CPAs can play crucial roles in helping navigate the evolving landscape as state tax authorities ramp up efforts to source additional revenue from out-of-state workers and the companies they work for.
State & Local Tax (SALT)
A movement to reframe the Interstate Income Act of 1959, which limits the reach of state income taxes on remote sellers, could have a significant impact on state income tax nexus in today’s world, where the internet has changed the nature of practically every business.
Be wary when a state sends a nexus questionnaire.
Small business owners describe scrambling to comply with varying sales tax compliance rules across a welter of jurisdictions.
EY’s Tony Nitti, CPA, shares a preview of general business update topics before his presentation at ENGAGE.
The $10,000 limitation on deducting state and local taxes stands after the Supreme Court refused to review a long-running lawsuit by New York and three other states.
An AICPA vice president explains some of the key practice management concerns of smaller CPA firms — talent, technology, and tax season — in this podcast episode with transcript.
The $10,000 maximum deduction for state and local taxes is upheld by the Second Circuit.
An interview with a tax expert explores how a Supreme Court ruling created a new playing field for business and how practitioners can advise clients on related issues.
To be deductible at the entity level, payments by passthrough entities of state and local taxes should be made in the tax year of the liability, but state-specific elections may complicate that timing, tax advocates advise.
The US Supreme Court declined to allow New Hampshire to sue Massachusetts over a pandemic-related regulation that allows Massachusetts to continue to collect state income tax from remote workers who normally work in Massachusetts.
Proposed legislation in several places sought to tax accounting services but was opposed by the AICPA and others.
New sales tax nexus standards are creating a larger compliance footprint for U.S. companies and, potentially, foreign entities selling into the U.S. State and local taxing authorities have new tools for identifying and enforcing companies’ exposures for sales and use tax.
The American Rescue Plan Act’s $350 billion in “fiscal recovery” aid to states comes with a big string attached — the states may not use the money to offset new tax credits or other revenue reductions.
An AICPA expert details some of the factors that could affect changes to filing dates.
The Senate voted to make room in the FY 2021 budget resolution for mobile workforce legislation. Details of the budget still must be negotiated, but the vote creates the possibility that mobile workforce legislation, which the AICPA strongly supports, will be enacted this year.
Examples from several states show that rolling conformity is not as clear-cut as it sounds.
The IRS said it would issue proposed regulations allowing S corporations and partnerships to deduct “specified income tax payments” paid to state and local governments above the line and not as passthrough items for partners and shareholders.
With the Oct. 15 corporate tax filing deadline looming and the global pandemic still affecting taxpayers and practitioners, several states have provided one-month filing relief for their corporate Oct. 15 deadlines.
As states become ever more aggressive in pursuing companies to collect sales tax in the wake of the Wayfair ruling, businesses must be alert to possible exposure.