Sonia Shaikh

Maryland Gov. Wes Moore recently signed the $67 billion state budget for 2026 (HB 352) that will make significant changes to the state’s tax system. Among other changes, the budget bill notably establishes a new tax on IT services; imposes a surtax on capital gains; and increases the sales and use tax rate on cannabis. Here is how these key tax provisions might impact individuals, businesses and consumers. IT Services Tax (HB 352, Section 9, amending Md. Code Ann., Tax-Gen. § 11-104) The bill establishes

The Commonwealth of Massachusetts will offer a limited tax amnesty for certain “eligible taxpayers” from Nov. 1 through Dec. 30. “Eligible taxpayers” can forward and bring their tax liabilities up to date and receive a penalty abatement. This group includes businesses, individuals, trusts and estates. Taxpayers that are currently in resolution with the Massachusetts Department of Revenue have pending cases or open collection cases will qualify for amnesty along with taxpayers that have unfiled returns or underreported returns.  Amnesty claims must be

The Virginia Business Professional and Occupational License (BPOL) is a local level tax levied on businesses’ gross receipts. Rates typically range from $0.03 to $0.58 per $100 of gross receipts, depending on the locality and industry classification. The tax is calculated based on the previous year’s receipts and filed annually. As a turnover tax, BPOL generally does not allow deductions for business expenses, and exemptions typical for sales and use taxes do not apply. However, there are certain exclusions that

Maryland Comptroller Brooke Lierman issued a letter Feb. 28 to address the challenges and concerns of tax practitioners regarding the policy and procedural changes to pass-through entity (PTE) filings and payments. Most significantly, the comptroller has agreed to provide a one-time waiver for taxpayers who missed electing PTE treatment on the first filing of the year. Background The comptroller said last April that, for tax years beginning after Dec. 31, 2022, PTEs are required to elect (or not elect) to pay tax

As the Virginia General Assembly’s session nears its conclusion, lawmakers continue to revise the two-year state budget that may create significant alterations to the state’s current taxing scheme, particularly in the areas of sales and use tax. Background Virginia institutes two forms of sales and use tax: the Retail Sales and Use Tax that is historically limited to sales of tangible personal property and a handful of enumerated services at a rate of 5.3%; and the Communications Sales and Use Tax that is

The Maryland Comptroller’s Office issued a Tax Alert on April 11, 2023, addressing policy and procedural changes to pass-through entity (PTE) filings and payments. For tax years beginning after Dec. 31, 2022, PTEs are required to elect (or not elect) to pay tax at the entity level on all members’ shares of income or pay the mandatory tax on behalf of its nonresident members by the first filing or tax payment for the applicable tax year. Additionally, the annual election (or

A recent change in Virginia law may impact many individual taxpayers. Effective for taxable years beginning on or after January 1, 2022, individual taxpayers who make estimated income tax payments must submit all payments electronically if: Any estimated tax payment exceeds $1,500; Any extension payment exceeds $1,500; or The total anticipated income tax liability in any taxable year exceeds $6,000. These requirements apply to all payments, including any payments for estimated taxes, extension payments, and any other amounts related to an individual return, made

This is an update to our prior blog posts regarding Federal and Maryland State tax deadlines. The Comptroller recently announced that Maryland individual taxpayers who pay estimated quarterly taxes may defer payments for the first and second quarters of tax year 2022 until July 15, 2022. This announcement aligns with the Comptroller’s earlier announcement extending the State’s individual income tax filing and payment deadline for tax year 2021 to July 15, 2022. Details regarding the State’s automatic extension for filing 2021

Federal Corporate and Individual Income Tax Deadlines The federal filing deadline for 2021 for calendar year end corporate income tax returns (IRS Form 1120) and individual income tax returns (IRS Form 1040) is Monday, April 18, 2022 for most taxpayers. This is a result of Washington D.C.’s Emancipation Day holiday on April 15th. By law, for tax deadline purposes, the IRS recognizes the District of Columbia’s legal observation of holidays in the same manner as federal holidays. For those taxpayers who

In late 2020, the IRS issued a notice confirming imminent proposed regulations that would allow certain tax strategies to avoid the individual $10,000 state and local tax (“SALT”) deduction limitation of the Tax Cuts and Jobs Act (“TCJA”, P.L. 115-97 (Dec. 22, 2017)). (Notice 2020-75). This notice cited a 1958 revenue ruling that allowed a partnership to subtract a local tax in calculating its net income to its partners, thereby holding that partners who use the standard deduction without itemizing

On January 19, 2022, Maryland Comptroller Peter Franchot announced an extension for the State’s individual income tax filing and payment deadline for tax year ending 2021. The announcement was made via a virtual news conference with a news release following shortly thereafter. Instead of tax filings and payments being due on April 18, 2022, the new automatic deadline is July 15, 2022. Taxpayers will not need to request an extension; instead both resident and nonresident taxpayers shall receive the automatic

Updates and negotiations for President Biden’s tax plan continue to filter through Congress. The House Ways and Means Committee recently passed the Build Back Better Act (the “Act”), and it is now on its way for the Senate’s consideration. This is an update to our prior blog post about the tax plan released by House Democrats in September. We have noted the differences between the two proposals accordingly. Corporate Tax Provisions Corporate AMT. The Act imposes a 15% alternative minimum tax on the

Big tax changes are on the way! President Biden, the House, and the Senate all seem to have their own agenda, but the proposal introduced by the House Ways and Means Committee (the “Proposal”) is a good starting point for predicting what may be in our future. Corporate and Business Tax Reforms Corporate Tax Rate: One of the Proposal’s most prominent provisions is a graduated rate structure for the currently flat 21% corporate income tax. Effective for taxable years beginning after December