Supreme Court Wants YOU to Collect Sales Tax: What Every Business Should do in the Wake of Wayfair
In South Dakota v. Wayfair, Inc., the U.S. Supreme Court handed down a landmark ruling giving state and local governments the green light to impose sales taxes collection requirements on out-of-state sellers. States must have some minimum contact with a business to justify imposing the burden of tax compliance on that business. This is referred to as the “nexus” required to impose a state’s tax law.
Watch Out for Tax-Related Identity Theft Scams Throughout the Year
With the filing date for 2017 in the rearview mirror for most businesses and individuals, the last thing you want to think about is income taxes. Unfortunately, criminals who commit tax-related identity theft do not work seasonally — they are constantly devising identity theft schemes. Although the IRS has taken successful steps to reduce tax-related identity theft in 2017, it cautions taxpayers to stay alert for scams year round, especially after the tax filing season ends.
Revised 2018 Employee Benefit Plan and Transportation Limits
On May 4, 2017, the Internal Revenue Service (“IRS”) announced the 2018 inflation-adjusted amounts for Health Savings Account (“HSA”) contributions that included a family coverage limit of $6,900. On March 5, 2018, the IRS reduced the 2018 contribution limit for family coverage from $6,900 to $6,850. This reduction was due to a provision in the Tax Cuts and Jobs Act.
IRS Sheds Light On New Limit On Business Interest Expense Deductions
The new tax law imposes a limit on deductions for business interest for taxable years beginning in 2018. The limit, like other aspects of the law, has raised some questions for taxpayers. In response, the IRS has issued temporary guidance in Notice 2018-28 that taxpayers can rely on until it releases regulations. While the guidance provides some valuable information, it also leaves some questions unanswered.
New Pass-Through Tax Provisions: The Devil is in the Details
The new tax law has been touted for cutting the corporate tax rate, but the law also contains some valuable benefits for businesses that operate as pass-through entities or PTE. Pass-through entities include partnerships, limited liability companies, S corporations and sole proprietorships. The potential benefits for owners of PTE are significant, but determining just how much they will benefit can be complicated.
Home Equity Interest Still Deductible for Many
The language of the new tax law led some to believe that interest on all home equity loans, home equity lines of credit and second mortgages was not deductible from 2018 through 2025. In response, the IRS issued a statement clarifying that the interest on will remain deductible based on how the proceeds were used and not how the loan is labeled.
How the Tax Cuts and Jobs Act Provisions Impact Not-For-Profits
The Tax Cuts and Jobs Act has several provisions that may affect your not-for-profit organization. Major changes regarding UBIT, excise taxes and the impact on donor community are listed below:
New Budget Agreement Brings Additional Tax Changes
The Tax Cuts and Jobs Act (TCJA) swept in a tidal wave of changes to federal tax rules just seven weeks before Congress passed more legislation that could affect many taxpayers. The Bipartisan Budget Act of 2018 (BBA), signed into law on February 9, 2018, contains several tax-related provisions that extend or create tax benefits for the 2017 tax year.
2018 Tax Calendar
To help you make sure you don’t miss any important 2018 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Be aware that some deadlines have been moved up or pushed back compared to previous years. Please review the 2018 tax calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them.
Meals and Entertainment Expenses Under the New Tax Law
The Tax Cuts and Jobs Act (TCJA) enacted extensive changes to the deductibility of meals and entertainment (M&E) expenses for companies.