New York: Amnesty Proposed by Governor

New York Governor David Paterson has proposed an Amnesty Program as part of his Deficit Reduction Plan.

The plan includes:

1. A two-year, $5.0 billion savings plan ($3.0 billion in current-year savings);
2. Over five-year financial plan period, cumulative savings of $9.3 billion to help address state’s structural deficit; and
3. Long-term fiscal reforms that Governor Paterson has championed.

The Amnesty program included in the plan is described as the Tax Penalty Forgiveness Program ($250M). The program proposes to reduce penalties on outstanding tax liabilities in exchange for prompt settlement of outstanding claims. The program would run from January 15 to March 15, 2010.

Stay tuned for more developments.

Wisconsin and Sales Tax: Disregarded Entities are now Disregarded!

Are you operating a disregarded entity (i.e. single-member limited liability company or qualified subchapter S corporation subsidiary) in Wisconsin? If so, then you need to be aware of the law change that took effect July 1, 2009.

Effective July 1, 2009, a single-owner entity that is disregarded as a separate entity (i.e., the single-owner entity and its owner are treated as a single entity) for Wisconsin income and franchise tax purposes under Chapter 71 of the Wisconsin Statutes is also disregarded as a separate entity for purposes of Wisconsin sales and use taxes.

Prior to July 1, 2009, a single-owner entity that was disregarded as a separate entity for Wisconsin income and franchise tax purposes was treated as an entity separate from its owner for Wisconsin sales and use tax purposes.

For more information, see Wisconsin's website.

Wisconsin: Sales Tax and Digital Goods; Need Some Info?

Looking for more information on Wisconsin's new sales tax on digital goods? Then look no further. Wisconsin's website has added a nice page on their website which provides a great deal of information.

Did you check it out? Still not sure what to do? Then just contact me at leveragesalt@earthlink.net for assistance, analysis, and recommendations.

Wisconsin and Combined Reporting Update: Draft Forms and Additional Guidance

Wisconsin has updated their webpage for Combined Reporting. The page now includes:

1. Drafts of the forms that will be required for combined returns
2. Drafts of additional forms that may apply to some combined returns
3. A slide show which provides a detailed explanation of who is required to use combined reporting, what must be combined, and how to prepare a combined return. References to applicable forms and administrative rules are included throughout.

If your company needs assistance in complying with the new combined reporting rules, or help in determining if you need to comply with the combined reporting rules, please contact me at leveragesalt@earthlink.net.

Rhode Island: Is a Gross Receipts Tax in its Future?

According to the Providence Journal, Rhode Island is in desperate need of tax reform and is considering a 2% gross receipts tax. See the ARTICLE for more details.

As you read the article, you will notice that there are comparisons to other states who have instituted or proposed gross receipts taxes such as Texas and most recently, California. There are arguments for and against such a tax, and promises that such a tax may allow Rhode Island to decrease or eliminate it's sales tax. We will have to wait and see if that is true.

In any case, the one thing that does seem certain is that more study, coalitions, committees, etc. will be looking at this idea of tax reform more closely in Rhode Island over the coming months.

What do you think?

During these tough economic times, will all states replace or strongly consider replacing their state corporate income tax with gross receipts taxes?

"What Do You Do?"

"What do you do?" is a common question you often receive, but how do you answer it? I know there have been countless articles on "elevator speeches," etc. But how do you explain what you do to people who are not familiar with your field so they can actually understand what it is you do?

Well, my mom recently asked me (again) to tell her what it is I do. After all these years, she still doesn't quite understand what I do. Therefore, I tried to explain it to her (verbally) in non-technical terms, but I thought I would try to put it in writing as well; so here it goes. Oh, before I start, remember, there is a difference between "who you are" and "what you do."

Who I Am

I am a national state and local tax consultant. What does that mean? I have many years of experience working with federal and state taxing authorities in regards to income tax, gross receipts tax, franchise tax, and sales and use taxes. I have dealt with almost every state.

My mom asked, "how do you keep up with all of those states and tax laws?" Well, I subscribe to daily updates from several different tax research sources, and scour the internet for other news sources that may address state tax law changes and/or court cases. I also frequently visit state department of revenue websites, CPA society websites, chamber of commerce websites, state and local tax foundation or organization websites, etc.

What I Do

I serve any business or company operating in any state with significant state and local tax issues in the tax areas mentioned above. What do I mean by "serve"?

I help companies comply or stay in compliance in a complex, ever changing area of tax law which lacks uniformity. I review state tax returns prior to being filed or after being filed to identify compliance errors and refund opportunities. I help companies make informed and supportable state and local tax decisions/positions by taking questions, conducting research, analyzing the facts and law, and providing conclusions and recommendations. I also help companies by confirming (or not confirming) a state and local tax decision/position a company may be thinking of implementing.

I help companies prepare for an audit by maintaining adequate records and documentation at the time of a transaction. I also represent companies during an audit by being the point of contact for the auditor and working with the company to obtain the appropriate documentation, and prepare the necessary response to be provided to the auditor. I also review audit assessments to determine if the company should agree or disagree with the audit assessment. If the company should disagree with the assessment, I work with the auditor to see if an agreement can be reached within the audit. If an agreement cannot be reached within the audit, I also prepare written protests to audit assessments and represent the client in appeals.

Other services I provide would include simply keeping abreast of state and local tax developments (court cases, law changes, etc.) and advising companies of those changes that may have a significant impact on their business. I also try to understand my client's business operations and industry as much as I understand state and local tax. This makes my conclusions and recommendations more valuable to a company.

Overall, I work to improve a company's cash-flow and profit margin, by reducing their cost of doing business through state and local tax compliance management, research and planning, and audit and appeals representation. I seek to provide peace of mind, assuring companies that their issue is under control by a state and local tax expert.

In a nutshell, I specialize in state and local tax research, writing and representation solutions for companies operating in any state with income tax, gross receipts tax, franchise tax or sales and use tax issues.

Make Sense?

Not sure if my mom will understand what I do by reading the above, but it's a start. What do you think?

Oregon: "Substantial Nexus" and Amnesty; Time to File?

The Oregon Department of Revenue (DOR) encourages companies with "substantial nexus" to apply for Amnesty before it expires on November 19, 2009. See Oregon Society of Certified Public Accountant's website for the entire PRESS RELEASE.

According to the press release, Corporations that have substantial nexus with Oregon as described in the rule are required to file Oregon tax returns. Corporations with substantial nexus that have not filed Oregon tax returns are encouraged to file an amnesty application during the amnesty period of October 1, 2009 to November 19, 2009.

Tax amnesty is a one-time opportunity to file overdue or amended Oregon tax returns and pay back taxes in exchange for a waiver of all penalties and 50-percent of the interest.

To apply for amnesty:

1. Go to http://www.oregonamnesty.com/ for an amnesty application, tax forms, and program information.
2. Submit your completed application no later than November 19, 2009. You should receive confirmation within 30 days.
3. File the required original or amended tax returns on or before January 19, 2010. You may also submit your returns with your application.
4. IMPORTANT! Write "Amnesty" on the top of any check, money order, or return you send.

Penalty for NOT Participating in Amnesty

Corporations eligible for amnesty that choose not to participate may be subject to new penalties, in addition to those currently due. Penalties can be as high as 125-percent of the tax due.

For details and examples of what is "substantial nexus," please see Oregon's Admin Rules. Here is the high-level definition:

“Substantial nexus” is broad in its scope and for corporate excise and income tax jurisdiction purposes, under the Commerce Clause of the U.S. Constitution, does not require a taxpayer to have a physical presence in Oregon. Substantial nexus exists where a taxpayer regularly takes advantage of Oregon’s economy to produce income for the taxpayer and may be established through the significant economic presence of a taxpayer in the state.

If you have any questions or need assistance in determining if your company has "substantial nexus," please contact me at leveragesalt@earthlink.net. You may also want to visit Oregon's website at: http://www.oregontaxamnesty.com/.

Michigan Considering Sales Tax On Services (Again)

On October 20, 2009, Michigan House Representative Mark Meadows introduced a package of bills to extend the Michigan sales tax to services (once again) in exchange for repealing the Michigan Business Tax Surcharge; see HB 5527, 5528, and 5529.

You may recall back in 2007, Michigan attempted to enact a sales tax on services but decided to replace the sales tax on services with a Surcharge (hmmm; are we going in circles?); see 2007, 21st Century Taxation Blog, and Detroit News.com.

Now in 2009, the current bills may have some support from the business community. For example, Business Leaders for Michigan has proposed Michigan tax reform which includes expanding the sales tax base to services.

What do you think will happen?

Would you prefer a sales tax on services to the current Michigan Business Tax Surcharge?

Stay tuned.

Ohio Supreme Court Decision: Do You Need To File An Amended Return?

The Ohio Department of Taxation (DOT) has issued an Information Release in response to the Ohio Supreme Court Decision in Ohio Grocers Association v. Levin, Slip Opinion No. 2009-Ohio-4872.

The Ohio DOT is advising taxpayers that they should have continued to file all applicable returns and make all applicable payments for the CAT while the litigation was ongoing. However, if a taxpayer has not been in full compliance with this requirement, a taxpayer should come forward to amend their returns in order to mitigate any possible penalties.

For more information on the Ohio Supreme Court case, please see my earlier POST.

If you have any questions about whether your company should come forward to amend their returns, please contact me at leveragesalt@earthlink.net.

Practice Management: Content, Process, Judgment, Advocacy; Where is the Value?

Jordan Furlong wrote an interesting piece on his blog Law21.ca entitled, "The Electric Law Firm." The blog post discusses several factors facing or forcing the legal profession to change how they deliver their services, and how they charge for their services (among many other issues).

The part I wanted to focus on was his comments about commoditization because I believe they relate to the accounting and tax profession as well. Here are a couple of paragraphs from his post:

"Law firms obviously don’t sell shavers, cellphones or cars. But what they do have in common with many modern manufacturers is that their tangible work product is becoming more commoditized, less differentiated, and more susceptible to low-priced, non-lawyer competition. Forms, contracts, simple wills, divorce papers and other basic documents are now available from kiosks and websites operated by courts, non-profits, and the non-lawyer private sector. The difference in quality between a document drafted by a lawyer and one drafted by one of these alternative services is rapidly narrowing, and with it will narrow the premium that lawyers can charge above what these rivals charge (which in some cases is $0)."

"So how might a law firm give away products while selling services? Jeff Carr has observed that lawyer work falls into four categories: content, process, judgment and advocacy. The first two are well on their way to commoditization; the latter two remain the high-value and near-irreplaceable purview of lawyers. The day might soon arrive when firms publish and automate their legal knowledge, document assembly and document review process free of charge, over the internet, to anyone who wants them — but will charge a monthly retainer fee for the personal judgment, advice and representation that animates those documents and processes and provides real value. Wilson Sonsini’s term sheet generator is a step in this direction, but so are child support calculators and PCT calculators. The tangible product is the giveaway; the value, and the profit, are in the service."

In the accounting and tax world, content and process are commoditized as well, such as tax return compliance. It is the tax research, analysis, audit and appeals representation that require judgment and advocacy. I believe the judgement and advocacy represent where the real value is.

What do you think?

Minnesota Chamber Reports: Taxes Dominate Business Concerns

According to the Minnesota Chamber of Commerce ("the Chamber"), taxes and healthcare dominate business concerns.

The press release and report by the Chamber states the following:

Taxes and health care continue to dominate as the top concerns of businesses. Sixty-two percent of the respondents identified taxes as one of the two most important issues facing the state; 39 percent said it was the No. 1 priority. Health care registered at 50 percent and 33 percent, respectively. Workforce development and transportation were the only other issues that received at least 15 percent.

“If we continue down our current path, our noncompetitive tax policy is about the only thing that can stop Minnesota from emerging from this recession as quickly and successfully as other states and countries,” Chamber President David Olson said.

The findings were part of the sixth annual Minnesota Business Barometer Survey, co-sponsored by the Minnesota Chamber and Himle Horner Inc., a public affairs firm in Bloomington. Detailed results were released Sept. 11 at the Minnesota Chamber’s issue conference and annual meeting.

Click on THE CHAMBER for more info.

Ohio Tax Commissioner Expresses Pleasure with Supreme Court Case Ruling

Ohio Tax Commissioner communicates his reaction to the Ohio Supreme Court's decision in the Ohio Grocers Association v. Levin in a press release.

The Tax Commissioner emphasizes his opinion that the CAT tax is not a tax on the sale or purchase of food, but a broad-based tax that applies to all businesses in Ohio, measured by gross receipts.

He also states that if "the case had gone the other way, all of these changes to Ohio’s tax laws may have been at risk."

QUESTIONS:

What do YOU think about the CAT tax?

Is it better than the Ohio Franchise Tax?

Is it resulting in tax relief for you?

Connecticut Tax Settlement Incentive Program Begins!

The Connecticut Tax Settlement Incentive Program is offered to taxpayers that have eligible tax liabilities with the Department of Revenue Services (DORS). The program runs from October 15, 2009, to December 15, 2009.

According to the CT DORS, qualified taxpayers will receive a notification letter identifying the specific liabilities that are eligible for the settlement program.

The benefit of participating in the settlement program is that it waives both the remaining civil penalties and 50% of the remaining interest owed in connection with the eligible liability.

In order to participate in this program, the taxpayer must return the Settlement Program Detail page along with full payment of the Settlement Offer Total Due amount to the Department of Revenue Services no later than December 15, 2009.

For more info, please see CT's press release. If you have any questions or need assistance, please contact me at leveragesalt@earthlink.net.

Wisconsin: New Sales and Use Tax Laws

The Wisconsin Legislature passed 2009 Wis. Act 28 (effective July 1, 2009, unless otherwise noted), which includes a number of changes to the Wisconsin sales and use tax laws.

Wisconsin has provided a brief summary of each law change on its WEBSITE. Additional detail will be provided in a special edition of the Sales and Use Tax Report, which is available on the Department of Revenue's web site at www.revenue.wi.gov/ise/sales/index.html.

You may access 2009 Wis. Act 28 in its entirety at www.legis.state.wi.us/2009/data/acts/09Act028.pdf.

Additional law changes relating to disregarded entities; the wind, solar, and gas from agricultural waste exemption; nexus; the premier resort area tax; the biotechnology exemption; and regional transit authorities are also discussed on Wisconsin's WEBSITE.

If you have need assistance with these law changes, please contact me at leveragesalt@earthlink.net.

Indiana: Court Case, Law Change, Refund?

INDIANA TAX COURT CASE: Riverboat Development, Inc. v. Department of Revenue, Indiana Tax Court, No. 49T10-0506-TA-52, 881 N.E. 2d 107, February 22, 2008.

In February 2008, the Indiana Tax Court ruled that income received by a nondomiciliary S corporation received from its membership interest in an Indiana LLC did not constitute adjusted gross income from sources within Indiana. Hence, the S corporation was not required to withhold Indiana personal income tax for its nonresident shareholders.

The Court stated that "a member's economic rights in a limited liability company" constitutes intangible personal property, and income from intangible personal property is "adjusted gross income derived from sources within Indiana" if the taxpayer's commercial domicile is in Indiana.

In the case at hand, the taxpayer was not commercially domiciled in Indiana ("Commercial Domicile" means the principal place from which the trade or business of the taxpayer is directed or managed).

It should be noted that the Indiana Supreme Court denied a petition to review the Tax Court Case on August 28, 2008.

INDIANA'S RESPONSE TO COURT CASE

Indiana apparently disliked this court case's ruling, and amended its statutes to counteract the ruling.

IC 6-3-2-2 was amended by HEA 1001-2009(ss) effective retroactive to Jan. 1, 2009, for taxable years beginning after Dec. 31, 2008, to provide that income from a pass-through entity shall be characterized in a manner consistent with the income’s characterization for federal income tax purposes as provided in Section 1366(b) of the Internal Revenue Code for S corporations and Section 702(b) of the Internal Revenue Code for partnerships.

The income shall be considered Indiana source income as if the person, corporation, or pass-through entity that received the income had directly engaged in the income-producing activity in Indiana. Income that is derived from one pass-through entity and is passed through to another pass-through entity does not change the characteristics or attribution provisions of the income.

Example:

An LLC treated as a partnership for tax purposes and domiciled in Indiana is engaged in manufacturing automobile parts. All sales are to another Indiana manufacturer. A nonresident S corporation is a member of the Indiana LLC. The nonresident S corporation provides a distributive share of income to its nonresident individual shareholders.

The Indiana LLC’s income that passes to the S corporation and then to the shareholders is income derived from the sale of automobile parts to an Indiana manufacturer and is treated as such at the S corporation and individual shareholder levels.

The nonresident S corporation shall file a composite return for all of the nonresident shareholders and include the income attributable to the distributive shares from the Indiana LLC (and any other Indiana-source income of the S corporation) on the composite return with the amount of tax due being remitted by the nonresident S corporation.

REFUND OPPORTUNITY?

Indiana recently issued Commissioner's Directive #38 which explains the impact of the amendment to the statutes and also provides a refund claim procedure for taxpayers to obtain refunds for tax years beginning before January 1, 2009.

IC 6-8.1-9-2 was amended by HEA 1001-2009(ss) to establish procedures to provide a refund to a pass-through entity’s nonresident partners, shareholders, or members if the overpayment arises from a determination by the Department or a court that the person’s pass-through income is not includible in the person’s adjusted gross income derived from sources within Indiana.

ARE YOU ELIGIBLE TO FILE A REFUND CLAIM?

To be eligible for a refund, the person must file a timely claim for refund with respect to the overpayment and the overpayment must:

1. apply to a taxable year beginning before Jan. 1, 2009;
2. be attributable to amounts paid to the Department by: a nonresident partner, shareholder, or member of a pass-through entity; a pass-through entity on behalf of a nonresident partner, shareholder, or member of the pass-through entity as part of a composite return required under IC 6-3-4-12 or IC 6-3-4-13; or a pass-through entity on behalf of a nonresident partner, shareholder, or member of another pass-through entity as part of a composite return required under IC 6-3-4-12 or IC 6-3-4-13;
3. arise from a determination by the Department or a court that the person’s pass-through income is not includible in the person’s adjusted gross income derived from sources within Indiana as a result of the application of IC 6-3-2-2(a)(5) and IC 6-3-2-2.2(g); and
4. be reported to the Department in a form specified by the Department that identifies under penalties of perjury the home state or jurisdiction where the income subject to the refund or credit was reported as income attributable to that state or jurisdiction.

WHAT NOW?
If you own an interest in a pass-through entity operating in Indiana, you may want to review your Indiana returns for years prior to January 1, 2009 to see if you have any refund opportunities.
In addition, the state's amendment to their statutes may be unconstitutional or defeated if litigated.
Please consult the court case and the commissioner's directive for additional details.

THE GREATEST SALT CONSULTANT: PART 7

This is the seventh best practice of what it takes to be the "GREATEST SALT CONSULTANT."

Client Needs + Client Wants + Unknown = Solution

A strategic partner first seeks to solve or address the client’s needs and wants. However, a strategic partner also provides additional insights into issues and opportunities that the client does not know, which may have an impact on the solution provided.

In other words, a strategic partner does more than what is expected, providing extra value to the client.

What do you think?

Is your consultant providing extra value?

Is your consultant listening and addressing your needs and wants?

As a consultant, are you thinking from your client's perspective or your own?


Click on the following link to access the first six Best Practices:

Greatest SALT Consultant Best Practices #1 through #6

New York Summary of the 2009 Sales and Use Tax Budget Legislation

New York State has released a memo summarizing the amendments to the Tax Law made by Chapters 57 and 59 of the Laws of 2009 (New York State budget legislation for 2009-2010) that apply to sales and use tax (sales tax).

The following legislative changes are summarized in this memorandum:

1. Sales tax imposed on certain transportation services
2. Definition of sales tax vendor expanded to include out-of-state sellers with related businesses in New York State
3. Amendments affecting the application of sales and use taxes to aircraft, vessels, and motor vehicles
4. Increase in the prepaid sales tax on cigarettes
5. Empire Zone Program changes
6. Increase in the special tax on the rental of passenger cars
7. Compliance and enforcement provisions in Part V-1 of Chapter 57 of the Laws of 2009
8. Compliance and enforcement provisions in Chapter 59 of the Laws of 2009
9. Tax preparer registration program

Texas Franchise Tax Update: Initial Reports Are Going Away!

According to Texas' website, Initial reports are going away.

If you go to Texas' frequently asked questions, you will find the following:

When is a newly taxable entity's first report due?

A taxable entity first subject to franchise tax on or after 10/04/2009 will file an annual report. They will not file an initial report.

A taxable entity becoming subject to franchise tax from 10/04/2009 through 12/31/2009 will have a 2010 annual report due on 05/17/2010. A taxable entity becoming subject to franchise tax during calendar year 2010 will have a 2011 annual report due on 05/16/2011.

The privilege period covered by the first annual report will be from the date the entity became subject to franchise tax through 12/31 of the following calendar year.

For example, an entity becoming subject on 11/15/2009 will file a 2010 annual report due 05/17/2010 for the privilege period 11/15/2009 through 12/31/2010.

The first annual report will be based on the accounting period beginning on the date the entity became subject to franchise tax and ending on the last accounting period ending date used for federal income tax reporting purposes in the calendar year before the year the report is originally due.

Any questions or comments? Post one, or e-mail me at leveragesalt@earthlink.net.

Pennsylvania: Senate Approves Tax Code Bill (alongside Budget Bill)

The Pennsylvania Senate approved a $27.8 billion budget plan Tuesday and a companion tax code bill. Please see the Pennsylvania Budget and Policy Center website for more details.

According to the Pennsylvania Budget and Policy Center (PBPC), the budget bill, Senate Bill 1085, was approved by a vote of 43-6, while the tax code bill, House Bill 1531, was passed by a 35-14 vote. Both measures now head to the House of Representatives and appear to have the support of House Democrats and Governor Ed Rendell.

The tax code bill includes many of the revenue measures announced weeks ago and also adds a gross receipts tax on managed care organizations that have contracts to provide Medical Assistance services.

The plan excludes prior proposals to enact a tax on small games of chance and to extend sales tax to live performances, arts venues and museums. It also excludes a House-backed plan to enact a severance tax on natural gas production and an excise tax on cigars and smokeless tobacco.

The tax code plan approved by the Senate includes the following recurring revenue measures:

1. $528.5 million from a 5.9% gross receipts tax on managed care organizations for gross receipts received through contracts with the Department of Public Welfare for providing Medical Assistance services.
2. $300 million from business tax changes. They include temporarily freezing the Capital Stock and Franchise Tax at the 2008 rate for the next three years. The increased revenue is offset by further tax cuts for large businesses. On balance, this will raise $300 million in 2009-10 and $461 million in 2010-11. The tax cuts represent a permanent revenue loss in exchange for a temporary tax increase.
3. $171 million by redirecting to the General Fund 25 cents of the cigarette tax that was previously used to help offset doctors' malpractice premiums.
4. $97 million in 2009-10 and $145.5 million in 2010-11 from a 25-cent increase in the cigarette tax.
5. $16 million in 2009-10 and $25 million in 2010-11 from adding mini cigars - cigarette-sized cigars - to the state cigarette tax. These products fall under the federal cigarette tax.
6. $38 million in 2009-10 and $75 million in 2010-11 from reductions in tax credits.

The tax code bill also provides for the following one-time revenue measures:

1. $190 million in 2009-10 from a tax amnesty program.
2. $159 million from a one-time change in personal income tax withholding in 2009-10 and $217.5 million from a one-time change in sales tax collections in 2010-11.

Since the bills appear to have support from the House and the Governor, these tax law changes will most likely be enacted.

What do you think about these law changes? How will they impact you?

Question or comment? Post a comment or e-mail me at leveragesalt@earthlink.net.

Illinois PROPOSES Tax Amnesty!

The Illinois General Assembly has introduced a bill (HB 4622) that would amend the Tax Delinquency Amnesty Act and create a Tax Amnesty period from January 1, 2010 through February 15, 2010.

The bill, as it currently stands, provides that interest and penalties for taxes due after June 30, 2002 and prior to January 1, 2010 shall be abated and not collected if those taxes are paid during the amnesty period.

For more information see HB 4622.

Also, please post a comment or e-mail me with questions at leveragesalt@earthlink.net.

Texas: September 2009 Issue of Tax Policy News Available!

The Texas September 2009 issue of Tax Policy News is now available on Window on State Government.

Topics included are:

1. Coin-Operated Amusement Machine Tax Renewal Applications Due by November 30
2. Franchise Tax: Destination Management Services and Senate Bill 636
3. Insurance Tax: Examination Expenses and Premium Tax Credits
4. Sales Tax: Court Case: Reynolds Metals Company; Rolling Stock
5. Sales Tax: Hearing Summary: Asset Transfers to Affiliated Companies
6. Recently Proposed Rules: Sports and Events Trust Fund (New Chapter)
7. Recently Proposed Rules: Hotel Occupancy Tax
8. Recently Proposed Rules: State Sales and Use Tax
9. Recently Proposed Rules: Motor Fuels Tax

THE GREATEST SALT CONSULTANT: PART 6

This is the sixth best practice of what it takes to be the "GREATEST SALT CONSULTANT."

Let the Client Drive the Project / Process / Timing

The client should be in-charge of the project, process and timing of delivery. Your State and Local Tax Partner or "YSP" should discuss the project, process, and timing, and agree to the desires and expectations of the client if they are realistic and obtainable. YSP never over promises and under delivers.

In addition, the client should never be “in the dark” as to the status of the project. YSP keeps the client “in the loop” during the entire project.

What do you think?

Have you been "in the dark" before?

Have you often wondered, where is my tax consultant? What are they finding? Why don't they tell me what is going on?

Please leave a comment or send me an e-mail with your thoughts. Thanks.

Click on the following link to access the first 5 best practices:

Greatest SALT Consultant: Part 5 (includes links to first 4 best practices)

Virginia Tax Amnesty Begins October 7, 2009: GetSquareVA!

Virginia Governor announces amnesty period for delinquent tax payments.

On September 28, 2009, Governor Timothy M. Kaine helped launch Get Square VA, a program administered by the Virginia Department of Taxation offering amnesty to delinquent taxpayers who pay their back taxes between October 7, 2009 and December 5, 2009. GetSquareVA Campaign website.

Benefits of Amnesty: No Penalties and Half of Normal Interest Charges

Most delinquent taxpayers, business or individual, may pay back taxes to the state of Virginia during this limited window with no penalties and half the normal interest charges. The Commonwealth aims to collect $48 million during the amnesty period, and funds collected will go into the general fund to support education, health, and public safety programs.

Brief Overview

Get Square VA is open to most individuals, corporations, estates, trusts and partnerships that have failed to pay taxes. To participate in Get Square VA, the following steps must be taken between Oct. 7, 2009 and Dec. 5, 2009:

1. If the taxpayer has delinquent returns - file required tax returns along with supporting documentation no later than Dec. 5, 2009 and pay the full amount of the tax and one half of the interest by the end of the period, or within 30 days of the date of any related assessment, whichever is later;
2. If the taxpayer has outstanding tax bills - remit payment for taxes due along with half the interest amount no later than Dec. 5, 2009;
3. File or pay by mail, postmarked no later than Dec. 5, 2009, or submit filings or payments online at http://www.getsquareva.com/ by midnight on Dec. 5, 2009.

Exposure for Not Participating: Full Interest + Additional 20% Penalty for Late Taxes

If delinquent taxpayers do not pay their tax bill by December 5, 2009, they will be charged full interest and an additional 20 percent penalty for late taxes.

The Department of Taxation is sending 550,000 notices to households and businesses with outstanding tax bills. The notices will consolidate what is owed and the potential savings through the amnesty program. The average delinquent tax bill in Virginia is $2,315.

For more details, see the Tax Commissioner's Tax Amnesty Guidelines.

If you have any questions regarding the Amnesty program or would like assistance, please contact me at leveragesalt@earthlink.net.