Tax & Accounting Blog

Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 1

Penalties for Failure to Comply with NRA Withholding and 1042-S Information Reporting – Part 1

In August of 2010, the IRS announced “executing our international strategy is a top priority, and our work continues to intensify in this area.” Included in this strategy is a requirement for examiners to review withholding and reporting on payments to foreign individuals and entities during corporate audits. Other organizations should anticipate that the IRS will apply … Read More

Maryland Set To Have Energy Star Tax Holiday In February

Maryland Set To Have Energy Star Tax Holiday In February

Maryland will be having a Sales Tax Holiday for qualified Energy Star products for the second consecutive year this February.  Between Saturday  the 18th and Monday the 20th, items such as energy star dishwashers, laundry machines, and solar powered water heaters will be exempt from sales and use tax according to state statute §11–226.  This … Read More

United States Supreme Court Declines KFC Corp. v. Iowa

United States Supreme Court Declines KFC Corp. v. Iowa

The U.S. Supreme Court has denied the request for certiorari in KFC Corp. v. Iowa. The issue in the case is the asserting of jurisdiction to asses income taxes based on the concept of economic nexus. In KFC, the franchisor licensed its marks and other intangibles to independent franchisees for use in their business, in … Read More

$385 Billion in Unpaid Federal Tax Falls into the Tax Gap, New IRS Study Reports

$385 Billion in Unpaid Federal Tax Falls into the Tax Gap, New IRS Study Reports

The IRS has released a new set of tax gap estimates for tax year 2006 (the most recent year for which these figures are available). The tax gap is defined as the amount of tax liability faced by taxpayers that is not paid on time. Much of the tax gap amount is never paid, largely due … Read More