The 2017 Tax Cuts Jobs Act (TCJA) essentially eliminated the business deduction for expenses related to entertainment, amusement, or recreational activities. On September 30, 2020, the IRS released its final regulations on these provisions. The final regulations primarily adopt the proposed regulations issued in February 2020 (Notice 2018-76), with some clarifications.
Businesses generally pay their utility bills without any second thoughts, but utility providers may be charging you more taxes and fees than you actually owe. If they are, you should be entitled to a refund. There are two main areas where businesses should focus their attention to determine if they are entitled to such a refund.
When taxpayers are faced with an audit, they naturally feel some anxiety and concern. See below 10 general tips of what to do and what not to do when dealing with a sales tax audit.
On August 8, 2020, President Trump issued a memorandum authorizing the deferral of payroll taxes for certain employees from September 1, 2020 through December 31, 2020. On August 28th, the IRS released Notice 2020-65 providing guidance to employers about how to implement the deferral. While helpful, the guidance still leaves many open questions about the practical implementation of the deferral and the risks to employers participating in this program.
On August 8, 2020, President Trump issued a memorandum to the Secretary of the Treasury authorizing the deferral of payroll taxes for certain employees from September 1, 2020 through December 31, 2020. Unfortunately, the memorandum leaves many more questions than answers for employers, making participation in the program an uncertain endeavor. The below discussion highlights what we know so far and what we need to learn before September 1st.
Understanding all aspects of financial due diligence is essential for a potential buyer in any deal. Understanding all of the relevant issues will help you navigate through your transaction and avoid any unexpected pitfalls.
This past June 21st marked the second anniversary of the Supreme Court’s decision in South Dakota v. Wayfair. That decision eliminated the physical presence test for sales tax nexus and blessed the states using an “economic nexus” test.
Federal taxes are not the only tax liabilities impacted by COVID-19. Various state and local taxing jurisdictions are also grappling with how to balance the desire to help taxpayers navigate these difficult times with their need for tax revenue to continue offering the services and resources critical to citizens. While the federal government can spend more money than they take in, state governments do not have that luxury. Consequently, the tax relief being offered varies greatly by jurisdiction and by tax type. This blog post addresses how the State of Texas has responded to this crisis and what taxpayers can expect going forward. Many of the items discussed below are also discussed at the Comptroller’s website, where there is a dedicated COVID-19 resources page.
Starting in 2020, the Comptroller is changing its policy relating to the taxability of medical billing services. While insurance services have always been subject to Texas sales tax, the Comptroller previously took the position that medical billing services happen before any insurance claims are submitted, and therefore are not taxable insurance services. Effective January 1, 2020, the Comptroller will be taking the opposite position – preparation of a claim is an inherent part of the insurance claim process and medical billing services to prepare a medical insurance claim are taxable insurance services.