Tax Law Insights Blog | Burr & Forman LLP https://www.burr.com/tax-law-insights/ Mon, 12 Feb 2024 01:00:50 -0500 Changes in Tax Rates for 2023 https://www.burr.com/tax-law-insights/changes-in-tax-rates-for-2023 Bruce A. Rawls changes-in-tax-rates-for-2023 Tue, 01 Nov 2022 09:00:01 -0400 The IRS has issued Revenue Procedure 2022-38, which sets forth inflation-adjusted items for various provisions of the Internal Revenue Code which will be applicable in 2023. Here are some of the highlights:

Income Tax Adjustments. Below is the tax table applicable to married individuals filing joint returns (and “Surviving Spouses”), for tax years beginning after December 31, 2022:

If Taxable Income Is

The Tax Is

Not over $22,000

10% of the taxable income

Over $22,000 but not over $89,450

$2,200 plus 12% of the excess over $22,000

Over $89,450 but not over $190,750

$10,294 plus ...

]]> South Carolina Department of Revenue Issues Draft Guidelines for the Use of Transportation Tax Revenues https://www.burr.com/tax-law-insights/south-carolina-department-of-revenue-issues-draft-guidelines-for-the-use-of-transportation-tax-revenues Jeffrey T. Allen south-carolina-department-of-revenue-issues-draft-guidelines-for-the-use-of-transportation-tax-revenues Thu, 24 Mar 2022 09:00:02 -0400 The South Carolina Department of Revenue (DOR) issued a draft Revenue Ruling to provide guidelines to counties who are considering imposing, or are currently imposing, a transportation tax. Comments on the draft Revenue Ruling can be submitted until April 12, 2022, and a conference, if requested, will be held on April 19, 2022 at 11:00 am at DOR’s main office in Columbia.

The draft Revenue Ruling follows the South Carolina Supreme Court decision in Richland County and the Central Midlands Regional Transit Authority v. S.C. Department of Revenue, 811 S.E.2d 758 (2018) which ...

]]> 2021 Update for Rollback Taxes in South Carolina https://www.burr.com/tax-law-insights/rollback-taxes-in-south-carolina-changes-effective-january-1-2021-2 Lindsay C. Hartman, Sarah F. Robertson rollback-taxes-in-south-carolina-changes-effective-january-1-2021-2 Mon, 27 Dec 2021 09:00:03 -0500 South Carolina rollback tax laws changed in 2021, with potentially significant implications for real estate transactions where rollback taxes may come into play.

What are rollback taxes?

South Carolina Code Section 12-43-220 requires that any time a property changes from receiving the benefit of an agricultural use special assessment ratio property tax exemption to any other use, rollback taxes are to be assessed and billed to the property.  The amount of the rollback taxes is equal to the sum of the differences, if any, between the taxes paid or payable on the basis of the fair market ...

]]> South Carolina Business License Reforms Go Into Effect January 1, 2022 https://www.burr.com/tax-law-insights/south-carolina-business-license-reforms-go-into-effect-january-1-2022 Jeffrey T. Allen, John F. Wall, IV south-carolina-business-license-reforms-go-into-effect-january-1-2022 Mon, 13 Dec 2021 09:00:04 -0500 South Carolina businesses have historically been subject to business license taxes on their gross income that vary widely from jurisdiction to jurisdiction. The South Carolina Business License Tax Standardization Act (the “Act”) was enacted in 2020, but the effective date was generally delayed until January 1, 2022. The Act should greatly simplify the previous complex and burdensome state business license tax regime. The Act creates uniformity by establishing a formal appeals process for taxpayers, setting one standard 12-month filing period (May 1st to April 30th ...

]]> The Death of S Corporations? https://www.burr.com/tax-law-insights/the-death-of-s-corporations Erik P. Doerring the-death-of-s-corporations Mon, 26 Jul 2021 09:00:05 -0400 Corporations, limited liability companies, and certain other business entities can make an election with the Internal Revenue Service to be taxed under Subchapter S of the Internal Revenue Code.  If such an election is made, the business entity becomes an “S corporation” for federal income tax purposes, and also under the tax laws of many states.  The S corporation must file an annual tax return with the Internal Revenue Service (Form 1120S), and an annual state income tax return with those states that recognize S corporations.  The S corporation does not pay income tax, and its ...

]]> Summary of Proposed 2021 Federal Tax Law Changes https://www.burr.com/tax-law-insights/summary-of-proposed-2021-federal-tax-law-changes Erik P. Doerring summary-of-proposed-2021-federal-tax-law-changes Wed, 21 Jul 2021 09:00:06 -0400 President Biden has proposed major changes to the Federal tax laws, some of which are sought to be effective earlier in 2021 (i.e., we are already operating under these changes, if they later become adopted), as compared to the effective date the new tax law changes may be passed by Congress or a later effective date (such as beginning January 1, 2022).  The Biden administration proposals must first be approved by Congress.  As Congress is now considering these tax law change proposals, the following is a summary of some of the most important:

  1. Increase the corporate income tax rate from 21 ...
]]> South Carolina Department of Revenue Announces Temporary Relief For State Tax Nexus and Employer Tax Withholding Requirements https://www.burr.com/tax-law-insights/south-carolina-department-of-revenue-announces-temporary-relief-for-state-tax-nexus-and-employer-tax-withholding-requirements Erik P. Doerring south-carolina-department-of-revenue-announces-temporary-relief-for-state-tax-nexus-and-employer-tax-withholding-requirements Wed, 07 Jul 2021 09:00:07 -0400 Due to unprecedented temporary closings of offices and businesses and stay-at-home orders issued across the United States during the Coronavirus (COVID-19) pandemic, many businesses have implemented temporary work at home options for employees. As a result, the South Carolina Department of Revenue (SCDOR) announced temporary relief regarding a business’s establishment of South Carolina state tax nexus solely because an employee is temporarily working in a different work location due to COVID-19, and also provided guidance with respect to employer withholding ...

]]> South Carolina Joins Other States and Adopts Federal State and Local Tax Deduction Cap Workaround https://www.burr.com/tax-law-insights/south-carolina-joins-other-states-and-adopts-federal-state-and-local-tax-deduction-cap-workaround Erik P. Doerring south-carolina-joins-other-states-and-adopts-federal-state-and-local-tax-deduction-cap-workaround Wed, 26 May 2021 09:00:08 -0400 The State of South Carolina has now adopted legislation allowing “pass through” entities to elect each year to be taxed at the entity level on their active trade or business income instead of having their owners taxed at the individual level on this income. This includes partnerships, S-corporations and LLCs taxed as partnerships or S-corporations.  This election can be filed for tax years beginning after December 31, 2020.

South Carolina has now joined a growing number of states that have enacted federal state and local tax “workaround” legislation, and which shifts state ...

]]> Cigarette “Buydown” Payments to Retailers Excluded from South Carolina Sales Taxes https://www.burr.com/tax-law-insights/cigarette-buydown-payments-to-retailers-excluded-from-south-carolina-sales-taxes Erik P. Doerring cigarette-buydown-payments-to-retailers-excluded-from-south-carolina-sales-taxes Tue, 04 May 2021 09:00:09 -0400 Tobacco manufacturers and distributors have long made refund/rebate payments to retailers for the retailer’s purchase of cigarettes and other tobacco products from the manufacturer, provided the retailer reduces the price of the cigarettes and other tobacco products sold to the retailer’s customers.

In 2020, the South Carolina Department of Revenue issued SC Revenue Ruling #20-3 (“Buydowns – Tobacco Company Payments to Retailers”), and related Information Letter #20-35, administratively determining that these “buydown” payments from the ...

]]> COBRA Without the Bite https://www.burr.com/tax-law-insights/cobra-without-the-bite Jeffrey T. Allen, C. Logan Hinkle, Christian W. Borek cobra-without-the-bite Wed, 31 Mar 2021 09:00:10 -0400 On March 11, 2021, President Biden signed into law the American Rescue Plan Act (“ARPA”).  The ARPA mandated several important changes for both employers and employees.  One of these is potentially significant for both: full subsidies for employer-paid COBRA premiums.  The ARPA requires employers to provide temporary, fully subsidized COBRA continuation coverage premiums for certain individuals for up to six months.  Employers will be able to recover the subsidized premiums by claiming a tax credit.

The benefits provided to employers and employees are available to COBRA ...

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