On May 20, 2020, the Financial Accounting Standards Board (FASB) voted to implement a one-year delay on the effective date of its Revenue Recognition Standard (ASC 606) for all non-public entities that have not yet issued their financial statements. The decision was based on the financial challenges faced by private companies who are currently focused on surviving the coronavirus pandemic, with FASB stating, “they may not have the technology or resources to effectively implement the standard”.
The Tax Cuts and Jobs Act (TCJA) is the most comprehensive tax reform our country has seen in more than 3 decades, bringing broad and complex changes to businesses in every industry.
With more and more technology firms calling the Boston area home, I thought it might be helpful to discuss some of the implications of the TCJA specific to the tech world.
Did you know that if your company has developed software for internal use, you may be eligible for tax credits? This fall, the IRS finalized a regulation that will allow taxpayers to receive credit for their investment in software research and development.
You might think that you need to develop software for a multi-billion dollar company to claim tax credits, but that's not necessarily the case. If your company is attempting to develop or improve your own software (or have hired someone to do so for you), you're likely to be eligible for tax benefits.