Sales and Use Taxes Account for Largest Net State Tax Increases in 2018

  |  February 11, 2019

The wheels of the Wayfair decision are turning across the U.S.

Federal tax changes had a ripple effect across many states in 2018. In fact, 13 states saw net increases to their sales and use taxes, as stated by a recent report from the National Conference of State Legislatures. In comparison, 10 states reported net decreases. While relatively on track with trends in recent years, these changes accounted for the most significant net tax increase at the state level, up by $847.1 million.

According to the report, 2018 proved to be a year of many challenges and opportunities in regards to taxes. Read more. Read More

The Impact of M&M Candies in Business Valuation

  |  January 31, 2019

Rock band Van Halen’s 1982 world tour performance rider contained a provision (under the Munchies section) demanding a bowl of M&M candies backstage, with all the brown M&Ms removed. The consequence of even a single brown M&M found in the bowl was a forfeit of the entire show at full price – and maybe even a trashed dressing room.  

The motivation behind the provision was actually a hidden safety measure. Read more. Read More

Market View (January 2019) – This Might Sting a Little

  |  January 30, 2019

“This might sting a little,” “You might feel some discomfort,” “You might experience some pain,” these phrases are meant to prepare and supposedly ease imminent pain from a needle or other medical procedure, but somehow they often do not. I suspect that as you read those phrases you almost immediately remembered an unpleasant experience. Read more. Read More

Top 10 Property Tax Myths

  |  January 21, 2019

Are you missing an opportunity to reduce your property tax liability?

Nearly all local taxing jurisdictions, including municipalities, counties, and boards of education, generate tax revenue through the imposition of property tax, which is one of the most substantial sources of local government revenue. For many businesses, property tax is the largest state and local tax obligation, and one of the largest regular operating expenses incurred.

Unlike other taxes, property tax assessments are based on the estimated value of the property, and thus, are subject to varying opinions. Businesses that fail to take a proactive approach in managing their property tax obligations may be missing an opportunity to reduce their tax liability. Here are 10 common property tax myths, and the truths that counter them. Read more. Read More

An IRS Update: What Works and What Doesn’t During the Shutdown

  |  January 16, 2019

The IRS has announced that due to the lapse in appropriations that began on December 22, 2018, most IRS operations are closed during the shutdown.

Under a contingency plan covering the tax filing season, the IRS is recalling 57% of its workforce in order to handle some tax season duties. Their workforce will increase from 9,946 employees who have been working since the start of the shutdown, to 46,052 employees. This plan will allow the IRS to process tax returns and issue refunds, but limitations on other services remain remain.

Here is a list of the limited operations available during the appropriations lapse: Read more. Read More

The Redesigned Form 1040

  |  January 10, 2019

The IRS has redesigned the 2018 Form 1040, the U.S. Individual Income Tax Return. The new form will replace not only the current Form 1040, but also Forms 1040A and 1040EZ. Find out more about the updates to the form and what Schedules you may need to file this year, based on your circumstances. Read more. Read More

California Is On Board with Wayfair

  |  December 19, 2018

In the beginning of what may become a national rollout of the landmark South Dakota v. Wayfair Supreme Court decision from this past June, the state of California Department of Tax and Fee Administration (CDTFA) has announced its intention to use the Wayfair thresholds beginning April 1, 2019. “We know the legislature is also looking closely at this issue and we look forward to working with them as we proceed,” said Nick Maduros, CDTFA Director.

Starting April 1, out-of-state retailers selling above certain economic thresholds into California will be required to collect California use taxes on their sales into California. Read more. Read More

2018 Year-End Tax Planning Guides for Individuals and Businesses

  |  December 12, 2018

Nearly one year after the Tax Cuts and Jobs Act (TCJA), tax reform is still making headlines. We continue to learn more about its broad implications. Whether your previous tax filing posture was straightforward or complex, you will be impacted by the myriad of changes to the tax code.

Now more than ever, it is imperative to thoughtfully consider year-end tax planning opportunities, ensuring you are taking advantage of new tax strategies, staying compliant with new regulations and considering structures to help minimize taxes for future years.

Two Tax Letters from REDW are intended to assist you in that effort. Read more. Read More