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Tax compliance is a cornerstone of running a successful business in the United States. Whether you're a small startup or a multinational corporation, staying on top of tax obligations is essential for avoiding penalties, ensuring smooth operations, and building trust with stakeholders. Here are some key aspects of tax compliance in the USA that every business should consider: Filing Requirements 📅 Corporations, LLCs, partnerships, and even sole proprietors must file annual tax returns with the Internal Revenue Service (IRS). Deadlines are crucial—filing late can result in fines and interest charges. Corporate Tax Rates 💼 The federal corporate tax rate is 21%, but businesses should also be aware of state-level taxes, which vary significantly from state to state. Some states have no corporate income tax, while others may have high tax rates. Sales Tax Compliance 💰 If your business sells goods or services, you're likely required to collect sales tax in states where you have a tax nexus. Each state has its own rules, rates, and exemptions. Employment Tax 👥 Businesses with employees must comply with federal and state payroll taxes, which include Social Security, Medicare, federal unemployment tax, and state-level taxes. Non-compliance can lead to serious penalties. Deductions and Credits 💡 Leverage available tax deductions and credits to reduce your liability, such as deductions for R&D, business expenses, and potential credits for investing in renewable energy or job creation. Record-Keeping and Documentation 📂 Proper documentation is crucial for tax compliance. Maintain accurate records of income, expenses, and deductions to avoid audits and ensure your returns are accurate. State and Local Tax (SALT) 🌍 Beyond federal taxes, businesses must be aware of state and local tax obligations. These can include income tax, franchise taxes, property taxes, and sales tax. Stay Up-to-Date on Changes 📊 Tax laws are constantly evolving. Whether it's new tax reform or changing state tax rates, businesses must stay informed to ensure ongoing compliance.

Installation Taxation The Minnesota Department of Revenue has stated its position on the taxability of third-party installation services. Installation by a third-party is only taxable if the installation would have been taxable if the seller of the item had also provided the installation. If an installer did not sell the item that is being installed to the purchaser, the installer must determine if charges for installation would have been taxable if the seller that sold the item had also installed the item. Generally, if the sale of an item is taxable, then charges for installation are also taxable. If charges for installation would have been taxable if the seller of the item had installed it, then a third-party installer must collect sales tax on the installation charges. If the sale of the item is not taxable, then charges for installation of the item are not taxable, regardless of who installs it. In some situations, such as with improvements to real property, a sale of an item that is otherwise taxable is not taxable when sold with installation. If the sale of an item would not have been taxable if sold with installation, charges for installation of the item by a third-party installer are not taxable. State specific taxes can be complex and difficult to interpret. Allyn Tax acts as an extension of your team to help your business minimize liabilities, mitigate costs, maintain compliance, and maximize tax savings. If you need additional guidance on how to approach analyzing, reporting, and remittance of tax, ask an expert here: https://lnkd.in/eMTnUw3y

San Francisco voters approve significant changes to business taxes What happened? San Francisco (“the City”) voters on November 5 approved Proposition M, which significantly alters the City’s Business Tax rules. While deemed “revenue neutral over time” on an individual taxpayer basis, many taxpayers will see significant increases or decreases in their San Francisco Business Tax liabilities as a result of this tax measure passing. Major changes to the San Francisco Business Tax include increased tax rates for both the Gross Receipts Tax (“GRT”) and Homelessness Gross Receipts Tax (“HGRT”), greatly reduced rates for the Overpaid Executive Tax, a shuffling of business categories from 14 to 7, updated apportionment weighting (generally from either 100% payroll or 50% payroll/50% sales weighting to 75% sales/25% payroll weighting), and potential changes to sales factor sourcing.  Why is it relevant?  Taxpayers will need to reassess their projected San Francisco Business Tax liabilities for 2025, given the significant potential positive and negative cash tax changes this measure may create. Of particular note is the shift in apportionment factor weighting to emphasize the sales factor’s importance for all taxpayers. San Francisco and California have the same general gross receipts sourcing language. Companies may need to reassess their San Francisco (and, consequently, California) gross receipts sourcing methods, given the increased weight placed on the sales factor in the computation of San Francisco gross receipts. Actions to consider  Taxpayers should consider the implications of their new business category (under one of seven newly created groupings by the City) and model their 2025 San Francisco Business Tax liabilities based upon the new changes to apportionment weighting, expected sales factor sourcing rulemaking, and updated tax rates.  Of particular importance, companies that have historically had no physical nexus in San Francisco may now have a more material San Francisco liability with the passage of Proposition M. San Francisco has a $500,000 economic factor presence standard for doing business, and with the change in apportionment weighting and sale sourcing rules, non-San Francisco based companies may now have a filing requirement they have not had in previous years. https://lnkd.in/gfuRJBrz

The biggest questions for sales tax in 2025...  ❓Will more states drop the 200-transaction count for economic nexus?  More states have raised economic nexus thresholds to rely solely on gross sales. For example, North Carolina repealed the 200-transaction count effective July 1 of this year, while Alaska will remove the 200-transaction count effective January 1, 2025. Who is next?    ❓Are digital advertising taxes and retail delivery fees here to stay?  Unique types of taxes are constantly discussed- such as Maryland’s digital advertising tax or Colorado’s retail delivery fee. As states are searching for more revenue, do you think more taxes are on the way?    ❓Is the federal government going to do anything?  Talk of sales tax hit the Senate this year, with a Senate Subcommittee Hearing on Providing Small Business Relief from Remote Sales Tax Collection. Senator Maggie Hassan developed a plan to ease small businesses' issues. Can that beat the gridlock?    Get the answers and more at our upcoming live session, The Future of Sales Tax: Major Trends and Strategies for 2025. And we’ve got the best in the business to break it down for you! ▶️ Scott Peterson is Vice President of U.S. Tax Policy and of Government Relations for Avalara. Avalara is the industry leader in providing sales tax automation to small and medium sized business. Scott leads Avalara’s effort to make sure that Avalara is the first name states think of in sales tax automation.    ▶️Diane Yetter is the “Sales Tax Nerd” as well as a strategist, advisor, speaker and author in the field of sales and use tax. She is president and founder of YETTER Tax, a sales tax consulting and tax technology firm in business since 1996. She is also the founder of The Sales Tax Institute, which offers live and online courses to educate business professionals about sales and use tax.    It all starts at 1 pm ET / 10 am PT on December 19. Get 2025 started on the right foot! https://lnkd.in/gjFxKnVv  #2025 #NewYearNewMe   

In this week's issue of Tax Notes State, Kathleen Wright examines the California Office of Tax Appeals’ recent holding that Microsoft is entitled to a $93.9 million refund – a finding that could significantly affect apportionment factor computation in the state. In denying the FTB's petition for rehearing, the OTA let stand its prior holding that the company can include 100% of its foreign dividends in its sales factor denominator – despite having claimed a 75% dividends received deduction related to those payments, and despite California not generally allowing a DRD. But because California appellate court precedent Farmer Brothers Co. v. FTB doesn’t apply to water’s-edge taxpayers like Microsoft, they “are generally allowed to exclude 75 percent of qualifying foreign dividends from income under a different code section than the general DRD,” Wright points out. Read on at: <https://lnkd.in/ed2uszvy> Further insights from and thanks to: Christopher Lutz, for exploring the issues states face with separate reporting, highlighting an exception “that has swallowed the rule in Maryland,” while noting that “even out-of-state entities with property, payroll, and third-party sales have fallen prey to the requirement that they be discrete business enterprises”; adam weinreb, for looking at a series of recent judicial decisions that scrutinized revenue department activities, despite the deference state DORs are typically afforded; and Len Teti and Jonathan Katz, for summarizing the federal and state income tax law on deferred compensation as it applies to LA Dodgers phenom Shohei Ohtani – a topic and a staggering $700 million contract we’ll visit in more depth in our May 6 issue.

The City of Marietta announces that for the 23rd year in a row, it will not increase the tax millage rate. The proposed rate is equal to last year’s millage rate of 4.692 mills. The millage rate will result in more tax revenue received than the prior year. Each year, the board of tax assessors is required to review the assessed value, for property tax purposes, of taxable property in the city. When the trend of prices on properties that have recently sold in the county indicate there has been an increase in the fair market value of any specific property, the board of tax assessors is required by law to re-determine the value of such property (or make a reassessment). To help offset the effects of the reassessments on taxpayers, the City chose to implement the Floating Homestead Exemption (or Property Assessment Freeze). Since its implementation in 2002, the exemption has frozen property tax assessments of city taxes on residential properties that are owner-occupied at the original purchase value until it is sold. This remains in effect for all owner-occupied properties. In accordance with Georgia law, the City of Marietta is required to hold three public hearings to allow the public an opportunity to express their opinions on the revenue increase before the tentative budget and millage rate are finalized. All concerned citizens are invited to the public hearings on this millage rate to be held at the Marietta City Hall Council Chambers, First Floor, 205 Lawrence Street on the following date and times: July 9, 2024 at 9:00 a.m. July 9, 2024 at 6:00 p.m. July 16, 2024 at 9:00 a.m.

The Davie County Tax Administration Department is currently engaged in the 2025 General Reappraisal (Revaluation) of property in Davie County. This is the process of updating real property values to reflect their current market value and will include the assessment of over 25,000 properties of varying types and locations. This will serve as a market value “snapshot” of real property (as of January 1, 2025) and will include all vacant and improved land, whether residential, commercial, agricultural, or industrial. It does not include personal property such as boats, airplanes, or motor vehicles. “Reappraisal is always a challenge. The goal is to appraise thousands of properties all at one time, and in a way that is fair and equitable to all property owners,” said Jamon Gaddy, Davie County Tax Administrator. “We strive to follow established industry standards for mass appraisal, however, we recognize that there will be situations where the mass appraisal approach may produce an estimate of value that seems somewhat high or low for an individual property." In an effort to help residents better understand the reappraisal (revaluation) process, the Davie County Tax Administration Department has provided the following information to help educate on why the process is necessary, how it works, and how you can work with tax administration throughout this effort that occurs every four years in Davie County. Property owners also received a copy of this information by mail in their most recent Davie County Tax Notice. To view Frequently Asked Questions and other information regarding the 2025 Reappraisal, visit https://buff.ly/3yguPe7

The Davie County Tax Administration Department is currently engaged in the 2025 General Reappraisal (Revaluation) of property in Davie County. This is the process of updating real property values to reflect their current market value and will include the assessment of over 25,000 properties of varying types and locations. This will serve as a market value “snapshot” of real property (as of January 1, 2025) and will include all vacant and improved land, whether residential, commercial, agricultural, or industrial. It does not include personal property such as boats, airplanes, or motor vehicles. “Reappraisal is always a challenge. The goal is to appraise thousands of properties all at one time, and in a way that is fair and equitable to all property owners,” said Jamon Gaddy, Davie County Tax Administrator. “We strive to follow established industry standards for mass appraisal, however, we recognize that there will be situations where the mass appraisal approach may produce an estimate of value that seems somewhat high or low for an individual property." In an effort to help residents better understand the reappraisal (revaluation) process, the Davie County Tax Administration Department has provided the following information to help educate on why the process is necessary, how it works, and how you can work with tax administration throughout this effort that occurs every four years in Davie County. Property owners also received a copy of this information by mail in their most recent Davie County Tax Notice. To view Frequently Asked Questions and other information regarding the 2025 Reappraisal, visit https://buff.ly/3yguPe7

The Davie County Tax Administration Department is currently engaged in the 2025 General Reappraisal (Revaluation) of property in Davie County. This is the process of updating real property values to reflect their current market value and will include the assessment of over 25,000 properties of varying types and locations. This will serve as a market value “snapshot” of real property (as of January 1, 2025) and will include all vacant and improved land, whether residential, commercial, agricultural, or industrial. It does not include personal property such as boats, airplanes, or motor vehicles. “Reappraisal is always a challenge. The goal is to appraise thousands of properties all at one time, and in a way that is fair and equitable to all property owners,” said Jamon Gaddy, Davie County Tax Administrator. “We strive to follow established industry standards for mass appraisal, however, we recognize that there will be situations where the mass appraisal approach may produce an estimate of value that seems somewhat high or low for an individual property." In an effort to help residents better understand the reappraisal (revaluation) process, the Davie County Tax Administration Department has provided the following information to help educate on why the process is necessary, how it works, and how you can work with tax administration throughout this effort that occurs every four years in Davie County. Property owners also received a copy of this information by mail in their most recent Davie County Tax Notice. To view Frequently Asked Questions and other information regarding the 2025 Reappraisal, visit https://buff.ly/3yguPe7

The Davie County Tax Administration Department is currently engaged in the 2025 General Reappraisal (Revaluation) of property in Davie County. This is the process of updating real property values to reflect their current market value and will include the assessment of over 25,000 properties of varying types and locations. This will serve as a market value “snapshot” of real property (as of January 1, 2025) and will include all vacant and improved land, whether residential, commercial, agricultural, or industrial. It does not include personal property such as boats, airplanes, or motor vehicles. “Reappraisal is always a challenge. The goal is to appraise thousands of properties all at one time, and in a way that is fair and equitable to all property owners,” said Jamon Gaddy, Davie County Tax Administrator. “We strive to follow established industry standards for mass appraisal, however, we recognize that there will be situations where the mass appraisal approach may produce an estimate of value that seems somewhat high or low for an individual property." In an effort to help residents better understand the reappraisal (revaluation) process, the Davie County Tax Administration Department has provided the following information to help educate on why the process is necessary, how it works, and how you can work with tax administration throughout this effort that occurs every four years in Davie County. Property owners also received a copy of this information by mail in their most recent Davie County Tax Notice. To view Frequently Asked Questions and other information regarding the 2025 Reappraisal, visit https://buff.ly/3yguPe7