Hurricane Ida Tax Relief – New Jersey Provides “Big Apple-like” Relief While New York State and City “Cherry Pick” Taxpayer Relief
As noted in our recent alert, IR-2021-179 {“Tax Relief”} as initially issued and updated, provides comprehensive relief to business and individual taxpayers affected by Hurricane Ida in the Tri-State area.
Read MoreIllinois Enacts Elective Pass-through Entity Tax and Enters the PTET Highway
New York Pass-through Entity Tax Guidance – A Complex Roadmap for Those Considering Venturing Into New York’s PTET Highway
Just in time for Labor Day, on August 25, 2021, New York State (NYS) issued Technical Memorandum TSB-M-21(1)C, (1)I, {“TSB”). The TSB is New York’s initial guidance in addressing the myriad of technical and procedural issues since New York adopted its elective Pass-through Entity Tax (PTET). The TSB provides comprehensive guidance on…
Read MoreOwners of Pass-Through Entities Electing the NY PTE Tax – Your NY Personal Estimated Tax Payments Must Be Calculated Without a PTET Credit
New York State (NYS) second quarter Personal Income Tax Estimated Payments are due on June 15, 2021. This year, for owners, partners and shareholders of Pass-through Entities (PTE) that are considering electing to be subject to New York State’s Pass-through Entity Tax (PTET), there’s an important wrinkle in the calculation of these estimated payments.
Read MoreNew York’s Pass-through Entity Tax – Potential Lower Federal Tax Benefits to S Corporation Shareholders
New York’s Pass-through Entity Tax (PTET) may result in significantly lower Federal tax benefits for certain electing S corporations. The potential Federal tax benefits of the New York State (NYS) PTET for resident shareholders of S corporations with low NYS Business Apportionment Percentages (BAP) may be significantly lower than initially expected. Why? The PTET provisions’…
Read MoreNew York’s Budget Decouples From Federal Opportunity Zone Tax Benefits – Is It a Big Swing and Miss for New York Taxpayers?
As detailed in our previous post, Governor Cuomo signed the 2021-22 New York State (NYS) Budget (The Budget) last month with little fanfare. The Budget contains numerous tax provisions that have broad implications to New York taxpayers. However, one of The Budget’s potentially unfavorable tax provisions, as set forth in Section DDD of…
Read MoreBatter up – The NYS 2021-22 Budget – Is It a Home Run or Strike Out for New York State Taxpayers and Businesses?
Spring has officially arrived – flowers are blooming, baseball has begun, and Governor Cuomo signed the 2021-22 New York State (NYS) Budget on April 19, 2021. This year, Albany has been quite engaged in its attempt to enhance New York State’s “field of taxes.”
Read MoreThe New Jersey BAIT Due Date Extensions – A Potential “Bait and Switch” for the Unwary
The New Jersey BAIT As many may be aware, in early 2020, New Jersey enacted P.L.2019, c.320 the Pass-Through Business Alternative Income Tax (BAIT) Act, effective for tax years beginning on or after January 1, 2020.
Read MoreDecoupling from the CARES Act New York City Style – The Sequel
Late last Wednesday, Governor Cuomo signed legislation, A10519/S08411, that decoupled additional provisions from the CARES Act for New York City Business Taxes. The legislation may have personal income tax considerations because the legislation has provisions that apply to New York City pass-through entity level taxes. The legislation…
Read MoreNYS Decoupling from CARES Act – Section 163(j) Limitation – How to Make Complicated More Complicated
In our two previous posts on the New York State Budget’s Decoupling {“Decoupling”}, we discussed the myriad of implications arising from the Decoupling that focused on the Personal Income Tax as well as Pass Through Entity (PTE) ramifications to the extent the Decoupling’s affects would be required to be reflected by PTEs for…
Read MoreNYS Budget Decoupling from Beneficial CARES Act Provisions Creates NOL and Excess Business Loss Complexities
NYS Budget Decouples from Beneficial CARES Act Tax Provisions
With little fanfare, New York State adopted and Governor Andrew M. Cuomo signed the New York 2020-2021 Budget {“The Budget”} in April that contains significant New York State tax ramifications, especially for those New York taxpayers for which the CARES Act provides potential federal tax benefits.
Read MoreNew York State Provides Limited Penalty Relief For Sales Tax Vendors
In the wake of declaring a State Disaster Emergency, New York Governor Cuomo has issued an executive order expanding the Tax Commissioner’s authority to abate late filing and payment penalties to also allow the Commissioner to abate interest on quarterly sales and use tax filings and remittances with a due date of March 20, 2020…
Read MoreNo Time for Wayfair Complacency
According to a recent survey of 1,150 accounting professionals, business owners are becoming increasingly more comfortable with the ramifications of Wayfair on their businesses compared to the first half of the year. However, they should not get complacent just yet. Even though the Wayfair ruling was made over a year ago, its continued effects on…
Read MoreSome SALTy Thoughts As We Get Ready For Thanksgiving Day Celebration With Family and Friends
As we approach the 2019 Holiday Season with Thanksgiving Day celebrations next week, the ever thoughtful and provocative tax experts at the Tax Foundation were considerate enough to release their 2020 State Business Tax Climate Index for all to consider. A quick read of the 2020 State…
Read MoreRecording: Fall 2019 State & Local Tax Update Webinar
MWE SALT Director Joseph Pizzimenti, Esq., talks about what’s hot in State and Local Taxes, Wayfair, and what to expect next. Find the webinar recording here.
Read MoreNew York, high-tax states dealt SALT cap blow in court, but fight likely not over
Yesterday, a Manhattan judge dismissed a lawsuit filed by four states including New York and New Jersey, saying that they failed to demonstrate that Congress exceeded its taxing authority when implementing the $10,000 cap on state and local tax deductions. After the news broke, Fox Business sat down with MWE SALT director Joseph Pizzimenti,…
Read MoreHouse Seeks To Help “Blue” Taxpayers with SALT issues in Blue States
According to a recent Bloomberg article, HILL TAX BRIEFING: House Tax Writers Consider SALT Change Today, several members of the House Ways and Means committee will be meeting soon to discuss the $10,000 limit on the State and Local Tax itemized deduction that was adopted as part of the Tax Cuts…
Read MoreNew York Taxpayer Post Labor Day Weekend Blues– New Announcements Could Necessitate Amending Previously Filed 2018 Returns
On September 3, 2019, the New York Department of Taxation and Finance issued three TSB-M announcements that summarize tax law changes adopted as the result of the State’s 2019-2020 Budget {“Budget”} that may affect New York taxpayers’ 2018 returns: TSB- M-19(3)C, Summary of Corporation Tax Budget Legislation Enacted in 2019
Recording: 2019 State & Local Tax Mid-Year Update Webinar
Listen in as MWE SALT Director Joseph Pizzimenti, Esq., offers updates on what’s hot in State and Local Taxes, Wayfair, and what to expect next.
Read MoreNew York Employers: Is the Employer Compensation Expense Tax A Trick or Treat?
In April of this year, New York Governor Cuomo signed the 2018-2019 Fiscal Year budget. The Budget adopted the Employer Compensation Expense Tax (ECET) in an attempt to offset the Tax Cuts and Jobs Act (TCJA) $10,000 state and local tax (SALT) deduction limitation and its potential negative effect on individual…
Read MoreSummer 2018 Comes In With A Sales Tax Heat Wave: U.S. Supreme Court’s Decision in Wayfair Overturns Quill’s Physical Presence Requirement
Earlier today we were welcomed by the arrival of Summer Solstice and the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. et al {“Wayfair”}, that overturned the physical presence requirement established by the Quill Corp. v. North Dakota decision. At issue was the South Dakota…
Read MoreNew York State Budget Tax Provisions’ Response to Federal Tax Cuts and Jobs Act
On April 12th Governor Cuomo signed the 2018-2019 Fiscal Year budget (Budget). The Budget contains numerous provisions that address the New York tax ramifications arising from the Tax Cuts and Jobs Act (TCJA) passed by the United States Congress late last year. The Budget’s tax provisions pose significant complexities as well…
Read MoreState Economic Nexus Update – 2017 Could Be An Active Legislative Year
While preparing a follow up to my article earlier this week, Economic Expectations Push the DOW to Record High as States Seek Economic Nexus To Boost Their Coffers, I came across a piece written the next day in Multistate Insider, Economic Nexus is the Most Prevalent Type of Sales Tax Compliance Legislation This Year”.…
Read MoreEconomic Expectations Push the DOW to Record High as States Seek Economic Nexus To Boost Their Coffers
Earlier this week, the DOW hit 20k for the first time in its 120 year history. A high water mark that some analysts believe signals the improvement in our Country’s economic future. Just as the DOW is hitting record highs, so has State and Local Tax Revenues. Based on 2015 State…
Read MoreAnatomy of a Sales Tax VDA: Organizing and strategizing a multi-state Sales Tax Voluntary compliance project – Part 3
by: Raymond Chang, CPA (Part 3 of 3) In part one of this series, we examined the initial steps in tackling a comprehensive review of a client’s potential exposures to sales tax requirements to states in which they have conducted business. In part two, we utilized and categorized client-side sales records to lay…
Read MoreAnatomy of a Sales Tax VDA: Organizing and strategizing a multi-state Sales Tax Voluntary compliance project – Part 2
by: Raymond Chang, CPA (Part 2 of 3) In part one of this series, we examined the intial steps in tackling a comprehensive review of a client’s potential exposures to sales tax requirements to states in which they have conducted business. Here, we look into the results of our initial analysis and “fill in…
Read MoreAnatomy of a Sales Tax VDA: Organizing and strategizing a multi-state Sales Tax Voluntary compliance project – Part 1
by: Raymond Chang, CPA (Part 1 of 3) Navigating the ever-evolving state Nexus and sales tax nuances is never a simple process. Adding to the complexities presented by the significant variance in states’ tax codes, the sheer logistics of maintaining the necessary due diligence can seem overwhelming. For those reasons, businesses are understandably reticent to…
Read MoreThe Heat Is On – How Prepared Is Your Company for Sales and Use Tax Exams?
The late, great Glenn Frey’s song, “The HEAT IS ON”, accurately describes what many companies are experiencing when it comes to sales tax exams this summer. As I noted during a recent Webinar (and confirmed by attendees themselves), sales tax compliance and exams are hot topics for many companies. Equally important, the extensive information document requests (“IDRs”) and…
Read MoreIncome Tax & Sales and Use Tax Compliance Big Concerns For Next 12 Months
Based on a poll of attendees at a recent Margolin, Winer & Evens LLP webinar on sales and use tax, it’s clear that income tax compliance, sales/use tax compliance and financial reporting are the biggest concerns facing accounting departments over the next 12 months. More than 500 professionals attended the webinar (2016 SalesTaxPerspective 8.1.16). These…
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