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Tax

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Being Ready is Key

A quick glance at the Weather Channel is all we need to get the idea that the climate is unpredictable.

The extraordinary number of hurricanes, the polar vortex slippage and accompanying deep freeze, and now the violent storms and tornadoes ripping across the country, say it all. From fires and droughts to floods and mudslides, natural disasters are all around us.

While these may come upon us suddenly, giving us a sense of impotence, often there is some time to prepare.

New IRS Proposed Regulations Are Announced

When the Tax Cuts and Jobs Act was signed into law in December 2017, unanswered questions regarding how to execute some key components of the Act remained.

One of the most pressing questions raised at the time of the Act’s passage was in Section 199A regarding the impact of lowering the tax rate for corporations to 21%, while keeping individual tax payer rates at a higher level.

Why is This a Big Deal?  

Change is Coming!

The Supreme Court ruled in favor of a South Dakota tax law that aggressively requires remote sellers to collect and remit sales tax if they engage in 200 or more transactions with, or have over $100,000 of sales to, South Dakota customers. This applies even if the remote seller has no physical presence in the state. This ruling over turns the “physical presence” standard which was adopted 26 years ago by the Supreme Court in its Quill v. South Dakota ruling.

Credit for Qualified Rehabilitation Expenditures under the 2017 Tax Cuts and Job Act

Prior to Tax Cuts and Jobs Act, law provided a two-tier tax credit for qualified rehabilitation expenditures (QREs):

  1. 20% of the QREs with respect to a certified historic structure
  2. 10% of the QREs with respect to a qualified rehabilitated building

A certified historic structure is any building that was listed in the National Register, or that was located in a registered historic district and certified by the Secretary of the Interior to the Secretary of the Treasury as being of historic significance to the district.

Did you receive a letter from the State of NJ about its ACH process?

Effective February 1, 2018, the State of NJ is changing its official banking institution responsible for tax collection.  This includes unemployment, disability and family leave taxes.  The switch is from Wells Fargo Bank to Citi Bank.

This change required New Jersey to send out letters to any taxpayer registered as an ACH Credit remitter (whether or not they have made any payments using this method) notifying them of the new banking information. This has unintentionally led to a lot of confusion within the state.