Contributions made to a 401(k) plan by self-employed individuals are not deductible for Massachusetts income tax purposes effective for tax years beginning on or after January 1, 2008
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State & Local Tax (SALT)
Recent Trends and Developments in Sales and Use Taxation
Business taxpayers can expect their indirect tax expenses, from both tax outlay and cost of compliance standpoints, to increase over the next year as the state fiscal environment remains bleak.
New Developments in the Texas Franchise Tax
On May 18, 2006, Texas governor Rick Perry signed legislation that completely revamped the Texas franchise tax law (2006 TX H.B. 3).
Court Again Finds Cal. LLC Fee Unconstitutional
A California appeals court has once again held that the California limited liability company (LLC) fee is unconstitutional because it is not apportioned based on California activity of an LLC.
The Michigan Business Tax: New Developments
Editor: Frank J. O’Connell Jr., CPA, Esq. Since being enacted in July 2007, the Michigan Business Tax (MBT) has undergone constant legislative changes and administrative clarifications in the form of revenue administrative bulletins (RABs) and frequently asked questions (FAQs) issued by the Michigan Department of Treasury (see Treasury’s website at
Comparing the Value-Added Tax to the Retail Sales Tax
Editor: Scott Salmon, CPA, M. Acc. Over the past few decades, the value-added tax (VAT) has become the fastest-growing indirect tax globally (see Schenk and Oldman, Value Added Tax: A Comparative Approach 1 (Cambridge University Press 2007)). With the exception of the United States, most countries’ fiscal authorities rely far
Texas Comptroller Provides Rules on the Texas Franchise Tax
A current movement in state taxation is the introduction of a gross receipts or modified gross receipts tax in place of a net income tax.
A New Dimension for LLCs in California
California enacted legislation in 2007 to address the unconstitutional aspects of the California limited liability company (LLC) fee based on gross receipts assessed on LLCs doing business in California.
Federal, State, and Local Tax Incentives for Environmental Remediation Costs
This item provides a high-level overview of the most common federal, state, and local tax incentives and a brief update of the federal rules regarding the expensing of environmental remediation costs.
Gross Receipts Taxes: A Growing Trend in State Taxation
As states try to reduce budget deficits and find more forms of tax revenue, they are increasingly looking at gross receipts taxes as a viable way to tax corporations.
Current Corporate Income Tax Developments (Part II) – 2008
This article covers some of the more important developments in apportionment formulas, unitary groups/filing methods, administration, flowthrough entities, and other significant corporate state tax issues.
Sweet Rewards: State and Local Incentives Arrangements
Many state governments and local communities help businesses grow and expand by offering various credits or incentives for routine investments, for workforce training, or for more targeted behaviors, such as locating in an enterprise zone.
Current Corporate Income Tax Developments (Part I)
This article focuses on some of the more interesting items in the following corporate income tax areas: nexus; Sec. 338(h)(10) transactions; allocable/apportionable income; and tax base.
Michigan Business Tax: Overview and Issues to Consider
Editor: Scott Salmon, CPA, M.Acc. Companies doing business in Michigan have become accustomed to the infamous single business tax (SBT), which has a federal taxable income starting point and add-backs for compensation and depreciation expense. For a state dependent on the cyclical auto industry, this value-added tax provided a smooth
Who Is Subject to the New Texas Margin Tax?
Editor: Kevin F. Reilly, J.D., CPA In May 2008, most taxpayers doing business in Texas will face the reality of a new franchise tax regime—the margin tax (2006 TX H.B. 3). The new law requires that taxpayers doing business in Texas must pay a franchise tax based on their taxable
Fin 48 and State and Local Income Taxes
Scott Salmon, CPA, M.Acc. The required adoption of Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), for enterprises with fiscal years beginning after December 15, 2006, has placed increased scrutiny on state and local income taxes. Given that in the past, state and
Change in Ohio Residency Rules
Editor: Anthony S. Bakale, CPA, M.Tax. There may be a lot more incentive to becoming a resident of a state like Florida than just the weather. While at times the weather may be enough of an incentive, the potential state tax savings can be even greater. Higher-income-tax states like Ohio
Economic Nexus and the Uncertainty of Quill’s Physical-Presence Test
Editor: Mary Van Leuven, J.D., LL.M. In March 2007, two petitions for certiorari were filed with the U.S. Supreme Court that, if granted, could potentially decide one of the most important unanswered questions facing state taxpayers. That question involves the issue of economic nexus—specifically, whether it is Constitutional for a
Sourcing Service Receipts
Co-Author: Deborah Rood, CPA, MST Past items in TTA have discussed state taxation of service providers. However, with the advent of telecommuting and the explosion of electronic commerce, “sourcing” a taxpayer’s receipts to a particular state has become much more challenging. While the terms “duty days” and “games played” have
Acquiring Property? Remember Sales Tax Due Diligence
Co-Editors: Michael Metz, CPA; Nick Gruidl, CPA, MBT As the mergers and acquisitions market continues to heat up, so should the scrutiny of sales tax in the due diligence review. Unlike income tax, sales tax is transaction-based and applies to sales, regardless of whether the company is in a profit
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
