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Iowa Tax Reform Legislation Sent to Governor

The Iowa House and Senate passed significant tax reform legislation. The bill now goes to Iowa Gov. Kim Reynolds. The bill incorporates some provisions of the previously passed senate bill (TAXDAY,...

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JCT, CBO FY 2019 Budget Requests Approved

Budget requests for congressional scorekeepers have been approved by House appropriators. The House Appropriations Committee on May 8 unanimously approved fiscal year (FY) 2019 budget requests for the...

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Kentucky STABLE Accounts Get Favorable Tax Treatment

Kentucky enacted legislation that provides individuals who contribute to a STABLE savings account with favorable income tax treatment on: – earnings; and – distributions. What is a STABLE account? IRC...

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Maryland Enacts Classroom Supplies Deduction

Maryland enacted legislation creating a personal income tax deduction for classroom supplies purchased by a teacher. The deduction is available for tax years beginning after 2017. Teachers Who Can...

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Maryland Expands Student Loan Debt Credit

Maryland enacted legislation expanding the personal income tax credit for student loan debt to include graduate school debt. Previously, only undergraduate school debt was eligible for the credit....

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Oklahoma Allows Transition Tax Installment Payment Election

Recently enacted Oklahoma legislation allows any taxpayer that elects to make installment payments of federal tax under IRC Sec. 965(h) to also pay any state income taxes due on such income in...

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Mother’s Day Spending Habits

Wolters Kluwer Takes a Look at Sales Taxes Associated with Mother’s Day Spending (NEW YORK, NY, May 10, 2018) — With Mother’s Day nearly upon us, consumers will spend an estimated $23.1 billion this...

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Customer Contract Revenue Recognition Accounting Method Change Provided (Rev....

The IRS has provided an automatic consent procedure for taxpayers to change to an accounting method that uses new standards issued by the Financial Accounting Standards Board (FASB) and the...

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Extraterritorial Income Transition Rule Allowed Continued Benefits (DWA...

An animated film company continued to receive tax benefits for transactions entered into in 2005 and 2006 under the extraterritorial income (ETI) transition rule. The transition rule in Section 101(d)...

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Georgia Expands Less Developed Area Hiring Credit

Georgia expanded the hiring tax credit for business enterprises in less developed areas. Businesses in a county that contains a federal military installation are now eligible. The installation must...

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Georgia Expands “Dealer,” Adds Use Tax Notice Requirement

Enacted Georgia legislation expands the sales and use tax definition of “dealer” and imposes a new use tax notice requirement. The legislation is effective January 1, 2019, and applies to sales made on...

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Oklahoma Amends Small Employer Quality Jobs Incentive

Recently Oklahoma legislation changes the eligibility requirements for Small Employer Quality Jobs Incentive Act incentive payments. The legislation increases the initial employment threshold for...

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Hatch, Wyden Focus on IRS Reform

The top lawmakers on the Senate Finance Committee (SFC) are focusing on IRS reform. Currently, SFC Chairman Orrin G. Hatch, R-Utah and ranking member Ron Wyden, D-Ore., are reviewing the House’s...

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Advance Pricing Agreement Template Issued

Taxpayers have a new template for requesting an Advance Pricing Agreement (APA) under Rev. Proc. 2015-41, I.R.B. 2015-35, 263. Also, the IRS released a filled-in and annotated example template and a...

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Weekly Report from Washington, D.C.

Congress appropriated funds to keep its scorekeepers in business and the House is crafting a “family-friendly, phase-two” tax reform bill. Meanwhile, the IRS has released an automatic change of...

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Alabama Opens for Amnesty Applications on July 1

The 2018 Alabama tax amnesty application period opens on July 1, 2018. It runs through September 30, 2018. The Department of Revenue has launched a website dedicated to the program. As previously...

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Connecticut Legislature Approves Pass-Through Entity Tax

The Connecticut General Assembly approved legislation that would impose an income tax on pass-through entities effective for tax years beginning after 2017. What pass-throughs pay the tax? The...

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District of Columbia Enacts New Lodging Tax

Hotels in the District of Columbia must pay a new 0.3% transient lodgings tax as of October 1, 2017. The new tax is paid in addition to existing District taxes on hotels and other transient lodgings....

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Texas Announces Tax-Free Weekend for Water and Energy Saving Products

Shoppers can buy water-saving and energy-saving products tax-free in Texas from May 26 through 28, 2018 (Memorial Day weekend). Water-Saving Products WaterSense products: Shoppers can avoid paying...

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No Reasonable Reliance on Attorney, Accountant; Penalty Sustained (RB-1...

A sham partnership was liable for an accuracy-related penalty because. The partnership failed to show it relied in good faith on professional advice. The partnership participated in a Son-of-BOSS deal....

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