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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.

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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.  ​

April 22
Arizona Attracts Businesses With the Quality Jobs Tax Credit

From the ADP Compliance Insights blog:

Arizona is generally known as a business-friendly place. Last year Forbes singled out the state for its potential job growth (the business magazine ranked Arizona as the 24th best state to do business in overall) a robust rebound from the Great Recession. One example of the state’s business friendliness is the Arizona Quality Jobs Tax Credit, which allows in-state businesses to collect credit on their taxes for creating full-time, permanent jobs meeting certain benefit and wage requirements.

The Quality Jobs Tax Credit was enacted in 2011, and in Arizona’s fiscal year 2012 it was responsible, according to a state report, for adding over 5,600 jobs and more than $400 million in capital investments to the local economy.

Read the full article here, which includes information on how to claim the credit.

April 08
Thomson Reuters Overview on Energy-Related Property Tax Incentives Now Available

Thomson Reuters today announced the new ONESOURCE Property Tax overview on energy-related property tax incentives and exemptions is now available. Ideal for tax executives managing property tax compliance or looking to invest in energy-related property, the report provides a general overview of the energy-saving tax incentives available to businesses in various states, including California, Colorado, Texas, and Washington DC.

“Knowing about each state’s unique tax laws is just the first step of many to benefit from these tax breaks,” said Amy Walker, Senior Research Specialist at Thomson Reuters. “As each state has different nuances to their energy-related exemptions, businesses also need to understand key criteria, deadlines and relevant dates to ensure their energy-related purchases and projects do indeed qualify.”

Sample highlights from the overview report include: 

  • In California, the State Board of Equalization (SBE) has issued a letter to county assessors regarding the statutory exclusion of construction of active solar energy systems from property tax assessment. This exclusion is incorporated in Cal. Rev. & Tax. Cd. § 73 which provides (1) that the term newly constructed does not include the construction or addition of any active solar energy system for property tax purposes, and (2) a sunset date of Jan. 1, 2017. Eligible construction completed on an active solar energy system before Jan. 1, 2017 will remain excluded from the definition of new construction under Cal. Rev. & Tax. Cd. § 73 until there is a subsequent change in ownership of the facility. Eligible new construction includes storage devices, power conditioning equipment, transfer equipment, and parts related to the functioning of those items. It includes only equipment used up to, but not including, the stage of conveyance or use of the electricity. All construction or addition of any active solar energy system on or after Jan. 1, 2017 will be considered assessable new construction. (California State Board of Equalization Letter to Assessors 2013/042, 09/23/2013.)
  • In Colorado, effective March 19, 2013, the following items are exempt from personal property tax: systems exclusively using solar energy; cogeneration systems that produce two forms of energy for industrial, commercial, heating or cooling purposes; cogeneration systems will be exempt beginning Oct.1, 2016.
  • As of Jan. 1, 2014, in Texas, energy storage systems, defined as systems that store energy to be used at a later time, are exempt from property tax. These systems must be used for the control of air pollution in a nonattainment area and can include chemical, mechanical or thermal devices. In addition, chief appraisers are now required to use the cost method of appraisal to determine the market value of commercial solar energy property constructed or installed on or after Jan. 1, 2014. There is a state-mandated 20 percent depreciation floor on the property.
  • In Washington DC, solar systems are exempted from personal property tax. Also, starting on Oct. 1, 2016, cogeneration systems are also exempted from personal property tax.

The special energy-related property tax overview report provides a high-level look at the type of information automatically incorporated in the ONESOURCE Property Tax software suite. Thomson Reuters in-house property tax research and content experts monitor changes in key property tax related dates for all 50 states and Puerto Rico. The report is available for download at no cost at https://tax.thomsonreuters.com/wp-content/pdf/property-tax/2014-Press-Release.pdf.​

March 31
Thomson Reuters Checkpoint Releases Special Report on Tax Implications of 2015 Presidential Budget Proposal

Thomson Reuters has released a special report focused on President Obama’s 2015 budget proposal, which includes tax proposals such as the expansion and permanent extension of the earned income tax credit, the enhancement and permanent extension of the research tax credit, a number of new international tax proposals, and a renewed push for pairing infrastructure investments with business tax reform.

The budget also includes a new $56 billion “Opportunity, Growth and Security Initiative,” with suggested spending and tax changes to cover its costs. 

“While it is uncertain whether any of the President’s tax proposals will become law, it is nonetheless critical for tax professionals to keep abreast of the tax reform debate in order to quickly respond to and comply with possible future changes,” said Catherine Murray, tax analyst at Thomson Reuters.  “Offering expert insight, the report offers guidance and resources to help businesses and individuals prepare for potential tax law changes that could have a significant impact on their bottom line.”

The special report is available at no cost at https://tax.thomsonreuters.com/2015Budget and provides commentary from Thomson Reuters’ tax experts in response to the President’s proposed budget, which includes: 

·        Business tax proposals targeted at closing loopholes, lowering the corporate tax rate, and strengthening investment.

·        Proposals to boost U.S. manufacturing and insourcing of jobs to encourage businesses to locate jobs and business activity in the U.S.

·        Proposals to reform the U.S. international tax system.

·        Proposed environmental and energy-related provisions.

·        Tax changes for individuals proposals.

·        Estate and gift tax proposals, which include returning the estate, generation-skipping transfer, and gift tax exemption and rates to 2009 levels.

The report is an example of the practical, insightful information available on Thomson Reuters Checkpoint, which provides research, news, analysis, and productivity tools to tax, audit, accounting, legal, trade, and finance professionals.  For guidance on the developments noted here, visit Tax Desk, Federal Tax Coordinator, Federal Tax Handbook, and U.S. Tax Reporter: Income. For training on the latest tax developments, visit Monthly Tax Alert, Federal Tax Update, Obamacare:  The Individual Mandate, and Obamacare: The Employer Mandate.​

February 18
Thomson Reuters Launches Checkpoint Learning CPE Courses for Apple® iPad to Address Mobile Needs of Today’s Accounting Professional

From the folks at Thomson Reuters: Thomson Reuters announces Checkpoint Learning CPE courses for Apple iPads.  With the entire learning experience available on the iPad®, from course browsing and purchasing, to course completion and submission, accounting and tax professionals can train while traveling, waiting in line, or whenever they have time and internet connectivity. 

“Mobile learning is one of the emerging trends in professional education,” said Ken Koskay, senior vice president of learning solutions for the Tax & Accounting business of Thomson Reuters.  “And with tablet use on the rise, particularly for businesses, Checkpoint Learning courses for the iPad will enable our customers to complete training anytime, anywhere.” 

According to a recent study by Forrester Research Inc., 60 percent of North American online consumers will own a tablet in 2017, and 18 percent of total tablet purchases will be made directly by enterprises.  Forrester also notes that the Apple iPad continues to dominate the market, with 52 percent of respondents using an iPad as their primary work tablet.

“The learning curve to figure out navigation on the iPad is minimal — the interface is very intuitive and easy to use” added Koskay.

Checkpoint Learning courses are easily and quickly accessed directly from iPads, laptops or desktops.

“One of the great features of Checkpoint Learning is the ability to start a course on one device, say a laptop, and later complete the course on an iPad.  Our courses are fairly agnostic with respect to the device used for access,” said Koskay.

Offering the same full-length, high-quality content available on Checkpoint Learning, mobile users can continue to meet CPE requirements and get vital industry updates, but now with greater ease of where, when, and how they want to access these courses. 

Forty select high-quality Checkpoint Learning CPE courses are now available for the iPad, with more titles scheduled for release later this year. 

For more information about Checkpoint Learning courses for Apple iPad, visit
http://cl.thomsonreuters.com/NewsAndUpdates/Mobile.

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