A case on appeal to the U.S. Supreme Court from the South Dakota Supreme Court should be on your watch list. It involves Ellingson Drainage, Inc., a general contractor headquartered in Minnesota that specializes in installing...more
On Thursday, April 25, Gov. Kay Ivey signed into law House Bill 187, now Act 2024-113. We thank Governor Ivey for her support of this bill, as well as the Department of Revenue and Commissioner Barnett for their efforts...more
As we strive to do annually, here is a summary of the major items of business tax legislation that have been introduced or we expect to be introduced during the 2024 regular session, which began February 6. From a tax and...more
Law firms periodically receive requests for advice from CPAs regarding a client’s need to come into compliance with the relatively new and sometimes confusing “economic nexus” or “Wayfair” rules for selling goods or providing...more
12/6/2023
/ Compliance ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
State and Local Government ,
State Taxes ,
Substantial Nexus ,
Tax Liability ,
Tax Planning
As part of the annual meeting of the Alabama State Bar Tax Section held in Montgomery on August 16, representatives from the Alabama Department of Revenue (ALDOR) provided a helpful update on some key legislative and...more
In 2021, the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The Alabama Electing...more
7/12/2023
/ Alabama ,
Department of Revenue ,
Income Taxes ,
IRS ,
Pass-Through Entities ,
PTEs ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Returns
Employers in Alabama (along with the rest of the country) have faced headaches the last several years with staffing shortages and shift coverage. In June, with bipartisan support, the Alabama Legislature passed House Bill 217...more
The Alabama Legislature adjourned sine die on June 6 and concluded a productive session for tax and incentive bills. A few of the notable measures include the renewal of and enhancements to the Alabama Jobs Act and Growing...more
The start date for the Alabama Legislature’s 2023 regular session is near: Tuesday, March 7. As we do annually, here are some of the major items of business tax legislation we expect to see in the upcoming session...more
There seems to be an increased number of so-called “residency audits” being conducted by the Alabama Department of Revenue (ALDOR), as well as by other state tax authorities. These audits often result from the taxpayer filing...more
We summarize here what we believe are the top 5 Alabama tax cases decided in the past year that would interest our CPA readers. Not surprisingly, almost all are Alabama Tax Tribunal rulings, so in those instances we deleted...more
Landmark changes in the federal income tax treatment of partnerships (including multi-member LLCs) became effective in 2018 for many more partnerships than first anticipated. As a result of the Bipartisan Budget Act of 2015,...more
As we previously reported, the Multistate Tax Commission has undertaken an ambitious project on the state taxation of partnerships. Their partnership work group consists of volunteers from numerous state revenue departments,...more
Readers may recall that the Alabama Legislature unanimously enacted an elective pass-through entity tax (PTE Tax) last year as a workaround to the so-called “SALT Cap,” which was part of the Tax Cuts and Jobs Act of 2017. The...more
6/27/2022
/ Alabama ,
Income Taxes ,
IRS ,
Local Taxes ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Returns
The Alabama Legislature has now used 16 of its 30 legislative meeting days so far in the 2022 Regular Session. While the primary focus will be on passing the budgets for the next few weeks, the Legislature has already passed...more
Is the unitary business principle the sole test for determining whether a state can tax an apportioned share of a non-domiciliary’s capital gains under the U.S. Supreme Court’s Due Process Clause and Commerce Clause...more
Is the unitary business principle the sole test for determining whether a state can tax an apportioned share of a non-domiciliary’s capital gains under the U.S. Supreme Court’s Due Process Clause and Commerce Clause...more
Because 2022 is an election year, the start date for the Alabama Legislature’s regular session comes early: Tuesday, January 11. As we do annually, here are some unofficial prognostications on the major items of tax...more
12/17/2021
/ Alabama ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Legislative Agendas ,
Local Taxes ,
Sales & Use Tax ,
State and Local Government ,
State Legislatures ,
State Taxes ,
Tax Credits ,
Tax Legislation
Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called "SALT Cap" enacted as part of the Tax Cuts and Jobs Act of 2017, which limits the deductibility of...more
11/15/2021
/ Alabama ,
Department of Revenue ,
Income Taxes ,
IRS ,
Local Taxes ,
Pass-Through Entities ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Returns ,
U.S. Treasury
Last week, the Internal Revenue Service issued a polite notice (IR-2021-186) to employers and tax practitioners, as part of National Small Business Week, “to remind… business owners to correctly identify workers as employees...more
Earlier this year, Alabama became one of 19 or so states to enact a pass-through entity tax as a workaround to the so-called “SALT Cap” enacted as part of the Tax Cuts and Jobs Act of 2017 that limits the deductibility of...more
9/7/2021
/ Alabama ,
Department of Revenue ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Partnerships ,
Pass-Through Entities ,
Proposed Rules ,
S-Corporation ,
Shareholders ,
State and Local Government ,
Tax Cuts and Jobs Act ,
Tax Deductions
On April 27, 2021, the Multistate Tax Commission (MTC) Uniformity Committee voted to accept its Standing Subcommittee’s recommendation to create a work group to study several key issues relating to multistate taxation of...more
On April 19, 2021, Gov. Kay Ivey signed House Bill 408, sponsored by Rep. Wes Kitchens (R-Marshall County/Blount County) and Sen. Clay Scofield (R-Guntersville), into law as Act 2021-226, which will become effective July 1. A...more
4/23/2021
/ Alabama ,
Department of Labor (DOL) ,
Department of Revenue ,
Employees ,
Employer Liability Issues ,
Governor Ivey ,
Independent Contractors ,
IRS ,
Legislative Agendas ,
Misclassification ,
Proposed Legislation
We have previously written about the growing complications of employee vs. independent contractor classification in the wake of unemployment assistance in the pandemic era, not only for out-of-work employees but, for the...more
4/23/2021
/ Alabama ,
Coronavirus/COVID-19 ,
Department of Labor (DOL) ,
Employees ,
Governor Ivey ,
Harmonization Rules ,
Independent Contractors ,
IRS ,
Legislative Agendas ,
Multi-Factor Test ,
New Legislation ,
State Legislatures
At the urging of the Alabama Society of CPAs and other groups, the Alabama Department of Revenue (ADOR) recently issued preliminary guidance on (a) how the new pass-through entity (PTE) tax election interacts with the...more
4/8/2021
/ Alabama ,
C-Corporation ,
Department of Revenue ,
GILTI tax ,
Governor Ivey ,
Internal Revenue Code (IRC) ,
IRS ,
Pass-Through Entities ,
PTEs ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Reform