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IRS & Treasury Propose Regulations on SALT Deduction Charitable Workarounds
Posted On 08/ 31/ 18

The U.S. Department of the Treasury and the Internal Revenue Service issued proposed regulations providing rules on the availability of charitable contribution deductions when the taxpayer receives or expects to receive a corresponding state or local tax credit. The proposed regulations issued today are designed to clarify the relationship between state and local tax credits and the federal tax rules for charitable contribution deductions. The proposed regulations are available in the   Read More...

Small Businesses Get Automatic Consent for Accounting Method Change
Posted On 08/ 31/ 18

The Internal Revenue Service issued guidance on new tax law changes that allow small business taxpayers with average annual gross receipts of $25 million or less in the prior three-year period to use the cash method of accounting. The Revenue Procedure outlines the process that eligible small business taxpayers may use to obtain automatic consent to change accounting methods that are now permitted under the Tax Cuts and Jobs Act, or TCJA. The automatic consent changes include: a   Read More...

IRS Ruling Allows 401(k) Student Loan Benefits
Posted On 08/ 31/ 18

On Aug. 17, the Internal Revenue Service released a private letter ruling that could make it easier for employers to use their 401(k) plans to assist their employees who are repaying student loan debt. Over the last decade, student loan debt has nearly tripled in real terms and, today, Americans hold $1.4 trillion in student debt. Employees are looking for assistance in repaying their student loans, and companies have been searching for ways to tackle the problem. The recently issued   Read More...

NJ to Offer Tax Amnesty in 2018
Posted On 07/ 31/ 18

The 2018 New Jersey Tax Amnesty will provide an opportunity for eligible taxpayers to file and pay their past due taxes with reduced interest and no penalties. Take advantage of Amnesty while you can: Eligible periods cover State tax liabilities for tax returns due on or after February 1, 2009 through September 1, 2017.  Some restrictions apply. The program may not begin until after November 1, 2018 and will end by January 15, 2019.  Exact dates are to be determined. To receive   Read More...

NJ Tax Bill Signed by Governor
Posted On 07/ 31/ 18

The New Jersey governor signed a bill that: impose a surtax on corporations for two years; decouples from certain provisions of the federal Tax Cuts and Jobs Act; reduces the dividend exclusion; requires market-based sourcing; and introduces combined reporting. The bill takes effect immediately and applies as noted below. Surtax on Corporations A surtax on a corporation’s allocated net income is imposed. The surtax is equal to: 2.5% if the corporation has entire   Read More...

States Respond to the US Supreme Court Ruling in South Dakota v. Wayfair
Posted On 07/ 31/ 18

In South Dakota v. Wayfair, 1 issued June 21, 2018, the US Supreme Court overturned both its prior rulings in Quill 2 and National Bellas Hess, 3 finding that the physical presence nexus standard articulated in the two earlier opinions "is [an] unsound and incorrect" interpretation of the Court's dormant Commerce Clause jurisprudence. (See Tax Alert 2018-1269). In the wake of the Court's decision, a number of states have issued guidance as to the impact on their sales and use tax laws,   Read More...

Tax Cuts “2.0” Draft Expected in July
Posted On 06/ 29/ 18

A tax cuts "2.0" draft will likely be unveiled to House Republicans in July, the House’s top tax writer has said. A draft of the tax reform "phase two" legislative outline is expected to be released generally in August. Tax Cuts Phase Two Timeline "I think the Ways and Means Committee timetable will be to begin circulating a draft to House Republicans when we return after the fourth of July break," House Ways and Means Committee Chairman Kevin Brady, R-Tex. said in a televised June 26   Read More...

Tax bill this year? Check withholding soon, avoid another one next year
Posted On 06/ 29/ 18

Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service. The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain   Read More...

Alternative Surtax and Decoupling Bill Passed by New Jersey Legislature, Sent to Governor
Posted On 06/ 29/ 18

The New Jersey Legislature passed an initial bill that would: impose a surtax on corporations for two years; decouple from certain provisions of the federal Tax Cuts and Jobs Act; reduce the dividend exclusion; impose a tax on certain dividends; and clarify treat provisions. If enacted, the bill would take effect immediately and apply as noted below. The bill has been sent to Gov. Phil Murphy. However, the governor has threatened to veto the bill. Surtax on   Read More...

IRS to Propose Rules on Transfers Made to Avoid New Limit on SALT Deductions
Posted On 05/ 31/ 18

The IRS has announced that it intends to issue proposed regulations regarding the federal tax treatment of payments made by individuals to funds controlled by state and local governments in exchange for credit against state and local taxes (SALT). Some state legislatures have adopted or are considering such proposals as means to get around the limitation on the itemized deduction of state and local taxes after 2017. The aim of the legislation is to allow individuals to characterize any   Read More...