16 Aug 2022

Corporations and LLCs that have been approved by the IRS for federal S Corporation status (by filing Form 2553) are—in most states—given S Corp pass-through income tax treatment at the state level, too. It’s critical that your clients understand how this can affect their businesses, so let's take a closer look at where various states stand with S Corporations. State-Level S Corporation E...

13 Aug 2022

Internal Revenue Code (IRC) section 7216 and its lengthy regulations govern when a tax return preparer may disclose or use a taxpayer’s tax return information without first obtaining the taxpayer’s consent. Because it is a federal crime to violate section 7216 and its regulations, CPAs should familiarize themselves with these provisions. This column discusses when tax return preparers ar...

13 Aug 2022

Since the United States Supreme Court’s decision in South Dakota v. Wayfair, 585 U.S. ___ (2018), on June 21, 2018, state governments have been rapidly rewriting their rules to impose economic nexus (as opposed to physical presence) standards for sales and use taxes. At present, 43 states have implemented Wayfair-inspired rules. In the past six months, New York has been busy updating its...

13 Jul 2022

Because so many businesses have customers in California, New York and Texas, their new sales tax policies post the Supreme Court’s South Dakota v. Wayfair Inc. decision may well affect your retail clients. Below we summarize the new sales and use tax collection requirements in these three “big dogs” to help get you up-to-speed. California California began requiring remote retailers to c...

12 Jul 2022

In fourteen previous columns, I discussed my use of “tax tidbits” to enliven conversations when talking taxes with clients, speaking to groups like business owners, retirees, investors and home sellers, or teaching adult education courses at places like high schools and community colleges. The tidbits discuss, among other things, Internal Revenue Service rulings, law changes, court decis...

13 Jun 2022

Most attorneys, accountants, and other professionals operate as unincorporated sole practitioners, or through partnerships and limited liability partnerships (LLP), making them owners of pass-through entities. Such professionals may be able to cut the effective tax rate on the income from their practices through the use of the qualified business income (QBI) deduction [Internal Revenue C...