State Income Tax Compliance Reminders / ALERT!
As we approach the 2009 state income tax return deadlines of March 15th, April 15th and May 15th, I wanted to provide a brief list of some items to watch out for:
- Service companies should be aware of the different state apportionment rules.
- Texas and Michigan should be reviewed very closely due to the volume of notices most companies received last year.
- Treatment of Disregarded entities by Michigan, and Michigan's Unitary test.
- Wisconsin combined reporting rules in effect for 2009.
- Treatment of COD income by states – apportionable income? Included in apportionment factor?
- For Minnesota residents, cannot take a credit for taxes paid to Texas, Michigan and Ohio.
- Most corporations are not subject to the Ohio Franchise tax anymore (for tax years ending in 2009 and beyond). The Ohio CAT tax is now fully phased-in.
- Ohio S Corporation Status Filing requirement (FT-1120S) no longer required to be filed.
- State depreciation adjustments (bonus depreciation and Sec. 179).
- Composite return requirements and nonresident shareholder agreement requirements.
- California $800 minimum tax due with 1st quarter 2010.
- California LLC fee estimate for 2010 due 6/15/2010.
- Remember: CA LLC Fee is based only on California receipts, not everywhere gross receipts.
Need a Second-Opinion?
As your company or your clients get closer to the filing deadline, please contact me at firstname.lastname@example.org with any questions.
I am available to review any state income tax returns, provide a consultation on any state income tax FIN 48 reviews, or questions involving apportionment, nexus, business vs. nonbusiness income, unitary analysis, audit/notice representation, etc.
As always, I hope you find the information I provide helpful. I want to thank those of you who have contacted me with questions and comments, and the positive feedback I have received. I really appreciate it.
Brian Strahle is the owner of LEVERAGE SALT, LLC where he provides state and local tax technical services to accounting firms, law firms and tax research organizations across the United States. He also writes a weekly column in Tax Analysts State Tax Notes entitled, "The SALT Effect." For more info, visit his website: www.leveragestateandlocaltax.com
You can reach Brian at email@example.com.
Because state and local taxes are deceptively simple and endlessly complicated.