Category: State & Local Taxes
A Whiff of Fraud?
The New Jersey Tax Court recently addressed, for the first time, the State’s civil fraud tax penalty. The New Jersey Division of Taxation may impose a civil fraud penalty if any part of a state tax assessment is due to the taxpayer’s fraud. The penalty is 50% of the assessment…
IRS Announces Late Portability Election Relief for Eligible Estates
On June 9, 2017 the Internal Revenue Service (the “IRS”) published Revenue Procedure 2017-34 (“Rev. Proc. 2017-34”) to announce a new simplified procedure for particular estates to obtain an extension of time to file a federal estate tax return and make a “late” portability election. First introduced into federal law…
Christie Vetoes ‘Home-Sharing’ Tax Bill
UPDATE: On Friday, July 21, 2017, Governor Christie vetoed Assembly Bill No. 4587, which bill would have imposed State sales and use tax and hotel and motel occupancy fees on transient accommodations like those provided through Airbnb. In support of the veto, Governor Christie stated “I strongly believe that levying new…
Pennsylvania Tax Amnesty Begins April 21, 2017
The Pennsylvania Department of Revenue (“Department”), through Act 84 of 2016, is offering a Tax Amnesty Program (“Program”) which will run for sixty (60) days, beginning on April 21, 2017 and ending on June 19, 2017 (the “Amnesty Period”). The Department will waive all penalties and half of the interest…
Changes to the New Jersey Tax Laws Warrant Immediate Attention!
Glenn Henkel’s most recent article, Changes to the New Jersey Tax Laws Warrant Immediate Attention!, originally appeared in the Philadelphia Estate Planning Council’s Winter Newsletter Vol. XXVI, No. 2., posted on January 12, 2017. Mr. Henkel is currently a member of the Board of Directors of the Philadelphia Estate Planning Council, a…
Sales Tax Transition Rules
The New Jersey sales and use tax rate decreases from 7% to 6.875% beginning January 1, 2017. Effective January 1, 2018, the rate is further reduced to 6.625%. On and after January 1, 2017, but prior to January 1, 2018, sellers authorized to charge the 50% reduced rate are required…
NJ Estate Tax Repealed, Whats Next?
On October 14th, New Jersey Governor Chris Christie signed legislation raising the state’s gas tax by 23 cents per gallon, from the 49th highest in the nation to the sixth, to help replenish the state’s expired transportation trust fund. As a trade off, the bill will lower the New Jersey…
New Partnership Level Audit Rules
On November 2, 2015, the President signed into law the Bipartisan Budget Act of 2015 (the “Act”). The Act had numerous provisions, none of which relate to tax except almost the very last provision which now provides new rules for auditing partnerships. Under the Act, absent elections discussed below, all…
NJ Reduces Sales and Use Tax on Boats and Vessels
On December 9, 2015, Governor Christie signed into law, as P.L. 2015, c. 170, Senate Bill 2784 which provides a partial exemption and maximum sales and use taximposition for sales and uses of boats and vessels. The new law also establishes 30-day grace period for use tax imposition on certain boats…
New Code Section 7345 Could Jeopardize Passports for Taxpayers with Significant Tax Debts
On December 4, 2015, President Obama signed into law the “Fixing America’s Surface Transportation Act” (officially labeled the “FAST Act”) – P.L. 114-94. The bill’s primary takeaway is a 5-year, $305 billion plan to modify and modernize American transportation systems. However, hidden within the bill is a new Internal Revenue Code section…