In a landmark move on October 4, 2023, Massachusetts Governor Maura Healey (D) put pen to paper, signing House Bill 4104 into law, thus repositioning Massachusetts towards a single sales factor apportionment regime for multi-state business corporations and financial institutions. Read all about this new development here. This legislation signals a shift in the way…
The week of September 21 – September 27, 2023, has seen notable activities and publications from the Internal Revenue Service (IRS). From issuing critical guidelines to various other tax matters, the IRS has remained highly active. A summary provided by McDermott Will & Emery provides an extensive overview of IRS’ operations and actions throughout this…
As the November 2023 election draws near, major tax topics, especially pertaining to property tax measures, take center stage in Colorado, promising yet another intense round of voter decisions. Indeed, these decisions are likely to have significant implications for both individuals and businesses within the state. The tax measures put forth, will, according to indications…
A buzz of anticipation has settled over the world following the recent implementation of a new multilateral tax treaty, which applies the Subject to Tax Rule and affects more than 135 jurisdictions. Since October 2021, numerous jurisdictions, spanning across multiple continents, have joined in an innovative plan to tackle specific tax challenges that are emerging…
In an ambitious move to improve the state’s competitiveness, affordability, and equity, Massachusetts has enacted a new law that could potentially change the financial dynamics for many of its taxpayers. Known as “An Act to improve the Commonwealth’s competitiveness, affordability, and equity,” the legal development was set in motion on October 4, 2023, and incorporates…
On October 4, 2023, Massachusetts’s Governor Healey put pen to paper, signing into law a key piece of tax legislation. The reform introduces a multitude of changes, offering relief measures such as estate tax reductions, sealing a loophole around the recently established millionaire’s tax, as well as slicing short-term capital gains tax rates. This large-scale…
In a notable development, the Massachusetts Senate has approved Bill H. 4104 aimed at elevating the Massachusetts estate tax filing threshold to $2,000,000. This pivotal decision came to light on Thursday, September 28, 2023, just a day after the Massachusetts House of Representatives also shared its endorsement for the bill on Wednesday, September 27, 2023….
As legal professionals engaged in global corporations and law firms, your awareness of international tax developments is critical. It’s important that we examine an issue recently gaining momentum and largely impacting the tax world: The IRS’s crackdown on perceived ‘abusive trust arrangements’. To provide some widespread perspective, recent government actions hint that both third-party promoters…
As the landscape for the cannabis industry in New York changes, businesses are being presented with new opportunities. Beginning October 4, the state has started accepting applications for certain adult-use cannabis licenses, marking a key moment in the establishment of the state’s legal cannabis market. According to JD Supra, the available licenses include cultivator, processor,…
In an unexpected turn of events, the Federal Trade Commission (FTC) has recently flagged what can be classified as a novel form of unsportsmanlike conduct. According to a notice it sent to five tax preparers, the commission expressed its intent to pursue civil penalties if these entities continue to utilize consumers’ data for motives beyond…
In a turning point for the U.S. cannabis industry, the Department of Health and Human Services (HHS) has issued a recommendation to reschedule marijuana to Schedule III under the Controlled Substances Act of 1970 (CSA). Historically, marijuana has been classified as a Schedule I controlled substance – a category defined as a substance with no…
Since taking office in 2021, the Prime Minister of Japan, Kishida Fumio, has been known for his quest to pioneer “a new form of capitalism”. A significant part of his vision is rooted in the creation and implementation of a “national strategy” aimed at the expansion of Japan’s digital economy in the age of Web…
In a significant legislative development, members of Congress have proposed the “Tobacco Tax Equity Act of 2023” (S.2929 and H.R.5715), a bill aiming to bring about a considerable increase in tobacco tax. The bill, introduced in both the U.S. Senate and House of Representatives, seeks to reshape the landscape of the tobacco industry, impacting businesses…
On September 26, 2023, Massachusetts lawmakers introduced a significant tax legislation that will potentially alter the region’s corporate taxation landscape. Proposed changes include estate tax relief, closure of a loophole pertaining to the newly imposed millionaire’s tax, along with reductions in short-term capital gains tax, among other aspects. The bill is expected to be submitted…
In an unexpected turn of events this week, the Internal Revenue Service (IRS) has provided a relief initiative to taxpayers within Massachusetts and Maine. The surprise move will see the deadline for various individual and business tax returns, along with tax payments, extended to February 15, 2024. This extension applies to responsibilities otherwise due on…
Notable developments in State and Local Taxes (SALT) rarely escape attention, especially when they impact businesses and taxpayers on a significant scale. The month of September 2023 was no exception, where certain substantial changes in this arena, spread across multiple jurisdictions, created quite a stir. In a recent coverage by JD Supra, entitled “SALT Select…
In many nations, provident funds play a critical role in ensuring the financial stability of individuals post-retirement. These government-administered retirement funds were primarily developed to act as a form of “social protection” in an attempt to fight poverty at the time of retirement. The idea was a response to many social programs at the time,…
In a recent development, the Internal Revenue Service (IRS) has published guidance regarding the taxation rules applicable to software development and research expenses. The movement hopes to clarify and streamline the proceedings in the backdrop of the Tax Cuts and Jobs Act of 2017 (TCJA) which largely altered the tax treatment of specified research and…
In an important move to ensure global minimal taxation, the German federal cabinet approved the government draft bill on August 16, 2023. This bill was drafted to implement Council Directive (EU) 2022/2523 – the Minimum Tax Directive Implementation Act (MinBestRL-UmsG), as reported by JD Supra. The approved bill primarily includes the draft of a new…
In a recent podcast titled International Tax Strategies and Forms, Janathan Allen delves into the complexities of US tax regulations for taxpayers with offshore interests. Similarly, the podcast also serves valuable insights for non-US residents or expatriates with ties to the US economy. Allen begins the podcast with an intriguing statement that highlights the general…
In a recent move, the Internal Revenue Service (IRS) imposed a moratorium on new Employee Retention Credit (ERC) claims processing. This decision, announced on September 14, 2023, follows a surge in questionable claim submissions that led to this temporary hiatus. IRS has pointed towards due diligence and detailed compliance reviews as the major factors causing…
In an unprecedented move, on July 21, 2023, Governor of New Jersey, Phil Murphy, signed into legal effect the Assembly Bill No. S3128/A4694, laying the ground for a robust tax treatment for non-residents working with New Jersey employers. A deep breath for New York residents as the new law might impact cross-state commuters and workers….
In a new development, the Internal Revenue Service (IRS) has announced a shift in its attention towards wealthy taxpayers as part of a long-term funding provision approved by Congress through the Inflation Reduction Act of 2022. The purpose of this move is to identify refined methods being used to evade taxes. In what has been…
The status of unity in New Jersey remains complex as the Division of Taxation experiences leadership changes and provides new legislative guidance. As professionals in the industry continue to grapple with these changes, it is imperative to remember the foundations of unity and contextualize the modifications to the unity statute. In light of recent developments,…
On August 9, 2023, New York State took a decisive step forward in the world of corporate tax law, with the Department of Taxation and Finance (the “Department”) formally proposing the Business Corporation Franchise Tax Regulations. This official proposal comes in accordance with the State Administrative Procedure Act (“SAPA”), and seeks to implement a comprehensive…