Leon W. Blazey Jr.

Tax Alerts

Tax Briefing(s)

2012 Tax Year-in-Review

American Taxpayer Relief Act of 2012

Overall individual taxpayer audit rate drops for fiscal year 2012, along with IRS budget
The IRS recently issued its annual Data Book for fiscal year (FY) 2012, which provides the most recent statistical information on examinations, collections and other activities. The IRS's compariso...

Report describes seasonal workers, variable hour employees under healthcare reform’s Employer Mandate
The Patient Protection and Affordable Care Act (PPACA) requires certain “applicable large employers” that do not offer affordable, minimum essential health care coverage to their full-t...

Shareholder must reduce basis in S corp in first year basis adequate to absorb suspended losses
The U.S. Court of Appeals for the District of Columbia Circuit recently affirmed the Tax Court's decision that the Tax Code requires a married couple to reduce their basis in an S corp to account f...

IRS issues final rules on broker reporting of debt instruments and options
The IRS has issued final, temporary and proposed regulations on the requirement that brokers report the basis of debt instruments and options that they sell on behalf of customers. The regulations ...

Medical clinic’s “advances” to newly hired physicians were compensation and not loans
A medical clinic attempted to avoid its liability for employment taxes on compensation paid to newly hired physicians by classifying the payments as "loans." The clinic offered the loans in the amo...

CA - FTB follows IRS payment extension for taxpayers affected by Boston marathon explosions
The Franchise Tax Board (FTB) has announced that California individual income taxpayers affected by the April 15, 2013 Boston Marathon explosions will be given late payment penalty...

CT - Audit examination policy for retail transactions discussed
The Connecticut Department of Revenue Services has established a policy to minimize the potential multiple taxation of retail sales where audit examinations of a retailer and of a retail customer d...

DC - Statute of limitations barred assessment despite filing of an incorrect tax return
The District of Columbia Court of Appeals held that the three-year statute of limitations barred the Office of Taxation and Revenue (OTR) from assessing a beverage company for unpa...

FL - Expired statutes removed
The Florida Legislature has enacted a bill that removes several repealed and expired corporate income tax statutes. Notably, the bill removes the statute governing the Jobs for the...

IL - Rule on presumption of residence amended
The Illinois Department of Revenue has amended a regulation providing guidance on the factors and evidence creating a presumption that an individual is a resident of Illinois for p...

IN - Some sales to foreign country subject to throwback rule
The Indiana throwback rule was applicable to some of a company’s sales of items shipped to various foreign countries. The company was a manufacturer of precision food cutting...

MD - Biotechnology investment credit amended
Legislation has been enacted that expands the definition of “qualified Maryland biotechnology company” for purposes of the biotechnology investment tax credit available...

NV - ACH credits now accepted by the department
The Nevada Department of Taxation has announced that it will begin to accept ACH credits as a method of payment for taxes. Interested taxpayers need to contact AJ Somers at 775-684...

NJ - Proposed amendments to sourcing of services rule discussed
The New Jersey Division of Taxation has proposed to amend the corporate business tax rule addressing the sourcing rules for services performed in the state. The new rule would appl...

NY - Nuclear power plant operator not entitled to investment tax credits
In a New York corporate franchise tax case, a taxpayer that operated nuclear power plants was not entitled to investment tax credits (ITCs) and other related credits with respect t...

OH - House passes bill containing click-through, affiliate nexus provisions
Legislation has been passed in the Ohio House of Representatives that would, if enacted, add click-through and affiliate nexus provisions to the sales and use tax laws....

PA - Philadelphia amends interest, penalty, other provisions
Effective January 1, 2014, Philadelphia interest rate and penalty provisions on unpaid taxes are amended. In addition, effective April 17, 2013, limitations provisions regarding ac...

VT - House passes tax reform legislation
The Vermont House has passed tax reform legislation that, if enacted, would make significant changes to Vermont tax law, including changes to the personal income tax rate and deduc...

WA - Guidance provided on taxability of pharmacy sales
The Washington Department of Revenue has released a sales and use tax chart that reflects the types of pharmacy sales that are subject to sales tax. Sales of the following items ar...

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