Philadelphia Will Not Allow 199A Deduction
Philadelphia will not allow the IRC Sec. 199A deduction for the: – Business Income & Receipts Tax (BIRT); – Net Profits Tax (NPT); and – Wage and Earnings Tax. Why Does the Deduction not Apply to...
View ArticleRemote Seller of Uniforms and Sports Apparel Had Substantial Nexus with...
An internet retailer had substantial nexus with Washington for the imposition of retailing business and occupation (B&O) tax and sales tax. Representative In-state Visits The taxpayer sold sports...
View ArticleOffsetting State Tax Returns for Unpaid Local Taxes
It’s that time of year when taxpayers are dreaming about what to do with their tax refunds. But, for some taxpayers, those dreams will disappear due to an offset. An offset is the reduction or...
View ArticleSenators Introduce Bipartisan Craft Beverage Modernization and Tax Reform Bill
Bipartisan senators have introduced a bill specifically tailored to reduce excise taxes and regulations for the U.S. craft beverage industry. The bill aims to promote job creation and permanently...
View ArticleCalifornia Explains Calculation of Cannabis Tax on Nonarm’s Length Transactions
California explains how microbusinesses and businesses with multiple licenses should calculate the cannabis excise tax on nonarm’s length transactions. Nonarm’s Length Transactions Distributors or...
View ArticleNew Jersey Issues Opportunity Zone Guidance
New Jersey follows IRC Sec. 1400Z-2 for both corporation and gross income taxpayers. What is the Federal Law? The Opportunity Zone Program was enacted as part of the 2017 federal Tax Cuts and Jobs Act....
View ArticleSouth Dakota Updates IRC Conformity
An IRC conformity bill was signed updating South Dakota’s bank franchise (income), property, and sales and use tax federal conformity date to the most recent version of the federal Internal Revenue...
View ArticleSupreme Court Review of Trust Nexus Tax Case May Affect Many States
In an important state tax nexus case (North Carolina Department of Revenue v. The Kimberley Rice Kaestner 1992 Family Trust, Dkt. 18-457), the U.S. Supreme Court agreed to review whether Due Process...
View ArticleState Impacts of TCJA Analyzed at Urban Institute
The Urban Institute & Brookings Institution recently hosted a conference examining state responses one year after passage of the Tax Cuts and Jobs Act (TCJA). Topics discussed included: –...
View ArticleArizona Governor Vetoes Tax Conformity Bill
Arizona Gov. Doug Ducey has vetoed a bill that would have: – updated Arizona’s conformity to the Internal Revenue Code (IRC) for income tax purposes; and – cut individual income tax rates to offset the...
View ArticleIowa Sales Tax on Information Technology Services Examined
The Director of the Iowa Department of Revenue issued a declaratory order regarding potential sales tax implications for virtual computing environments and electronic storage services. Amazon Web...
View ArticleIdaho Updates Internal Revenue Conformity Date
Idaho Gov. Brad Little has signed legislation updating the state’s Internal Revenue Code conformity date from January 1, 2018, to January 1, 2019. The update applies to personal and corporate income...
View ArticleWeekly Report from Washington, D.C.
During the week of February 4, Bipartisan senators introduced a bill to reduce excise taxes and regulations for the U.S. craft beverage industry. The IRS warned taxpayers about unethical tax return...
View ArticleWyden Urges Treasury, IRS to “Do More” in Waiving Underpayment Penalties
The Senate’s top Democratic tax writer is calling on the IRS and Treasury to further waive underpayment penalties for the 2018 tax year. Nearly 30 million taxpayers are expected to have underpaid taxes...
View ArticleNonresident Members of LLCs Liable for Maryland Allocable Income Tax
Several out-of-state limited liability companies (LLCs) were subject to tax on their Maryland allocable income. The Maryland Tax Court held that state tax liability existed even though the LLCs had no...
View ArticleGeorgia Bill Would Lower Economic Nexus Threshold
Introduced Georgia sales tax legislation would lower the monetary economic nexus threshold and eliminate the notice and reporting election. Potential Threshold Change Currently, a “dealer” required to...
View ArticleEconomic Nexus Bills Introduced in Oklahoma
An Oklahoma sales tax economic nexus bill, H.B. 2352, has been introduced in the Oklahoma House. Details of the bill’s contents were previously reported. (TAXDAY, 2019/01/30, S.14) A second economic...
View ArticleIllinois Supreme Court Upholds Nonprofit Hospital Exemption
The Illinois Supreme Court upheld the constitutionality of the state’s property tax exemption for nonprofit hospitals. Lower courts also concluded that the exemption was constitutional. Background The...
View ArticleReports on Reduction in IRS Filings, Refunds Are Misleading, Treasury Says
The Treasury Department is refuting certain claims that the IRS has experienced a significant reduction in tax return filings and refunds. The 2019 tax filing season began timely on January 28, despite...
View ArticleIllinois DOR Proposes Economic Nexus Rules
Illinois proposes economic nexus rules to explain the registration requirements for out-of-state retailers that don’t have a physical presence in Illinois. The Department of Revenue issued proposed...
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