Tax Publications

Oregon’s Corporate Activity Tax

Posted on September 15, 2021. Category: Tax Publications

Did you know that several states have their own taxes unique to them that businesses must file in order to remain compliant? States such as Washington, Delaware, and Oregon have state specific taxes. Oregon’s Corporate Activity Tax (CAT) is a state specific tax that was signed into law in May of 2019 and became applicable to tax years beginning January 1, 2020.Oregon’s Corporate Activity Tax is a tax for the privilege of doing business in Oregon and is based on commercial activity in Oregon. This tax applies to commercial activity in excess of $1 million for all types of...

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$1.1 Trillion Infrastructure Bill is Government’s Latest Move on Cryptocurrency Taxation

Posted on September 09, 2021. Category: Tax Publications

The proposed infrastructure bill valued at just over $1 Trillion over a 5-year period has recently made its way through the senate1. The Bipartisan Infrastructure Deal is monumental and would make some of the largest federal investments in public transit, clean drinking water, bridges, and electrical vehicle infrastructure in the history of the United States. Unfortunately, these things are never as simple as they seem. Although the bill had bipartisan support with a voting of 67-32, it is still not fully out of the woods yet. The bill itself is over 2,000 pages in length and includes funding for some of...

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In Case You Missed It: Last Week in Allyn Tax News (August 30 - September 3)

Posted on September 07, 2021. Category: Tax Publications

Lawn Care in Arkansas: Taxable or Exempt?Lawn mowing services provided to a company that leases houses as vacation rentals are not subject to sales tax because these properties are considered to be residential property. The character of the property determines whether the lawn services are subject to sales tax.If both taxable and non-taxable services are provided to the same customer, the services should be separately stated on the invoice issued to the customer.From a business perspective, bundled transactions can make sense in order to appropriately advertise and sell products as well as to increase revenue. Also, bundled...

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Make or Break: Exemption Certificate Management

Posted on September 03, 2021. Category: Tax Publications

 Generally speaking, sellers are required to charge sales tax on all transactions of taxable products or services, however, there are some exceptions. Some of the more common exceptions are when sales are made directly to the Federal Government, if the buyer intends to resell the item in question, or if it will become a part of a manufactured final product.In the United States, state sales tax rates vary from 4.44% to 9.55% depending on the State in question. There are a multitude of reasons including the previously mentioned as to why an otherwise taxable transaction may be considered exempt from...

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In Case You Missed It: Last Week in Allyn Tax News (August 23-27)

Posted on August 31, 2021. Category: Tax Publications

Items given as gifts by a Charitable Organization in Colorado: Taxable or Exempt?The Colorado Department of Revenue (CDOR) has issued a general information letter discussing sales and use tax on items given as gifts by a charitable organization. CDOR provides the general rule that charitable organizations engaging in the business of selling at retail are considered retailers and must collect tax on any retail sales made. However, a bona fide gift of tangible personal property is not considered a sale and sales tax does not apply to the act of gift giving.Instead, the gift giver is considered the...

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5 Things to Consider When Accruing Use Tax for Manufacturing Locations in Pennsylvania

Posted on August 31, 2021. Category: Tax Publications

The state of Pennsylvania exempts sales tax on the purchase of materials, equipment or services that are used directly in the manufacturing process according to state law.  This manufacturing exemption sounds simple on the surface; however, it can be tricky and time consuming to determine the taxability of certain items.  If an item is purchased under the exemption but falls outside of the state’s definition and scope of manufacturing, then the business may owe consumer use tax.  Consumer use tax is complimentary to sales tax and is due when sales tax is owed but not...

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California Expands Penalty Relief for Late Property Payments

Posted on August 24, 2021. Category: Tax Publications

The onset of the Covid-19 pandemic in early 2020 created widespread uncertainty worldwide, most notably among businesses in the United States. This uncertainty led to confusion and frustration surrounding tax deadlines, which forced states to extend deadlines and excuse penalties accrued.California currently imposes a 10% penalty on delinquent payments for property tax, unless a county auditor or tax collector cancels the penalty or other charges resulting from the tax delinquency due to “circumstances beyond the taxpayer’s control”. Effective July 23rd, 2021 California Senate Bill No. 219 (c. 131) additionally authorizes the auditor or tax collector to cancel any penalty incurred...

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In Case You Missed It: Last Week in Allyn Tax News (August 16-20)

Posted on August 23, 2021. Category: Tax Publications

Michigan Provides Guidance for Small Business Tax AuditsA tax audit is an in-depth examination of a business’s tax returns for a particular tax type, such as sales tax, typically covering a period of years. An audit is performed in order to verify that the taxpayer in question has properly accrued and paid all applicable taxes for the designated period. Additionally, tax audits may begin at any time for a business and can cover any period within the statute of limitations for that particular state.Small businesses are advised to not only maintain all data stored computer-based accounting...

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In Case You Missed It: Last Week in Allyn Tax News (August 9-13)

Posted on August 16, 2021. Category: Tax Publications

New York Refund Denial UpheldAn administrative law judge (ALJ) has issued a decision to uphold the Division of Taxation’s denial of a taxpayer’s refund claims associated with motor fuel tax, petroleum business tax, and prepaid sales tax on 13,838,236 gallons of motor fuel.The ALJ concluded that the taxpayer was not entitled to a refund because it has not demonstrated that it paid for the fuel at issue.Performing a reverse tax audit, otherwise known as a “refund claim”, can be a rewarding way for companies to identify and recover overpaid sales and use...

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Does the IRS expect me to issue my Vendor a 1099?

Posted on August 11, 2021. Category: Tax Publications

An Obligation for Every BusinessBusinesses are required to file and send vendors copies of select information returns to the IRS on payments made for certain purchases to certain entities in the course of their trade or business. Often, businesses are under the impression that they only need to issue 1099s for independent contractors, but there are several other types of vendors that will require a 1099-NEC or 1099-MISC.Download Allyn's Complimentary 1099 Decision Tree for evaluating what business payments to vendors incur a 1099 filing obligation.If you are looking for immediate assistance please contact Tax...

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