*This is the first in a series of articles addressing the impact of the TCJA on the Manufacturing industry.

TCJA: A Recap

The Tax Cuts and Jobs Act (TCJA) that was signed into law in December 2017 introduced changes to the Internal Revenue Code (IRC) the likes of which have not been seen since the Tax Reform Act of 1986. Many of these new or altered provisions directly affect manufacturers, and in this and subsequent articles of a series of articles, Monitoring Manufacturing: Effects of the New Tax Code, I’ll address those likely to have the most impact on our industry.

Pros & Cons of Cash Basis Accounting

One of the most beneficial additions to the IRC resulting from the TCJA is the opportunity for some manufacturers to switch to a cash basis method of accounting. Under prior law, businesses with inventories were typically required to use the accrual method, which generally requires income to be recognized when it is earned and expenses to be recognized when they are incurred.

The major pitfall to the accrual method of accounting is that it often accelerates the recognition of income and the related tax payments. That can create a cash flow problem. Under the cash basis of accounting, income is recognized when the money is received and expenses are deducted when they are paid. Improved cash flow is just one benefit associated with cash accounting; for example, the business can accelerate tax deductions by paying expenses prior to the end of its tax year.

Who is eligible?

The TCJA allows businesses with average annual gross receipts of less than $25 million – based on their previous three tax years – to adopt a cash accounting method and thereby potentially defer the recognition of income to future tax years. In addition, businesses under that $25 million threshold are no longer required to account for their cost of goods sold using inventories.

Instead, they can use a method of accounting that treats inventories as non-incidental materials and supplies or that mimics their financial accounting treatment of inventories. As such, the business can expense inventory as it is actually paid for, rather than being required to capitalize it – that is, not expense it. It is a very favorable change in that it will add to the business’s deduction for cost of goods sold. Treating inventories as non-incidental materials and supplies also exempts the business from applying Section 263A, which requires certain costs ordinarily expensed to be capitalized as part of inventory for tax purposes. Combining these opportunities could yield considerable benefits.

The TCJA expands the pool of businesses that are eligible to use the cash method of accounting. It is likely that many manufacturers previously prohibited from using the cash basis method of accounting will now be eligible. Nonetheless, it is imperative to conduct a thorough analysis of your specific circumstances.

For questions or to arrange a study of the potential opportunities for your company, contact a member of the HBK CPAs & Consultants’ Manufacturing team at (330) 758-8613.

The IRS extended the due dates for furnishing individuals with certain forms related to the Affordable Care Act (ACA).

According to a recent announcement by the agency, it will allow sponsors of coverage who file the 2018 Health Coverage Form 1095-B and companies which file the 2018 Employer-Provided Health Insurance Offer Coverage Form 1095-C an extension from January 31, 2019 to March 4, 2019. No additional extensions for provision of these forms will be permitted.

The recent IRS notice announcing the change did not include extensions for filing forms 1094-B, 1095-B, 1094-C, and 1095-C with the IRS. The deadline for those forms is still February 28, 2019, if they are filed traditionally and April 1, 2019, if they are filed electronically. However, a 30-day extension for filing these forms with the IRS is still available through submission of Form 8809, the standard Application for Extension of Time to File Information Returns form.

The IRS has also provided guidance to individuals who do not receive Form 1095-B or Form 1095-C by the time they file their 2018 tax returns due to these extensions. The agency said via their update, “Taxpayers may rely on other information received from their employer, or other coverage provider, for purposes of filing their returns, including determining eligibility for the premium tax credit and confirming that they had the required minimum essential coverage. Taxpayers do not need to wait to receive Forms 1095-B and 1095-C before filing their returns.”

In addition, the notice provides relief from certain penalties to any reporting entity that can show they have made good faith efforts to comply with IRS reporting requirements for 2018 (both for furnishing said forms to individuals and for filing with the IRS) as they relate to incorrect or incomplete information contained on tax returns/forms. This applies to missing and inaccurate taxpayer identification numbers and errors in dates of birth or other identification information required on a tax return/form. No relief is provided in the case of reporting entities that cannot prove they made good faith efforts to comply with the regulations, or which fail to file appropriate and required tax returns/forms or statements by their due dates.

Please contact Michael Walston at mwalston@hbkcpa.com, or your HBK representative with any questions on this matter or others related to filing tax forms.

Community engagement is an important part of our culture and a cornerstone of our corporate responsibility efforts. We serve our communities and support charities under the banner of HBK Cares, a corporate initiative. Each office commits to programs in its community that meet the needs of the community and compel the people in that office. And we support many and varied charities, including March of Dimes, American Heart Association, Red Cross, the American Cancer Society, and the Susan G. Komen Foundation. This October, we are working together across offices, geographic regions, service lines, and entities to support the Susan G. Komen Foundation in acknowledgement of Breast Cancer Awareness month. All month, you will see photos of our team members honoring loved ones who have fought or are fighting the disease, which has touched so many of us here at HBK personally and deeply. Helping spread awareness and assisting in the fundraising efforts that benefit the Susan G. Komen Foundation is our honor and pleasure because HBK Cares, in a very hands-on way, for the people, causes, and needs in the communities we call home in all the regions we serve. We ask you to consider joining the fight against Breast Cancer – as we are doing in memory, honor, and compassion for our colleagues, clients, family members, friends and associates facing this tough battle. Working together, we can impact change through HBK Cares. Click Here to Donate to HBK Cares Breast Cancer Gift Campaign

The IRS is granting more time for eligible victims of Hurricane Florence to complete certain tax-related tasks, including filing tax returns, making tax payments and other time-sensitive tasks. This relief is available to those in areas designated by the Federal Emergency Management Agency as qualifying for individual assistance.

Currently, this includes the North Carolina counties of Beaufort, Brunswick, Carteret, Craven, New Hanover, Onslow, Pamlico and Pender.

For details and an updated list, please visit: IRS Tax Relief Information

Canfield, Ohio – Clinton A. Smith, CPA, CCIFP has been promoted to Principal in the Sarasota, Fla., office of HBK CPAs & Consultants (HBK). Mr. Smith joined the HBK office in Naples, Florida in October of 2007 after earning his B.S. in Accounting from Youngstown State University. In 2009, he moved to the HBK office in Sarasota, Fla. He is a Certified Public Accountant, a Certified Construction Industry Financial Professional (CCIFP) and a member of the American Institute of Certified Pubic Accountants.

“Clint has been an integral part of the growth of this office since his arrival here,” said Craig Steinhoff, Principal-in-Charge of the Sarasota office. “He has shown determination and skill in directing internal education and training, improving our collective technical skills by leading our Audit Specialists and Accounting and Auditing Team Level Training.”

Clint is a member of the firm’s Quality Control team and its Assurance Practice Committee. He works predominantly with Assurance Services, auditing construction and manufacturing companies and non-profit organizations. He also provides audit services to businesses on their Employee Benefit Plans.

HBK CEO and Managing Principal Christopher M. Allegretti, CPA, praised Smith as a consummate professional and leader. “Clint’s passion for teaching others and helping them grow and advance is indicative of the type of firm leader who will guide us into our next generation of service.”

Mr. Allegretti also recognized the following team members on their promotions:

Promoted to Senior Director:
Sandy Stewart in Pittsburgh, Pennsylvania

Promoted to Senior Manager:
Matt Fabian in Hermitage, Pennsylvania
Nick Walters in Meadville, Pennsylvania
Elena Ramos in Naples, Florida
Matt Schiavone in Pittsburgh, Pennsylvania
Robert Zahner (Valuation, Litigation and Forensics) in Pittsburgh, Pennsylvania
Michael Byrwa in Princeton, New Jersey
Ed Williams (Dealership Industry Group) in Youngstown, Ohio
Stephen Horne in Youngstown, Ohio
Kyle Melewski in Youngstown, Ohio

Promoted to Manager:
Michael Gill in Blue Bell, Pennsylvania
Patrick Higgins in Blue Bell, Pennsylvania
Jessica Donor in Meadville, Pennsylvania
Brandon Dougherty in Naples, Florida
Lusy Garcia in Naples, Florida
Ashlynn Reeder in Naples, Florida
Maria Battaglia in Princeton, New Jersey
Andrew Cooke in Princeton, New Jersey

Promoted to Senior Associate:
Matthew Carroll in Blue Bell, Pennsylvania
Michael Pastore in Cherry Hill, Pennsylvania
Allie Dempsey in Erie, Pennsylvania
Michael Baker in Erie, Pennsylvania
Steven Brown in Ft. Myers, Florida
Matt Orr in Meadville, Pennsylvania
Larissa Lutz in Meadville, Pennsylvania
Casey Baker in Meadville, Pennsylvania
Ty Sheehan in Meadville, Pennsylvania
Jamie Dwyer in Pittsburgh, Pennsylvania
Laurie Rossi in Pittsburgh, Pennsylvania
Christopher Raykowski in Princeton, New Jersey
Frederick McQuade in Princeton, New Jersey
Zachary Sadusky in Princeton, New Jersey
Tyler Bounassi in Princeton, New Jersey
Megan Brocker in Youngstown, Ohio

As taxpayers have struggled to understand the effect that the Tax Cuts & Jobs Act of 2017 (TCJA) will have on their 2018 taxes, Congress and the Treasury Department have been busy working behind the scenes to draft the framework for a new tax cut package and proposed regulations that will hopefully provide some clarity to an increasingly complex tax system.

Framework for a New Tax Cut Package

On July 24th, the House Ways and Means Committee Chairman, Kevin Brady (R-Texas) released the framework of a new tax cut package – labeled Tax Reform 2.0 – that gives some insight into additional tax law changes that may be coming in the near future. The following is addressed in the framework:

Making the TCJA Tax Cuts Permanent

In order to pass tax legislation at the end of 2017, the Republican-lead House and Senate had to rely on a special legislative process known as budget reconciliation. Legislation passed through this process is not subject to filibuster (meaning that the minority party cannot block the legislation), and it only requires a simple majority vote to pass. The trade-off to using this process is that any legislation passed under budget reconciliation cannot increase the deficit after 10 years. This means that most of the provisions of the TCJA are set to expire after 2025.

The Republicans used budget reconciliation to pass tax reform quickly, and now they are on a continuous campaign to try to make the changes permanent. The framework argues that permanency will provide “certainty for our families, workers, and Main Street small businesses while unleashing even more economic growth in America for the long run.” This seems rather unlikely since the Democrats, in general, do not appear to support making the cuts permanent.

Promoting Family Savings

Problems with the social security system have lead to an increased focus on other methods of promoting savings across the country. The framework focuses on the following savings accounts:

1. Retirement savings – the framework indicates that Tax Reform 2.0 will help small businesses provide retirement plans for their workers, and will help employees participate in those plans. In addition, the framework indicates that changes will be made to allow families to use their retirement accounts to pay for the costs of welcoming a new child – whether by birth or adoption – into the family.

2. Universal Savings Account (USA) – the framework introduces a new savings account that it claims will be a “fully flexible savings tool for families.”

3. 529 Education Accounts – the framework indicates that these types of accounts will be expanded to pay for apprenticeship fees to learn a trade, homeschooling costs, and to help pay off student debt.

Spurring New Business Innovation

With the United States no longer in Bloomberg’s list of top 10 most innovative countries in the world, Congress is looking for ways to increase innovation across the country. The framework indicates that Tax Reform 2.0 will introduce expanded benefits to help new businesses write off more of their initial start-up costs, and to remove barriers that may inhibit growth.

Brady hopes to move forward with a committee vote on draft legislation this coming September, though the actual legislation may change significantly as members of Congress continue to lobby for their own ideas. The November midterm elections may also have an impact on the final legislation that is put up for a vote.

Proposed Regulations

As Congress continues to focus on new legislation, the Treasury Department has been focused on providing guidance for various provisions of the TCJA. One area of the new tax law that needs clarification is the new 20% pass-through deduction. Proposed Regulations were originally slated to be released in June, but that date has been pushed back.

On July 25th, a draft of the proposed regulations were delivered to the Office of Management and Budget’s Office of Information and Regulatory Affairs. Since the regulations are listed as “economically significant,” they qualify for an expedited 10-day review. Hopefully this means that we will see the proposed regulations soon.

At HBK, we strive to keep you informed of major developments and changes to the tax code. These changes may have a significant impact on current business operations and year-end planning. We encourage you to reach out to your CPA to see what impact these developments may have on your tax situation.

A look at the Supreme Court case that could mean major taxation changes for many business owners.

History of the Case

In 1992, the Supreme Court made a decision that has, so far, stood the test of time and shaped how states impose sales tax on businesses. Quill v. North Dakota involved Quill Corp., a company distributing ads, catalogs, flyers, and floppy disks into North Dakota, and North Dakota’s attempt to impose sales tax on Quill Corp. for their “regular or systematic solicitation” of consumers within the state. The Supreme Court’s decision in Quill cemented what we now know as the “physical presence test,” which requires a physical presence, or a tangible connection, between a state and a business in order for that state to impose taxing obligations. For more than twenty years, states have modeled their taxing systems around the limitations imposed under Quill, and anyone engaged in e-commerce knows that understanding where their physical presence or “nexus” lies is critical in determining their tax collection and filing requirements within a state.

Since Quill, many states have attempted to broaden their taxing authority while still meeting the requirements set forth under Quill’s physical presence test. Quill was decided before the boom of e-commerce and large internet retailers, in a time when mail order catalogs were often used for interstate sales. An e-commerce business without physical presence in a state cannot be required to charge sales tax on purchases within it since they lack sufficient nexus. Arguably, this has created a large deficit in a state’s taxing ability and the revenue that states are able to generate as e-commerce continues to grow and deepen in the marketplace. South Dakota, intent on challenging Quill, has now forced the Court’s hand into making a determination as to whether Quill should be overturned now that e-commerce is common.

In March of 2016, South Dakota passed S.B. 106, which imposed sales tax registration and collection obligations on sellers that lacked physical presence within a state if the seller in the current or previous calendar year had gross revenue from sales of tangible personal property (TPP) and services delivered within the state exceeding $100,000, or sold TPP and services for delivery into the state in 200 or more separate transactions. Following this bill, South Dakota sued four out-of-state retailers seeking to affirm the validity of S.B. 106. One of the retailers registered and chose to collect sales tax, and the remaining three moved for summary judgment, which was granted by the Supreme Court of South Dakota under the restrictions imposed by Quill. The U.S. Supreme Court granted certiorari of this case in January of 2017, agreeing to look at whether the precedent set under Quill should be called into question, or even potentially overturned.

South Dakota’s Argument

While it wouldn’t be unprecedented to see the Supreme Court overturn Quill, this is not an easy argument for South Dakota to win. Under the principle of stare decisis, overturning a prior precedent set by the Court requires a demonstration of “special justifications.” The Court will consider whether their prior decision is inconsistent with other decisions, and whether the holding in Quill was harmful, important, or detrimental to the doctrine at issue. The court will also determine whether Quill should be overturned due to a change in circumstance, and will analyze the distinguishing factors between Wayfair and Quill, focusing on any statutory or constitutional interpretations that may factor into the facts of these cases.

On Tuesday, April 17, 2018, the Supreme Court began hearing oral arguments in South Dakota v. Wayfair. Among some of the more frequent concerns raised by the Justices is the concern over the immense administrative burden that making such a “binary” decision to overturn Quill would have on both states and small businesses. Immediately, the Attorney General for South Dakota was met with questions from the Justices voicing these concerns. Justice Sonia Sotomayor, stating she was “concerned about the many unanswered questions that overturning precedents will create,” indicated that this would ensure an influx of lawsuits surrounding such a massive change. Justice Sotomayor also vocalized concerns over retroactive liability for sellers if the Court were to change the physical presence standard, which would only increase the administrative burden on small businesses.

While these administrative concerns are immense, South Dakota also has a strong argument that states could lose billions in revenue over the next decade if they are unable to fully tax retailers within the e-commerce marketplace. Chief Justice John Roberts noted that, as a country we may be past the point in our history where major e-commerce-based retailers are refusing to collect and remit sales tax. He noted that the major five players in this field already comply across the board (Amazon, for instance, has long charged sales tax appropriately throughout the country). His statements highlighted the fact that these large retailers are still successful, even while complying with varying state taxing liabilities. Chief Justice Roberts noted that large e-commerce retailers no longer refuse to collect sales tax in order to enjoy a price advantage over brick and mortar stores. He said, “…if it is, in fact, a problem that is diminishing rather than expanding, why doesn’t that suggest that there [is] greater significance to the arguments that we should leave Quill in place?” The Justices noted that these larger players in the marketplace that are not of any state’s primary concern at present nor will they will necessarily feel an increased burden if Quill is overturned. Rather, small businesses will feel the impact first.

Many of the arguments have come down to whether the Supreme Court should be deciding this issue, or whether action by Congress would be more appropriate. While South Dakota argued that Congress has had more than twenty years to act, thus allowing the Court to step in, the Justices were prompt to point out that “this is something [Congress is] going to leave the way it has been for, whatever it is, 25 years.” The Court also noted that “it would be very strange for [the Supreme Court] to tell Congress it ought to do something in any particular area.” Chief Justice Roberts brought up the possibility that this is an area that Congress has simply decided to avoid. On the other hand, Justice Elena Kagan cautioned that Congress’s inaction is reason enough to proceed carefully in overturning Quill. This inaction may have the effect of raising the bar as to what would be necessary to overturn another such monumental case.

Decision Expected this Summer

While it is unclear what the fate of Quill and Wayfair will be, it is certain that no decision from this Court will be entered into lightly. The Justices are rightly concerned with the practical impact that such a massive decision would have on small retailers, specifically the increased procedural burden e-commerce vendors would face if states were permitted to impose tax on businesses lacking physical presence. Many states are struggling to increase revenue and balance their budgets, especially after the passage of the Tax Cuts and Jobs Act (TCJA). The impact of TCJA makes it clear why South Dakota is attempting to broaden its taxing authority. However, it is wise to keep in mind what overturning Quill could mean for all sides. We are in an age where the law and technology are in a constant race against each other. If Quill remains, the Wayfair case could spark a flood of new laws from states attempting to define and re-define what digital touches to a state are consistent with Quill.

A decision from this case is expected around the end of June. HBK will continue to monitor this case and its potential affect on our clients, associates and colleagues. Please contact Cassandra Baubie at cbaubie@hbkcpa.com or 330-758-8613 with any questions.

The 2017 Tax Cuts and Jobs Act was signed into law on December 22. Since that time, tax professionals, financial advisors and attorneys have scrambled to understand the impact of the new legislation on their clients. As the 2017 tax filing season kicks off, many HBK clients are asking us what they need to do now to put themselves in the best tax situation for the 2018 tax year. Following is a discussion of some of the major provisions that will significantly impact many individuals and businesses. As most of these changes relate to the 2018 tax year, they generally will not affect tax returns filed during the 2017 tax filing season.

The New 20% Deduction for Pass-Through Businesses
One of the goals of the Tax Act was to simplify the code, which was done by eliminating many deductions and credits that businesses and individuals have historically relied on to reduce their tax bill. But eliminating these deductions and credits would likely increase taxes, despite a rate reduction, for many of the tax brackets. So Congress introduced a new 20 percent deduction for so-called “pass-through” businesses, essentially businesses like S-corporations and partnerships that don’t pay corporate taxes. Congress also wished to provide pass-through entities a tax benefit similar to what C-corporations received with their new 21 percent flat tax rate.

Calculating the deduction is complicated, and becomes even more complicated when an individual’s taxable income exceeds $315,000 (married filing joint) or $157,500 (single). If taxable income is below these thresholds, all types of businesses can take the new deduction, and the calculation is relatively straightforward. The allowable deduction is equal to 20 percent of a business’s qualified business income, though cannot exceed 20 percent of the individual’s taxable income less net capital gains. The Tax Act defines “qualified business income,” but the definition is littered with technical language that makes it more complicated than it should be. For most individuals, qualified business income will likely be the ordinary income of the business, though it does not include wages or guaranteed payments that the individual may receive from the business.

Once an individual’s taxable income exceeds $315,000 or $157,5000, the type of business that qualifies for the deduction changes. Once that threshold is crossed, then “specified service businesses” must phase out their deduction. The deduction is completely lost when the individual’s taxable income exceeds $415,000 (married filing joint) or $207,500 (single). The Tax Act defines “specified service business,” but the definition is broad and would appear to apply to many types of businesses. Without further guidance, it is difficult to say with certainty whether or not a business that is not specifically listed in the definition will be considered a “specified service business” and subject to the deduction phase-out.

For businesses not subject to the phase-out, the allowable deduction is subject to additional limitations, which make the calculation that much more complicated. We encourage everyone to contact their tax professional to walk through the calculation and determine whether or not they will benefit from the deduction, and how much of a deduction they can expect.

Entertainment Limitation
The Tax Act effectively eliminates the ability of a business to deduct most – if not all – entertainment expenses – typically entertainment, amusement, or recreation – even if there is a business purpose for the expense. Types of expenses can include expenditures at country clubs, or for sporting events, hunting or fishing trips, or theaters. For a business that spends a significant amount on these types of events to network and attract new clients, eliminating these deductions could result in a significant increase to taxable income. We’ll discuss the specifics of this disallowance in a future article, as the rules are lengthy and the impact on businesses potentially substantial.

New Measure of Inflation
Historically, tax brackets and thresholds within the tax code have increased with inflation, which is calculated using the Consumer Price Index (CPI). The CPI lists prices that consumers typically pay for retail goods and other items. As the cost of these goods and items increase, so do the tax brackets and thresholds. The Tax Act changed the inflation calculation so that it will now use the Chained Consumer Price Index (C-CPI-U). The C-CPI-U assumes customers will choose less expensive substitutes for retail goods and other items as prices increase, and therefore slows the rise in inflation.

The overall effect of this change is that tax brackets and thresholds that increase with inflation will now increase at a slower rate than they have historically. Over time, this essentially causes an increase in taxes paid because more income will be subject to higher tax rates than would have been using the CPI.

Changes to Itemized Deductions
In developing the provisions of the Tax Act, there was considerable debate regarding a limitation on the deduction for state and local taxes. In the end, Congress decided to limit the deduction for all state and local taxes to $10,000. This limitation applies only to personal taxes, and does not apply to trade or business taxes that would be deductible against business income. For individuals living in states with high income and property tax rates, this limitation could result in a large increase in tax that might not be offset by a lower tax bracket. High tax states are currently looking at creative ways to maintain their tax revenues while providing residents ways to achieve a greater federal tax deduction.

Another new restriction on itemized deductions is the elimination of the deduction for miscellaneous itemized deductions, which currently are allowed to the extent they exceed 2 percent of adjusted gross income. These deductions include tax preparation fees, investment management fees, and unreimbursed employee expenses. It should be noted that the deduction for tax preparation fees related to the preparation of a trade or business return are not eliminated.

The amount of mortgage interest that is deductible has also been reduced for mortgages entered into after December 15, 2017. The interest from these mortgages will only be deductible for principal balances up to $750,000. Any interest related to balances in excess of this threshold will not be deductible. Mortgages that were entered into prior to December 15, 2017 will be subject to the old mortgage interest rules, which allow interest on principal balances up to $1 million. If an older mortgage is refinanced, the old mortgage interest rules will apply. In addition, interest paid on home equity lines of credit with balances up to $100,000 will no longer be deductible.

While most changes relating to itemized deductions result in fewer deductions that can be claimed, the Tax Act did provide one benefit for itemizers: the elimination of the overall limitation on itemized deductions. The so-called “Pease limitation” applied when an individual’s taxable income exceeded certain thresholds, and caused a significant reduction in itemized deductions that many individuals could claim.

Proactive Planning Is Crucial
The 2017 Tax Cuts and Jobs Act represents the most significant change to the internal revenue code in the past 30 years. Its impact will be significant over the next eight years. There are many other changes not covered in this article that could affect your personal tax situation. It is crucial that individuals and businesses engage in proactive planning to prepare for the changes and to take advantage of any new applicable tax benefits. At HBK we are committed to working with you to ensure your planning needs are met. We encourage you to reach out and ask questions, and we will do our best to provide you with the highest level of service.

Sarasota, Fl. – HBK CPAs & Consultants is pleased to announce the recognition of Craig Steinhoff as one of the Sarasota Business Observer’s 2016 “40 Under 40” young leaders in the region.

He is the Principal in Charge of the firm’s Sarasota, Florida office.

Steinhoff has been with the firm since 2007 and became the lead Principal in HBK’s Sarasota office last year.

His nomination was announced October 13, 2016.

HBK salutes Steinhoff on this well-deserved honor.

*This article was originally published on 10/13/2016 and last updated on 01/31/2024

 

Pittsburgh, Pa. – HBK CPAs & Consultants announced today it has expanded its sponsorship relationship with the Pittsburgh Penguins to become the team’s “Official Accounting Firm” as the Penguins celebrate their 50^th anniversary as a National Hockey League franchise. HBK became a Penguins sponsor during the 2015 season as the team made its drive to capture the Stanley Cup.

“We’re proud to be part of the group of prestigious Pittsburgh organizations that count themselves as Penguin sponsors,” noted HBK CEO Christopher Allegretti. “As a firm with clients throughout western Pennsylvania and northeastern Ohio, this sponsorship is a natural for us, and as we continue to grow our business throughout these areas, a relationship with a major league sports franchise makes sense.”

HBK is a Top 100 (Top 50, today) U.S. accounting firm as ranked by Accounting Today magazine. HBK professionals have provided accounting, tax and consulting services to small business owners and their families in Pittsburgh and throughout the region for three decades.

HBK initiated its sponsorship of the Penguins during the NHL playoffs last year as Coach Mike Sullivan restructured one of his offensive lines as Carl Hagelin, Nick Bonino and Phil Kessel. The line proved one of the team’s most effective throughout the playoffs and became popularly known – and feared by opponents – as the “HBK line.”

“Of course the HBK name coincidence was too good to pass up,” said HBK Chief Marketing Officer Michael Baldovski, “as was the opportunity to be associated with such a revered and recognized brand, not to mention the Pens are the reigning world champions of their sport and it is their 50^th anniversary.”

“The Pittsburgh Penguins are one of the most adored and powerful sports brands,” Baldovski continued. “They are the No. 1 digital media engagement sports franchise in Pennsylvania. They lead the NHL in merchandise sales. And Pens fans have been ranked “Best Fans in the NHL” by Forbes Magazine for three years running.”

“I think our clients are as excited about this as we are,” Allegretti added. “We look forward to a great relationship with the team.”

HBK CPAs & Consultants (HBK) and affiliate HBKS Wealth Advisors offer the collective intelligence of hundreds of professionals in a wide range of tax, accounting, audit, business advisory, valuation, financial planning, wealth management and support services from 15 offices in Pennsylvania, Ohio, New Jersey, New York and Florida. The firm is ranked in both Accounting Today and Inside Public Accounting magazines’ Top 50, and supports clients globally as a member of BDO Alliance USA.