The Inflation Reduction Act – What US Companies and Individual Taxpayers Need to Know

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At a glance The main takeaway: On August 16, 2022, President Biden signed the Inflation Reduction Act into law. The $750 billion bill, passed through the Budget Reconciliation Process, contains a number of provisions that address healthcare, climate change and energy efficiency. Impact on your business:  The act includes several tax increase provisions largely aimed at…

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How Changes to R&D Deductions will Impact your Tax Burden

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At a glance The main takeaway: Changes to Section 174 require taxpayers to capitalize and amortize all R&D costs, which could significantly increase companies’ tax burdens. Impact on your business: Companies that have been consistently investing in R&D can expect to pay more in taxes, while companies previously in losses could be at risk of…

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Brace for Impact: Changes to R&D Deductions Begin This Year

At a glance The main takeaway: New requirements eliminating the ability to immediately deduct research and development (R&D) expenditures went into effect this year after every attempt to reverse the change failed. Impact on your business: Businesses that have historically benefitted from the favorable tax treatment of fully deducting research expenditures as incurred could be…

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Washington Rules that Sales Tax Applies to Online Account Access Services

By: Tina Chunn, SALT Senior Manager At a glance The main takeaway: A taxpayer’s services provided through an online banking platform were classified as digital automated services by the state of Washington and thus deemed taxable. Assess the impact: Accurately classifying services provided via online platforms for sales tax purposes can be complicated due to…

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California Issues New Ruling on Sourcing Service Revenue, Revokes Prior Guidance

By: Aspen Fairchild, SALT Senior Associate At a glance: Key takeaway: In March, the California Franchise Tax Board issued a legal ruling that revises its interpretation for sourcing service revenue for California apportionment and revokes prior guidance. Impact on your business: The ruling impacts prior apportionment positions as well as nexus, since California imposes an…

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