Developments in Tax and Business
The Regulatory Burden
The cost of complying with federal regulations falls most heavily on
companies with fewer than 20 employees. These very small firms pay $7,647
per employee per year to stay in compliance, substantially more than the
$5,282 per employee spent by much larger firms.
Building Information Modeling Gaining in Popularity
Over a third of construction project and program owners stated that they
have used Building Information Modeling on one or more of their projects,
according to a recently released survey conducted by the Construction
Management Association of America and FMI Corporation. Building Information Modeling
involves the creation of digital information about a building project, which
is used for design decision-making, the production of construction
documents, cost estimating, construction planning and, ultimately, managing
and operating the facility.
Audit Chances
The IRS 2006 Data Book shows that the percentage of partnership returns that
were audited by the IRS rose from 0.26% in 2004 to 0.36% in 2006, while the
percentage of S corporations that were audited doubled over the same period,
rising from 0.19% in 2004 to 0.38% in 2006. The audit rate for corporations
under $10 million in assets rose from 0.32% in 2004 to 0.80% in 2006, while
the audit rate for corporations with $10 million or more in assets jumped
from 16.74% to 18.60%.
Work-In-Process is provided by
Somerset for our clients and other interested persons upon request.
Since technical information is presented in generalized fashion, no
final conclusion on these topics should be made without further review.
For additional information on the issues discussed,
please contact
Ken
Hedlund,
Jay Feller,
Steve George,
Chris
Mayfield or
Rebecca Ogle
of our
Construction & A/E Team.
This document is not intended or written to be used, and cannot be used,
for the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
