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Hello from Hito and welcome to our Spring 2023 newsletter. Most of you know Hito is here to help you turn your tax benefits into new investment in your business, your people and your future. We are happy you are with us.


Hi Guest,

Hopefully 2023 has been treating all of you well. The various changes to business taxation that begin this year may not be the news we all wanted in the new year but, rest assured, we are keeping track of the changes on the state and Federal levels. If there is a program or a credit that will benefit your business? We will make it our business to know it, just as we always do.


We have recently welcomed Tavin Skoff as Director of Tax Credits and Incentives at Hito LLC who partners with CEOs, executives, and entrepreneurs to grow their companies through efficient tax planning and obtaining tax credits

After spending 20 years working in tax planning and audit defense plus over half a decade leading large tax departments of multiple Fortune 500 companies, Tavin knows what truly drives sustainable tax benefit both from a financial statement impact perspective as well as how to have a company’s tax profile accepted by a government tax agency - and it’s not mastering the technical tax issue of the week. It’s how well one knows both the details and overall strategy of the client, the government team auditing the issue. and persuasively influencing a positive outcome through strategic communication.

He holds a BS in Management and Organization from the University of Southern California, and a JD and LLM (Taxation) from the University of San Diego.  You can find out more about his experience and expertise here.


In 2022 at Hito, we helped our clients with numerous tax issues. In addition to the aforementioned 2023 changes many of these remain important in 2023. These include:


- ERC Promoter Scams Catching IRS Attention

Every year the IRS puts out their "Dirty Dozen" list of tax scams. This year they spotlighted fraud related to the Employee Retention Credit. Scammers have been trying to con businesses that are not eligible into claiming the credit. There have been numerous alerts from the IRS about such scams but they persist, which usually means the con artists are having some success. One thing the IRS has pointed out is that ads on the internet and radio have been part of this; just because something is in an advertisement doesn't mean it is legitimate. Do not fall for these ads full of inaccurate information that can cause you and your business a world of trouble. 


"Businesses need to think twice before filing a claim for these credits. While the credit has provided a financial lifeline to millions of businesses, there are promoters misleading people and businesses into thinking they can claim these credits." said IRS Commissioner Danny Werfel. "There are very specific guidelines around these pandemic-era credits; they are not available to just anyone. People should remember the IRS is actively auditing and conducting criminal investigations related to these false claims. "

Be careful and remember we stand behind our work and behind your business. Call us.


- Sec. 174 Research 1 Year Expense Bill Started in Congress

This bi-partisan bill from Sens Maggie Hassan (D-N.H.) and Todd Young (R-Ind.) would roll back the provision of the 2017 Tax Cuts and Jobs Act law that, as of last year, required companies to amortize R&D costs over five years rather than in the year they were incurred. Money now, deductions now, are better than "later." This bill would also expand eligibility for refundable research tax credit and would raise the cap for that credit for startups and small businesses.

The bill didn't find its way into the 2022 omnibus spending bill, but it may find new life as a stand-alone bill. We will be monitoring this closely, so you don't have to. 


-California Sales Tax Manufacturing or Research & Development 50% Exemption

California businesses are eligible for a 50 percent reduction of sales tax on purchases, leases or sales of equipment used in manufacturing. Generally speaking this refers to anything that is not consumed in the manufacturing process.

Also note that what you THINK is a "manufacturer" may be entirely different from what the great state of California legally considers to be a manufacturer. There are similar reductions in California for research and development. Obviously such reductions can increase a businesses' profit margin and revenue. We'd be thrilled to help you take advantage.


The issues above are only a small number of the issues where Hito can help your business. The rules and laws change, morph, alter and sunset but we keep track of all of the changes across the country. We are here for you in 2023 and beyond.


All the Best,

The Hito Team 
Phone: 949-876-8420 ext 200 | Fax: 714-844-4874
Email: Michelle Morgan
  Jennifer Maes
Website: Hito, LLC