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February 10
DMA presents complimentary CPE accredited seminars

DuCharme, McMillen and Associates, Inc. (DMA) is pleased to announce another in our series of complimentary CPE accredited seminars. The following is a list of upcoming events:

Southeast Property Tax & Sales/Use Tax Update
March 10, 2015
The Westin Charlotte Hotel
601 South College Street
Charlotte, NC
Up to 4.0 CPE Credits Available | No fee to attend
More Info

Southeast Property Tax & Sales/Use Tax Update
March 12, 2015
Cobb Energy Centre
2815 Akers Mill Road SE     
Atlanta, GA
Up to 4.0 CPE Credits Available | No fee to attend
More Info

Oil & Gas Industry: Sales/Use Tax and Property Tax Update
March 12, 2015
The Ritz-Carlton Hotel
1881 Curtis Street
Denver, CO
Up to 5.5 CPE Credits Available | No fee to attend
More Info

Western States Sales/Use & Property Tax Update
March 24, 2015
Sheraton Parsippany Hotel
199 Smith Road     
Parsippany, NJ
Up to 6.5 CPE Credits Available | No fee to attend
More Info

Canadian Commodity Tax Update
April 1, 2015
Gleacher Center
450 N. Cityfront Plaza Drive
Chicago, IL
5.0 CPE Credits | No fee to attend
More Info

January 23
Illinois Department of Revenue Utilizing New Real-Time Data Exchange from ADP

The Illinois Department of Revenue is the first state agency to begin using a new, real-time data exchange capability from payroll and tax processor ADP that will help significantly streamline the department’s employment tax processing.

The new capability means that the exchange of employment tax information between the state and employers that used to take up to a month now takes seconds.

“As a state agency, every dollar counts, so we need to maximize our efficiency at every step of the process,” said O. Wayne Richie, accounts processing manager at the Illinois Department of Revenue.  “We also want to make it as easy as possible for Illinois businesses to manage their tax compliance, and the real-time data exchange capability streamlines the process for all parties involved, in a secure method that helps to protect confidentiality. We look forward to working with ADP on future initiatives.”

More information about the announcement is available here.

January 13
The Most Tax-Friendly States for New Year’s Resolutions

Thomson Reuters analyzes the most tax-friendly states for fitness, healthy eating and more reading
NEW YORK  The Tax & Accounting business of Thomson Reuters has released a list of popular New Year’s resolutions and their associated sales tax across the country.
The list shows that more states are now taxing previously exempt services.
Michigan, Maryland, Massachusetts, California, Nevada, Rhode Island and South Carolina top the list of the most tax-friendly states for New Year’s resolutions, as they don’t levy any sales tax on groceries, e-books or gym memberships. 
The attached map further outlines the breakdown for taxes on these popular resolutions in each state.
Cook more, eat better
Those seeking healthier eating habits in 2015 may be the happiest resolutioners, as almost two-thirds of states do not levy taxes on food items. The tricky thing with food is determining what is classified as food versus non-food or prepared food items, which impacts taxability.
·         If you are looking for fresh fruits and vegetables and lean meats – most states exempt the sale of food and if they tax it, it is frequently at a reduced rate.
·         Virginia, Missouri and Illinois are not the ideal places for food aficionados on a tight budget as they are among one-third of states with a tax levy on food, though at a lower rate than other goods.
·         Alabama and Mississippi are no-go zones as they impose regular rates on food, with no tax concessions. 
·         Hawaii and Oklahoma have regular food tax rates but offer tax credits for those with limited incomes. 
·         If you are in a state that taxes groceries but exempts certain items designated “healthy” make sure your pre-made juices meet the percentages of juice required to be exempt. New Yorkers’ juice must contain more than 70% of fruit juice to be tax exempt. 
Sweat it out
It will cost more to renew or apply for new membership in 2015 as 60 percent of states nationwide are imposing sales tax on health clubs.
·         In D.C., gym members who have been paying $100 monthly fees will pony up nearly $70 more in 2015 to comply with the state’s new 5.75 percent tax on gym memberships.   
·         Some states like New Jersey exempt nonprofit gym facilities from paying tax.
·         In New York, the only tax-exempt athletic clubs are those that cost a membership fee of less than $10 per year. 
·         In D.C., the debate continues regarding whether yoga is a spiritual activity or true exercise.   
Less (TV) screen time; bury your nose in a (digital) book
If you are looking to expand your knowledge in 2015, then books may be part of your plan. The taxability of old-fashioned paper books is pretty straight forward, but the taxation of electronic books is where it gets interesting.
·         Just over half of states tax digital goods just like the old-fashioned kind. 
·         While printed books are subject to states sales tax, click-happy readers from more than 40 percent of states -- including Michigan, Massachusetts, and Kansas -- will still access tax-free digital books.
·         More states are considering imposing sales tax on digital content using either existing sales tax laws or by enacting specific laws. 
ONESOURCE Indirect Tax is used by leading global companies to seamlessly and accurately comply with tax sales, use, VAT, and GST regulations. For more information, visit https://tax.thomsonreuters.com/products/brands/onesource/indirect-tax.

August 05
The State of Idaho Offers Incentives to Create Quality Jobs

From the ADP Compliance Insights blog:

Through House Bill 546, and the Idaho Reimbursement Incentive Act, the State of Idaho formally introduced the Tax Reimbursement Incentive (TRI) on April 3rd, 2014.

Companies which are expanding in, or locating to, Idaho may be eligible for a refund of up to 30% of newly generated sales, payroll, and corporate income taxes. The incentive can extend for a period of fifteen (15) years. The State will have discretion in determining an incentive’s value and term. Pertinent factors may include a project’s overall economic viability, its strategic important to the State and region, and the return-on-investment to the State.

Read the full article here, which includes more information on this program, including eligibility and application timing.​

July 25
DuCharme Announces Upcoming Complimentary CPE Accredited Seminars

DuCharme, McMillen and Associates, Inc. (DMA) is pleased to announce another in our series of complimentary CPE accredited seminars. The following is a list of upcoming events:

Northeastern States Sales/Use & Property Tax Update

August 26, 2014

Sugar Land Marriott

16090 City Walk

Sugar Land, TX

No fee to attend | Up to 6.0 CPE Credits

Southeastern States Sales/Use & Property Tax Update

September 18, 2014

Irving Convention Center

500 West Las Colinas Boulevard

Irving, TX

No fee to attend | Up to 6.0 CPE Credits


Southeastern States State & Local Tax Update

September 23, 2014

The Westin

400 Corporate Drive

Fort Lauderdale, FL

No fee to attend | Up to 6.0 CPE Credits


Northeastern States Sales/Use & Property Tax Update

September 24, 2014

Embassy Suites

5800 Rockside Woods Blvd.

Independence, OH

No fee to attend | Up to 6.0 CPE Credits


Southeastern States State & Local Tax Update

September 25, 2014

The Westin Atlanta Perimeter North

7 Concourse Parkway

Atlanta, GA

No fee to attend | Up to 6.0 CPE Credits


Western States Sales/Use & Property Tax Update

September 30, 2014

The Ritz-Carlton

1881 Curtis Street

Denver, CO

No fee to attend | Up to 6.0 CPE Credits​

July 14
Michigan Use Tax Trap for the Unwary

I saw this alert from the SALT team at PwC today about a Michigan case holding that the taxpayer bears the burden of proof in showing that sales tax was both due and paid on purchases when claiming the ​use tax exemption.  Missing this important item could result in paying tax twice on the same purchase.  Businesses with operations in Michigan should take note and plan accordingly.  

Here is a portion of the PwC alert:

On June 23, 2014, the Michigan Supreme Court held that in order to be entitled to the use tax exemption, one must show that sales tax was both due and paid on the sale of tangible personal property. The burden of proving entitlement to the exemption is on the taxpayer.  The taxpayer had to show it paid sales tax on the purchase of property before it could claim an exemption and since it did not submit evidence that sales tax was paid, the taxpayer was not entitled to the exemption. Andrie Inc., v. Department of Treasury, Michigan Supreme Court, No. 145557 (6/23/2014).

Based on the Court's decision, taxpayers are not entitled to a presumption that sales tax has been paid when their Michigan invoices do not list sales tax as a separate item.  Therefore, companies purchasing tangible personal property from Michigan vendors should identify whether sales tax is delineated on receipts in order to determine whether a use tax liability may be imposed.  If Michigan sales tax is not separately stated, companies should consider contacting retailers to request new invoices or other evidence to support that sales tax was paid.​

Read the full alert here​.

May 23
Florida: New Law Provides that Dealers May Claim “Bad Debt” Credits in Private-Label Credit Card Transactions

​From the SALT team at Deloitte:

H.B. 5601, signed by gov. 5/12/14. Effective July 1, 2014, new law provides that with respect to the payment of taxes on purchases made through a private-label credit card program where consumer accounts or receivables are found to be worthless or uncollectible, the dealer may claim a credit for, or obtain a refund of, the tax remitted by the dealer on the unpaid balance due if: i) the accounts or receivables have been charged off as “bad debt” on the lender’s books and records on or after January 1, 2014; ii) a credit was not previously claimed and a refund was not previously allowed on any portion of the accounts or rece​ivables; and iii) the credit or refund is claimed within twelve months after the month in which the bad debt has been charged off by the lender for federal income tax purposes. The new law includes related procedural requirements for computing and claiming these “bad debt” credits, as well as defines key terms. A “private-label credit card” means a charge card or credit card that carries, refers to, or is branded with the name or logo of a dealer and can be used for purchases from the dealer whose name or logo appears on the card or for purchases from the dealer’s affiliates or franchises.​

Read the rest of the post on Deloitte's State Tax Matters blog here.

May 20
Best Practices for Managing Multistate Sales & Use Tax Audits

​This is a helpful article with good practical advice from the most recent addition of the Alvarez & Marsal Tax Advisor Weekly:

F​or many companies, it happens every three to four years like clockwork ---- you receive a questionnaire or letter with those infamous words "you have been selected for a sales and use tax audit." Depending on the number of legal entities a company has and the jurisdictions in which it operates, the number of ongoing sales and use tax audits at any particular time can reach an unmanageable number. Whether a company is operating with a robust tax department dedicated to sales tax or has a small team of tax professionals handling all tax issues, the impact can be equally overwhelming. How does a company maintain operational integrity in the daily job requirements and still adequately manage multiple audits? Where do you begin? You have monthly sales tax returns due, you are likely short-staffed, and every time you look at your desk the stack of audit notification letters keeps getting higher and higher. Relax ---- here are a few key ideas you can use to streamline the audit process and better manage your audit workload.

Read the rest of the article here​.

May 20
ADP Highlights Georgia and Illinois Tax Credits

The ADP Compliance Insights blog is highlighting two important tax credits that Georgia and Illinois tax professionals should be aware of.

The Georgia Jobs Credit is an incentive designed to encourage job creation in the state, with enhanced benefits available for businesses in distressed locations. Businesses may claim a basic jobs credit against the corporate income tax ranging from $750 to $3,500 per eligible, new, full-time employee job and may be claimed for five years. The amount of the credit is based on the county ranking in which the business is located; more distressed counties are assigned higher credit benefits.  In some circumstances the credit may be claimed against withholding tax. For more information, including how to claim the credit, read the full article here.

In addition, Illinois imposes a replacement tax on corporations to replace funds lost by local governments when their authority to impose personal property taxes on businesses was removed. The replacement tax is equal to 2.5% of income for corporations and is computed and reported on the Illinois corporate income tax return. For corporations subject to the replacement tax, a credit is allowed against the tax if certain criteria are met. For more information, including who qualifies for the credit, read the full article here.


May 09
Thomson Reuters ONESOURCE Announces New Industry Reports for Transfer Pricing Documentation

NEW YORK, May 8, 2014 - Thomson Reuters announced today that it has formed a strategic relationship with Avention to give users of its ONESOURCE Transfer Pricing software access to Avention’s industry report module. 

ONESOURCE Transfer Pricing recognizes the need for comprehensive documentation in the wake of increased regulations worldwide. To ease the burden of this process, ONESOURCE provides a full suite of public and private data, intangible information, worldwide research and other offerings to give transfer pricing professionals all the information they need in a single destination. The latest evolution adds the new industry report module by Avention, available through ONESOURCE Transfer Pricing. The industry report module helps users better understand their industry dynamics and gain insight into an organization’s competitive landscape.

“Access to industry reports comes at an important time for our customers, especially in light of the OECD’s latest BEPS action points and master file/country-by-country reporting environment,” said Brian Tully, vice president and head of ONESOURCE Transfer Pricing. “This addition to ONESOURCE Transfer Pricing will help both taxpayers and tax authorities around the globe to set, defend and scrutinize transfer pricing structures in the current aggressive transfer pricing landscape.”

Access to the industry report module provides users with vital information through single sign-on functionality. Customers receive a direct link to the information they need once they log into ONESOURCE Transfer Pricing, eliminating the need for external searching. Users can utilize this module to elevate transfer pricing documentation and defend transfer pricing positions with tax authorities and financial auditors, enhancing overall accuracy and efficiency and assisting with the required insight and analysis needed to comply with increasing global regulations. 

For more information about the industry report modules, with over 24 million companies across 100 industries, visit https://tax.thomsonreuters.com/products/brands/onesource/onesource-transfer-pricing/industry-reports.  ​

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