The Internal Revenue Service History
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
Many people assume that the Internal Revenue Service has been around forever. Our country has always collected taxes, and so it seems to follow that we’ve always had some type of enforcement agency. But this isn’t the case. In fact, surprising though it may be, the IRS is just a bit over 100 years old. And it wasn’t until the 1950s that the IRS took on the moniker which it wears today. Tax Code Enforcement The IRS is the organization which enforces the provisions of our tax code. If a taxpayer incurs a liability to the federal government, the IRS is in charge of making sure that payment ..read more
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Vermont State Budget Lessons
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
In contrast to many other states in the nation, the Vermont state budget for fiscal year 2020 appears to be relatively healthy. What’s more, unlike most budget plans, Vermont’s budget was unaccompanied by rancorous partisan squabbling. That, in and of itself, is especially welcome news in today’s day and age. According to the state fiscal rankings provided by the Mercatus Center of George Mason University, Vermont ranked 9th in the nation in terms of budgetary health for 2018. On other fiscal indicators, it ranked considerably lower, coming in at 39th for overall fiscal health. Given the rece ..read more
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NY Co-Op Sales & Taxes
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
New York “co-op” apartments are unique to the State of New York. When a person owns a co-op apartment, they own a share of a “corporation,” which is the apartment complex itself. But, at the same time, the owner of the co-op also owns a piece of real estate. That is, at least from a legal perspective. Historically, courts support the notion that co-ops are technically real estate. That’s why many co-ops are eligible for use in 1031 exchanges. What many people aren’t aware of is that selling a NY co-op apartment can bring about a slew of taxes. When you sell a co-op, you not only trigger a ..read more
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The Debate Over Tech Taxes
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
The growth of digital services has resulted in a huge boost to national economies around the globe. What’s more, the expansion of digital services has meant that a great many people have access to a wide range of entertainment and leisure activities. The rise of digital companies has also presented a set of new problems for governments around the world seeking to properly tax digital technology companies. Recently, policymakers from various governments convened in Switzerland to discuss ways to create fair economic and tax laws in view of the growth of digital services. More discussions betwee ..read more
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State Cannabis Taxation Rules
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
Lately, we’ve talked quite a bit about legalized marijuana taxes. We’ve talked about Section 280E, for instance, and the tax issues raised by this important tax code section. We’ve also talked about the debate currently taking place in New York regarding the legalization of recreational cannabis. Today, we will continue to discuss this critical topic by looking at state levies on the cannabis industry in a few more states in the United States. We’ve already covered several states, in a past article. In this post, we’ll look at how three states tax retail sales of recreational weed: Massach ..read more
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Cannabis Ordinary Business Expenses
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
The recreational cannabis industry is taking off in many states in the U.S. At present, ten states and the District of Columbia have already legalized recreational marijuana. As we discussed in a recent post, the State of New York may soon join the ranks and legalize recreational weed. If it does, New York’s cannabis retailers will have to contend with state and federal income taxes. Sole proprietors and others will comply with federal tax rates for individuals; cannabis corporations will contend with corporate tax rates. In any case, those with income derived from cannabis sales will have to ..read more
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Vaping Taxes & Smoking
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
We’ve talked about taxes on tobacco and cigarettes before on our blog. Taxes on tobacco and nicotine products have gained attention in the media recently following the release of a new study on the effect of a Minnesota tax on vaping products. The implications of this study are quite controversial; they may suggest that heavy taxes on vaping (or “e-cigarettes”) products may contribute to slower declines in cigarette cessation rates. Notably, 20 states, plus the District of Columbia, have passed taxes on vaping products. Massachusetts can be counted alongside Minnesota as another state with a r ..read more
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Understanding Estimated Quarterly Taxes
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
In our post on Form 1099, we alluded to the estimated quarterly tax system. Not all Americans pay taxes on an annual tax payment schedule. Not all Americans have only a single due date – April 15th – to keep in mind regarding their tax bill. Some Americans, especially freelancers and independent contractors, have multiple tax deadlines to cope with. W-2 Filers Have an Advantage Americans who work for a wage and file Form 1040 are really quite advantaged in a certain way. When an employee receives a wage, that employee has his or her approximate tax liability automatically withheld from ..read more
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Like Kind Exchange Requirements
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
As with every other section of the tax code, Section 1031 like kind exchange rules abound. Complying with Section 1031 is not unlike jumping through a series of bureaucratic hoops. In a very real sense, when you approach someone to assist with a 1031, what sets a good counselor apart is his or her understanding of the applicable rules. In the past, for instance, we’ve discussed the identification requirements of 1031. We talked about how taxpayers have to comply with one of three rules which identifying potential replacement property. We’ve also written about the 180 days to identify repla ..read more
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Exchange-First Reverse Exchanges
Mackay, Caswell & Callahan P.C.
by Joe
4y ago
Reverse 1031 exchanges are complex transactions. These transactions stand up under judicial scrutiny, such as in the case of Bartell. The IRS has also stepped in and tried to provide guidance for taxpayers wishing to perform these transactions. Although they are complex, they can offer advantages to taxpayers. And, in some cases, taxpayers need to conduct these transactions in order to acquire a specific property. To avoid costly litigation, taxpayers should follow the guidelines given by the IRS. The principal document of concern here is Revenue Procedure 2000-37. This document imposes a time ..read more
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