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Financial statements audits
Financial statement audits
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Compliance audits
Compliance audits
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Compilations and audit
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Agreed-upon procedures
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Our trusted teams can prepare corporate tax files and ruling requests, support you with deferrals, accounting procedures and legitimate tax benefits.
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International tax
Our teams have in-depth knowledge of the relationship between domestic and international tax laws.
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Tax compliance
Business Tax
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Individual taxes
Individual taxes
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Estate and succession planning
Estate and succession planning
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Global mobility services
Through our global organisation of member firms, we support both companies and individuals, providing insightful solutions to minimise the tax burden for both parties.
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Sales and use tax and indirect taxes
SUT/ VAT & indirect taxes
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Tax incentives program
Tax incentives program
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Transfer Pricing Study
The laws surrounding transfer pricing are becoming ever more complex, as tax affairs of multinational companies are facing scrutiny from media, regulators and the public
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Business consulting
Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
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Forensic and investigative services
At Grant Thornton, we have a wealth of knowledge in forensic services and can support you with issues such as dispute resolution, fraud and insurance claims.
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Fraud and investigations
The commercial landscape is changing fast. An ever more regulated environment means organizations today must adopt stringent governance and compliance processes. As business has become global, organizations need to adapt to deal with multi-jurisdictional investigations, litigation, and dispute resolution, address the threat of cyber-attack and at the same time protect the organization’s value.
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Dispute resolutions
Our independent experts are experienced in advising on civil and criminal matters involving contract breaches, partnership disputes, auditor negligence, shareholder disputes and company valuations, disputes for corporates, the public sector and individuals. We act in all forms of dispute resolution, including litigation, arbitration, and mediation.
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Business risk services
We can help you identify, understand and manage potential risks to safeguard your business and comply with regulatory requirements.
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Internal audit
We work with our clients to assess their corporate level risk, identify areas of greatest risk and develop appropriate work plans and audit programs to mitigate these risks.
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Service organization reports
As a service organization, you know how important it is to produce a report for your customers and their auditors that instills confidence and enhances their trust in your services. Grant Thornton Advisory professionals can help you determine which report(s) will satisfy your customers’ needs and provide relevant information to your customers and customers’ auditors that will be a business benefit to you.
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Transaction advisory services
Transactions are significant events in the life of a business – a successful deal that can have a lasting impact on the future shape of the organizations involved. Because the stakes are high for both buyers and sellers, experience, determination and pragmatism are required to bring deals safely through to conclusion.
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Mergers and acquisitions
Globalization and company growth ambitions are driving an increase in M&A activity worldwide as businesses look to establish a footprint in countries beyond their own. Even within their own regions, many businesses feel the pressure to acquire in order to establish a strategic presence in new markets, such as those being created by rapid technological innovation.
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Valuations
We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
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Recovery and reorganization
We provide a wide range of services to recovery and reorganisation professionals, companies and their stakeholders.
In the early months of 2020, the COVID-19 pandemic triggered unforeseen effects in the lifestyle and pocket of the average taxpayer. The enactment of The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, was Congress’ first major relief bill to provide taxpayers financial assistance to alleviate the grueling economic consequences of the pandemic. As the pandemic continues its course, additional measures have been implemented to lessen the tax bill of individual taxpayers for 2020.
Recent United States federal tax relief measures
Expenses for Medical Care
Recently, the United States Internal Revenue Service (“IRS”) released IRS Announcement 2021-7 (hereinafter “Announcement”). In the Announcement, the IRS establishes that individual taxpayers can include unreimbursed amounts paid for personal protective equipment (“PPE”) to prevent the spread of Covid-19 as medical expenses. The IRS includes masks, hand sanitizers and sanitizing wipes used for the primary purpose of preventing the spread of the COVID-19 as COVID-19 PPE. The Announcement also clarifies that these amounts are also eligible to be paid or reimbursed under health FSAs, HRAs or HSAs.
In general terms, Section 213 of the United States Internal Revenue Code (hereinafter “IRC”) allows individual taxpayers to deduct in their personal income tax return as an itemized deduction medical expenses paid for themselves, their spouse or a dependent in excess of 7.5% of their Adjusted Gross Income (hereinafter “AGI”). Deductible medical expenses cannot be reimbursed or compensated for by insurance. Pursuant to US Regulation 1.213-1(a)(1) medical expenses can be deducted in the year they are paid.
The medical expense deduction is not available to nonresident alien’s individual that files a Nonresident US tax return.
Example: Marry Ellen files her income tax return as an individual taxpayer in 2020. Her sole source of income are wages of $80,000 as reported on her 2020 W-2. Marry Ellen has a daughter that qualifies, and she claims as a dependent. Mary Ellen paid $2,000 in Covid-19 PPE for her and her daughter; and $7,000 in deductible medical expenses.
Marry Ellen can claim medical expenses over $6,000, which represent 7.5% of her AGI of $80,000. In 2020, she had medical expenses of $9,000. She can include $3,000 as medical expenses, if Marry Ellen elects to itemize her deductions.
Let us assume the same fact of circumstances, except that Marry Ellen’s received a reimbursement of $1,500 for the COVID-19 PPE. In this case, Mary Ellen can only include $1,500 as medical expenses, if she elects to itemize her deductions.
As an additional note, the Announcement also establishes that group health plans, including FSAs and HRAs may be amended to provide for COVID-19 PPE reimbursements incurred for any period beginning on or after January 1, 2020. Certain deadlines apply.
Charitable Contributions
Last year, the CARES Act amended Section 62(a) of United States Internal Revenue Code (“IRC”) to allow an individual taxpayer that does not elect to itemize deductions to deduct up to $300 in cash charitable contributions. The contributions must be religious, charitable, educational, educational, scientific, or literary in purpose as contemplated in Section 170(b)(1) of the IRC.
Also, Section 2205 of the CARES Act suspends the limitations to charitable contributions made by individuals. Cash contributions by individuals to public and private operating charities were limited to 60% of the taxpayer’s AGI. For 2020, a taxpayer may choose to claim cash charitable contributions up to 100%.
Puerto Rico
In Puerto Rico, an individual taxpayer can claim as a deduction medical expenses in excess of 6% of its AGI. Charitable contributions paid to charities qualified by the Puerto Rico Treasury Department are limited to 50% of the AGI of the individual. To this date, the Puerto Rico Treasury Department has not made any expressions on the inclusion of COVID-19 PPE as part of the medical expense deduction for individuals. There are no proposed bills on this issue in the Legislative Assembly to include COVID-19 PPE as a deductible medical expense or to suspend the limitations on deductible charitable contributions.
