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Life Insurance Transfer Transition Guidance Planned; Reporting Requirements...

The IRS will provide guidance on the new information reporting obligations for certain life insurance contract transactions under Code Sec. 6050Y. In addition, the proposed regulations will provide...

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2018 Inflation Adjusted Limit for HDHP Family Coverage Deduction Changed Back...

The IRS modified the annual limit on deducting contributions to Health Savings Accounts (HSAs). A lower limit for individuals with family coverage under a high deductible health plan (HDHP) for...

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MTC Approves Hearing Officer Report on Apportionment Regulation Amendments

The Executive Committee of the Multistate Tax Commission (MTC) approved a hearing officer’s report on draft amendments to its Model General Allocation and Apportionment Regulations. The report was...

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Ohio Supreme Court Overturns Reduced NOL Credit

A taxpayer’s net operating loss (NOL) credit against commercial activity tax (CAT) could not be reduced after a tax-fee reorganization. The Ohio Supreme Court held that Ohio law did not permit an...

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Senate Finance Chair Praises Trump’s IRS Commissioner Nominee

President Trump’s IRS Commissioner nominee, Charles Rettig, has begun meeting with lawmakers on Capitol Hill. Senate Finance Committee (SFC) Chairman Orrin G. Hatch praised Rettig following an April 26...

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Weekly Report from Washington, D.C.

During the week of April 23, lawmakers continued to discuss tax law changes under the Tax Cuts and Jobs Act, as well as the possibility of a second tax bill this year. The IRS is currently reviewing a...

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Florida Explains Treatment of Repatriation Income

Amendments made to the Internal Revenue Code (IRC) by the Tax Cuts and Jobs Act (P.L. 115-97) impose a one-time transition tax at a reduced rate on foreign earnings as if they had been repatriated to...

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Kentucky Requires Combined Reporting in Tax Reform Bill

A Kentucky bill containing significant income, sales and use, and property tax changes has been enacted without Gov. Matt Bevin’s signature. Notably, it requires combined income tax reporting by...

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Maryland Enacts Tax Incentives to Lure Amazon

Maryland enacted legislation creating income, sales, and property tax incentives for qualified taxpayers that bring large-scale projects to the state. The legislation creates the Promoting...

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Pennsylvania Explains Treatment of Repatriation Income

Pennsylvania offers guidance on the state income tax treatment of IRC Sec. 965 repatriation income for corporate and personal taxpayers. Repatriation Transition Tax The federal Tax Cuts and Jobs Act...

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2015 T.D. 9744 Clarified In Response to Law Suit over ACA Emergency Services...

The American College of Emergency Physicians (ACEP) sued the federal government over final regulations issued in 2015 under the Patient Protection and Affordable Care Act (ACA) (P.L. 111-148). The...

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Kentucky Modifies Manufacturing Exemptions

A Kentucky bill contains provisions modifying sales and use tax manufacturing exemptions for energy-producing fuels and tangible personal property. Developing details of the bill were previously...

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Brady Talks “Phase Two” of Tax Reform

President Donald Trump and the House’s top tax writer think Congress and the president should work to make the tax code better every year. House Ways and Means Committee Chairman Kevin Brady, R-Tex.,...

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Alabama Provides Guidance on IRC Sec. 965 Repatriation Income

Alabama provides guidance on the state income tax treatment of IRC §965 repatriation income for: – corporations; – partnerships; – S corporations; and – individuals. The Department of Revenue gives the...

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Kentucky Clarifies Definition of Prewritten Computer Software

Enacted Kentucky legislation amends the sales and use tax definition of “prewritten computer software” to clarify that: – the combining of two or more prewritten computer software programs (or portions...

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Kentucky Enacts Combined Reporting

Kentucky became the latest state to enact combined income tax reporting for corporations that are members of a unitary business group. When do the combined reporting requirements take effect? The...

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Wisconsin Explains Reconciliation with Federal Consolidated Returns

Wisconsin explains how combined groups must reconcile corporations on the combined corporation franchise or income tax return, Form 6. A Department of Revenue bulletin also discusses other income tax...

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Neal Asks Treasury, IRS for Passthrough Deduction Guidance

House Ways and Means Committee ranking member Richard Neal, D-Mass., has asked the Treasury and the IRS for guidance on the tax code’s new passthrough deduction. In a May 1 letter, Neal asked Treasury...

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Alabama Explains Changes in Simplified Sellers Use Tax Program

Recently enacted legislative changes to the Alabama Simplified Sellers Use Tax Remittance Program are discussed. (TAXDAY, 2018/04/11, S. 7) Specifically, as of January 1, 2019, marketplace facilitators...

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Indiana Offers Voluntary Disclosure Initiative for Out-of-State Retailers

Indiana is offering out-of-state online retailers that have inventory in third-party Indiana warehouses for sale to Indiana customers a voluntary disclosure initiative. The one-time initiative will run...

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