Category: Tax
2021 federal tax season dates announced; expect delays
The 2021 tax filing season will begin on Monday, January 24, 2022, and run through April 18, 2022. However, taxpayers are warned that between the ongoing pandemic and a lack of resources at the Internal Revenue Service, returns could be slow...
New increase in Personal Property Tax exemption effective for 2023 filings
House Bill 5351, approved by Michigan Governor Gretchen Whitmer on December 23, 2021, amends MCL 211.9o to increase the combined true cash value limit for personal property in a local unit from $80,000 to $180,000. The changes do not take effect...
SR Client Question: Do I need to pay tax on the sale of an asset paid out over many years in the year it’s sold or as I collect the installments?
Installment payments made on an asset, such as a stock sale payout stretched over many years, or a mortgage held by the seller, can spread the tax owed by the seller on the income generated over the years the installments...
Last minute rule changes could affect tax payments made by partnerships and S-Corps
Michigan Governor Gretchen Whitmer recently signed into law the ability for pass-through entities (partnerships and S-Corps) to elect and pay an entity-level tax. This would allow for the pass through business owners to take a state income tax deduction at...
Net Operating Loss (NOL) carry-forward requires careful record-keeping
Taxpayers who claim a net operating loss (NOL) on a tax return must keep careful records to substantiate the claim, including past tax returns that show consistent treatment of NOLs and financial data (or strong corroborating testimony and recreated records), or...
Determining nexus for multi-state income tax filings for businesses
Establishing "nexus" of a corporation's business activity determines the state or foreign country which has jurisdiction to impose an income tax or franchise tax measured by net income. For businesses generating revenue in multiple states, or doing activities that generate...
Reporting guidelines for cryptocurrency, digital assets change under Infrastructure Bill
Although not slated to take effect until January 2024, cryptocurrency investors and other digital asset holders should be aware of new reporting requirements spelled out in the recently signed $1.2 trillion Infrastructure Investment and Jobs Act: Form 1099-B Reporting Requirements: Cryptocurrency...
Infrastructure Bill ends ERTC for employers early
The recently passed $1.2 trillion Infrastructure Investment and Jobs Act includes key provisions affecting American employers, including an early end to the Employee Retention Tax Credit (ERTC), also referred to as the Employee Retention Credit (ERC). The ERTC was created in...
State Pass-Through Entity Tax law changes allow owners to mitigate SALT deduction limits
Recently several states have enacted legislation for a pass through entity (PTE) tax, including states with high income tax rates like California and New York. A PTE tax provides for a state income tax deduction for owners at the entity...
Taxpayers should obtain Identity Protection PIN each year for tax filing security
In an effort to provide enhanced security to federal income taxpayers, the IRS is offering a voluntary, opt-in Identity Protection (IP) program for taxpayers. The PIN is a six-digit number known only to the taxpayer and the IRS and prevents someone else...