CCH Tax Day Report Under recently enacted Montana legislation, a refundable earned income credit is available against the personal income tax, applicable to tax years beginning after December 31, 2018. The credit amount is 3% of the federal earned income tax credit. Except for married taxpayers living apart who are treated as single under IRC […]

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CCH Tax Day Report Iowa has enacted legislation updating Internal Revenue Code (IRC) references for the franchise, corporate and personal income tax research credits. Effective retroactive to January 1, 2016, the IRC conformity date for the research activities credits is updated to January 1, 2016 (currently January 1, 2015). The general conformity date for the […]

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CCH Tax Day Report An attorney’s bankruptcy estate was not liable for a tax shelter promoter penalty for the attorney’s failure to register as tax shelters certain financial arrangements he marketed and sold as the employee of an insurance-based estate-planning strategies promoter. The strategies were not “tax shelters” under Code Sec. 6111 because they were […]

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CCH Tax Day Report New Jersey has enacted a new gross (personal) income tax credit for family caregivers of certain former armed service members with service-connected disabilities. The credit applies to tax years beginning on or after January 1, 2018 and is the lessor amount of: (a) 100% of the federal veteran disability compensation of […]

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CCH Tax Day Report An Arkansas manufacturer’s purchase of calibration services did not qualify for a manufacturing machinery and equipment exemption from sales tax because these services constituted a machinery repair service rather than replacement. Under Arkansas law, an exemption is available for the purchases of machinery or equipment that result in a substantial replacement […]

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CCH Tax Day Report Declining audit rates reflect budget cuts, Tammy Ripperda, deputy commissioner, Small Business/Self Employed Division, IRS, told practitioners at the May Meeting of the American Bar Association (ABA) Section of Taxation on May 12 in Washington, D.C. In response, the Service is working to improve efficiencies in operations and reduce taxpayer burdens, […]

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