Remember how back in December of 2021 in “As Sherlock Holmes Would Say, ‘The Game’s Afoot’: A Possible SCOTUS Tax Case?” we told you that there was a split in the Circuits regarding the imposition of non-willful FBAR penalties by the IRS on noncompliant taxpayers, and predicted the Supreme Court would accept this case, as unlikely as that may have been historically for a “tax” case?
Since the beginning of the pandemic, Minnesota’s nexus waiver policy provided that the state will not assert nexus for business income tax or for sales and use tax purposes “solely because an employee is temporarily working from home due to the COVID-19 pandemic.”
Under IRC § 6330, a taxpayer is entitled to a “collection due process” (CDP) hearing before the IRS Appeals Office can take any enforced collection action.
The two most troubling sales tax issues for companies tend to be related to software and direct mail. Direct mail is especially difficult, as there are numerous issues to untangle, and a robust understanding of the facts is critical.
Most employers or retirement plan administrators are required to file annual informational returns with the U.S. Department of Labor called Form 5500, Annual Return/Report of Employee Benefit Plan.
If you are into Foreign Bank Account Reports (FBARs), your concern about penalties for failing to comply with those FinCEN 114 reporting rules just took an exciting, and perhaps fearsome, turn.
For years, remote workers had been complicating state tax compliance for companies. When the U.S. Supreme Court’s decision in Wayfair came out in June 2018, many believed that the decision’s economic nexus standards would reduce complexity surrounding remote workers.
With a changing planet and generous federal tax incentives, renewable energy projects are increasing in both number and size. So naturally, states want their fair share of tax revenue.
You are moving to another state, but will keep some Minnesota ties (e.g., maintain a house or cabin in Minnesota, spend summers in Minnesota, remain employed by a Minnesota company). Will the Minnesota Department of Revenue agree that you actually moved?
Having spent more than a decade working with taxpayers and Department employees on sales and use tax audits and refund requests, I find that responding to documentation requests from the Department can either be an exercise in pragmatism or an exercise in preventing auditors from murdering a taxpayer’s business by a thousand cuts. The reality is that accumulating and providing documentation is easier for some taxpayers than for others. Similarly, the requirements laid out by some states, or by some auditors, are more burdensome than by others.