Weekly Report from Washington, D.C.
During the week of October 1, the House approved a tax bill that would make permanent tax reform’s individual and small business tax cuts enacted last December. The IRS released guidance that allows...
View ArticleWest Virginia Sets Economic Nexus Thresholds
In light of the U.S. Supreme Court decision in South Dakota v. Wayfair, Inc., Dkt. 17–494, June 21, 2018, certain remote sellers are required to collect and remit West Virginia sales and use taxes on...
View ArticleLike-Kind Exchanges with Sale and Lease-Back Transactions Were Properly...
The Tax Court properly sustained the IRS’s determination that like-kind exchanges with sale and lease-back transactions were loans. Applying the substance-over-form doctrine, the court had held that...
View ArticleDC Increases Sales and Use Tax Rates
The District of Columbia sales and use tax rate increases to 6% under emergency legislation. The legislation also increases sales and use tax rates for: – hotel rooms; – liquor beer and wine; –...
View ArticleDC Increases Property Tax Rates
The District of Columbia changes the property tax rates for commercial and industrial real property, known as Class 2 properties, under emergency legislation. The legislation contains a new rate...
View ArticleNevada Wayfair Sales Tax Rule Takes Effect
Remote sellers meeting Nevada’s new economic nexus thresholds must begin collecting sales tax by November 1, 2018. Economic Nexus Thresholds The economic nexus thresholds are: – more than $100,000 of...
View ArticleNew Jersey Wayfair Sales Tax Law Now Effective November 1
Enacted legislation codifies that remote sellers meeting an economic threshold are required to register, collect, and remit New Jersey sales tax. Previously, the Division of Taxation adopted this...
View ArticleSouth Carolina Updates IRC Conformity, Creates Dependent Exemption
South Carolina has updated its Internal Revenue Code conformity date from December 31, 2016, to February 9, 2018. This incorporates federal changes from the Tax Cuts and Jobs Act of 2017 and the...
View ArticleOngoing Initiative Highlights Tax Ramifications of TCJA (IR-2018-197;...
Small business owners are encouraged to learn about how the tax law changes made by the Tax Cuts and Jobs Act could affect them. Business taxpayers affected by the new law include: – passthrough...
View ArticleDistrict of Columbia Enacts Emergency Legislation
The District of Columbia enacted income tax credits, a deduction and an exemption for: – qualified business income; – the private security camera system incentive program; – retailer property tax...
View ArticleLouisiana Provides Guidance on IRC §965 Repatriation Income
Louisiana has issued guidance on how to report IRC §965 repatriation income for state tax purposes, and how to claim the federal income tax deduction on the income taxed at the federal level. Under the...
View ArticleNew Jersey Enacts Deduction for Foreign Income, Amends Combined Reporting and...
New Jersey has enacted a corporate business tax deduction that mirrors the federal deduction allowed under IRC Sec. 250 relative to income derived from certain foreign assets. Additionally, the enacted...
View ArticleNo Abuse of Discretion in Applying Prior Levy Proceeds or Rejecting Partial...
The IRS did not abuse its discretion in a collection due process (CPD) case by: – applying the proceeds from a prior levy on married taxpayers’ bank account against their income tax liability for an...
View ArticleAlaska Updates Marijuana Tax Rules
The Alaska Department of Revenue has made changes to its Administrative Code regarding marijuana taxes. The regulations were changed to implement new tax rates for various parts of the marijuana plant....
View ArticleSocial Security Wage Cap and Benefit Amounts Increase for 2019 (SSA Press...
For 2019, the Social Security wage cap will be $132,900, and social security and Supplemental Security Income (SSI) benefits will increase by 2.8 percent. These changes reflect cost-of-living...
View ArticleTexas Sources Receipts From Sale of SMLLC to Location of Payor
The sale of a single-member limited liability company (SMLLC) by its sole member is a sale of an intangible asset for Texas franchise tax purposes. Thus, the member must source its receipts from the...
View ArticleKing County, Washington, Expands Convention and Trade Center Tax
Beginning January 1, 2019, the King County Convention and Trade Center tax has been expanded to lodging businesses in King County, Washington with less than 60 lodging units. Lodging Businesses...
View ArticleSenate Tax Writers Introduce Bipartisan Digital Goods Bill
Top Senate tax writers have introduced a bipartisan bill to prevent duplicative taxation on digital goods and services. The bill aims to establish a framework across multiple jurisdictions for taxation...
View ArticleFlorida Victims of Hurricane Michael Granted Tax Relief (FL-2018-04)
The president has declared a federal disaster area in Florida. The disaster is due to Hurricane Michael, which began on October 7, 2018. The disaster area includes the following counties: – Bay –...
View ArticleWeekly Report from Washington, D.C.
During the week of October 8, the Treasury Inspector General for Tax Administration (TIGTA) determined that the IRS needs to improve its review of referrals alleging impermissible political activity by...
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