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Massachusetts Changes Income Tax Credit Sunset Dates and Caps

Massachusetts enacted legislation that modifies the sunset dates and annual statewide caps for several credits that taxpayers may claim against: – corporate excise tax liability; and – personal income...

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Virginia Enacts Biennial Budget Legislation

Virginia Gov. Ralph Northam has signed a biennial budget bill that contains a number of corporate and personal income tax provisions. Historic Preservation Tax Credit For tax years after 2016, the...

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IRS Issues Proposed Regulations Regarding Allocation of Partnership...

The IRS has proposed regulations concerning how partnership liabilities are allocated for disguised sale purposes. The proposed regulations would replace existing temporary regulations with final...

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Self-Serving, Uncorroborated Statements Raise Issue of Material Fact...

An appeals court vacated a $4.3 million trust fund recovery penalty judgment against a doctor. The doctor argued that his liability was limited to the unencumbered funds available after he knew of the...

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Indiana Amends Manufacturing Exemption for Hot Mix Asphalt Plants

Indiana legislation changes various sales and use tax laws, including: new requirements for retail merchant’s certificates; and a new exemption for retail purchases made by hot mix asphalt plants. The...

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Automatic Accounting Method Change for Bypassing UNICAP and Deducting...

An automatic change in accounting method procedure provides guidelines for qualifying investors in damaged citrus groves to opt out of the uniform capitalization (UNICAP) rules of Code Sec. 263A. The...

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Connecticut Amends Definitions Regarding Nexus

The definitions of “retailer” and “engaged in business in the state” regarding Connecticut sales and use tax nexus are amended. Definitions of “Retailer” and “Engaged in Business in the State” The...

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Massachusetts Supreme Court Throws Out Millionaire Tax Initiative

The Massachusetts Supreme Judicial Court threw out the 2018 ballot initiative to: – impose an additional personal income tax rate of 4% on millionaires; and – earmark those revenues for certain public...

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Missouri Authorizes Motor Fuel Tax Increase

Subject to voter approval, enacted Missouri legislation authorizes the following: – an increase in the motor fuel tax by 2.5 cents per gallon annually for four years, beginning July 1, 2019; and – an...

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Senate Appropriators Propose Less IRS Funding Than House

A Senate Appropriations subcommittee has approved an $11.26 billion IRS budget for fiscal year (FY) 2019. The Senate bill provides over $300 million less in IRS base funding than the government funding...

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Mnuchin: New IRS Form 1040 Expected Next Week

The new IRS Form 1040 is expected to be released next week, Treasury Secretary Steven Mnuchin has said. The new individual income tax form will be smaller and easier to complete, according to Mnuchin....

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Connecticut Explains Estimated Tax Requirements for Pass-Through Entities

Guidance on the Connecticut pass-through entity tax is issued to help  taxpayers determine their 2018 estimated tax requirements. Pass-through entities are required to make estimated payments for 2018....

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U.S. Supreme Court Decides Physical Presence Nexus No Longer Required to...

U.S. Supreme Court Decides Physical Presence Nexus No Longer Required to Collect Sales Tax  Wolters Kluwer Tax & Accounting Suggests Businesses Conduct a Nexus Study to Understand Nexus Footprint...

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U.S. Supreme Court Overrules Quill in Prominent Sales Tax Nexus Case

Sellers can have sales tax nexus with South Dakota even when they do not have a physical presence in South Dakota. The U.S. Supreme Court found that large, national companies with an extensive virtual...

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Ways and Means Approves IRS Hiring, Agriculture Tax Reform Bills

House tax writers have moved two bills through committee. The bills focus on IRS hiring and the tax treatment of mutual ditch irrigation companies. The House Ways and Means Committee approved the...

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Supreme Court Says Railroad Stock Options Are Not Money Remuneration

Nonqualified employee stock options are not taxable compensation under the Railroad Retirement Tax Act. The Supreme Court concluded that the term “money remuneration” in the Act unambiguously excludes...

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North Dakota Remote Seller Thresholds Take Effect With Quill Overturn

Out-of-state sellers with no physical presence in North Dakota are now subject to sales and use tax if they meet certain thresholds. Thresholds for Remote Sellers to Be Subject to Tax Remote sellers...

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House Budget Committee Approves Tool for Tax Reform Phase Two

The House Budget Committee has approved a tool that Republicans could use for tax reform phase two. A fiscal year (FY) 2019 budget resolution cleared the committee on June 21 by a 21-to-13 vote. A...

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SFC Schedules IRS Commissioner Nomination Hearing

The Senate Finance Committee (SFC) has scheduled the much anticipated IRS Commissioner nomination hearing. President Donald Trump announced Charles P. Rettig as his pick for chief of the Service last...

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Weekly Report from Washington, D.C.

During the week of June 18, House tax writers moved two tax bills through the House Ways and Means Committee. Treasury Secretary Steven Mnuchin announced that the new IRS Form 1040 is expected to be...

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