Archive for June 2020
IRS Extends Rollover Relief for 2020 Required Minimum Distributions from Retirement Plans
The CARES Act provided a temporary waiver of the required minimum distribution (RMD) rules for certain retirement plans. The waiver applies to 2020 RMDs from certain defined contribution plans and IRAs. Individuals are generally required to begin taking mandatory distributions at age 72, or age 70 ½ if you were 70 ½ before January 1,…
Read MoreTexas Court Concludes That Sirius XM’s Subscriber Revenue is Sourced to Subscriber Location
In states that apply the “income-producing activity” or “services performed” rule for sourcing service revenue, the most important question is around how to precisely define these activities. As this Texas case shows, the answer is not always clear. By: Jeff Glickman, SALT Partner The sourcing of service revenue for apportionment purposes continues to be highly…
Read MoreMichigan Supreme Court Rules That Services Are Sourced to Location of Performance for Local Income Taxes
Sometimes, the application of a state tax rule can hinge on the interpretation of one word, which was the case when the Michigan Supreme Court was asked whether “services rendered” meant “services performed” or “services delivered” for apportionment purposes under Detroit’s income tax. By: Betsy Tuck, SALT Manager In the February 2018 issue of the…
Read MoreIdaho Supreme Court Rules That Gain from Sale of LLC Interest is Not Idaho Income
Whether or not two companies are engaged in a unitary business is based on particular facts and circumstances, and the Idaho Supreme Court disagreed with a prior Tax Commission decision that a taxpayer and the company it sold were unitary. The court instead held that the taxpayer’s gain from its sale of the company generated…
Read MoreSouth Carolina Rules that Optional Training Services are Taxable When Sold with Taxable Software
As this South Carolina ruling illustrates, whether software is subject to sales tax often depends on the manner by which the software is provided, and that determination can also impact the taxability of any services sold with the software. By: Tina M. Chunn, SALT Senior Manager From a sales tax perspective, whether a software license is taxable…
Read MoreFederal Reserve Contemplates Main Street Lending Program Eligibility for Nonprofit Organizations
On June 15, 2020, the Federal Reserve announced expanding the Main Street Lending Program (MSLP) for nonprofit organizations that are tax-exempt under section 501(c)(3) or 501(c)(19) of the Internal Revenue Code. In the press release, the Federal Reserve announced it is seeking public comment on a proposal to offer small- and medium-sized nonprofit organizations with…
Read MorePPP Loan Forgiveness Application Update: Clarifications on Application Timeline and Owner Compensation
On June 22, 2020, the U.S. Small Business Administration (SBA) released Paycheck Protection Program (PPP) – Revisions to Loan Forgiveness Interim Final Rule and SBA Loan Review Procedures Interim Final Rule. This guidance details two notable changes impacting PPP loan borrowers, including: 1) when a borrower can apply for loan forgiveness and 2) expanded limitations on owner compensation. The updated regulations also make minor updates to…
Read MoreThree Ways to Rethink Your Supply Chain
The manufacturing and distribution industries have struggled to react and adapt to the disruptions in the global supply chain caused by COVID-19. The pandemic intensified turmoil set in motion by disruptions like the trade wars and rising labor costs in China. Pressures from the ever-changing environment are prompting companies to seek more innovative approaches to…
Read MoreTax Savings on Business Property Taxes – Should You Appeal?
In today’s business environment, everyone realizes cash is a critical component to future stability and success. One way to save cash it to reduce expenses, including taxes. As tax advisors, we are always looking for ways to save our client’s tax dollars. An often-overlooked savings opportunity for business owners is in the area of property…
Read MoreHow to Turn 2020 Losses into 2019 Deductions
Congress and the Department of Treasury’s responses to the COVID-19 pandemic have provided corporate and individual taxpayers with a myriad of short- and long-term tax breaks. While public attention has been seized by the $2 trillion CARES Act and $190 billion FFCRA, there is an existing tax provision that permits taxpayers to claim otherwise deductible…
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