Monthly Archives: May 2011

As required by statutes, the Franchise Tax Board (FTB) has posted to its website the 15-Day Notice for Regulation Section 25128.5—Single-Sales Factor Formula Election. Based on the hearing that was held on March 29, 2011, the FTB hearing officer has … Continue reading →

Venture capitalists and private equity groups are reportedly taking an interest in structuring startups to qualify under the qualified small business stock (QSBS) provisions of Code Sec. 1202 . It’s not hard to see why—this often-overlooked Code provision can turn … Continue reading →

On May 12, 2011, the Michigan Legislature approved Governor’ Synder’s plan to repeal the Michigan Business Tax (MBT) with a corporate income tax and to make major changes to the state’s individual income tax law. H4361 eliminates numerous individual income … Continue reading →

On May 10, 2011, Indiana Governor Mitch Daniels signed two bills containing tax provisions: H1001 (the state budget bill), which updates references to the Internal Revenue Code (IRC) and decouples Indiana from certain changes made to federal income tax law, … Continue reading →

The U.S. has one of the highest corporate income tax rates in the world, which arguably encourages companies to take their businesses overseas—or, at least, their profits. In addition, the highly publicized tax planning techniques of some major corporations that … Continue reading →

The Franchise Tax Board (FTB) is introducing a new communication tool for information return filers. This tool, FTB’s Subscription Services, uses software developed by Lyris Technologies, and allows businesses and taxpayers to subscribe and receive email messages about various FTB … Continue reading →

The IRS recently released guidance in the form of an answer to a frequently asked question (FAQ) raised by taxpayers and practitioners with respect to the new Schedule M-3 line item for research and development (R&D) costs. The IRS guidance … Continue reading →

The case held that a fast food corporation deriving income from sources within Iowa through its franchises was liable for Iowa corporate income tax despite having no employees or property that constitutes physical presence in Iowa because, unlike the imposition … Continue reading →

On March 23, 2011, the UK government announced their intention to bring forward legislation to further reduce the main UK corporate tax rate from 27% to 26% with effect from April 1, 2011. Legislation previously enacted in July 2010, as … Continue reading →

The Franchise Tax Board (FTB) has issued guidance on the Voluntary Compliance Initiative (VCI) recently enacted under S86. The new legislation enhances FTB tools used to combat abusive tax avoidance transactions (ATATs), by broadening the definition of ATATs, providing for … Continue reading →