Yes, taxpayers can opt out! While the monthly payments of the enhanced child tax credits, passed last spring by Congress as part of the American Rescue Plan, are helpful to many American families, they could actually create issues for others, with some taxpayers actually owing money to the federal government next year if they were to receive such tax credits now.
Companies that hire independent contractors are not obligated to withhold income taxes or employment taxes (such as Social Security and Medicare) or pay the employer share of employment taxes and unemployment insurance. But, just because an employer labels its workers “independent contractors,” as opposed to “employees,” doesn’t make it so.
Since 1959, taxpayers have been relying on a federal law—Public Law 86-272—to protect them from having to file state income tax returns in states where the taxpayers’ in-state activities are limited to just soliciting sales of tangible personal property. On August 4, 2021, the Multistate Tax Commission (MTC) member states voted 20-0 to revise the MTC’s “Statement of Information” regarding Public Law 86-272 in an attempt to eviscerate the federal law’s protections.
When is a brokerage not a brokerage? According to a recent Private Letter Ruling released by the IRS, the answer might surprise you.
- What? Another Supreme Court Tax Case? Yup, but you really ought to watch THIS one…
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- How to Undermine Your Tax Positions: Let’s Talk About Privilege
- Professor Moriarty Is Going to Make an Appearance at the U.S. Supreme Court
- Minnesota Ends COVID-19 Nexus Relief
- Less Than Meets the Eye: SCOTUS Holds Tax Court Petition Deadline Not Jurisdictional
- The Glory of Junk Mail
- Double, Double Toil and Trouble: DOL and IRS Penalties for Failure to File Form 5500
- As Sherlock Holmes Would Say, “The Game’s Afoot”: A Possible SCOTUS Tax Case?
- Down the Rabbit Hole: Should Companies Let Employees Work from Other States?