Posts by Tax Department

DC Paid Family Leave

The District of Columbia has recently begun the first stage of implementing its new Paid Leave rules, which created a new benefit for employees and a new tax on employers. The DC Paid Leave Act provides up to: 8 weeks to bond with a new child 6 weeks to care for a family member with…

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IRS Announces New, User-Friendly, Tax Withholding Estimator

The IRS recently launched a new Tax Withholding Estimator on its website.  The new estimator is designed to be more user-friendly than the previous Paycheck Checkup tool that was available. Consider using the estimator if you received a large refund or owed a large amount of tax when you filed your 2018 return, or if…

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IRS Steps Up Its Cryptocurrency Campaign

The IRS announced that it has begun sending letters to taxpayers with virtual currency (including “cryptocurrency”) transactions. This is part of a Virtual Currency Campaign being run by the IRS to ensure taxpayers are properly reporting income from these transactions. According to the IRS announcements, the mailing campaign began in mid-July and, by the end…

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Beat the Summer Heat! Upcoming Sales Tax Holidays

Just in time for back to school shopping, both Maryland and Virginia are holding sales tax holidays in the month of August. The “Shop Maryland Tax-Free Week” for 2019 is Sunday, August 11 – Saturday, August 17. Virginia is holding its annual sales tax holiday on August 2-4, 2019. Please see below for more details.…

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The SALT Limitation Loophole Comes to an End

The IRS has issued final regulations requiring taxpayers to reduce their charitable contribution deductions by the amount of any state or local tax credits they receive or expect to receive in return for the contribution. In Notice 2019-12, the IRS provides a safe harbor permitting taxpayers who claim itemized deductions and have less than $10,000…

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Wayfair – Mid-Atlantic States Update

As we approach the first anniversary of US Supreme Court’s game-changing sales tax decision in Wayfair (see our previous blog on the topic), we highlight some related developments in the Mid-Atlantic region. Virginia and Pennsylvania have made changes to their economic nexus rules, effective July 1, 2019. Under Virginia’s new law, remote sellers must register…

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Maryland Expands Child and Dependent Care Tax Credit

On May 13, 2019, Governor Hogan signed a bill to expand Maryland’s Child and Dependent Care Tax Credit. Taxpayers who have expenses for child and dependent care to allow them to work can claim a credit for these expenses on their federal tax return. Maryland has long allowed an income tax credit that was a…

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Top 10 Property Tax Myths

Are you missing an opportunity to reduce your property tax liability? Nearly all local taxing jurisdictions, including municipalities, counties, and boards of education, generate tax revenue through the imposition of property tax, which is one of the most substantial sources of local government revenue. For many businesses, property tax is the largest state and local…

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IRS Announces Underpayment Penalty Relief

The Internal Revenue Service announced yesterday in Notice 2019-11 that it will be providing relief from the assessment of underpayment of estimated tax penalties for individuals under IRC 6654.  In the notice, the Internal Revenue Service has stated due to the effects of the Tax Cuts and Jobs Act passed in December 2017, individual taxpayers…

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IRS Guidance on the Treatment of Qualified Transportation Fringes

Employers may provide certain qualified transportation benefits to their employees without the employees being taxed on these benefits (“qualified transportation fringes”). After the changes enacted as part of tax reform, certain benefits remain nontaxable to employees, but the cost of providing these benefits is no longer deductible to the employer. These benefits are: Transportation in…

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