The use of P-cards, which likely increased during the coronavirus pandemic, can create unexpected challenges, including potential exposure to sales and use tax.
Advertisement
Topics
State & Local Tax (SALT)
Teleworking and the dual-taxation dilemma
This item discusses the difference between statutory residency and domiciliary residency and how both can affect personal income taxes.
Would you like SALT with that trust?
The total tax owed by a trust can be significantly affected by the location of grantors, beneficiaries, trustees, and even trust assets.
Senate Budget resolution supports mobile workforce legislation
The resolution creates the possibility that mobile workforce legislation, which the AICPA strongly supports, will be enacted this year.
Property tax relief planning during times of COVID
While the impact of lost wages and retail receipts was felt almost immediately in city coffers, property assessments are only now starting to take effect — and most assessors have massive budget holes to fill.
Managing state taxes in an uncertain world
Businesses with employees working remotely in a new location as a result of the pandemic should
carefully evaluate the rules in those states to ensure proper withholding.
Revisiting withholding on equity compensation
In the time of COVID-19, where employers may
increasingly turn to equity compensation to save on cash compensation expenses and employees are increasingly mobile, there is increased risk for employers.
Federal aid could hobble new state tax cuts and credits
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.
Erosion of nexus protection and the burden on small businesses
Lack of protections for smaller internet sellers against state-by-state income tax assessments could threaten their very survival.
Senate shows bipartisan support for mobile workforce tax legislation
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.
Difficulties of applying IRC rolling conformity in some states
This item examines the complex approaches used by Colorado, Maryland, and Oregon to adopt the
IRC on a rolling basis.
Transfer pricing and sales/use tax
This discussion outlines the basics of sales and use tax and transfer pricing, considers how intercompany transfer pricing may unintentionally lead to sales tax exposure, and offers steps to avoid audit assessments and penalties.
AICPA focuses advocacy efforts on mobile workforce legislation
Congressional action could simplify the business landscape for interstate workforce models that have expanded sharply due to stay-at-home orders isssued to fight the COVID-19 pandemic.
Donations to charities in exchange for SALT credits
The IRS provided guidance regarding limitations on the deductibility of charitable contributions made in exchange for state and local tax credits.
Partnerships and S corps. can deduct state and local taxes
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.
IRS issues additional regs. on charitable organization payments in lieu of state and local taxes
The IRS issued additional final regulations on payments made to charitable organizations in lieu of state and local tax credits.
California issues emergency regulation to clarify Marketplace Facilitator Act
The regulations provide examples to help taxpayers determine when a seller or facilitator becomes either a “marketplace facilitator” or “retailer” for California sales and use tax purposes and when a taxpayer establishes a tax registration and filing responsibility in California based on its sales activity.
Several states provide one-month filing relief for corporate deadlines
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.
‘Bounty hunting’ for tax violators: Qui tam claims
Many states have adopted their own false claims acts.
Diagnosing the SALT effects of COVID-19: Part 2
Practitioners and taxpayers see uneven guidance on policies and issues resulting from the coronavirus pandemic and face a shifting tax landscape for all types of taxes as state and local
governments look to repair badly damaged public finances.
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.
