News & Insights

IRS RELEASES REVISED W-4 DRAFT& NEW CALCULATING METHODS

GOAL TO IMPROVE ACCURACY The IRS recently released a revised draft of Form W-4 for the 2020filing season. The changes are aimed at improving the accuracy of amounts withheld from employees’ paychecks so that there are fewer surprises when employees file their tax returns next Spring. UNEXPECTED TAX FILING RESULTS Given all the changes implemented by the Tax Cuts and Jobs Act(TCJA), many taxpayers were surprised this past filing season their refunds were larger or smaller than they anticipated, with the someowing tax they were not prepared to pay. Although not required, the IRS is encouraging “paycheck checkups” for taxpayers,…

BKM Sowan Horan Names New Partners

BKM Sowan Horan, a nationally recognized firm headquartered in Dallas is pleased to announce the partnership appointment of Aaron MacPhie and Brian Simmons effective January 1, 2019. "Our clients benefit from a highly collaborative team with individual partner experience. The appointments of Aaron MacPhie and Brian Simmons strengthen our 360º approach in providing seamless accounting and consulting. Their individual appointments to Partner reflect the value that each bring to our clients," said Rick Sowan managing partner at BKM Sowan Horan. Aaron R. MacPhie adds 20 years of experience that include tax planning strategies, tax consequences, audit and tax services across a variety of industries that included technology, manufacturing, hospitality, professional service, and nonprofit organizations.…

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.…