News & Insights
Proposed Guidance on Qualified Business Income Released
The task of interpreting the significant tax provisions of the P.L. 115-97, otherwise known as the Tax Cuts and Jobs Act (TCJA), has given the Internal Revenue Service (IRS) plenty of work. It has taken time, but the IRS recently proposed regulations under Internal Revenue Code (IRC) §199A. You may recall than IRC §199A allows for a twenty percent (20%) deduction for certain types of qualified business income (QBI) with certain limitations for income thresholds on flow-through income. We’ve commented in the past on potential risks for Independent Mortgage Bankers (IMB) based on interpretation of IRC §199A. The proposed regulations,…
Texas Mortgage Bankers Association Appoints New Board Member Dustin Pfluger
BKM Sowan Horan, LLP is pleased to announce the appointment of partner Dustin Pfluger to the Board of Directors of the Texas Mortgage Bankers Association (TMBA) effective February 1, 2018. Pfluger has been involved in the Mortgage Banking industry for approximately nine years. His recent election is a culmination of his long-term involvement with the TMBA. Over the past five years he has served in several leadership roles at the TMBA including the Chair of the Membership Committee and Vice Chair of the Education and Convention Committees. He has played an active role as a member of the Audit and Future Leader Committees. Additionally, he was…
Implications of Section 404 of the Sarbanes-Oxley Act
Adequate Internal Control Over Financial Reporting The provision under Section 404 of the Sarbanes-Oxley Act is considered to be the most controversial and the most challenging part of the Act. Section 404 obliges the external auditors and their client firms to disclose the efficacy and adequacy of the company’s internal control over financial reporting. Implementing Section 404 is not all about compliance. For the most part, realizing the regulations and policies under the provision will provide significant benefits to the company. These include enhanced effectiveness and competence of internal control practices, increased investor confidence, and more thorough information for investors.…
Implications of the Sarbanes-Oxley Act of 2002
Review of the Sarbanes-Oxley Act of 2002 In July 2002, the Sarbanes-Oxley Act (SOX) of 2002 was enacted in order to restore confidence in corporate financial statements. This was in response to the series of financial scandals that erupted involving large corporations and accounting firms. Under SOX, accounting firms, public companies, registered foreign corporations, and specified private companies are required to comply with the requirements and rules as sanctioned by the law. In most cases, the auditors were criticized and blamed for having a conflict of interest. Investigations showed that their income far exceeded what was supposed to be the…
Understanding the Dodd-Frank Wall Street Reform and Consumer Protection Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act or simply Dodd-Frank Act, is regarded as the most extensive financial reform since the rescinding of Glass-Steagall Act. Referred to as the Banking Act of 1993, the Glass-Steagall Act was legislated in order to avert the use of depositors’ funds by banks on precarious ventures like the stock market. In a manner similar to the Glass-Steagall Act, the Dodd-Frank Act aims to monitor and supervise financial markets so that financial crises such as the 2008 economic crunch won’t happen again. In addition, the Act is tailored to protect consumers through its…