State Impacts of TCJA Analyzed at Georgetown Conference
When asked what she thinks of the federal Tax Cuts and Jobs Act (TCJA), Marilyn Wethekam jokingly responded that it’s turning out to be the “State Tax Lawyers Relief Act.” Wethekam is a state tax...
View ArticleMissouri Enacts Corporate Tax Rate Cut and Apportionment Changes
The Missouri corporate tax rate will decrease from 6.25% to 4.0% beginning in 2020. On his last day in office, Missouri Gov. Eric Greitens signed legislation containing the tax cut. The legislation...
View ArticleNew Jersey Enacts Mandatory Health Insurance Tax
New Jersey legislation enacts a “shared responsibility tax” that requires most individuals to obtain health insurance or pay a penalty. Amount of Tax The tax is generally equal to the federal penalty...
View ArticleSenate GOP Leadership Cancels August Recess
Senate Republican leadership has canceled the chamber’s August recess this year. Senate Majority Leader Mitch McConnell, R-Ky., announced on June 5 that the Senate will remain in session during August...
View ArticleSales Thresholds Trigger Sales Tax Nexus in Illinois
Illinois will require remote retailers to collect use and service use tax when they meet certain sales thresholds in Illinois. This collection requirement begins October 1, 2018. Sales or Economic...
View ArticleMichigan Updates Unitary Business Group Guidance
Michigan updated its guidance on unitary business group tests under the corporate income tax. The updated guidance reflects the Michigan Court of Appeals’ decision in LaBelle Management Inc. v...
View ArticleIndian Tribe Member Properly Liable for Tax on Tribal Distributions; Income...
The district court had not erred in holding a member of an Indian tribe liable for income tax and penalties on distributions derived from the tribe’s gaming business. The taxpayer failed to show that...
View ArticleColorado Enacts Credit For Employer 529 Contributions
For tax years 2019-2021, Colorado has a new income tax credit is created for employers who contribute to an employee’s 529 qualified state tuition program. The available credit is equal to 20% of the...
View ArticleNew Jersey Credit Regulations Amended
New Jersey adopted amendments to income tax regulations governing the: Economic Redevelopment and Growth Program; Grow New Jersey Assistance Program; and Angel Investor Tax Credit Program. In addition,...
View ArticleFinal Regulations Bar Corporate Partners from Using Transaction to Avoid Gain...
Final regulations just issued by the IRS: – Prevent corporate taxpayers from using a partnership to avoid corporate-level gain; – Limit rules that cause basis reduction or gain recognition for...
View ArticleABA Section of Taxation Writes Hatch, Wyden About IRS Reform
The American Bar Association (ABA) Section of Taxation has expressed concerns to top Senate tax writers about certain congressional IRS reform efforts. The ABA Section of Taxation sent a June 6 letter...
View ArticleColorado Enacts Market-Based Sourcing
Colorado has enacted market-based sourcing rules for determining the sales factor for sales of other than tangible property. In tax years starting after 2018, taxpayers will assign or source certain...
View ArticleMichigan Explains Principal Residence Exemption Changes
A person can continue to take the Michigan principal residence exemption if they are not living at home while recovering from an illness or surgery. However, the person must be able to show their...
View ArticleIRS Plans for Proposed Regulations under Code Sec. 4968 (Notice 2018-55)
The IRS has announced its intention to issue proposed regulations that clarify the calculation of net investment income for purposes of Code Sec. 4968, and provided guidance on which taxpayers may rely...
View ArticleWeekly Report from Washington, D.C.
During the week of June 4, Senate Republican leadership canceled most of the chamber’s August recess this year. The IRS issued guidance barring the use of partnership-related transactions for avoiding...
View ArticleConnecticut Explains Repatriation Transition Tax Reporting
Connecticut revised its guidance on reporting requirements for the IRC §965 repatriation transition tax enacted by the Tax Cuts and Jobs Act. The revised guidance discusses legislation that modified...
View ArticleFighter Jet Sales Sourced to Texas
Sales of fighter jets to the U.S. government under the Foreign Military Sales (FMS) program were sales in Texas for Texas franchise tax purposes. The sales transactions took place in Texas between the...
View ArticleAffiliate Activities in Washington Created B&O Tax Nexus with State
An out-of-state bank that serviced credit cards in Washington had business and occupation (B&O) tax nexus with the state. Specifically, the bank was liable for the service and other activities...
View ArticlePassthrough Deduction Guidance Expected Soon
The IRS could issue guidance on the new Code Sec. 199A passthrough deduction in a “couple of weeks,” Acting IRS Commissioner David Kautter has reportedly said. While speaking on June 8 at the...
View ArticleHigh Court Will Not Review Pennsylvania NLC Carryover Decision
The U.S. Supreme Court declined to review a Pennsylvania Supreme Court decision regarding the Pennsylvania corporate net loss carryover (NLC). Pennsylvania Supreme Court NLC Decision The Pennsylvania...
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