State legislatures considering hundreds of sales tax bills

An estimated 800 sales tax bills are under consideration by state legislators each month, according to a new report, as lawmakers grapple with the complexity of sales and use tax four years after the Supreme Court handed down the South Dakota v. Wayfair decision. The report, released Wednesday by the tax compliance software company Sovos, … Read more

IRS issues FAQs on reinstated Superfund tax

The Internal Revenue Service has issued FAQs regarding the reinstated Superfund chemical excise tax, detailing what the tax is, how it’s computed and who may be liable. The Superfund chemical taxes are reported on Form 720, “Quarterly Federal Excise Tax Return” and Form 6627, “Environmental Taxes”. The excise taxes imposed on certain chemicals and imported … Read more

IRS adds options for electronically amending 1040s

Corrections to the 1040-NR, 1040-SS (including the Additional Child Tax Credit for Bona Fide Residents of Puerto Rico) and the 1040-PR can now be e-filed, according to the Internal Revenue Service. An electronic checkbox has been added for the 1040/1040-SR, 1040-NR and 1040-SS/1040-PR to indicate that a superseding return is being e-filed. Forms 1040, 1040-NR … Read more

Biden’s gas tax holiday may not lower prices at the pump

Suspending the federal gasoline tax may sound like welcome relief for US drivers paying some of the highest pump prices on record right as the summer travel season kicks into high gear. But experts warn it could bring mixed results — or even higher gas prices at the end. On Wednesday, President Joe Biden issued … Read more

Manchin opposing energy payments seen blunting value of tax credits

Senator Joe Manchin’s opposition to giving clean-energy developers direct payments may significantly reduce the tax credits they could get from Democrats’ reconciliation package, according to analysts. The West Virginia Democrat is opposed to making the credits refundable, the so-called direct-pay option that would let developers avoid undertaking complicated tax-equity financing, according to two people familiar … Read more

Biden seeks pause in gas tax to give families a ‘bit of relief’

President Joe Biden called on Congress to suspend the federal gasoline tax, a largely symbolic move by an embattled president running out of options to ease pump prices weighing on Democrats’ political prospects. “By suspending the 18-cent federal gas tax for the next 90 days, we can bring down the price of gas and give … Read more

Wayfair hearing may lead to remedial sales tax legislation

A Senate Finance Committee hearing on June 14, 2022, may lead to legislation affecting states’ treatment of sales tax. The Supreme Court decision in Wayfair, which removed the physical presence test as a requirement for states to impose a sales tax nexus, has altered the sales tax landscape of virtually every state since it was … Read more

US capital gains from Bitcoin estimated to be $30 billion says report

US holders of Bitcoin generated about $30 billion worth of capital gains in 2021 alone, which, if all successfully taxed at the 15% rate, would mean $4.5 billion in additional government revenue. According to a recent report from IVIX, which sells software solutions to tax authorities, researchers first determined the value of all Bitcoin transactions … Read more

Taxpayer advocates sees much larger tax return backlog than IRS reported

National Taxpayer Advocate Erin Collins expressed concern Wednesday in a midyear report to Congress about continuing delays by the Internal Revenue Service in processing tax returns filed on paper last year, pointing to far higher numbers than the IRS itself claimed just a day ago. Collins said at the end of May, the agency had … Read more