Maine Explains Income Tax Conformity Legislation
Maine now generally conforms to federal tax law changes enacted through March 23, 2018. This is the result of recently enacted state legislation. (TAXDAY, 2018/09/14, S.8) Amended Returns May Be...
View ArticleMaryland Sets Economic Nexus Thresholds
Maryland sales and use tax economic nexus thresholds apply on October 1, 2018. The emergency rule with the thresholds expires March 30, 2019. Economic Nexus Thresholds A remote seller has economic...
View ArticleAdditional Guidance Provided on Code Sec. 965 Transition Tax (Notice 2018-78)
Additional guidance is provided on the Code Sec. 965 transition tax. The guidance impacts proposed regulations issued in August 2018. Under the guidance: – U.S. shareholders are allowed an extended...
View ArticleIRS Releases Draft Instructions for 2018 Form 1040
The IRS has released Draft Instructions for the 2018 Form 1040. Additionally, the IRS has cautioned taxpayers that the draft instructions are subject to change. The IRS released a draft of the 2018...
View ArticleCalifornia Will Not Tax Amounts from Carousel Housing Tract Cleanup
California will not tax amounts received by taxpayers as a result of the Carousel Housing Tract cleanup in Carson, California. Taxpayers may exclude these amounts from gross income when computing: –...
View ArticleHawaii Explains Maximum Rates That Sellers Can Pass On to Customers
Beginning January 1, 2019, the maximum Hawaii general excise tax and county surcharge rates that sellers can pass on to customers are: 4.4386% in Hawaii County, and 4.712% in Kauai County. Hawaii now...
View ArticleManaging Promotional Products is Service Creating Nexus with Texas
A company that offered promotional product management services had sales tax nexus with Texas. The company, headquartered out of state, had employees working in Texas. Employees in Texas An...
View ArticleNew IRS Commissioner: Rettig Takes the Reins
The IRS’s new commissioner was officially sworn in on October 1 by Treasury Secretary Steven Mnuchin. IRS Commissioner Charles “Chuck” P. Rettig will lead the implementation of tax reform enacted last...
View ArticleCalifornia SALT Deduction Cap Workaround Bill Fails to Pass
The California Legislature failed to pass a bill aimed to help taxpayers get around the federal cap on state and local tax (SALT) deductions. The bill would have allowed personal income tax credits for...
View ArticleGeorgia Begins Collection from Certain Remote Sellers January 1
Georgia issued guidance on remote sellers’ sales tax obligations beginning January 1, 2019. What Must Remote Sellers do? As of January 1, 2019, remote sellers who meet certain thresholds must either:...
View ArticleMichigan Updates Prepaid Gas and Fuel Rates
Beginning November 1, 2018, Michigan’s prepaid sales tax rate for gasoline will change. Prepaid Fuel Rates For November 2018, the prepaid rate for gasoline decreases from 15.1 cents per gallon to 15.0...
View ArticleSenate Lawmakers Examine Tax Reform’s Effect on Small Businesses
The Senate Small Business Committee held an October 3 hearing on expanding opportunities for small businesses through the tax code. Senate lawmakers examined tax reform’s effect on small businesses and...
View ArticleIncome from LLCs Included in California Apportionment Formula
The income of single-member, disregarded LLC subsidiaries was properly included in the numerator of a taxpayer’s California apportionment formula. The taxpayer originally excluded the income, but the...
View ArticleNevada Sets Economic Nexus Thresholds
Nevada sales and use tax economic thresholds are set. But, the Department of Taxation has not yet determined the date that it will begin to enforce the new rule. The Department will decide on and...
View ArticleDeadline to Elect Out of 100% Depreciation Nears
The deadline for taxpayers to elect out of 100-percent depreciation is fast approaching. 100% Depreciation Opt-Out Election for Businesses Business taxpayers have until October 15, 2018, to make the...
View ArticleArkansas Issues IRC Sec. 965 Guidance
Arkansas has issued guidance on the state’s conformity to the federal IRC Sec. 965 repatriation transition tax enacted by the Tax Cuts and Jobs Act (P.L. 115-97). Under IRC Sec. 965, certain taxpayers...
View ArticleNebraska AG Addresses Constitutionality of Proposed Income Tax Credit
A proposed amendment to the Nebraska Constitution adding a refundable income tax credit would not: – violate the Commerce Clause of the U.S. Constitution; or – discriminate against non-resident...
View ArticleBusinesses Doing Disaster Work in South Carolina Not Required to Register,...
Out-of-state businesses doing repair work in South Carolina because of damage caused by Hurricane Florence may not have to register or file and pay taxes. South Carolina was declared a disaster area on...
View ArticleSouth Carolina Tax Penalties Waived for Florence Victims
South Carolina will provide state tax relief for taxpayers in counties affected by Hurricane Florence. Penalties Waived for Late Filings and Payments Penalties assessed against taxpayers for late...
View ArticleWashington Rules on Interstate Transactions and Use Tax Updated
Washington excise tax rules on interstate sales and the collection of use tax are updated to reflect the U.S. Supreme Court’s decision in South Dakota v. Wayfair. Economic Nexus Standard In response to...
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