New IRS Compliance Program Targeting Businesses

Posted on Mon, Feb 11, 2013

If your business has a credit/debit card merchant account, accepts PayPal, or meets certain other criteria, you will receive a Form 1099-K reporting gross amount of reportable transactions for 2012. The IRS wants to make sure that the income that businesses receive via payment cards is reported on their tax returns. So the tax agency recently launched a new 1099-K compliance program. This article explains how the program works.

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Tags: Michigan State and Local Tax (SALT), Corporate Income Tax, Law, CPA Firm, Articles, New IRS Compliance Program, EHTC

Expired Payroll Tax Relief

Posted on Tue, Dec 11, 2012

The signing of the December 17 Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 created a 2011 windfall for employees and more work for employers. This payroll holiday was extended through December 31, 2012 and, as of yet, there is no talk about extending it through 2013.

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Tags: Michigan State and Local Tax (SALT), Tax, Corporate Income Tax, Ron Kaley, Articles

Michigan Supreme Court to Address the Unitary Business Principle and Combined Reporting of Apportionmet to the Personal Income Tax

Posted on Mon, Oct 15, 2012

In my blog dated August 2, 2012, I discussed combined unitary apportionment and Michigan’s Personal Income Tax.  In the blog, I mentioned an appeal where the court upheld the concept of unitary apportionment in FORREST L. PRESTON, Plaintiff-Appellee, vs. DEPARTMENT OF TREASURY, Defendant-Appellant and the Estate of THOMAS M. WHEELER and PATSY WHEELER, Petitioners-Appellees vs. DEPARTMENT OF TREASURY, Respondent-Appellant. 

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Tags: Michigan State and Local Tax (SALT), State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, flow-through entity withholding, Michigan Business Tax, Individual Income Tax, Michigan

MBT Underpayment Penalty; Information Requested

Posted on Tue, Aug 14, 2012

Over the past few months I have had conversations and e-mails regarding the estimated penalty safe-harbor of $20,000, MCL 208.1501(1).  According to the law, a taxpayer under the Michigan Business Tax (MBT) must file an estimate return and pay estimated tax if the taxpayer expects a liability for the tax year to exceed $800.  The law continues as follows: 

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Tags: Tax, Corporate Income Tax, Ron Kaley, Michigan Business Tax, Michigan

PERSONAL INCOME TAX—Unitary and Apportionment of Income

Posted on Thu, Aug 02, 2012

Michigan's Court of Appeals has recently issued three opinions:

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Tags: Accounting, Tax, State and Local Tax, Corporate Income Tax, Michigan Business Tax, Individual Income Tax, Michigan, Law

Michigan Income Tax and MBT Audit Issues

Posted on Thu, May 31, 2012

Ed Kisscorni and I are starting our next round of seminars offered through the MACPA. The title of our seminar is, "Michigan Income Tax and MBT Audit Issues". The seminar is designed to dig into amendments associated with the Michigan Income tax act. We will be discussing issues surrounding flow-through entity withholding, nexus, apportionment and unitary for the corporate income tax, along with how they may impact flow-through entity withholding. I have included a copy of the table of contents, and links directly to the MACPA's website to assist you in registering. The first seminar is Monday, June 4 in Sterling Heights and then Friday, June 29 in Traverse City. 

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, flow-through entity withholding, Michigan Business Tax, Individual Income Tax

Michigan Tax Structure Reform and the Personal Property Tax

Posted on Wed, Apr 25, 2012

It’s been a while since I last blogged. The 2012 tax season has finally come to an end, but the Michigan tax re-structure, which took effect January 1, 2012, continues. As you have seen, a strong emphasis has been put on reform. I have received many questions surrounding changes to the individual tax structure, the new corporate income tax, unitary under the (CIT), tax base of a c-corp in a pass-through entity, and others. Most questions relate to withholding, who is required to withhold, when to withhold and how much.  What on earth does "Reasonably Expected to Accrue" mean in context of withholding? Most recent, several bills were introduced in the Michigan's legislature concerning Personal Property Tax (PPT) reform. You will find linked to this blog those bills.

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Personal Property Tax, Individual Income Tax

Final Unitary Michigan Business Tax Returns With Differing Year-end's

Posted on Wed, Feb 01, 2012

Included in this blog is Michgan Department of Treasury, "FAQ U57".  You will find this FAQ helpful as you start preparing your client's final unitary MBT return(s).  The FAQ is not what I expected, but I think it is appropriate and helpful.

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Tags: Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, Michigan Business Tax

Michigan Corporate and Individual Income Tax Clean-up Bills - Part II

Posted on Wed, Jan 04, 2012

Continued from: Part I " The governor's pen was busy in December." Several bills from Michigan's House and Senate were signed within the last week affecting Michigan's Corporate Income Tax and Individual Income Tax.

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Business Tax, Individual Income Tax

Michigan Corporate and Individual Income Tax Clean-up Bills - Part I

Posted on Wed, Jan 04, 2012

The governor's pen was busy in December. Several bills from Michigan's House of Representatives and Senate were signed within the last week affecting Michigan's Corporate Income Tax, Individual Income Tax, Single Business Tax, and Michigan Business Tax. I will cover the amendments over the next few blogs. Senate bills 368 and 369, concerning the Single Business tax, and "Disregarded Entities" under the Michigan Business tax will be covered separately. Click on the bill's name to access that specific bill on www.legislature.mi.gov.

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Tags: State and Local Tax, Corporate Income Tax, Ron Kaley, Michigan Single Business Tax, Michigan Business Tax, Individual Income Tax