Supreme Court Asked To Overturn Quill's Physical Presence Standard With South Dakota's Economic Nexus Tests For Imposing Sales Tax On Out-Of-State State Retailers
State of South Dakota v. Wayfair, Inc. et al
In what portends to be the next landmark Supreme Court decision on a state’s constitutional power to impose state sales tax on interstate commerce the Court recently heard oral arguments in South Dakota v. Wayfair, Inc., et al, cert granted, 138 S.Ct. 735 (1/12/2018). The issue before the Court is whether South Dakota sales tax scheme can satisfy the requirement under the Commerce Clause by imposing sales and use tax collection on a remote seller without such seller’s having a physical presence in South Dakota.
Jerald David August presented "Impact Of The Partnership Audit Rules On Estate Planners" at the 2018 ACTEC Annual Meeting
Mr. August shared his extensive knowledge with those in attendance.
Tax Cuts And Jobs Act Of 2017 Introduces Major Reforms To The International Taxation Of U.S. Corporations
By Jerald David August
Reprinted From The Winter 2018 Issue Of ALI-CLE's The Practical Tax Lawyer
Winter 2018 Edition
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (“TCJA”) of 2017, P.L. 115-97, which introduced a set of tax cuts and other reforms that will affect substantially all U.S. taxpayers, both corporate and individual. The key feature of the new legislation was the reduction by 40 percent of the maximum federal corporate income tax rate from 35 percent to 21 percent, including qualified personal service corporations.
Jerald David August presented "Impact On: Closely Held Corporations" for the Impact of the New Tax Act Video Webcast
This presentation focused on the different treatments of closely held S corporations, C corporations, and their shareholders, under the new law. Topics included tax rates, conversions from C to S or S to C status, and the benefits of C corporations engaging in offshore business operations.
The new tax law enacted in December swapped out a graduated corporate tax rate topping out at 35 percent with a flat 21 percent rate across the board. While this provision, combined with the elimination of the corporate alternative minimum tax (AMT), might seem to have simplified matters considerably, attorney Jerald David August, a tax partner at Kostelanetz & Fink, LLP, who spoke at the Foundation for Accounting Education's conference "Impact of the New Tax Law: a Sid Kess Workshop" today, pointed out some complicating factors.
Jerald David August Outlines Impact of the "Tax Cuts and Jobs Act of 2017” at the ALI CLE Special Edition Webcast
The Tax Cuts and Jobs Act of 2017 will have a profound impact on tax planning for corporations, partnerships, and owners of U.S. owned businesses, as well as on foreign investors.
Jerald David August walked attendees of the ALI CLE Special Edition webcast through the details of the biggest U.S. tax legislation changes since 1986 and how those changes will significantly affect tax planning for clients and tax practices, as well as examining the key provisions of the tax law and their practical effects.
Repatriation of Foreign-Sourced Accumulated Earnings In Transitioning to a Participation Exemption System For Reporting Foreign Sourced Dividends Under The Tax Cuts and Jobs Act of 2017 *
On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (TCJA) of 2017, P.L. 115-97, which introduced a wholesale set of tax cuts and other reforms that affect substantially all U.S. taxpayers, both corporate and individual.
One of the highlights of the new law is the repatriation of foreign-sourced accumulated earnings and profits with respect to controlled foreign corporations (CFCs) as defined. Newly enacted section 965 imposes a transition tax on the accumulated (and untaxed) foreign earnings of foreign subsidiaries of US companies by constructive (mandatory) repatriation under section 951(a)(1). Foreign earnings held in the form of cash and cash equivalents are taxed at a 15.5% rate and the residual untaxed foreign earnings are taxed a rate of 8%. The “transition tax” may be paid in installments over an 8 year period.