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.
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State & Local Tax (SALT)
In Texas, the rules of the game have changed for sourcing of receipts
As amended, Administrative Rule Section 3.591,
Margin: Apportionment, significantly revises the rules for sourcing receipts to Texas, and almost all taxpayers, particularly those engaged in service industries, will be affected by the changes.
New Mexico’s gross receipts tax: Round 2 of changes
This item discusses major changes in New Mexico’s corporate income tax and gross receipts tax regime.
State proposals to tax digital ads are popping up everywhere
Certain jurisdictions introduced bills that would impose new taxes on revenues from digital advertising or expand the state sales tax base to include sales of digital advertising.
Where individual, corporate, and passthrough entity taxation meet
Passthrough owners must consider many risks and
uncertainties, in addition to political trends on Capitol Hill, before opting into a state-level regime designed to bypass the $10,000 SALT deduction cap created by the TCJA.
New Illinois and Chicago tax rules pose challenges
With new nexus rules, many retailers and other businesses are now facing an array of Illinois tax collection scenarios that may challenge their existing tax compliance systems.
Corporate purchasing cards: Sales and use tax issues
The use of P-cards, which likely increased during the coronavirus pandemic, can create unexpected challenges, including potential exposure to sales and use tax.
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.
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.
