
      • Review the policies and procedures over advisory fee billings and disclosures in your offering memorandums and financial statements.
      • Test your calculations and that the design and application of such calculations are correct.
      • Consider the appropriateness of updating SEC disclosures of side letter arrangements, if any.

      For your convenience, click below for each of the links to the SEC proposed rules:

      • https://www.sec.gov/rules/proposed/2022/ia-5955.pdf
      • https://www.sec.gov/rules/proposed/2022/ia-5950.pdf

      For a deeper discussion, contact either Richard Sowan or Amber Rhodes:

      1. Richard J. Sowan, Managing Partner 214-545-3971
      2. Amber Rhodes, Assurance Director 214-545-3982

      Filed Under: General

      2022 IRS Inflation Adjustments Brackets & Rates

      2022 IRS inflation tax ratesThe Internal Revenue Service (IRS) adjusts many tax provisions for inflation annually to prevent taxpayers from being pushed into higher income tax brackets or to have a reduced value from credits and deductions due to inflation instead of any increase in real income.

      As of the passing of the Tax Cuts and Jobs Act of 2017 (TCJA), the IRS uses the Chained Consumer Price Index (C-CPI) to adjust income thresholds, deduction amounts, and credit values accordingly.

      The new inflation adjustments are for tax year 2022, for which taxpayers will file tax returns in early 2023.

      2022 Federal Income Tax Brackets and Rates

      In 2022, the income limits for all tax brackets and all filers will be adjusted for inflation and will be as follows. There are seven federal income tax rates in 2022: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The top marginal income tax rate of 37 percent will hit taxpayers with taxable income above $539,900 for single filers and above $647,850 for married couples filing jointly.

      2022 Tax Brackets for Single Filers, Married Couples Filing Jointly, and Heads of Households

      2022 Tax Rate For Single Filers For Married Individuals Filing Joint Returns For Heads of Households
      10% $0 to $10,275 $0 to $20,550 $0 to $14,650
      12% $10,275 to $41,775 $20,550 to $83,550 $14,650 to $55,900
      22% $41,775 to $89,075 $83,550 to $178,150 $55,900 to $89,050
      24% $89,075 to $170,050 $178,150 to $340,100 $89,050 to $170,050
      32% $170,050 to $215,950 $340,100 to $431,900 $170,050 to $215,950
      35% $215,950 to $539,900 $431,900 to $647,850 $215,950 to $539,900
      37% $539,900 or more $647,850 or more $539,900 or more

      Source: Internal Revenue Service

      2022 Standard Deduction and Personal Exemption

      The standard deduction will increase by $400 for single filers and by $800 for joint filers.

      The personal exemption for 2022 remains at $0 (eliminating the personal exemption was part of the Tax Cuts and Jobs Act of 2017 (TCJA).

      2022 Standard Deduction

      Filing Status Deduction Amount
      Single $12,950
      Married Filing Jointly $25,900
      Head of Household $19,400

      Source: Internal Revenue Service

      2022 Alternative Minimum Tax (AMT)

      The Alternative Minimum Tax (AMT) was created in the 1960s to prevent high-income taxpayers from avoiding the individual income tax. This parallel tax income system requires high-income taxpayers to calculate their tax bill twice: once under the ordinary income tax system and again under the AMT. The taxpayer then needs to pay the higher of the two.

      The AMT uses an alternative definition of taxable income called Alternative Minimum Taxable Income (AMTI). To prevent low- and middle-income taxpayers from being subject to the AMT, taxpayers are allowed to exempt a significant amount of their income from AMTI. However, this exemption phases out for high-income taxpayers. The AMT is levied at two rates: 26 percent and 28 percent.

      The AMT exemption amount for 2022 is $75,900 for singles and $118,100 for married couples filing jointly.

      2022 Alternative Minimum Tax (AMT) Exemptions

      Filing Status Exemption Amount
      Unmarried Individuals $75,900
      Married Filing Jointly $118,100

      Source: Internal Revenue Service

      In 2022, the 28 percent AMT rate applies to excess AMTI of $206,100 for all taxpayers ($103,050 for married couples filing separate returns).

      AMT exemptions phase out at 25 cents per dollar earned once AMTI reaches $539,900 for single filers and $1,079,800 for married taxpayers filing jointly.

      2022 Alternative Minimum Tax (AMT) Exemption Phaseout Thresholds

      Filing Status Threshold
      Unmarried Individuals $539,900
      Married Filing Jointly $1,079,800

      Source: Internal Revenue Service

      2022 Earned Income Tax Credit (EITC)

      The maximum Earned Income Tax Credit (EITC) in 2022 for single and joint filers is $560 if the filer has no children. The maximum credit is $3,733 for one child, $6,164 for two children, and $6,935 for three or more children.

      2022 Earned Income Tax Credit (EITC) Parameters

      Filing Status   No Children One Child Two Children Three or More Children
      Single or Head of Household Income at Max Credit $7,320 $10,980 $15,410 $15,410
      Maximum Credit $560 $3,733 $6,164 $6,935
      Phaseout Begins $9,160 $20,130 $20,130 $20,130
      Phaseout Ends (Credit Equals Zero) $16,480 $43,492 $49,399 $53,057
      Married Filing Jointly Income at Max Credit $7,320 $10,980 $15,410 $15,410
      Maximum Credit $560 $3,733 $6,164 $6,935
      Phaseout Begins $15,920 $26,260 $26,260 $26,260
      Phaseout Ends (Credit Equals Zero) $22,610 $49,622 $55,529 $59,187

      Source: Internal Revenue Service

      2022 Child Tax Credit

      The maximum Child Tax Credit is $2,000 per qualifying child and is not adjusted for inflation. The refundable portion of the Child Tax Credit is adjusted for inflation and will increase from $1,400 to $1,500 for 2022.

      2022 Capital Gains Tax Rates & Brackets (Long-term Capital Gains)

      Long-term capital gains are taxed using different brackets and rates than ordinary income.

      2022 Capital Gains Tax Brackets

      For Unmarried Individuals, Taxable Income Over For Married Individuals Filing Joint Returns, Taxable Income Over For Heads of Households, Taxable Income Over
      0% $0 $0 $0
      15% $41,675 $83,350 $55,800
      20% $459,750 $517,200 $488,500

      Source: Internal Revenue Service

      2022 Qualified Business Income Deduction (Sec. 199A)

      The Tax Cuts and Jobs Act of 2017 (TCJA) includes a 20 percent deduction for pass-through businesses. Limits on the deduction begin phasing in for taxpayers with income above $170,050 (or $340,100 for joint filers) in 2022.

      2022 Qualified Business Income Deduction Thresholds

      Filing Status Threshold
      Unmarried Individuals $170,050
      Married Filing Jointly $340,100

      Source: Internal Revenue Service

      2022 Annual Exclusion for Gifts

      In 2022, the first $16,000 of gifts to any person are excluded from tax, up from $15,000. The exclusion is increased to $164,000 from $159,000 for gifts to spouses who are not citizens of the United States.

      Filed Under: General

      A Winning Proposition: Estate Planning While Divesting Uncle Sam of his Interest in Your Estate

       

      You are invited to join an upcoming webinar on this important and timely topic. The panelists will explore tried-and-true ways to pass wealth during life and at death that protect not only your family but also your wealth through the use of trusts. Among other advantages, trusts serve to cut off future creditors and prevent the commingling of separate property with community property. This presentation will also explore potential planning techniques that taxpayers may wish to consider and ways to address the uncertainties of today’s planning environment and mitigate the impact of legislative proposals that could change the legal landscape in the months and years to come. Learn more about each of our panelists below.

      Click here to register and submit questions.

      BKM Sowan Horan is registered with the Texas State Board of Public Accountancy as a sponsor of continuing professional education. We are currently not a NASBA registered CPE sponsor. As a result, we will be offering CPE for this webinar to Texas CPAs only. Eligibility for CPE will be determined upon registration, and certificates will be issued following the webinar.

      Panelist: Tim Horan, Partner, BKM Sowan Horan, LLP

      Tim has more than 35 years of experience in public accounting, equipping him to deal effectively on behalf of his clients on issues related to federal and state income tax planning and compliance. Through cost segregation studies, research and development tax credit studies, state income tax nexus studies, acquisition planning, and other tax strategies, Tim has worked closely and collaboratively with clients on tax minimization.

      His areas of concentration also include tax controversy, international taxation, transfer pricing, and mergers and acquisitions. His industry experience encompasses professional services, staffing, restaurant and hospitality, real estate, energy, manufacturing, and distribution.

       

      Panelist: Brad Marckx, Partner, BKM Sowan Horan, LLP

      Brad started his career approximately 25 years ago, working as a revenue agent with the Internal Revenue Service (IRS). The background with the IRS and a Masters Degree in Taxation (MT) from the University of Denver provides a solid foundation in helping businesses, both private and public. Brad’s areas of concentration include federal and state tax planning and compliance, ASC 740, Accounting for income taxes (including documentation of uncertain positions), entity choice, and strategic plans and forecasts.

      Brad’s clients benefit from tax strategies that work with the short and long-range business objectives. Listening to individuals and management teams’ objectives and educating them on the tax options provides a collaborative approach. This may include state nexus, mergers, and acquisitions, or other complex situations.

       

      Panelist: Anthony Daddino, Managing Partner, Meadows Collier, LLC

      Anthony P. Daddino, P.C. is the Managing Partner of the firm. Anthony devotes his practice to handling complex, and often times delicate, tax issues that successful businesses and their owners face.  For nearly two decades, he has counseled clients on income and estate tax issues both in the planning stage (before contact by the Internal Revenue Service) as well as in the controversy stage (after IRS contact).

      On planning matters, Anthony commonly works with business entrepreneurs and their families on wealth preservation and transfer strategies. His work focuses on structuring their business and personal financial affairs in a way that accomplishes global wealth preservation goals and that is efficient from both an income and estate and gift tax perspective.

       

      Panelist: Jana Simons, Associate, Meadows Collier, LLC

      Jana draws from a vast breadth of experience in her law practice. Before joining the firm, she managed a large horse ranch and cultivated successful real estate and insurance practices. Jana’s business-focused background allows her to understand her clients’ concerns and employ a practical approach to tax, estate, and business planning issues.

      She holds an LL.M. in Taxation from Georgetown University Law Center with an academic concentration in Estate Planning. During her time at Georgetown, Jana served as an extern for the United States Department of Justice, Tax Division. While working on her J.D., Jana completed her Master’s degree in Personal Financial Planning, represented pro bono clients in tax controversy matters with the IRS, served as a Peer Financial Counselor, and clerked for the Honorable Robert L. Jones, United States Bankruptcy Court, Northern District of Texas.

       

      Filed Under: Covid-19

      Update on Tax Credits, RRF & SVOG

      Under the American Rescue Plan (ARP), employers are entitled to tax credits for providing paid leave to employees who take time off related to COVID-19 vaccinations. The time off is expanding the sick and family leave credits under the Families First Coronavirus Response Act (FFCRA). The FFCRA required employers with fewer than 500 employees to provide up to 80 hours of sick leave for COVID-19 related illnesses and 10 weeks of paid family leave to employees for caring for a family member due to concerns related to COVID-19 and for caring for a child if the child’s school or place of care has been closed, or the childcare provider is unavailable due to COVID-19 precautions.

      The requirement to provide such sick or family leave expired on December 31, 2020. Still, if the employer voluntarily pays the employee for the COVID-19 related sick or family leave, including vaccinations, they can claim those credits through September 30, 2021. It should be noted that wages for which an employer claims the credits for sick and family leave should be excluded from wages used for Payroll Protection Plan loan forgiveness.

      The Small Business Administration (SBA) released a sample application for Restaurant Revitalization Fund (RRF) grants, as well as an RRF program guide. The sample application and program guide are available on the RRF landing page in the Supplemental Documents section. At this time, the opening date for grant applications has not been finalized, but applicants can proactively gather the information and documents needed for the application by reviewing the sample.

      The Shuttered Venues Operators Grant portal, which was originally opened on April 8th but experienced technical difficulties and was subsequently closed, opened again on Monday, April 26th. The applications will be processed under the following priority schedule:

      Filed Under: Covid-19

      Good News For Taxpayers!

      The Schedule of New Deadlines Dates and Details

      On Wednesday, March 17, the IRS announced that Tax Day for taxpayers outside Texas, Louisiana, and Oklahoma is extended to May 17. Here are some key highlights of what you need to know:

      To minimize any confusion and avoid receiving unnecessary notices from the IRS about the timeliness of extension payments, our strategy will be to file individual extensions before the original due date of April 15 for all U.S taxpayers regardless of their state residency.

      BKM Sowan Horan is committed to our client’s success and will keep you apprised of any further developments with additional alerts. If you need assistance, or have questions about your tax return due dates, or are unsure about when you should submit your estimated tax payments and extension payments, please reach out to a BKM Sowan Horan team member.

      Filed Under: General

      • 1
      • 2
      • 3
      • Next Page »

      Categories

      • Advisory
      • Auditing
      • Awards
      • Covid-19
      • General
      • Industry
      • IRS
      • Management Team
      • Of Counsel
      • Podcast
      • Regulations
      • Tax
      • Technology
      • Services
      • Construction Cost Audit
      • Cost Segregation Studies
      • Employee Benefit Plan Audit
      • Expatriate Tax
      • Federal Tax Services
      • Financial Statement Audit
      • Financial Statement Review
      • Income Taxes
      • Internal Audit
      • International Tax Services
      • Risk Management
      • SOC 1, SOC 2, SOC 3
      • State and Local Tax Services
      • Transaction Advisory
      • Industries
      • Architectural Firms
      • Claim Processing
      • Electric Utilities
      • Exploration and Production
      • General Contractors
      • Interior Design
      • Logistics & Transportation
      •  
      • Manufacturing
      • Mining/Refineries
      • Mortgage Banking
      • Private Equity
      • Professional Services
      • Real Estate
      • Transportation
      • Careers
      • College Students
      • Professionals
      •  
      • About Us
      • Bios
      • FAQs
      • Affiliations
      • Community Involvement
      • Privacy Policy
      •  
      • Contact Us
      • Driving Directions
      •  
      • Services
      • Construction Cost Audit
      • Cost Segregation Studies
      • Employee Benefit Plan Audit
      • Expatriate Tax
      • Federal Tax Services
      • Financial Statement Audit
      • Financial Statement Review
      • Income Taxes
      • Internal Audit
      • International Tax Services
      • Risk Management
      • SOC 1, SOC 2, SOC 3
      • State and Local Tax Services
      • Transaction Advisory
      • Industries
      • Architectural Firms
      • Claim Processing
      • Electric Utilities
      • Exploration and Production
      • General Contractors
      • Interior Design
      • Logistics & Transportation
      • Manufacturing
      • Mining/Refineries
      • Mortgage Banking
      • Private Equity
      • Professional Services
      • Real Estate
      • Transportation
      • Careers
      • College Students
      • Professionals
      • About Us
      • Bios
      • FAQs
      • Affiliations
      • Mission Statement
      • Community Involvement
      • Privacy Policy
      • Contact Us
      • Driving Directions
      Dallas

      Phone: 214 545 3965 | Fax: 214 545 3966

      14675 Dallas Parkway, Suite 150

      Dallas, Texas 75254

      Austin

      Phone: 512 412 3470 | Fax: 214 545 3966

      8310-1 N. Capital of Texas Highway, Suite 497

      Austin, Texas 78731

      Copyright © 2022 bkmsh.com.

      All Rights Reserved.

      LinkedInFacebookPinterestinstagram

      This site uses functional cookies and external scripts to improve your experience. We use cookies to improve your experience and optimize user-friendliness. Read our cookie policy for more information on the cookies we use and how to delete or block them. To continue browsing our site, please click accept.

      My settings
      Privacy SettingsCookie Compliance

      Privacy Settings

      This site uses functional cookies and external scripts to improve your experience. Which cookies and scripts are used and how they impact your visit is specified on the left. You may change your settings at any time. Your choices will not impact your visit.

      NOTE: These settings will only apply to the browser and device you are currently using.

      Cookie Compliance

      We use cookies to improve your experience and optimize user-friendliness.

      Save my settings