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Nexpanding: The Ever-Evolving Shape of Nexus Rules

Article by Roger Russell | Found on Accounting Today

Nexus — the minimum amount of contact between a taxpayer and a state that allows the state to tax the business on its activities — is under attack by the states as they seek to broaden its reach in order to increase their taxing revenue.

States are challenging the traditional physical-presence standard as a basis for collecting tax from companies doing business in the state. While they previously collected taxes from companies having a physical presence in their state, they are now adopting a broader economic-nexus standard requiring businesses to pay taxes when they have earned revenue within a state above a certain sales dollar threshold.

At the heart of the issue are general nexus concepts, as different taxes have different nexus rules, and the different states have their own nexus rules. Read more

Identity Theft Safeguards to Expand for 2017

Article By Sally P. Schreiber, J.D. | Featured on Journal of Accountancy

As the IRS, taxpayers, and tax practitioners get ready for the 2017 tax filing season, the IRS touted the successes that it and its Security Summit partners have had in reducing tax return identity theft during the 2016 filing season and described how it will expand its efforts in the fight for 2017 (IR-2016-144). Security Summit partners include state tax authorities, tax preparation businesses (including tax preparation software companies), and banks. Read more

New Tax Rules for 2017

By Robert Trinz | Article Featured on AccountingToday

The new year promises to be an challenging one for tax practitioners, as President-elect Trump and Congressional Republicans have promised to enact a significant tax reform package in 2017. However, even if there is no new law, practitioners still will have to cope with a number of tax changes that go into effect for the first time this year or apply for the first time for tax returns filed this year.

This article is a roundup of these tax changes, other than indexing changes and changes created by Congress’s failure (as of now), to enact an extenders package to revive tax provisions that expired at the end of 2016. (You can see an abridged list of the new items here.) Read more

United States issues new corporate anti-inversion rules

United States Issues New Corporate Anti-Inversion Rules

Article By Sally P. Schreiber, J.D. | Featured on CGMA Magazine

In a further move to reduce the tax benefits of, and therefore the incentives for, corporate inversions, the U.S. tax agency, the Internal Revenue Service (IRS), on Thursday announced additional rules designed to curtail the ability of an inverted company to access foreign subsidiaries’ earnings without paying U.S. tax (Notice 2015-79). In a corporate inversion, a multinational company based in the United States replaces its U.S. parent with a foreign parent. The IRS issued the notice to inform taxpayers that it intends to issue regulations, and that the regulations will generally apply to transactions completed on or after Nov. 19, 2015.

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Congress Approves Tax Extenders for 2014

Congress Approves Tax Extenders for 2014

The U.S. Senate has approved a one-year extension of the tax extenders bill, a grab bag of around 50 tax provisions for businesses and individuals. The bill will cost $42 billion over ten years and applies retroactively to the 2014 tax year. The House of Representatives passed their version of the bill last week.

The one-year extension passed by the House and Senate leaves the package to expire again at the end of this month, which will set up discussion on the tax extenders again in 2015.

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