D&M Manufacturing Industry Newsletter

September 2023

Brian J. Potter, CPA CDA

Featured Article From Our Experts

Latest Update on Employee Retention Credits

The Employee Retention Credit (ERC) has been an important source of tax relief for businesses impacted by the pandemic. However, some ERC promoters are making false claims to businesses, promising large cash refunds of up to $26,000 per employee. These misleading promises are not only unethical but also illegal. In this article, I will provide the latest information on the ERC claims and the action the IRS is now taking.

Manufacturers: Are You Making the Most of the General Business Credit?

Tax credits are an excellent way for manufacturers to reduce their tax liability. Unlike tax deductions that only lower taxable income, tax credits directly reduce the amount of tax owed dollar for dollar. However, these credits are not unlimited. The general business credit may limit the aggregate value of tax credits. This article provides valuable information to help you understand how general business credits can be determined.

Understanding How Waste Impacts Your Bottom Line

Scrap materials sometimes pile up on the shop floor, leading to safety issues and cleanup costs. But waste extends beyond trash in a manufacturing context. This article explores the concept of waste and provides creative solutions for reducing it with preventive maintenance, routine physical inspections and effective quality control.

Using a Reverse Audit To Reveal Refund Opportunities

As a manufacturer, you may be entitled to sales and use tax exemptions for certain purchases. However, the details of these exemptions can vary from state to state. Too often, manufacturers overlook exemptions they're entitled to, leading to unnecessary tax overpayments. This brief article explores the complex but often beneficial process of conducting a reverse audit to find overpayments and seek reimbursements.

Join us for our Annual Tax & Financial Planning Conference. This conference is designed to bring you up to date on recent tax, accounting and financial updates. You will also receive valuable year-end strategies to help you lighten your tax burden and better achieve your

financial objectives. CPE credits are available for attendees.

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About Dannible & McKee, LLP

Dannible & McKee, LLP has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. The hallmark of our firm is our technical expertise, depth of experience and our approach to delivering quality service to our clients. We understand the unique needs of manufacturers, and our team of manufacturing specialists are well-versed and experienced in manufacturing concerns, and able to address your needs. We are involved in many organizations that serve manufacturers, including the Manufacturers Association of Central New York (MACNY) and the Central New York Technology Development Organization (CNY TDO). We are also Upstate New York’s first-ever affiliate of GGI Global Alliance (GGI), the prestigious international organization of professional firms.

OFFICE LOCATIONS:

DM Financial Plaza, 221 South Warren Street, Suite 500,Syracuse, NY 13202

213 North Street #1, Auburn, NY 13021

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220 Stage Road, Vestal, NY 13850

To learn more about Dannible & McKee, visit us at: www.dmcpas.com.