Massachusetts Computer-System Design/Software Services Now Taxed at 6.25%...
On Wednesday, July 24, 2013, the Massachusetts Legislature overrode Governor Patrick’s veto and enacted a 6.25 percent sales tax on computer-system design/software services. The new tax is part of the...
View ArticleThe New Massachusetts Sales and Use Tax on Computer System Design and...
I. Introduction - On July 24, 2013, the Massachusetts General Court overrode a veto by Governor Deval Patrick and enacted an $800 million transportation bill entitled An Act Relative to Transportation...
View ArticleRepeal of Massachusetts “Tech Tax” May Be Imminent
The repeal of the so-called “tech tax” on certain computer system design and software services may be imminent. Key indicators include wavering support of the “tech tax” among rank-and-file state...
View ArticleMassachusetts Imposes New Sales and Use Taxes on Computer System Design and...
The Massachusetts Department of Revenue (“DOR”) will formally announce deferral of compliance with the Massachusetts “tech tax” early next week, according to reliable and informed sources. The deferral...
View ArticleCommissioner Amy Pitter Announces Impressive Mediation Goal: One-Third of All...
Boston, February 10, 2014 - In her remarks before the Annual State Tax Conference of the Massachusetts Society of CPAs at the Sheraton Framingham on Thursday, January 23, 2014, Commissioner Pitter...
View ArticleThe New Massachusetts Income Sourcing Rules For Corporate Services:...
On July 24, 2013 the Massachusetts General Court enacted an $800 million transportation bill. This bill, inter alia, revised the Massachusetts corporate sourcing rules for the sale of services. The...
View ArticleDefending Federal and State Tax Audits For High-Income Taxpayers
In 2013 the IRS audited slightly over one taxpayer in nine[1] with an income of $1 million or more.[2] This audit rate represents a sharp 69 percent increase from the 6.42 percent audit rate that...
View ArticleIRS Announces Sweeping Changes To Its Offshore Voluntary Disclosure Programs:...
On Wednesday, June 18, 2014 the Internal Revenue Service announced sweeping changes to its Offshore Voluntary Disclosure Programs, effective Tuesday, July 1, 2014. Some taxpayers are treated much more...
View ArticleNew IRS Appeals Procedures Complicate Tax Dispute Resolution
This article describes and evaluates the new IRS Appeals Office policy for handling IRS audit appeals. This new policy is known as the Appeals Judicial Approach and Culture (“AJAC”) Project. The stated...
View ArticleChoosing the “Right” Income Tax Return Preparer
The IRS audits about one taxpayer in ten who reports more than $1 million in income. Many of these taxpayers are at the height of their careers and cannot endure even a whiff of scandal. They need...
View ArticleDealing with Erroneous FATCA Inquiries
A foreign bank asks our client to provide information that the bank is not required to provide IRS under FATCA. There are two possibilities. Our client can provide the information or our client can...
View ArticlePractice Tips for New Tax Associates
We are tax law specialists with a focus on international and Massachusetts taxation. I have drafted this memorandum to help new tax associates understand what is expected of them. This memorandum...
View ArticleExpect MDOR Audit Delays After the July 4, 2015 Holiday
Governor Charlie Baker’s recent plan to trim the number of Massachusetts employees was recently signed into law. According to published reports, more than half of all employees at the Massachusetts...
View ArticleU.S. Taxpayers Living Overseas: The June 15th Automatic 2-Month Extended...
While most U.S. taxpayers must file their taxes by April 15th, U.S. taxpayers living abroad have additional options to extend the deadline of their filing due date. These extensions provide convenience...
View ArticleData Security Breach at IRS Disrupts Taxpayers and Tax Professionals
The Internal Revenue Service (IRS) announced on Tuesday, May 26, 2015 that criminals had fraudulently obtained the tax returns and account information of more than 100,000 taxpayers. The criminals used...
View ArticlePreventing Double Taxation of Interstate Income: Supreme Court’s “Wynne”...
In a five-to-four decision, the United States Supreme Court held that the dormant commerce clause protects in-state residents from the double taxation of their interstate income. This is a complicated...
View ArticleMassachusetts Non-Filer Amnesty Details Revealed
In early March of this year Governor Charlie Baker proposed a tax amnesty for taxpayers who have not filed tax returns with the Massachusetts Department of Revenue. According to reports published over...
View ArticleThe Bank of America Case: May Massachusetts Tax the Trust Fund Income of...
Background - Before addressing the Bank of America case, it is necessary to understand the Massachusetts taxation of trustees and their beneficiaries, which is described in 830 CMR 62.20.1: Income Tax...
View ArticleContributions of Art: Elements of a “Boring” Charitable Contribution Deduction
This article highlights some of the more critical income tax issues that taxpayers and their advisors must address when claiming the charitable contribution deduction for the gift of art to art...
View ArticleState Voluntary Disclosure Programs: An Overview
What is Voluntary Disclosure? Most state departments of revenue allow certain categories of noncompliant taxpayers to come forward voluntarily and pay taxes accrued during a limited lookback period....
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