A constitutional amendment to add a 4% surtax for Massachusetts taxpayers with over $1,000,000 of taxable income was passed with a 52% vote this past Tuesday and is expected to go into effect for the 2023 tax year. The current 5% tax rate will still apply to the first $1,000,000 of ordinary income and long-term capital gains, and the 12% tax rate on short term capital gains remains untouched,...

Key Tax Provisions of the Inflation Reduction Act

Beginning in 2022, amendments made by the Tax Cuts and Jobs Act require taxpayers to amortize research and experimentation expenditures over five years or 15 years, for research and development performed outside the U.S.  Attempts were made to delay the adoption of these changes to 2026 with the Build Back Better Bill, but since the BBB stalled in congress, taxpayers should prepare their...

Employee vs Independent Contractor Misclassification Companies sometimes look to hire independent contractors instead of employees for a number of different reasons.  A company may choose to classify a worker as an independent contractor for legitimate business reasons but may also do so to avoid any number of the following: Avoid paying/offering required & voluntary benefits such as health...

Congress passed the bipartisan COVID-19 Emergency Relief Act on December 21, 2020 and sent it to President Trump's desk for signature. While the bill provides relief to a variety of areas in the economy, below is a summary of points that we have been asked about the most:   PPP Loan Program Additions and Modifications The forgivable loan program first introduced from the CARES Act in April...

After the Wayfair ruling in 2018 many businesses took a deeper look at their exposure on a state by state basis, and now that work has shifted almost exclusively to a remote work environment those conclusions need to be reevaluated.  South Dakota v. Wayfair defined that for sales tax purposes the physical presence test is not the only way to fall under a state’s sales tax jurisdiction, so many...

Many taxpayers who originally thought that working from home would be a temporary circumstance are beginning to find out that their arrangements may become more permanent, and are also learning there are a myriad of tax implications to be aware of.  The tax items may impact not just 2020, but continue into 2021 and beyond while the world waits for the COVID-19 pandemic to subside.   The home...