Four States File Lawsuit to Nullify New Limit on SALT Deduction

  |  August 16, 2018

As part of the Tax Cuts and Jobs Act (the Act), the limitation imposed on the state and local tax (SALT) deduction as part of the Tax Cuts and Jobs Act (TCJA) has wreaked havoc in many states. In fact, four states – Connecticut, New Jersey, New York and Maryland – have determined that the limitation is unconstitutional. On July 17, they filed a lawsuit in federal court that seeks to make the law unenforceable. Read more. Read More

Wayfair Decision Will Have Wide Ranging Implications for Companies Doing Business in Multiple States

  |  July 10, 2018

In a 5-4 ruling on June 21, 2018, the U.S. Supreme Court overturned a 1992 precedent that barred states from requiring an out-of-state seller with no physical presence to collect sales tax on a sale to a resident of the state. Now, states stand to collect potentially billions of dollars in sales taxes from remote sellers who meet certain minimum standards. The Court remanded the case to South Dakota’s Supreme Court for a finding of whether other issues may block the tax. However, it is unlikely that any issues will surface.

In overturning Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Ill., the Court acknowledged that brick-and-mortar stores have been at a competitive disadvantage to out-of-state sellers. And as technology has become more involved in commerce year after year, it has created incentive for states to challenge the physical presence nexus rule. Read more. Read More

South Dakota Wins in Supreme Court Decision on South Dakota v. Wayfair

  |  June 21, 2018

The U.S. Supreme Court today handed down a decision on the highly anticipated South Dakota v. Wayfair case, which challenged South Dakota’s collection of sales tax from out-of-state businesses that do not have physical presence in the state but that sell and deliver into South Dakota tangible personal property, products transferred electronically, or services.

South Dakota passed a law in 2016 that set off a dramatic and market-altering shift in taxation of online sales, one that concluded with today’s Supreme Court’s 5-4 decision... read more. Read More

Tax Scammers Don’t Take a Summer Vacation, IRS Warns

  |  June 18, 2018

Many taxpayers recently filed their taxes and may be waiting for a response from the IRS. Because of this, summertime tends to be a period when phishing emails and telephone scams continue to pop up around the country. Scammers try to get people to disclose personal information such as Social Security numbers, account information, PINs and passwords. 

Watch out for these scenarios - read more. Read More

IRS Provides Information on Changes to Moving, Mileage and Vehicle Depreciation Expenses

  |  June 1, 2018

The Internal Revenue Service published information May 25 on changes from the Tax Cuts and Jobs Act (TCJA) that affect deductions for unreimbursed employee expenses, move-related vehicle expenses, and standard mileage rates and travel expenses.

Before the TCJA was passed last December, the IRS issued a business standard mileage rate in Notice 2018-03. The mileage rate set for use of a car, van, pickup or panel truck was 54.5 cents for every mile of business travel driven, 18 cents per mile driven for medical purposes or moving purposes, and 14 cents per mile driven in service of charitable organizations. The TCJA then suspended miscellaneous itemized deductions, so the following effects are noted for these vehicle-related categories. Read more. Read More

Planning for Charitable Donations After the New Tax Law

  |  May 9, 2018

The 2017 Tax Cuts and Jobs Act changed both the standard deduction and itemized deductions for taxpayers. This shift potentially affects not-for-profit organizations, as taxpayer contributions may no longer reduce their personal income taxes. What can charitable organizations do to offset the potential negative impact on donations? Read more. Read More

Oral Argument Held in the Supreme Court of the United States in South Dakota v. Wayfair

  |  May 1, 2018

On April 17, 2018, the Supreme Court of the United States heard oral arguments in South Dakota v. Wayfair, et al. South Dakota is challenging, and attempting to have overturned, the physical presence nexus standard for the collection of sales and use taxes that was re-affirmed 26 years ago in Quill Corp. v. North Dakota. While many believed the Court would never have accepted South Dakota v. Wayfair if it didn’t intend to overrule Quill, the questions from the highly engaged Justices could suggest a different outcome (one that will be anxiously anticipated, and possibly issued this summer). Read more. Read More

How Tax Reform Will Impact Construction

  |  April 16, 2018

Every type of industry is impacted by the bill known as the Tax Cuts and Jobs Act (TCJA), and the construction industry was not left out of the party. 

However, the precise impact will depend upon the structure of the business and the nature of its operations. For construction businesses organized as C corporations, these are the most significant changes - Read more Read More