June 22, 2018
On June 21, 2018, the United States Supreme Court handed down its 5-to-4 decision in South Dakota v. Wayfair, Inc. The majority opinion, authored by Justice Kennedy, held that states may lawfully collect sales taxes from out-of-state internet vendors who sell tangible personal property or services to in-state residents even though these out-of-state vendors do not have a physical presence within the state. Click Here to read Attorney Morris Robinson's article on the decision itself and the next steps for online retailers.
May 30, 2018
The Tax Cuts and Jobs Act slashes business income tax rates on certain types of business income.
- The 20% Qualified Business Income Tax Deduction slashes the top individual income tax rate on certain business income from 37% to 6%.
- The 37.5% Foreign-Derived Intangible Income (FDII) Deduction slashes the C corporation income
May 25, 2018
The Internal Revenue Service (IRS) advised taxpayers this month to exercise care in claiming tax deductions for (1) state and local taxes, and (2) charitable donations. The guidance applies to 2018 and future tax years.
“Tax-Favored” Foreign Income: Planning Pointers and Traps, An Overview of the FDII and GILTI DeductionsMay 24, 2018
The Tax Cuts and Jobs Act (TCJA) reduces the corporate income tax rates of C corporations to 21 percent. The TCJA further reduces the C corporation income arising from tax-favored foreign income by means of two deductions:
- The Foreign-Derived Intangible Income (FDII) deduction equals 37.5 percent of FDII and results
May 16, 2018
In January 2018, an individual investor visited my office and asked me to prepare income tax returns based on his cryptocurrency trading gains. This individual used U.S. dollars to buy Bitcoins. He proceeded to trade in and out of other cryptocurrencies (“altcoins”) on a major trading exchange. When he first ...
April 18, 2018
On March 7, 2018, David J. Kautter announced that official guidance on the qualified business income deduction will not be available until the late summer or early fall. Mr. Kautter was responding to a letter dated February 21, 2018 from the American Institute of CPA’s (“AICPA”) requesting immediate guidance to resolve the many ambiguities in the qualified business income deduction (Section 199A).
April 18, 2018
The U.S. Supreme Court on April 17, 2018 heard oral arguments in South Dakota v. Wayfair, on whether the justices should overrule the 1992 Quill decision, which prevents states from collecting sales taxes from vendors who have no physical presence in the customer’s state.
April 16, 2018
Supreme Court Hears Wayfair Oral Arguments: Are Most Internet Sales Now Subject to Sales Tax? The Massachusetts Tax Alert™ By Attorney Yale Yechiel N. Robinson and Attorney Morris N. Robinson, CPA, LL.M. April 16, 2018 The U.S. Supreme Court will hear oral arguments in South Dakota v. Wayfair, Inc. on Tuesday, April 17, 2018. In response to a possible change in the law of state tax nexus, we suggest that businesses should evaluate their current tax compliance and consider making a voluntary disclosure if they are not fully compliant with state sales tax laws.
March 27, 2018
The IRS recently launched a new “IRS Account” portal for individual U.S. taxpayers, available at www.irs.gov/account (click the blue button that says “View your account”). Individuals who register and login to their secure accounts can review data from recently filed tax returns (Form 1040), obtain refund status information, and pay taxes online from a bank account or credit card account. Click here to view an illustrative screenshot of the IRS Account portal.
March 15, 2018
The IRS announced it will be closing its Offshore Voluntary Disclosure Program (OVDP) as of September 28, 2018. The news follows a significant decrease in taxpayer participation in the program, coupled with advances in third-party reporting of offshore account information and increased awareness of reporting obligations. All submissions made by the deadline must ...