Weekly Report from Washington, D.C.
The White House and GOP leaders in Congress released a framework for tax reform. Disaster relief legislation headed to the White House. The IRS announced the special per diem rates for 2017-2018,...
View ArticleRhode Island Tax Amnesty Program Highlighted
The Rhode Island Division of Taxation has issued an advisory containing highlights of the upcoming tax amnesty program. The division notes that it will: begin accepting applications on Friday, December...
View ArticleApplication Date Delayed for Translating Foreign Branch Income Rules (Notice...
The IRS has announced that the application date of the final regulations for translating foreign branch income, published as T.D. 9794, will be postponed. In addition, certain provisions of the related...
View ArticleCanadian’s U.S. Unemployment Income Subject to U.S. Tax (Guo, TC)
In a case of first impression, a Canadian citizen was not entitled to exclude from income unemployment benefits she received from a U.S. state (Ohio). Article XV of the U.S.-Canada treaty did not...
View ArticleGoodwill Was Business Asset for California’s Deemed Water’s Edge Election
Goodwill is a business asset of a corporation under California’s “deemed water’s-edge election” business asset test, according to the California Franchise Tax Board (FTB). California requires unitary...
View ArticleNew CA Apportionment Regulation for Space Transport Companies
A new California tax regulation provides rules for space transportation companies on how to apportion their business income. The corporation franchise and income tax regulations apply starting January...
View ArticleWolters Kluwer Tax and Accounting Successfully Completes Service Organization...
(NEW YORK, NY, October 3, 2017) – Wolters Kluwer Tax and Accounting today announced that it has successfully undergone a Service Organization Control (SOC) 1 examination of its Indirect Tax Content...
View ArticleSenate Finance Committee Examines International Tax Reform
The Senate Finance Committee (SFC) held an October 3 hearing on international tax reform. The goal of the hearing, according to the committee, was to examine how Congress can update the U.S. system of...
View ArticleIRS Updates Defined Benefit Mortality Table Regulations, Substitute Table...
The IRS has issued final regulations prescribing general mortality tables to be used by most defined benefit pension plans that replace the 2008 mortality tables, and has issued updated procedures for...
View ArticleIRS Not Authorized to Assess Interest, Penalties on Restitution Award (Klein,...
The IRS was not authorized under Code Sec. 6201(a)(4) to add underpayment interest or failure-to-pay penalties to a criminal restitution award. In addition, the IRS was not allowed to assess or collect...
View ArticleCalifornia Amends Low-Income Housing Credit
California has expanded the provisions of its low-income housing tax credit to include: more programs under which tenants receive government assistance; and property subject to a rent subsidy contract....
View ArticleLawmakers Question IRS’s New Sole-Source Identity Verification Contract with...
The House Ways and Means Oversight Subcommittee held an October 4 hearing on the IRS’s efforts and challenges toward modernizing its information technology (IT) infrastructure. Witnesses from the IRS,...
View ArticleHouse Lawmakers Examine Small Business Tax Reform; Blue Dog Democrats Outline...
The momentum on Capitol Hill for comprehensive tax reform remains strong as House and Senate lawmakers continue to put forth and debate reform ideas. The House Small Business Committee held an October...
View ArticleTreasury Issues Plan to Reduce Regulations’ Burden (TDNR SM-0172)
The Treasury Department on October 4 issued a report on its plans to change or repeal eight regulations identified as imposing undue burdens on U.S. taxpayers. The Treasury also announced that it’s...
View ArticleD.C. Income Thresholds for Schedule H Credit Increased
For the 2018 Schedule H, used to report personal income tax in the District of Columbia: the maximum credit remains the same at $1,025; and the eligibility income thresholds amounts are higher....
View ArticleWyoming Talks Remote Sellers and Sales Tax
Remote seller tax laws, local sales tax rate changes, and other issues are discussed in a Department of Revenue newsletter. Remote Seller Legislation Not Enforced Pending Legal Action A 2017 law, H.B....
View ArticleHouse Approves Budget Resolution; Ryan Predicts Tax Reform Bill This Month
The House approved the Fiscal Year (FY) 2018 Budget Resolution (BR) (HConRes 71) by a 219–to-206 vote on October 5. The measure is intended to serve as the legislative vehicle for tax reform. All...
View ArticleTransferee Not Entitled to Dismiss His Petition Without Liability Decision...
A transferee was not entitled to have his petition for redetermination dismissed without a decision on the amount of his liability. A taxpayer who petitions the Tax Court for redetermination of a...
View ArticleMinnesota Updates Returns Due to Recent IRC Conformity Law
The Minnesota Department of Revenue has updated personal income tax returns to conform the the federal code for tax years 2015 and 2016. Recently enacted legislation required conforming Minnesota law...
View ArticleMinnesota DOR Addresses Foreign Disregarded Entities
Minnesota’s Department of Revenue discusses how the Minnesota Supreme Court’s recent decision in Ashland Inc. v. Comm’r of Revenue affects corporations: that owned foreign disregarded entities in their...
View Article