Tax News Highlights
Oct. 3, 2013
Supreme Court to Determine if Severance Payments Are Subject to FICA
The Supreme Court will determine if severance payments are subject to FICA to settle contradictory rulings on the issue.
Tangible Property Regulations: Action Required for Early Adoption
Taxpayers are required to adopt the recently finalized tangible property regulations but have the option to adopt part or all of the regulations for tax years beginning in 2012 or 2013. Companies that act quickly can take advantage of several available elections in the final regulations.
Impact of Government Shutdown on IRS Operations
As a result of the government shutdown, IRS operations are currently limited to essential functions, but the underlying tax law and all tax deadlines remain in full force. Accordingly, taxpayers should continue to file tax returns and make all required tax payments as they become due.
California Small Business Stock Legislation
The California legislature passed two bills regarding exclusions for gains on the sale of certain small business stock. Depending on which bill the governor signs into law, California taxpayers might end up with outstanding tax bills.
Michigan Notice Provides Guidance on Unitary Reporting Issues for Financial Institutions
The Michigan Department of Treasury provided guidance to financial institution unitary filers on the proper reporting of consolidated equity. The guidance is applicable to both the former Michigan Business Tax (MBT), which became effective for the 2008 tax year, and the Corporate Income Tax (CIT), which became effective for the 2012 tax year.
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