Thanksgiving
Nov. 23rd, Closing 2 PM
Nov. 24th-25th, Closed
Christmas
Dec. 23rd, Closing 2 PM
Dec. 26th, Closed
New Year’s Day
Dec. 30th, Closing 2 PM
Jan. 2nd, Closed
Enjoy Your Thanksgiving
FTC Challenges Made in USA Claims
For many American consumers the decision to buy products made in the USA is an important one. The Federal Trade Commission recently published an article regarding a particular company that is being sued for making false claims by advertising it’s products as “Made in the USA” or “Proudly Made in the USA”.
According to the complaint, this company claimed its products are “all or virtually all made in the US”. The FTC alleges that approximately 55% of chemicals used in the products are attributable to imported chemicals. Therefore, the suit states that the company’s claims were deceptive because although the products are made in the US, they are made with domestic and imported materials.
This company also manufactured products under brand names for other retailers. The article states “Thus, the complaint alleges that [the company] provided others with the ‘means and instrumentalities’ to deceive consumers.”
If you’re currently marketing products as “Made in the USA”, or are considering doing so, the FTC has the following publications and more available to companies.
Complying with the Made in the USA Standard
Selling American Made Products? What Businesses need to know about Made In the USA claims
For more information visit https://www.ftc.gov/
Seasons Greetings
We wish you and your loved ones a wonderful holiday season and the very best for 2016.
Small Business News: IRS Raises Tangible Property Expensing Threshold
Contributed by Elite Bookkeeping & Tax Services
The Internal Revenue Service recently simplified the paperwork and recordkeeping requirements for small businesses by raising from $500 to $2,500 the safe harbor threshold for deducting certain capital items.
The change affects businesses that do not maintain an applicable financial statement (audited financial statement). It applies to amounts spent to acquire, produce or improve tangible property that would normally qualify as a capital item.
The new $2,500 threshold applies to any such item substantiated by an invoice. As a result, small businesses will be able to immediately deduct many expenditures that would otherwise need to be spread over a period of years through annual depreciation deductions.
“We received many thoughtful comments from taxpayers, their representatives and professional tax community”, said IRS Commissioner John Koskinen. “This important step simplifies taxes for small businesses, easing the recordkeeping and paperwork burden on small business owners and their tax preparers.”
Responding to a February comment request, the IRS received more than 150 letters from businesses and their representatives suggesting an increase in the threshold. Commenters noted that the existing $500 threshold was too low to effectively reduce administrative burden on small business. Moreover, the cost of many commonly expensed items such as tablet-style personal computers, smart phones, and machinery and equipment parts typically surpass the $500 threshold.
As before, businesses can still claim otherwise deductible repair and maintenance costs, even if they exceed the $2,500 threshold.
The new $2,500 threshold takes effect starting with tax year 2016. In addition, the IRS will provide audit protection to eligible businesses by not challenging use of the new $2,500 threshold in tax years prior to 2016.
For taxpayers with an applicable financial statements, the de minimis or small-dollar threshold remains $5,000.
American Corporate Enterprises, Inc. are not accountants and we do not offer tax advice.If you do not have a tax adviser and you need help with your bookkeeping or taxes, contact our affiliate:
Elite Bookkeeping & Tax Services (800) 416-3820
https://www.elitebookkeeping.biz