Weekly Report from Washington, D.C.
During the week of August 31, Congress announced that a “Tax Reform 2.0” legislative package would move through the House later than expected. TIGTA noted that the IRS needed to improve procedures in...
View ArticleIndiana Ready to Enforce Economic Nexus for Sales Tax
Indiana will enforce its sales tax economic nexus law on October 1, 2018. Retailers will be required to collect sales tax if they have a minimum number of sales revenues or transactions in Indiana....
View ArticleSouth Dakota Bills Would Move Wayfair Forward
Two South Dakota sales and use tax bills have been introduced in response to the U.S. Supreme Court’s decision in Wayfair. The bills, if enacted, would affect remote sellers and marketplace providers....
View ArticleNoncurrent Year PFIC Gains Not Income, Deficiencies Barred
The limitations period barred deficiency notices for two tax years. The six-year period did not apply because the taxpayers did not omit 25 percent of their gross income. Gains from PFIC stock sales...
View ArticleConformity Bill Sent to Maine Governor
An income tax conformity bill is finally sitting on Maine Gov. LePage’s desk waiting for his action. In addition to updating the state’s IRC conformity date, the bill would make several other...
View ArticleCompany’s Sourcing of Subscription Revenues to Texas Upheld
A satellite radio company properly apportioned its subscription revenues to Texas based on the locations of its primary production facilities. This reflected the fair value of the services performed in...
View ArticleTax Reform 2.0 House Vote Expected This Month, Ryan Says
The House is expected to vote on a “Tax Reform 2.0” measure this month, House Speaker Paul Ryan, R-Wis., told reporters on September 5. Additionally, legislative language for the Tax Reform 2.0 package...
View ArticleDelaware Enacts New Tax Preparer Rules
Delaware has new rules for tax preparers that include penalties and legal action. Delaware enacted legislation that: – requires paid tax preparers to sign all returns and refund claims; – imposes a...
View ArticleHouse Republicans Hold Closed-Door Tax Reform 2.0 Listening Session
House Republicans met on September 6 for a closed-door listening session on the next round of tax reform. The “Tax Reform 2.0” package is expected to be unveiled early next week. Wolters Kluwer...
View ArticleMinnesota Announces Position on 2018 Standard and Itemized Deductions
For purposes of 2018 Minnesota personal income tax returns, taxpayers may either: – claim the standard deduction; or – elect to itemize deductions. This choice may be made regardless of the election...
View ArticleOklahoma Offers Wayfair Guidance, Compliance Extension
The Oklahoma Tax Commission advises taxpayers that South Dakota v. Wayfair, Inc., U.S. Supreme Court, Dkt. No. 17-494, June 21, 2018, allows for enforcement of sales tax changes contained in H.B. 1019,...
View ArticleRhode Island Taxes Software as a Service Starting October 1
Rhode Island sales tax applies to software as a service (SaaS) starting October 1, 2018. Tax applies to software accessed from the web even if it’s not downloaded. The following are taxed: – software...
View ArticleWeekly Report from Washington, D.C.
During the week of September 3, President Trump expressed his thoughts about indexing capital gains to inflation and House Republicans had a closed-door listening session on the next round of tax...
View ArticleOnline Travel Companies Must Pay Arizona Local Tax on Full Sales Price
Online travel companies were liable for Arizona local privilege taxes based on the total sales price charged for bookings. Phoenix and other cities issued assessments to the online companies for...
View ArticleHouse Republicans Unveil Tax Reform 2.0 Package
House Republicans unveiled the much anticipated “Tax Reform 2.0” legislative package on September 10. The package consists of three separate bills, which focus on individual and small business tax...
View ArticleWolters Kluwer Interview: A Three-Part Series on the New Code Sec. 199A...
Last year’s tax reform created a new 20-percent deduction of qualified business income for passthrough entities, subject to certain limitations. The Tax Cuts and Jobs Act (TCJA) (P.L. 115-97) created...
View ArticleWisconsin Proposes Sales Tax Economic Nexus Rule
Wisconsin’s proposed sales tax economic nexus rule would be consistent with the U.S. Supreme Court’s Wayfair decision. The state would also enforce the rule by October 1, 2018. The Department of...
View ArticleIRS Allows Business Deductions for SALT Credit Program Payments
Taxpayers receiving SALT credits for payments to charities or government entities can take business expense deductions for the payments. Taxpayers were looking for clarification on SALT credits after...
View ArticleWolters Kluwer Interview: A Three-Part Series on the New Code Sec. 199A...
Last year’s tax reform created a new 20-percent deduction of qualified business income for passthrough entities, subject to certain limitations. The Tax Cuts and Jobs Act (TCJA) (P.L. 115-97) created...
View ArticleRemote Sellers into Illinois Must Collect Use Tax
Illinois will require remote sellers to collect use tax on October 1, 2018, if they meet economic nexus requirements. Remote sellers making sales into Illinois who meet the threshold requirements must...
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