Complimentary eBook: 250+Motivational Inspirations For Tax Advisors

Complimentary eBook: 250+Motivational Inspirations For Tax Advisors

Motivating your team is important because it affects the overall performance of your organization. An employee’s motivation is direct result of the sum of interactions with those who lead them. Great leaders and coaches consistently work on motivating their team to increase their commitment, efficiency, satisfaction and professional development. This starts with positive communication that motivates team members to excel. As a leader, you must invest the time to increase team motivation to gain optimal results.

TaxConnections offers a complimentary eBook of ideas and phrases you can use to message your team members daily. We have spoken to tax leaders and receivers of these phrases who look forward to receiving daily positive and inspirational quotes to guide them through their work days. When is the last time you sent your team members an inspirational quote as you lead your organization throughout the day? You can start today using this complimentary leadership tool!

TaxConnections complimentary eBook 250+ Motivational Quotes And Inspirations helps you build positive communication with team members which improves overall performance.

REQUEST COMPLIMENTARY EBOOK 

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Nexus Update: Transaction Counts Eliminated In Indiana And Wyoming

Nexus Update: Transaction Counts Eliminated In Indiana And Wyoming

In recent news, both Indiana and Wyoming have eliminated the use of transaction counts (200) as a factor in determining sales and use tax nexus for remote sellers. This is a significant change that will affect many businesses operating in these states.

What Is Sales and Use Tax Nexus?

For those who may not be familiar, sales and use tax nexus refers to the connection between a business and a state that allows the state to require the business to collect and remit sales tax on transactions made within that state. In the past, many states, including Indiana and Wyoming, used transaction counts as a means of determining if a remote seller had established nexus within their borders.

Recent Changes

However, this method of determination has come under scrutiny in recent years, with many arguing that it places an unfair burden on small businesses that may only make a few sales within a state. In response to these concerns, both Indiana and Wyoming have now eliminated transaction counts as a factor in determining sales and use tax nexus for remote sellers.

This is good news for many businesses, as it means they will only be required to collect and remit sales tax if they meet other criteria, such as having a physical presence within the state or exceeding a specific dollar amount of sales, currently $100,000.00 in both Indiana and Wyoming.

*Please note that Indiana’s updated nexus threshold is retroactive to January 1, 2024, and Wyoming’s does not take effect until July 1, 2024.  

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Texas Sales Tax | Real Property Services

Texas Sales Tax | Real Property Services

The Texas Tax Code provides that sales of “real property services” are subject to Texas sales and use tax. [1] “Real property services” include the following:

  • Landscaping;
  • The care and maintenance of lawns, yards, or ornamental trees or other plants;
  • The removal or collection of garbage, rubbish, or other solid waste other than:
    • Hazardous waste;
    • Industrial solid waste;
    • Waste material that results from an activity associated with the exploration, development, or production of oil, gas, geothermal resources, or any other substance or material regulated by the Railroad Commission of Texas under Section 91.101, Natural Resources Code;
    • Domestic sewage or an irrigation return flow, to the extent the sewage or return flow does not constitute garbage or rubbish; and
    • Industrial discharges subject to regulation by permit issued pursuant to Chapter 26, Water Code;
  • Building or grounds cleaning, janitorial, or custodial services;
  • A structural pest control service covered by Section 1951.003, Occupations Code; or
  • The surveying of real property. [2]

However, there are exceptions to the above.  For example, the Texas Tax Code also provides that a service will not be considered a “real property service” if it’s purchased by a contractor as part of the improvement of real property with a new structure to be used as a residence, or another improvement immediately adjacent to the new structure and used in the residential occupancy thereof. [3] I’ve previously written about the rules applicable to contractors – that post can be found here.  Interestingly, Comptroller Rule 3.291 (which lays out the tax responsibilities of contractors) notes that in these cases, a contractor must issue a “properly completed exemption certificate or other acceptable documentation” to the service provider, but no such requirement exists in the Tax Code itself.

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The Biden-Harris Administration’s Student Debt Forgiveness Plan Explained; 167 Billion Taxpayer Money Approved

Joe Biden Approves 167BILLION FoR Student Borrowers
What the program means for you, and what comes next
Get details about one-time student loan debt relief >

President Biden, Vice President Harris, and the U.S. Department of Education have announced a three-part plan to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires. This plan includes loan forgiveness of up to $20,000. Many borrowers and families may be asking themselves “what do I have to do to claim this relief?” This page is a resource to answer those questions and more. To receive notifications about the process, sign up at the Department of Education subscription page. You’ll have until Dec. 31, 2023 to apply.

The Biden Administration’s Student Loan Debt Relief Plan
Part 1. Final extension of the student loan repayment pause

Due to the economic challenges created by the pandemic, the Biden-Harris Administration has extended the student loan repayment pause a number of times. Because of this, no one with a federally held loan has had to pay a single dollar in loan payments since President Biden took office.

The Biden-Harris Administration’s one-time student debt relief plan is necessary to address the financial harms of the pandemic, provide borrowers with a smooth transition back to repayment, and help borrowers at highest risk of delinquency or default once payments resume.

Congress recently passed a law preventing further extensions of the payment pause. Student loan interest will resume starting on Sept. 1, 2023, and payments will be due starting in October. We will notify borrowers well before payments restart.

Prepare for Student Loan Payments To Restart
Frequently Asked Questions

Do I need to do anything to extend my student loan pause?

  • No. The extended pause will occur automatically.

     

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Biden Has News: He States We Have These Tariffs! The Tariffs Are Taxes! And Higher Tariffs Means Higher Taxes!

Biden Has Great News: He States We Have These Tariffs! The Tariffs Are Taxes! And Higher Tariffs Means Higher Taxes!

This week Peter’s back to discuss new economic data, Powell’s recent remarks in the Netherlands, and the Biden administration’s new tariffs. More and more signs point to economic stagflation, but Biden, Powell, and their cronies continue to deflect the blame and increase everyday Americans’ taxes.

The Dow may have traded above 40,000 this week, but that doesn’t necessarily mean Americans are wealthier:

“Inflation creates an illusion of prosperity, an illusion of wealth. That’s another reason that government loves inflation so much. They’re really partners. The government derives all sorts of hidden benefits from inflation, but it never wants to admit this. It never wants to say this out loud. But everything the government does is supported by inflation. … They kind of worship inflation, but they never speak its name— not in the context of what they’re using it for, right? And so when the public gets upset that prices are rising a lot and their living standards are falling, then the government will talk about inflation. But it’ll talk about it as if it’s this exogenous event that is completely beyond their control.”

Contrary to what progressives believe, inflation is not a result of capitalism:

“Everything is more expensive because of the government debasement of our money. That’s why we have inflation. It’s not an accident, and it’s not a natural byproduct of capitalism. Capitalism does the reverse! I’ve pointed this out, but the CPI from 1800 to 1900 lost 50% of its value. Prices fell for a hundred years! That’s what capitalism does. Now in the following hundred years, prices skyrocketed. That’s what socialism does. That’s what government does. That’s what central banking does.”

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Impact Of The Inflation Reduction Act On EPACT Section 179 Tax Deduction

Impact Of The Inflation Reduction Act On EPACT Section 179 Tax Deduction

In August of 2022, The Inflation Reduction Act was signed into law which made significant changes to the Energy Policy Act (EPAct) Section 179D tax deduction. The benefits and expansion of eligibility for energy-efficient commercial buildings were now enhanced, opening the door for companies who made energy-efficient upgrades to their commercial buildings.

Increased Deductions for Prevailing Wage and Apprenticeship Requirements
  • The original deduction of $1.88/sqft has increased to $2.50 – $5.00/sqft for buildings that meet the prevailing wage and apprenticeship requirements.
  • The deduction reduces to $0.50 – $1.00/sqft for 25% – 50% energy savings if the prevailing wage and apprenticeship requirements are unmet.
  • Projects with a construction start date prior to 1/29/2023, are eligible for the $2.50 – $5.00/sqft deduction without meeting the prevailing wage and apprenticeship requirements.
Broader Eligibility
    • If the energy-efficient property is owned by a federal, state, or local government, or a non-profit, the property owner may allocate the §179D deduction to the primary designer of the building.

For the first time. designer allocation is now open to all tax-exempt entities including Indian Tribal Governments, private colleges, and universities.

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Citizens Against Government Waste: The Prime Cut Series (#7)

Citizens Against Government Waste: The Prime Cut Series (#7)

Eliminate the National Endowment for the Arts (NEA) and the
National Endowment for the Humanities (NEH)
1-Year Savings: $414 million
5-Year Savings: $2.1 billion

Created in 1965, the NEA and NEH are the perfect examples of the government dabbling in fields that should be left entirely to the private sector. More than 50 years later, all efforts to reign in NEA and NEH spending have been rebuffed because special interest groups and their political allies have long fought for every drop of funding.

For example, then-Senate Majority Leader Harry Reid (D-Nev.) helped defeat H.R. 1, the full-year continuing resolution for FY 2011, which, among other spending reductions, defunded the NEA and the NEH. On March 8, 2011, Sen. Reid described the proposed termination in a Senate floor speech as “mean-spirited,” stating that, were it not for the NEH’s federal money, the Cowboy Poetry Festival and “the tens of thousands of people who come there every year, would not exist.” This earned Sen. Reid CAGW’s Porker of the Month in March 2011.

Former Sen. Jeff Flake (R-Ariz.) identified dozens of absurd NEA and NEH expenditures in his 2016 “Wastebook: Porkemon Go,” like $206,000 for monkey puppet shows and $1.7 million for a Hologram Comedy Club. Sen. James Lankford (R-Okla.) identified additional silly spending in his 2017 “Federal Fumbles,” like a $30,000 NEA grant for the production of Doggie Hamlet and $20,000 for an adult summer camp focusing on climate change art. The 2019 version of Sen. Lankford’s report disclosed a $50,400 NEH fellowship paid to a professor at Sonoma State University to examine “the ways Russia used its wine industry to befriend Europe during the Russian Empire and the Soviet eras.”

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Tax Implications On Investments In Passive Foreign Investment Companies (PFIC)

Tax Implications On Investments In Passive Foreign Investment Companies (PFIC)

In a globalized world, cross-border investments have become increasingly common, but also more complex from a tax point of view. United States taxpayers who invest in foreign companies may be subject to the Passive Foreign Investment Company ( PFIC ) regime, which is designed to prevent the improper deferral of taxes on income generated by these investments abroad.

This tax regime, implemented to regulate investments in entities that generate mostly passive income, offers different reporting methods that significantly influence the taxation of this income.

Through this article, we will generally explore the tax implications of investments in PFICs, including the excess distribution regime, the qualified election fund (QEF), and the mark-to-market regime, providing a clear understanding of each option and its tax consequences.

As such, the PFIC regime is activated when a significant proportion of the foreign entity’s income or assets is of a “passive” nature.

Taxpayers who invest in PFICs have three main options to declare that they are in such a regime as noted below, under: (1) the excess distribution regime (or section 1291 fund of the United States Internal Revenue Code, by its acronym in English “IRC”); (2) the qualified election fund (QEF) regime; and (3) the market adjustment regime.

The PFIC regime, incorporated in 1986, has as its main objective to prevent the deferral of the payment of taxes with respect to obtaining passive income through foreign entities. This regime, along with the Controlled Foreign Corporation (CFC) and Subpart F income provisions, constitutes one of the primary anti-deferral mechanisms in the IRC.

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Thinking About Selling Your Accounting Practice? Get An Education Years In Advance

Thinking About Selling Your Accounting Practice? Get An Education Years In Advance

You have spent years building an accounting practice, and then you start dreaming about  selling your practice, and retiring. Most owners find themselves in the position of wishing they would have started planning to sell their accounting practice long before they ever did. We have had the pleasure of speaking privately with hundreds of hard-working practitioners over the years who finally find themselves ready to retire. However, once they receive an education about the process of selling their tax practice, they are stunned to discover they should have had an exit strategy in place years before…even 10 years prior to an exit.

Recognizing the need for practitioners to sell their tax practice, www.taxconnections.com has put together a special program to educate firm owners what they must put in place long before they sell their tax practice another firm. TaxConnections is committed to guiding accounting firm owners by educating them what they can do to ready themselves for the inevitable sale of their practice years in advance of an exit to retirement.

A little-known secret to owners of small tax and accounting practices is if you call big brokers about selling your practice, they are disinterested in working with you if your annual revenue is under 3M. Most of the big power brokers in the accounting profession do not have an interest in speaking with you even at 3M annual revenue and/or EBITDA. It is a good idea to understand why this happens and explain so you do not become disappointed. Our mission is taking you through the process of building and organizing your practice for sale one day. Perhaps, it will be two years from now, five years from now, 10 years from now or longer.  Tax professionals are lifelong learners, and what we teach you about building to sale journey will have a huge impact on the sale price of your tax practice one day.

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Establishing Presence: A Guide To Sales Tax Nexus Reviews

Establishing Presence: A Guide To Sales Tax Nexus Reviews

So, you’re selling a product…to customers…in all states in the US.  You’re a US company selling widgets or software or services, or you’re a foreign company selling gadgets – all destined for US customers (whether individual consumers or businesses). Business is growing, sales are increasing. Congratulations!

First next step? Determine if you need to be collecting and remitting sales tax on those sales.  Note – you probably do! And that starts with nexus.

When selling to US customers and then dealing with the many sales tax regulations in our 50 states, understanding the concept of nexus is paramount for businesses aiming to stay compliant and avoid potential penalties. Nexus, in essence, refers to the connection or presence that a business has in a particular state, which can trigger the obligation to collect and remit sales tax. However, determining whether a business has established nexus in a given jurisdiction requires a comprehensive assessment known as a nexus review.

What Is A Nexus Review?

A nexus review involves a thorough examination of various factors, including a business’s physical presence, economic activities, and digital footprint, to determine whether it has crossed the threshold to trigger sales tax obligations in the state, or states, in which it operates. This process is essential for businesses to assess their compliance status accurately and identify potential areas of risk. By understanding the intricacies of nexus reviews, businesses can proactively manage their sales tax responsibilities and navigate the complexities of multi-state taxation with confidence.

Let’s unpack that here – understanding economic nexus, physical presence, the review process and how to evaluate your business’s nexus requirements. Here’s a breakdown:

  1. Understanding Economic Nexus & Physical Presence (whichever comes first)
    • Economic nexus, triggered by certain criteria, defines a business’s virtual presence in a state, necessitating sales tax compliance even without physical presence.
  2. The Nexus Review Process
    • A step-by-step evaluation of a business’s activities and transactions to determine sales tax obligations, ensuring accurate compliance assessment.
  3. Nexus Across Different States
    • Variations in state laws necessitate a nuanced understanding of nexus criteria, with some states following Multistate Tax Commission (MTC) guidelines.

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Are You Aware California Politicians Want To Increase Gas Tax By Two Dollars Per Gallon?

Are You Aware California Politicians Want To Increase Gas Tax By Two Dollars Per Gallon?

According to Carl DiMaio, Chairman at Reform California and running for the Candidate, CA State Legislature  in November 2024, he wants to fight the $2.00 tax per gallon  of gasoline.

Californians already pay the highest gas prices in the nation, but state politicians are imposing new costs that will spike our gas tax to $2 per gallon! Here’s what you need to know – and how you can help BLOCK this tax hike!

First, I want you to know that we do NOT have to just accept this latest massive gas tax hike!

Reform California is waging a “Gas Tax Repeal and Rebate” campaign – and it all hinges on forming our Reform CA Caucus in the state legislature and passing the California Taxpayer Protection Initiative THIS NOVEMBER!

But we can’t wage this fight alone – your help is needed in this fight ASAP!

Second, because the liberal media in California refuses to cover this story, we need to spread the truth ASAP to voters on what is happening with their gas prices!

Each year Reform California releases a full calculation of the REAL gas tax we’re paying for each gallon we pump. As broken down below, the current tax is $1.43 per gallon – but new mandates will spike it to two dollars.

That’s because the CA Air Resources Board (appointed by state politicians) is imposing a costly new fuel standard that will spike the cost by an additional 52 cents by 2026 – and we also see a new yet-to-be-determined oil/gas penalty tax from the CA Energy Commission.

  • STATE EXCISE TAX: 59.6 cents (automatically increases July 1 each year)
  • CAP AND TRADE TAX: 28 cents
  • SALES TAX: 12 cents
  • CARB REGULATION COSTS: 23 cents (today), increases to 75 cents (2026)
  • UNDERGROUND STORAGE REGULATION COSTS: 2 cents
  • FEDERAL EXCISE COSTS: 18.4 cents
  • OIL/GAS PENALTY TAX: TBD

TOTAL PER GALLON CA GAS TAX: $1.43 today, $1.95 by 2026

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Explaining Nexus Threshold By State

Explaining Nexus Threshold By State

Understanding the intricate web of sales tax nexus thresholds is key for businesses navigating the complexities of state taxation laws. As the digital age continues to reshape traditional business models, the concept of nexus—the connection between a business and a taxing jurisdiction—has become a focal point in determining tax obligations. Nexus can be created by physical presence (i.e.; employees or contractors in a state, an office, or inventory) or economic .

The table below aims to shed light on the diverse nexus thresholds established by individual states across the United States when determining economic nexus for sales tax. Each state presents its own set of criteria that trigger nexus for sales, income, and other tax purposes. By delineating these thresholds, businesses can proactively strategize their operations to ensure compliance and mitigate potential liabilities.

As a business operating in one, or many, of these states, its truly vital that you have clear knowledge of their tax regulations and nexus thresholds.

Things can get a little messy in these matters, so consult the below table, consider your individual fact pattern and then come to Miles Consulting  – we’ll help you understand your unique tax challenges, whatever state you’re in. Our professionals can help with sales tax compliance (filing returns when and where you need to), retroactive remediation, merger and acquisition due diligence, and audit support, among others.

We start most conversations with clients by talking about nexus because that determination is the starting point of a relationship with a state and its taxing authority. Once nexus is established, a company has an obligation to then determine if its products and services sold to customers in that state are subject to sales tax, whether there are relevant exemptions, and then their requirements to file sales tax returns. Nexus is just the first step in the process of becoming compliant.

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