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 [email protected] 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.