Jon Wellington, J.D., Principal, State and Local Tax

Jon Wellington is a licensed attorney that has spent nearly 20 years serving the public. Specializing in matters unique to state and local taxation (“SALT”), Jon is the leader of the firm’s SALT practice. Drawing on experience working with some of the largest accounting firms in the world, Jon’s expertise in SALT matters includes audit defense, income and franchise tax planning, sales and use consulting, nexus studies, and property tax minimization. Jon is exceptionally well-versed in the SALT needs for clients in the construction, manufacturing/distribution, and not-for-profit sectors.

Recent Posts

IRS released its final regulation on business meal deductions.

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.

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Topics: IRS

Have You Seen Your Utility Bills Lately?

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.

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Topics: Manufacturing & Distribution, SALT

10 Do and Don'ts to Survive Your Sales Tax Audit

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.

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Topics: SALT

Latest with the IRS Guidance on Payroll Tax Deferral

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.

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Topics: Tax, IRS, small business, LGT, COVID-19, payroll, deferral

What Does Trump’s Payroll Tax Deferral Plan Mean For You?

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.

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Topics: Accounting Tips, Tax, COVID-19, payroll

Four Essential Due Diligence Steps to Ensure a Successful Transaction

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.

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Topics: SALT

Wayfair Celebrates its 2-Year Anniversary in the Middle of a Pandemic

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. 

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Topics: SALT, Wayfair

Texas made changes to the state tax rules because of COVID-19

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.

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Topics: SALT

Medical billing taxability changes

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.

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2019: Texas Legislature Update

The 86th Texas Legislature did not pass many tax-related bills, but those that passed could have significant consequences. 

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Topics: SALT, State and local taxes, Texas

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