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Showing posts from January, 2011

Massachusetts Department of Revenue Offers an Opportunity to Withdraw “Binding” 2009 Worldwide or Affiliated Group Election

Administrative Guidance, Filing Elections :      On January 20, 2011, the Massachusetts Department of Revenue (“the Department”) issued Department of Revenue Directive 11-1 : Limited Time Allowance for Withdrawal of Election Made in Connection with 2009 Combined Report , in response to the Department’s belief that some Massachusetts combined groups may have erroneously made either a worldwide or Massachusetts affiliated group election on their 2009 Massachusetts combined report. Directive 11-1 is significant in that it allows any Massachusetts combined group that made either election an opportunity to withdraw their election by March 15, 2011, provided they complete their withdrawal in a timely manner and in accordance with the procedures laid out in Directive 11-1. Brief Overview of Worldwide and Massachusetts Affiliated Group Elections  Under the Massachusetts combined reporting law, which become effective for tax years beginning on or after January 1, 2009, unitary groups subj

News Flash: Illinois Enacts Significant Tax Rate Increases

Legislative Update:        As states continue to grapple with revenue shortfalls, at least one state has taken radical, and not so taxpayer friendly, steps to help repair its ailing fiscal situation. On January, 13, 2011, Illinois Governor Patrick Quinn approved legislation that contains several provisions that aim to stop the budget shortfall gap from widening and which are estimated to increase Illinois’ revenues by approximately $6.8 billion per year. Illinois Public Act (“P.A.”) 96-1496 , the Taxpayer Accountability and Budget Stabilization Act, immediately and significantly increases both the corporate and personal income tax rates. For subchapter C corporations with Illinois Net Operating Losses (INOLs), the sting from the corporate tax increase will be even more strongly felt as P.A. 96-1496 also calls for a three year suspension of certain INOLs. Finally, in what appears to be an effort to place part of the burden of reducing the Illinois deficit on the legislature, the new l

State of Washington Amnesty Begins Next Month

If you caught my prior post on state tax amnesty programs, you may recall that these periodic, limited-time programs are an opportunity for delinquent taxpayers to come forward voluntarily and resolve their state tax delinquencies by reporting and paying the associated tax on their unreported or underreported tax liabilities. (See my August 23, 2010 "Buzz" post, “State Tax Amnesty: An Opportunity for Taxpayers to Pay Delinquent State Taxes, What Taxpayers Need to Know”)  The state of Washington is the most recent state to jump on the amnesty bandwagon by announcing its first ever amnesty. Washington’s amnesty program, which applies to the business and occupation (B&O) tax, general retail sales and use tax, additional sales and use tax on motor vehicle sales and leases, and several other categories of Washington taxes, begins on February 1st and will run until April 30, 2011. Washington’s amnesty provides for a full penalty and interest waiver as long as all required ta

Welcome to the Second Year of The State and Local Tax "Buzz"

Happy New Year!  And welcome to the second year of The State and Local Tax “Buzz” .  I’m looking forward to continued blogging and providing my readers with updates on State and Local Tax (“SALT”) developments and other practical SALT advice.  (For more about my blog, see my page “About The State and Local Tax ‘Buzz’ ” )   New in the “Buzz” this year are social media buttons at the bottom of each post allowing readers to share individual posts.  (You'll find them right below the "Posted by Sylvia F. Dion, MPA, CPA") I’ve also edited my blogger template so that every time you click on any weblink, the link will open as a new page.  (Previously, clicking on a link caused readers to navigate away from the “Buzz”.  Also see my sidebar “When Good Links Go Bad”)  Periodically, you’ll also see an link to an “interesting” news story or article.  I do an inordinate amount of research when writing on any topic, and am often surprised to see how the media provides slanted, and e