South Dakota Introduces Federal Tax Conformity Legislation
Legislation updating Internal Revenue Code conformity for South Dakota’s income tax, known as the bank franchise tax, was introduced. The new conformity date would be January 1, 2019. What is the...
View ArticleTexas Franchise Tax Imposed on Parking Reservation Service Receipts
A company that sells reserved airport parking spaces will be liable for Texas franchise tax if it moves its headquarters to Texas. When calculating its tax, the company must apportion receipts from its...
View ArticleWest Virginia Governor Proposes Social Security, Business Tax Cuts
West Virginia Gov. Jim Justice delivered his 2019 State of the State Address proposing to: – exempt Social Security benefits from state income tax; and – repeal the property tax on business inventory....
View ArticleCalifornia’s Keep Groceries Affordable Act Prohibits New Local Taxes or Fees...
The Keep Groceries Affordable Act of 2018 prohibits any new local California sales or use tax, fee, or other assessment on groceries. Application of Prohibition The prohibition applies to the...
View ArticleU.S. Tax, Federal Courts Impacted by Partial Government Shutdown
The U.S. Tax Court remains closed as the partial government shutdown, which began on December 22, 2018, becomes the longest in U.S. history. The U.S. Tax Court shut down on December 28, but trial...
View ArticleTax Lien Enforceable Against Estate’s Property (Mengedoht, DC Neb.)
A tax lien for unpaid estate tax was enforceable against an estate’s property. The estate did not file a federal estate tax return, but a delegate of the Secretary of the Treasury assessed federal...
View ArticleArkansas Tax Rate for Food and Food Ingredients Decreased
The Arkansas sales tax rate for food and food ingredients has decreased from 1.5% to 0.125% effective January 1, 2019. The notice can be viewed on the Department’s website at...
View ArticleColorado Governor Proposes Income Tax Reduction, Vendor Fee Cap
Colorado Gov. Jared Polis has proposed amending the state’s tax code in order to reduce income tax rates for families and small business. The proposal came in the governor’s State of the State Address....
View ArticleVirginia Issues Guidance on REIT Income Subtraction
Guidelines have been established for the subtraction for income attributable to an investment in a Virginia real estate investment trust (REIT). The investment must be made after 2018, and before 2025....
View ArticleWeekly Report from Washington, D.C.
During the week of January 7, the White House announced that the IRS would issue tax refunds during the 2019 tax filing season even if the partial government shutdown persists. Making permanent tax...
View ArticleDC Advises on Taxing Sales of Digital Goods
The District of Columbia breaks down “digital goods” into product types using a chart and indicates whether sales tax applies to the sale of those “digital goods” . The IRS Notice also explains the...
View ArticleJoint Committee Blue Book: Depreciation Provisions in TCJA
The Blue Book issued by the Joint Committee on Taxation (JCT) includes at least 10 technical corrections related to depreciation. The Blue Book explains the Tax Cuts and Jobs Act (TCJA) and identifies...
View ArticleU.S. Supreme Court Will Review North Carolina Trust Tax Case
The U.S. Supreme Court will review whether due process allows North Carolina to tax the income of out-of-state trusts based only on beneficiaries who live in the state. New York Trust Beneficiaries...
View ArticleIRS Reopens Backlogged Income Verification Service; Partial Government...
The IRS has reopened its Income Verification Express Service (IVES) program amidst the longest partial government shutdown in U.S. history. Many IRS operations have remained inactive since fiscal year...
View ArticlePennsylvania Adopts Economic Nexus Standard
Pennsylvania adopted a sales and use tax economic nexus standard in light of the U.S. Supreme Court’s Wayfair decision. $100,000 Sales Threshold Beginning July 1, 2019, persons making more than...
View ArticleTexas Economic Nexus Rules for Remote Sellers Issued
Out-of-state retailers who have annual sales of $500,000 or more in sales to Texas residents will soon be required to collect and remit Texas sales tax. Requirements for Certain Out-of-State Retailers...
View ArticleDraft Publication 535 Clarifies 199A Deduction Rules for Real Estate and...
Real estate and insurance agents and brokers can qualify for the Section 199A qualified business income deduction, according to a new draft of IRS Publication 535. These taxpayers are not engaged in a...
View ArticleIRS Unveils Updated 2019 Tax Filing Season Shutdown Plan
Only 57.4% of IRS employees are expected to work during the 2019 tax filing season. The IRS is scheduled to begin processing returns for the 2018 tax year on January 28. 2019 Tax Filing Season The IRS...
View ArticleState Law Cured Defective Deed; Estate Tax Lien Did Not Attach (Sacullo, CA-11)
A Florida law cured a defective deed that transferred property that was later subject to a federal estate tax lien. Seven years before his death, a decedent transferred by deed real property to an...
View ArticleNebraska Governor Gives State of the State Address
Nebraska Governor Pete Ricketts gave his state of the state address and outlined several proposals for property tax and income tax relief. Property Tax Relief The governor’s budget provides $51 million...
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