Sales and Use Tax, Technology and the Evolving Definition of Sales Tax Nexus
States across the U.S. are challenging the physical presence standard that has so long been a leading factor when determining sales nexus in states and local jurisdictions. Why are they challenging it? Blame the Internet and technology. The Driving Force Behind a New Definition of Sales Nexus As more goods and services are sold and delivered via the Internet, states have determined they are potentially losing billions of dollars in sales tax revenues. It’s not just Internet retailers, such as Amazon, Etsy, and eBay, that are taking a chunk from state revenue totals. It’s also digital goods and software as. Read More.
Lessons Learned from WannaCry Cyberattacks
Hopefully you weren’t one of the millions of people affected by this most recent massive cyberattack that targeted multiple industries, large and small. The WannaCry cyberattack was so effective because of a simple vulnerability that exists in systems that haven’t installed a recent security patch known to fix the problem. Simple patch management. It’s often overlooked, but it’s something that any organization with a sound security posture puts at the forefront of their business strategy in order to avoid these kinds of situations. However, implementing sound patch management in today’s world of decentralized workforces, full of remote and third-party workers, along with the. Read More.
IRS Announces 2018 Health Savings Account Limits
The new 2018 limits for Health Savings Accounts (“HSAs”) have been announced by the IRS in Revenue Procedure 2017-37 . Contribution limits have gone up for self-only coverage and for family coverage. The annual deductible limits that determine if you qualify to participate in an HSA have gone up, too. For details, plus details about how rules for out-of-pocket limits have changed, read the latest benefits alert from Cherry Bekaert Benefits Consulting (reference chart included).
Eye on Reform: House Passes the American Health Care Act of 2017 (H.R. 1628)
On Thursday, May 4, the U.S. House of Representatives passed the American Health Care Act of 2017 (“AHCA”) by a vote of 217-213, mostly along party lines. The passage of the AHCA is just the first step in the current Administration’s plan to repeal and replace the Affordable Care Act (“ACA”), which remains the law of the land today. The Senate will now take up the task of passing its version of healthcare reform and, in fact, has indicated that it will write its own proposal. Undoubtedly, differences will emerge between the House and Senate versions of the bill, and. Read More.
Reporting Required for Certain Deductions of Conservation Easements
If you contribute a conservation easement to a qualified organization, then you’re not just protecting the natural value of that land for future generations. There may be ways you can claim that contribution as a charitable deduction on your tax return. If you have invested in or plan to invest in a pass-through entity so you can benefit from a deduction for a charitable contribution of a conservation easement, a recent Notice from the Internal Revenue Service (“IRS”) could affect you. And, if you are considering whether to donate a conservation easement to charity with respect to property you already. Read More.
Eye on Reform: President Trump’s Proposed Tax Plan
On April 26, 2017, the White House shared the broad outlines of its plan for tax reform, calling it “The Biggest Individual and Business Tax Cut in American History.” President Trump’s stated goals for this plan are: growing the economy; creating millions of jobs; simplifying the tax code; providing tax relief to families (with a focus on the middle class); and lowering the business tax rate to make it one of the lowest in the world. Few details of the plan are available, because the Administration has said that they are still being worked out with members of Congress and. Read More.
Eye on Tax Reform: President Trump’s Plan to Cut Tax Rate on Businesses
What are the real effects of lowering the tax rate to 15 percent, if President Trump’s proposed tax plan goes through? Small business owners who currently pay tax at individual tax rates (sometimes as high as 39.6%) on their business income because they operate as pass-through entities will potentially see the biggest reduction in tax rate. This rate reduction will be even higher if they are subject to the additional .9% Additional Medicare Tax or the 3.8% Net Investment Income Tax. Paying less in taxes could increase economic growth for businesses, which means they’ll have more money to invest in. Read More.