Pass-through Entities

STATE TAX KNOWLEDGE UPDATE (59 ITEMS) - JUNE 11, 2018

The following are state tax and business developments I have curated since May 22nd, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

  1. California proposes to amend entity classification rules; comments due June 26

  2. Delaware qui tam case against gift card retailers moves forward

  3. Colorado Market-Based Sourcing Legislation Goes to Governor

  4. California Launches Online Directory of Business Incentives

  5. Tennessee Decouples From Business Interest Deduction Limit

  6. Louisiana Governor Proposes Tax Cuts, Elimination of Deductions

  7. Minnesota Governor Vetoes Omnibus Tax Legislation

  8. Missouri Lawmakers Approve Corporate Rate Cut, Apportionment Changes

  9. 2018 State Tax Amnesty Programs (as of 5 25 18)

  10. California FTB holds interested parties meeting regarding significant proposed revisions to its market-based sourcing rules

  11. The SALT Deduction Limit: The IRS Responds to State Workarounds

  12. Online Travel Companies Are Not Liable for Local California Hotel Tax

  13. Hawaii Use Tax Held Constitutional

  14. TaxDay becomes official MLB Players Association partner

  15. IRS Discusses Certain Payments Made in Exchange for State and Local Tax Credits

  16. California FTB Provides TY 2017 Filing Guidance Regarding IRC Section 965 Repatriation Transition Tax

  17. New Louisiana Law Revises Due Date for Filing Corporate Franchise Tax Returns

  18. Maine Revenue Services Comments that Amended Returns May be Necessary Given State Nonconformity to Recent Federal Tax Law Changes

  19. Michigan Appellate Court Affirms that Holding Company Lacks Requisite Nexus for City of Detroit Income Tax Purposes

  20. New Jersey Appellate Court Affirms Lower Court Decision Involving Unreasonable Exception to CBT Intercompany Expense Addback Rule

  21. New Tennessee Law Includes Delayed Decoupling from New Business Interest Limitations under IRC Sec. 163(j)

  22. Hawaii State High Court Upholds Validity of Use Taxation Scheme on Purchases from Out-of-State Sellers

  23. Washington DOR Advisory Explains that Retailer’s Enhanced Delivery Services May Create Nexus

  24. Corporate Close-Up: No More Passing Through In Connecticut and New York?

  25. Georgia Property Tax Appeal Thresholds Decreased

  26. Delaware Creates Angel Investor Credit

  27. Georgia Creates Additional High-Technology Exemption

  28. Governor Signs Iowa Sales and Use, Excise Tax Reform Legislation

  29. Iowa Enacts Major Income Tax Reform

  30. Connecticut Enacts Pass-Through Entity Income Tax

  31. Montana Adopts Pass-Through Entity Apportionment Rules

  32. Connecticut enacts responses to federal tax reform

  33. California FTB Now Permitting Taxpayers to Make Oral Presentations in Staff-Initiated Alternative Apportionment Proposals

  34. Michigan Department of Treasury Issues New Bulletin on UBG Including Control and Relationship Tests

  35. Pennsylvania DOR Issues Ruling on New Law that Imposes Information Reporting and Notice Requirements

  36. New York Tax Appeals Tribunal Reverses ALJ to Hold that Taxpayer’s Transactions Must be Aggregated and Thus Subject to Tax

  37. Enacted Kentucky Legislation Provides for Mandatory Combined Reporting for Unitary Businesses and Additional Sales Tax Changes

  38. Alabama DOR Issues Guidance Regarding IRC Section 965 Deemed Repatriation Impact on Taxpayers

  39. Iowa enacts significant income tax and sales tax changes

  40. Legislative Session Review: Iowa

  41. Oregon's research credit sunsets - Opportunities for 2017 tax year

  42. Missouri reduces rate, adopts single factor and market sourcing, more

  43. LINK TO IOWA TAX REFORM WEBSITE CREATED BY IOWA DOR

  44. Iowa Governor Signs Tax Reform & Conformity Bill

  45. Wayfair Debated at Georgetown SALT Conference

  46. State Impacts of TCJA Analyzed at Georgetown Conference

  47. Missouri Enacts Corporate Tax Rate Cut and Apportionment Changes

  48. Sales Thresholds Trigger Sales Tax Nexus in Illinois

  49. Michigan Updates Unitary Business Group Guidance

  50. Colorado Enacts Market-Based Sourcing

  51. Connecticut Explains Repatriation Transition Tax Reporting

  52. New Colorado Law Imposes Market-Based Sourcing Provisions for Certain Receipts from Services and Intangibles

  53. New Connecticut Law Makes Various Changes in Response to Federal 2017 Tax Act

  54. Kentucky DOR Explains New Law that Includes Mandatory Unitary Combined Reporting Regime and Market-Based Sourcing

  55. Michigan Department of Treasury Comments on Federal 2017 Tax Act

  56. Montana DOR Issues New Regulations on the Apportionment and Allocation of Income Reported by Pass-Through Entities

  57. New Illinois Law Imposes Remote Seller Tax Collection and Remittance Responsibilities via Economic Nexus Provisions

  58. New Iowa Law Imposes Economic Nexus

  59. Recent Idaho Law Amendments Provide Income Tax Rate Reductions and Amend IRC Conformity

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issueYou can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (59 ITEMS) - May 22, 2018

The following are state tax and business developments I have curated since May 2nd, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

  1. Wisconsin Explains Reconciliation with Federal Consolidated Returns

  2. Preview of the share image State Sales Tax Shakeup

  3. Indiana Offers Voluntary Disclosure Initiative for Out-of-State Retailers

  4. Kentucky Requires IRC Sec. 199A Addback, Restores Credits

  5. South Dakota Provides Guidance on Foreign Dividend Recapture

  6. MTC Section 18 Alternative Apportionment Regulatory Project Moves Forward with Two Proposed Model Rules - Draft Model Use Tax Reporting Statute Also Advances

  7. Alabama DOR Issues Guidance on IRC Sec 965 Transition Tax Impact on State Tax Returns

  8. California FTB Moves Forward with New Draft Proposed Amendments to Market-Based Sourcing Regulation

  9. Florida DOR Issues Guidance on IRC Sec 965 Transition Tax Impact on State Corporate Tax Returns

  10. New Kentucky Law Imposes Mandatory Unitary Combined Reporting Regime

  11. Ohio Supreme Court Holds in Taxpayer Favor Regarding Credit Computation for Pre-CAT NOLs

  12. Oregon DOR Issues Proposed Administrative Rule on New State Repatriation Tax Credit Pursuant to IRC Sec 965 Repatriation Income for Tax Year 2017

  13. Growing Number of State Sales Tax Jurisdictions Makes South Dakota v. Wayfair That Much More Imperative

  14. Oklahoma Allows Transition Tax Installment Payment Election

  15. Tax Reform Task Force Names Income Tax Proposals for Further Study

  16. California OTA Readopts Emergency Rules on Administration and Procedures of Appeals and Petitions for Rehearing

  17. Focusing the Lens on Film Credits

  18. Indiana DOR Offers Special Limited-Time VDI for Out-of-State Online Retailers with In-State Inventory

  19. New Georgia Law Addresses Federal Partnership Audit Regime Changes and How to Report Adjustments for State Purposes

  20. Taxpayer Asks US Supreme Court to Review 2017 Pennsylvania Supreme Court Ruling on NOL Carryovers

  21. South Dakota DOR Discusses Federal Tax Law Changes Relating to Foreign Dividend Recapture and Potential Impact for State Bank Tax Purposes

  22. Texas Comptroller Issues Franchise Tax Ruling on Whether Proceeds from Certain Hedging Transactions Are Included in Apportionment Factor

  23. Alabama DOR Discusses New Law Requiring Certain Marketplace Facilitators to Collect and Remit Tax

  24. New Georgia Law Requires Some Remote Sellers to Collect and Remit Tax or Else Adhere to Information Reporting Requirements

  25. California FTB Issues Final Report on California’s Conformity to 2017 Federal Income Tax Changes

  26. State and Local Tax Technology Checklist (Techlist)

  27. TWIST - This Week in State Tax

  28. Georgia Expands “Dealer,” Adds Use Tax Notice Requirement

  29. Alabama Opens for Amnesty Applications on July 1

  30. Connecticut Legislature Approves Pass-Through Entity Tax

  31. Legislative Session Review: Georgia

  32. California May 18 meeting on changes to market based sourcing rules

  33. Connecticut Requires Bonus Depreciation, Sec. 179 Adjustments

  34. IRC Conformity Bill Goes to Hawaii Governor

  35. Indiana Special Session Considers IRC Conformity

  36. North Carolina Proposes Income Tax Rate Changes

  37. Legislative Session Review: Kansas

  38. Indiana Enacts IRC Conformity Bill

  39. Indiana Revises Corporate Income Tax Rate Calculation and Credit

  40. Massachusetts Provides Estimated Tax Penalty Relief for IRC Sec. 965 Income

  41. Oklahoma Creates New Credits for Vehicle Manufacturing Industry

  42. “One Maryland” Credit Revised

  43. Maryland Retains Personal Exemptions

  44. Alabama DOR Reminds that 2018 Amnesty Program Begins July 1

  45. Kentucky Claims Commission Amends Rules Related to Tax Appeals Procedures

  46. Alabama DOR Issues Amended Rules on NOL Carryforwards and Revised Filing Due Dates

  47. Updated Connecticut Administrative Guidance Discusses Treatment of IRC Sec 965 Federal Repatriation Transition Tax

  48. New Indiana Law Updates State Conformity to IRC

  49. Massachusetts DOR Issues Release on Estimated Tax Penalty Relief for Corporations Affected by Transition Tax on Deferred Foreign Earnings

  50. New Oklahoma Law Permits Electing Federal Transition Tax Installment Payers to Elect Similar Payment Scheme for State Purposes

  51. Pennsylvania DOR Announces that 2017 State Supreme Court Ruling on NOL Carryovers Will Not Be Applied to Earlier Years

  52. City of Seattle Poised to Impose an Employee Hours Tax on Some Businesses

  53. Alabama Tribunal Judge Denies DOR Motion to Stay in Online Retailer Legal Challenge of Economic Presence Rule for Out-of-State Sellers Making Threshold Sales into Alabama

  54. New York eyes UBT in response to federal tax reform

  55. Pennsylvania Clarifies Caps for NOL Calculations

  56. California Requires Return Adjustments for Sec. 965 Amounts

  57. Minnesota Legislature Passes IRC Conformity, Rate Reductions

  58. Friday Tax Reform: States Issue Guidance, Waive Penalties for Foreign Income

  59. Corporate Close-Up: Indiana Latest State to Respond to Federal Tax Reform

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issueYou can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (62 ITEMS) - MAY 2, 2018

The following are state tax and business developments I have curated since April 11th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

  1. Legislative Session Review: Idaho

  2. Legislative Session Review: Arkansas

  3. Maryland Legislature Sends Single-Sales Factor Bill to Governor

  4. Oklahoma Enacts Marketplace Sales Legislation

  5. Oregon Updates IRC Conformity, Repeals Tax Haven Law

  6. Oregon Extends Interstate Broadcaster Apportionment Provisions

  7. Maine Amends Headquarters Credit, Other Provisions

  8. Enacted Oklahoma Marketplace Sales Legislation Detailed

  9. Virginia Allows Modified Apportionment Factors for Certain Companies

  10. New York Enacts Budget With IRC Conformity, Other Changes

  11. Nebraska Updates IRC Conformity

  12. Tennessee Allows Financial Asset Managers to Elect Single Receipts Factor Apportionment

  13. New Arizona Law Updates State Conformity to Some Provisions of IRC

  14. Texas Comptroller Reminds that Tax Amnesty Program will Run from May 1 to June 29 and Provides for Potential Waiver of Penalties and Interest

  15. Connecticut Administrative Guidance Discusses Treatment of IRC Sec 965 Federal Repatriation Transition Tax

  16. New York 2018-2019 State Budget Bill Addresses Treatment of Some Provisions of the 2017 Federal Tax Reform Act

  17. New Oregon Law Updates State Conformity to IRC for Specific Provisions and Extends Sunset Date of Modified Apportionment Regime for Interstate Broadcasters

  18. New Alabama Law Requires Certain Marketplace Facilitators to Collect and Remit Tax or Else Adhere to Information Reporting Requirements

  19. Oregon Enacts Qualified Business Income Addition

  20. Kentucky Enacts Apportionment Formula, Rate, Other Changes

  21. Kentucky Broadens Sales Tax Base, Hikes Cigarette Tax, Makes Other Changes

  22. Digital Tax Arguments Focus on Role of Congress, Compliance Costs

  23. Insight: ‘Wayfair: Covering the Waterfront—Amicus Briefs Supporting Respondents

  24. A Brief History of the Biggest State Tax Case in a Generation

  25. Rhode Island Discusses Treatment of IRC Sec. 965 Income

  26. South Dakota v. Wayfair - TTR Explains What Tax Technology Options Really are Available

  27. No Simple Story About Tax Bill’s Impact on States

  28. Cap on the State and Local Tax Deduction Likely to Affect States Beyond New York and California

  29. State & Local Tax Advisory: The Supreme Court Weighs a New State Tax Nexus Standard, Again | Alston & Bird LLP

  30. New Mexico Administrative Hearings Office Issues Timely Opinion Regarding State Taxation of Subpart F Income and Dividends from Foreign Affiliates

  31. Oregon Taxpayers Denied Use of MTC’s Apportionment Formula

  32. Kentucky Might Require Combined Reporting, Many Tax Changes

  33. Virginia Enacts Subtraction for REIT Income

  34. The Tax-Savvy Company Restructuring

  35. Adopt or adapt? New IRS partnership audit rules affect states

  36. Legislative Session Review: Florida

  37. New Jersey Permits Dedicated Prepayment of Anticipated Taxes

  38. Maryland Phases in Single-Sales Factor Apportionment Formula

  39. Legislative Session Review: Nebraska

  40. New Arizona Law Allows Some Taxpayers to Bypass OAH Process and Appeal Tax Dispute Directly to Board of Tax Appeals

  41. Arizona DOR Issues Notice Regarding Certain Fiduciary Return Filers with IRC Sec 965 Repatriation Income for 2017 Tax Year

  42. California FTB Issues Fourth and Final Report to Legislature on Recently Enacted Federal Tax Reforms

  43. New Maryland Law Phases in Single-Sales Factor Apportionment for Corporate Income Tax Purposes

  44. New Nebraska Law Provides Adjusted Basis Computation for Certain IRC Sec 179 Depreciable Property

  45. New Hampshire DOR Administration Issues Report on How 2017 Federal Tax Reforms May Affect State Income Taxation – New Law Revises Effective Dates of Tax Rate Changes Enacted in 2017

  46. New York City Memo Explains Deemed Repatriation Income under GTC, BTX, and UBT

  47. Pennsylvania DOR Discusses Application of IRC Sec 965 RTT to State CNIT

  48. Rhode Island Division of Taxation Provides Guidance on Treatment of IRC Sec 965 Income for Individuals and Pass-through Entities

  49. MTC Approves Hearing Officer Report on Apportionment Regulation Amendments

  50. Ohio Supreme Court Overturns Reduced NOL Credit

  51. THE BEST AND WORST OF SALES TAX ADMINISTRATION

  52. Conformity with federal tax reform will result in an estimated state corporate tax base increase of about 12% for the first ten years

  53. FY 2019 STATE BUDGET STATUS

  54. NCSL: REMOTE SALES TAX COLLECTION ANALYSIS & OPINION

  55. Years of work to simplify the collection of remote state sales taxes may soon pay off.

  56. Kentucky legislature overrides Governor's veto of tax plan

  57. Florida Explains Treatment of Repatriation Income

  58. Kentucky Requires Combined Reporting in Tax Reform Bill

  59. Pennsylvania Explains Treatment of Repatriation Income

  60. Alabama Provides Guidance on IRC Sec. 965 Repatriation Income

  61. Kentucky Clarifies Definition of Prewritten Computer Software

  62. Kentucky Enacts Combined Reporting

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issueYou can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (54 ITEMS) - APRIL 11, 2018

The following are state tax and business developments I have curated since March 13th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

  1. Idaho Enacts Tax Reform Legislation

  2. Washington Revises Nexus Rules

  3. California Issues Notice Regarding Processing Docketed Protests

  4. Vermont Gives Income Tax Nexus Examples

  5. Wyoming Exempts Cryptocurrencies

  6. New Idaho Law Generally Updates State Conformity to IRC and Selectively Updates Conformity to Some Federal Tax Code Provisions and Decouples from Others

  7. Idaho State Tax Commission Grants Taxpayer Request for Use of Alternative Apportionment Method on Gain from Sale of LLC Interest

  8. North Carolina DOR Explains Classification as a Holding Company for Franchise Tax Purposes and Qualifying for 150K USD Tax Liability Cap

  9. Receipts from Service Contracts Must be Sourced In-State for CAT Purposes Because Underlying Property Tied to Services is Located in Ohio

  10. Vermont Department of Taxes Issues Nexus Bulletin Including List of Nexus-Creating Activities

  11. Case Challenging Economic Presence Administrative Rule is On Hold Pending the Outcome of US Supreme Court Litigation Involving Quill Physical Presence Standard in Tennessee

  12. Washington DOR Issues Regulatory Amendments Reflecting 2017 Legislation that Expands Business and Occupation Tax Economic Nexus Provisions

  13. State Tax Reform Opportunities and Challenges: The STAR Partnership

  14. Business Income Tax Collections FF(3.19.2018)

  15. Emergency Regulations Adopted for Appeals From CDTFA

  16. Preliminary CA Report on IRC Conformity Revised

  17. New York Allows Withdrawal of Group Election in Some Cases

  18. California Releases Summary of 2017 Federal Legislation

  19. Utah Enacts Tax Rate Cuts, Single Sales Factor Apportionment

  20. Florida Enacts IRC Conformity, Rate Reduction

  21. Virginia Court Confirms “Subject to Tax” Exception Decision

  22. Individual Income Insights: Highlights of the ABA and IPT Advanced Income Tax Conference in New Orleans

  23. Extras on Excise: U.S. Supreme Court to Decide Whether to Review Loudoun County BPOL Case, Possibly Adding a Second Major State Tax Case to its Docket

  24. New York allows withdrawal of certain combined elections by June 1

  25. Florida updates conformity to IRC; rate reduction possible

  26. New Florida Law Updates State Conformity to IRC, Extends Bonus Depreciation Decoupling, and Includes Contingent Corporate Income Tax Rate Reductions

  27. New Georgia Law Decouples from 2017 Tax Reform Act’s GILTI Provisions

  28. New Idaho Law Generally Updates State Conformity to Federal Bipartisan Budget Act of 2018

  29. Illinois DOR Discusses Recently Enacted Federal Tax Reforms - Specifically State Reporting Requirements Involving the New Foreign Income Deemed Repatriation Transition Tax

  30. New Jersey Tax Court Reaffirms that Tech Company Foreign Source Income that is Not Taxable for Federal Purposes is Not Taxable under CBT

  31. Memo Explains Limited-Time Withdrawal Procedure from Some Commonly Owned Group Elections in New York

  32. Utah New Law Permits Corporations to Pay Tax on IRC Sec 965 Deferred Foreign Income in Installments, Lowers Corporate Tax Rate, and Expands Mandated Single Sales Factor Apportionment

  33. Virginia Supreme Court Holds that Intercompany Royalty Payments Must be Taxed in Another State to Qualify for Subject-to-Tax Addback Exception Once More

  34. New Idaho Law Imposes Remote Seller Click-Through Nexus Provisions

  35. Indiana New Law Provides that Remote Access Software is Not Subject to Tax

  36. Louisiana Trial Court Holds that Online Marketplace Facilitator Must Collect Local Sales and Use Taxes on Third-Party Retailer Online Sales

  37. Arizona Changes Multistate Service Provider Apportionment Rules

  38. Illinois Proposes Addition Adjustment for FDII and GILTI

  39. Alabama Changes Income Tax Filing Thresholds

  40. Oklahoma Caps Personal Itemized Deductions

  41. Florida Enacts Tax Rate Reductions and Modifications

  42. COST: Tennessee Testimony on Federal Tax Reform Conformity

  43. New Hampshire’s Internet Sales Tax Fight Continues

  44. New Wisconsin Law Updates State Conformity to IRC and Couples and Decouples from Various Provisions of the 2017 Federal Tax Reform Act

  45. New Utah Law Revises Certain Single Sales Factor Apportionment Method Provisions

  46. New Ohio Law Updates State Conformity to IRC

  47. New York City Memo Explains Limited-Time Withdrawal Procedure from Some Commonly Owned Group Elections

  48. New Arizona Law Includes Sales from Intangibles in Defining Multistate Service Providers that May Elect Use of Special Sales Factor Sourcing Provisions

  49. Louisiana: Online marketplace provider required to collect sales tax

  50. Legislative Session Review: Wisconsin

  51. Wisconsin Tackles IRC Conformity

  52. Arizona Updates IRC Conformity

  53. Kentucky Governor Vetoes Major Tax Legislation

  54. Corporate Close-Up: Alabama Pass-Through Entity Owners, Rejoice! Why You May be Entitled to a Refund for The 2013 Through 2017 Tax Years

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issueYou can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

STATE TAX KNOWLEDGE UPDATE (70 ITEMS) - MARCH 13, 2018

The following are state tax and business developments I have curated since February 7th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

  1. Sweeping New Iowa Tax Policy Unveiled

  2. Idaho Enacts New IRC Conformity Date

  3. Georgia Introduce IRC Conformity Bill

  4. West Virginia Passes Federal Conformity Bill

  5. Sales Subject to Indiana Throwback Rule

  6. Idaho Sends IRC Conformity Legislation to Governor

  7. Kansas Might Repeal Multistate Tax Compact Provisions

  8. Corporate Close Up: D.C. Denies Big Oil Summary Judgment on Multimillion-dollar Chainbridge Transfer Pricing Case

  9. Tax Reform Friday: High Income Tax States Strike Back Against Limitation of State Tax Deduction

  10. Individual Income Insights: Many States Mulling Conformity to “Fit In”

  11. Extras on Excise: States are Smitten for Fuel Tax Revenue

  12. Sales Tax Slice: Sourcing Online Purchases from Physical Stores

  13. Effective NOL Planning in Light of Tax Reform | Tax Executive

  14. Pennsylvania DOR Issues Non-Participation Penalty Assessments to Delinquent Taxpayers that Failed to Partake in 2017 Tax Amnesty Program

  15. The Empire State is Open for Business – Overview of Select New York Credits and Incentives

  16. Nexus Considerations: Navigating the "Kill Quill" Revolt

  17. District of Columbia Confounds Opposition to Its Transfer Pricing Strategy

  18. Implications to Illinois Repeal and Replacement of Its Unclaimed Property Act

  19. Louisiana Governor Calls Special Session to Address Fiscal Cliff

  20. COST: State-by-State Scorecard Summaries and State Legislative Targets

  21. 2018 State Tax Amnesty Programs

  22. 2017 State Tax Amnesty Programs (in case you missed it)

  23. COST’s Opposition to House Bill 2489, Retroactive Repeal of Multistate Tax Compact Provisions

  24. COST’s Opposition to Senate Bill 227, Mandatory Unitary Combined Reporting

  25. California Issues Out-of-State Voluntary Disclosure Application

  26. Idaho Enacts New IRC Conformity Date

  27. Tax Reform Friday: Idaho and West Virginia Take Differing Approaches to I.R.C. Conformity Post-Pub. L. No. 115-97

  28. West Virginia IRC Conformity Date Updated

  29. Virginia Enacts IRC Conformity Legislation

  30. Corporate Close-Up: California Holds LLC Member Responsible for Entitys Tax Liabilities

  31. Extras on Excise: By Taxing Uber and Other TNCs, Alabama Joins the Club

  32. Corporate Close-Up: New York City Tribunal Rules on Sourcing of Services from Subscription-Based Consulting

  33. Property Tax Post: Payment in Lieu of Tax Already a Success?

  34. Individual Income Insights: Many States Mulling Conformity to “Fit In”

  35. Court or Congress? State Online Sales Tax Power Set for Change

  36. Update: Companies Face Setback in Challenge to District of Columbia’s Use of Chainbridge Transfer Pricing Method

  37. Congress Extends Tax Incentives for Energy Production and Conservation

  38. 2018 STATE LEGISLATIVE SESSION CALENDAR

  39. MTC Files Brief in Support of South Dakota’s Petition in Wayfair Case

  40. Could States Fix The SALT Deduction Cap By Taxing Pass-Throughs and Giving Their Owners A Credit?

  41. Ohio Department of Taxation Reissues Release on Nexus Standards and Filing Safe Harbors for Pass-Through Entities

  42. Partnership Not Liable for Nonresident Partner’s NJ Tax

  43. Michigan Explains Apportionment of Industrial Processing Exemption

  44. Federal Tax Reform—Multistate Tax Considerations and Conformity

  45. Colorado DOR Holds that Alternative Apportionment is Warranted Under Taxpayer Provided Facts

  46. District of Columbia CFO Addresses How Recently Enacted Federal Tax Reforms May Affect Some Taxation in the District

  47. New Idaho Law Specifies 120-Day Timeframe to Report Federal Tax Audit Adjustments

  48. New Virginia Law Updates State Conformity to IRC and Decouples from Some Provisions of the 2017 Federal Tax Reform Act

  49. New West Virginia Law Updates State Conformity to IRC

  50. US Supreme Court Schedules Oral Arguments in Case Challenging the Constitutionality of Remote Seller Economic Nexus Law for April 17

  51. Colorado DOR Issues General Information Letter Addressing Certain Remote Seller Notice and Reporting Requirements

  52. South Carolina DOR Announces Acceptance of Retail Sales Tax Applications from Third-Party Suppliers of Products Sold via Online Marketplace Provider Website to In-State Purchaser

  53. Could Colorado actually simplify its sales tax system? Let's hope so.

  54. Tax Reform Friday: More Tax Reform Bills and Proposals; Texas v. ACA–Round 2

  55. Corporate Close-Up: ‘Kill Quill’—What the End of Quill Would Mean for Corporate Income Taxpayers

  56. Georgia Enacts IRC Conformity Update, Rate Cut

  57. Michigan Keeps Personal Exemptions

  58. Oregon Tax Bill Includes IRC Conformity

  59. Illinois Introduces Marketplace Fairness Act

  60. Alabama Tax Amnesty Program Enacted

  61. New Alabama Law Requires 2018 Amnesty Program Providing for Potential Waiver of Interest and Penalties

  62. Michigan Department of Treasury Explains New Law Permitting Alternate Method of Dispute Settlement and Resolution for Certain Tax Liabilities

  63. California FTB Explains Refund Claim Procedures Pursuant to 2017 Appellate Court Ruling

  64. New Georgia Law Updates State Conformity to IRC

  65. Illinois DOR Addresses How Recently Enacted Federal Tax Reforms May Affect Some State Income Taxation

  66. New Michigan Law Generally Updates State Conformity to IRC and Permits Taxpayer Election to Conform to IRC in Effect for Tax Year

  67. Partnership Not Liable for Out-of-State Limited Partner CBT in New Jersey

  68. Connecticut DOR Services Sends Use Tax Notices to Online Customers Based on Information Provided by Online Retailers

  69. Chart of States with and without State Tax Tribunals (as of 2/3/16)

  70. Florida Reaches Agreement on IRC Conformity, Other Tax Issues

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issueYou can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

How States May React to Federal Tax Reform

I hope you had a great Christmas, and are looking forward to 2018.

Last week, the President signed tax reform (H.R. 1) into law making the most dramatic overhaul to our federal tax code since 1986. I normally focus on state taxes, but I have been analyzing the federal tax reform changes for specific clients and doing some ghost-writing. 

Here I want to provide you with some predictions as to how the states may respond to some of the main business federal tax changes.

  1. New federal tax law allows 100% expensing of short-lived capital investments, such as machinery and equipment (for 5 years) - applies to qualified property placed in service after 9/27/17 and before 2023. States will most likely NOT conform to this provision and require businesses to add-back the federal deduction.
  2. New federal tax law raises Section 179 small business expensing cap to $1 million with a phaseout starting at $2.5 million. States will most likely NOT conform to this provision and require businesses to add-back the federal deduction.
  3. New federal tax law eliminates net operating loss (NOL) carrybacks while providing indefinite net operating loss carryforwards, limited to 80 percent of taxable income. Most states don't use the federal NOL and compute their own state NOL, and thus, will most likely not conform to this change. However, there are a handful of states that use the federal NOL and do not compute a separate state NOL. These states will have to make a decision as to whether to conform to the federal changes. I think these states will most likely conform. (For more info on state NOLs, see my previous post)
  4. Under the new federal tax law, research expenses are required to be amortized and the domestic production deduction (Sec. 199) was repealed. States will most likely conform to these changes.
  5. The new federal tax law creates a new 20% deduction for pass-through entities. The calculation for this new deduction is extremely complex and has several limitations. States that are impacted negatively (i.e., obtain less tax revenue) by this deduction will most likely NOT conform. (Here is a link to an article by the Tax Foundation - Pass-Through Deduction Won’t Flow Through to Most States)

Those are the top 5 business tax changes (other than the tax rate changes and tax changes for foreign income) that I believe the states will address specifically. 

Have a Happy New Year and remember - you can't keep doing the same things and expect a different result! Change can be good. Start now.