Although most states have income and franchise taxes, some states have recently enacted variations of gross receipts taxes, changed the apportionment formula or tax base, and limited net operating loss carryovers. Maintaining current knowledge on these changes for all of the states in which a company does business can be burdensome and reduce the company’s focus on other areas of tax.
Our professionals specialize in state income and franchise tax issues covering many different industries such as manufacturing, construction, retail, oil and gas, real estate and other services. We understand state tax law and how it applies to the corresponding state tax return.
These state programs were created for companies to remedy income and franchise tax deficiencies. We can initiate the discussion with the state tax authority and assist with completing the applications, as well as other required documentation and tax returns associated with these programs. This is typically done on an anonymous basis.
As Michigan corporations work through the intricacies of the Tax Cuts and Jobs Act (TCJA) for their
Michigan's new tobacco tax processing system, "Michigan Automated Tax System" (MiMATS) will begin July 30, 2018. The July 2018 tobacco tax returns will be filed using the MiMATS system and are due Aug. 20, 2018.
On June 21, the US Supreme Court issued its decision on the South Dakota v. Wayfair case regarding nexus determination for sales tax. In a 5-4 decision favoring South Dakota, the Court overturned judicial precedent dating back 50 years when it concluded Quill (1992) and National Bellas Hess (1967) to be unsound and incorrect.
On June 21, with a vote of 5-4, the Supreme Court ruled in favor of South Dakota in the court case South Dakota v. Wayfair. This ruling throws out the court's outdated 1992 ruling in Quill Corp. v. North Dakota, which prohibited states from imposing sales tax collection obligations on vendors lacking an in-state physical presence.
Commencing in 2018, as enacted under the Tax Cuts and Jobs Act of 2017, Congress provided that deductions for state and local taxes are to be capped at $10,000 per married couple. Many high tax states such as California, New York, New Jersey and Connecticut have considered that this was inequitable to their residents, and have passed or are drafting legislation which would allow taxpayers to make payments to state or local municipal charitable organizations in exchange for credit against their real estate or state and local taxes.