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The Daily

NEWS HIGHLIGHTS FOR THURSDAY - 11.17.16

By:
Maya Lindsay
Published Date:
Nov 17, 2016

NYSSCPA Members in the News

Fred Slater (Manhattan/Bronx)
6 Ways President Trump Could Affect Your Tax Return
The Street
If you want to know which pieces of President-elect Trump's tax policy will become law, just ask your Magic 8 Ball. It's got just as good a shot as anyone else at getting it right, because as we all know, what's said on the election trail often is different than the post-inaugural reality. But the GOP needs to prove that there really is strength in numbers and that the party actually can get something done, especially since the 2018 Congressional elections will come quickly and the balance of power may change.

Accounting and Financial News Stories

IRS Guides On Payroll Taxes For Residents Abroad
Tax-News
The Internal Revenue Service (IRS) has released two new International Practice Units (IPUs) on payroll taxes payable by US citizens and resident aliens working abroad for a US employer, and on the requirement for the payment of those taxes by similar individuals who are self-employed. IPUs produced by the IRS are intended to provide explanations of international tax rules to the agency's examiners, but can also add to taxpayers' understanding of the agency's approach to particular topics. Federal Insurance Contributions Act (FICA) taxes are a US federal payroll tax, covering Social Security taxes (including old-age, survivors, and disability insurance) and Medicare taxes (hospital insurance tax).

Why The Roth IRA May Be Big Winner In 2016 Presidential Election
Forbes
With the 2016 presidential election behind us, we can all start thinking about what this country will look like under President Donald Trump.  Notwithstanding all the pre-election campaign rhetoric about immigration, foreign policy, etc., one thing we are quite certain about is that President-Elect Trump is serious about reducing personal income and corporate tax rates across the board.  Both President-Elect Trump and House Speaker Ryan have put forth proposed tax reform plans and lawmakers will likely consider both plans when coming up with future American tax policy.

JPMorgan Is Said to Settle Bribery Case Over Hiring in China
New York Times
After more than three years of digging into JPMorgan Chase’s hiring practices in China, federal authorities have determined that the bank hired the children of Chinese leaders as part of a quid pro quo to win business in the booming nation, clearing the way for a costly punishment. As soon as Thursday; the authorities will announce a roughly $264 million settlement with the bank and its Hong Kong subsidiary, according to people briefed on the matter who spoke on the condition of anonymity. The authorities, which include criminal prosecutors and civil regulators, will accuse the bank of orchestrating a long-running foreign bribery scheme.

Now That the Fight Over 421a Is Ending, Let’s Discuss NYC Property Taxes, Shall We?
Commercial Observer
The real estate community spent nearly a year collectively holding its breath, but the 421a tax abatement should be coming back in the near future. Although the state legislature still has to take a vote, the Real Estate Board of New York and the Building and Construction Trades Council of Greater New York reached an agreement last week that brings the tax break back to life (see our story on page 4). It which provides incentives to developers to build housing that has an affordable component.

Wall St. Closes Mostly Lower as Bank Stocks Retreat
New York Times
Stocks on Wall Street finished barely lower on Wednesday as banks returned some of the huge gains made since the presidential election last week, but technology and consumer stocks climbed. The dollar continued to appreciate against other currencies and reached its highest mark in 13 years. The Dow Jones industrial average slid 54.92 points, or 0.3 percent, to 18,868.14. The Standard & Poor’s 500-stock index lost 3.45 points, or 0.2 percent, to 2,176.94. The Nasdaq composite picked up 18.96 points, or 0.4 percent, to 5,294.58.

Gov. Andrew Cuomo Proposes Slate of Stricter Ethics Rules
Wall Street Journal
Amid numerous political-corruption scandals riling all levels of government statewide, New York Gov. Andrew Cuomo released a plan Wednesday to overhaul the state’s contracting process and provide tighter oversight at public universities. Mr. Cuomo’s latest call for ethics changes, which also included a push for Albany lawmakers to approve another round of measures for legislators, comes as Albany faces ongoing corruption cases, including one that has brought federal charges against a former top aide of the governor.

Goodwill Impairment on the Rise at U.S. Companies
Accounting Today
Public companies in the U.S. recorded $57 billion in goodwill impairment last year, more than double the amount of impairment they recorded the previous year, according to a new study. The study, by the valuation and corporate finance advisor Duff & Phelps, found this record degree of goodwill impairment since the height of the financial crisis happened in spite of a robust year for M&A activity. The deal value increased by two-thirds in 2015 compared to 2014, with U.S. companies adding $458 billion of goodwill to their balance sheets last year.

U.S. dollar hits 13-year high
CNN Money
The greenback hit a 13-year high on Wednesday, driven by investors' hopes that the Federal Reserve may raise rates more quickly under a Donald Trump presidency. Even before the election, the Fed was already priming to raise rates at its next meeting in December. Higher interest rates and more government spending are a great combination of forces for the value of the dollar. "It's the best policy mix for a currency," says Marc Chandler, global head of currency strategy, at Brown Brothers Harriman. The ICE Dollar Index hit 100.57 on Wednesday. It tracks the dollar's value versus the world's most traded currencies.

Senator Pushes Finra to Expedite Reviews of Wells Fargo Employee Dismissals
Wall Street Journal
Wells Fargo & Co. is facing increasing scrutiny over whether it wrongfully fired employees who pushed back on questionable sales practices and sometimes mischaracterized their behavior on their industry records. The latest salvo came from Sen. Bob Casey (D., Pa.), who in a letter Wednesday to the brokerage industry’s self-regulatory body asked for an expedited review to determine whether any Wells Fargo employees were unfairly dismissed as retribution for speaking out or not cooperating with aggressive cross-selling tactics, according to the letter reviewed by The Wall Street Journal.

The $19.8 Trillion Hurdle Facing Higher U.S. Inflation
Wall Street Journal
The rise in Treasury yields slowed this week, highlighting skepticism in some quarters that Donald Trump’s presidency will usher in a period of rising inflation. The yield on the 10-year Treasury note, which falls as prices increase, fell Wednesday, following a muted rise on Tuesday, while the 30-year bond yield fell both Tuesday and Wednesday. Yields had surged since the U.S. presidential election on the view that Mr. Trump’s tenure will generate a period of rising inflation, as he pursues policies such as tax cuts, regulatory rollbacks and infrastructure spending to boost economic growth.