Articles and Press Releases

Significant Tax Savings Opportunity - California Sales/Use Taxes

By Greg Elias

A recent taxpayer-friendly California court ruling provides an opportunity for companies with equipment purchases (> $1m annually) to obtain significant sales & use tax refunds on past equipment purchases and significantly reduce sales tax costs on future purchases. [1]   The refund opportunity could provide a refund of over 50% of the original sales/use tax paid on equipment purchases over the last three years.  Consider a company with $15M of qualifying equipment purchases during the three-year lookback period.  Their sales/use tax refund could be over $500,000. 

 

Read more
Download329.6 kb

New Internal-Use Software Regulations Have Been Finalized

By Greg Elias and Karen Papalia

On October 4th, the Treasury Department issued final regulations narrowing the definition of internal-use software (IUS). The final regulations (T.D. 9786) by and large adopt the proposed regulations issued on January 20, 2015, and are widely considered taxpayer-friendly for narrowing the definition of IUS. In other words, the new rules are notable for clarifying what is not considered internal-use software, since IUS is subject to a three-prong high threshold of innovation test while non-IUS software development is subject to a less restrictive standard.

Read more
Download178.3 kb

Newest Court Ruling That Could Save Your Hospital Millions

By Greg Elias and Eric Rothberger

A recent California legal decision provides an opportunity for healthcare providers to obtain significant refunds on past equipment purchases and significantly reduce sales tax costs on future purchases. [1]   The refund opportunity could range from 5% to 9% of past equipment purchases. For a hospital with $50M of equipment purchases during the relevant lookback period, there could be a refund opportunity in the range of $2 million to $4 million. We’ll discuss how to approach the refund process and how to work with your vendors to reduce sales tax costs on future purchases. 

 

Read more
Download122.5 kb

Software Companies Can Qualify for IC-DISC

By Greg Elias and Karen Papala

Privately held U.S. Software Companies who sell software, directly or indirectly, physically or downloaded, to customers outside the U.S. should be taking advantage of a U.S. income tax export incentive known as the “IC-DISC”.

Read more
Download390.0 kb

Claiming R&D Tax Credits for Closed Years

By Greg Elias

As we previously reported, taxpayers are now permitted to use the Alternative Simplified Credit (ASC) calculation on amended returns where no credit has been previously claimed. Prior to this development, taxpayers were required to use the much more difficult “regular” method on amended returns.

This makes it easier to claim the R&D credit on amended returns for open tax years, but what about “closed” years where the statute of limitations has expired? The good news is that taxpayers with NOL carryforwards can actually reach back into closed years to claim R&D credits and benefit in the current tax year.

Read more
Download378.2 kb

Is your project competitive? Cal Competes opens July 25th, 2016.

By Elaine Marr

The California Governor’s Office will open FY 16-17 with $75 Million of Cal Competes Tax Credits, the first of 3 cycles totaling over $200 Million this fiscal year.  The competitive and discretionary incentives process is California’s equivalent of a state closing fund designed to “close the gap” for projects considering sites in California and out-of-state. California Governor Jerry Brown was far more successful than Florida Governor Rick Scott... 

Read more
Download334.2 kb

Applying The R&D Tax Credit to Payroll Taxes

By Greg Elias and Karen Papala

Earlier this year, we reported htat the R&D tax credit has been permanently extended.  In addition, beginning in 2016 eligible small businesses with $50 million or less in gross receipts may claim the credit against their AMT liability, and startups with $5 million or less in gross receipts can apply the credit toward up to $250,000 of the employer's payroll taxes (i.e. FICA) liability.

Read more
Download240.8 kb

Los Angeles Telecommunications Utility Users Tax Refund Application Date Extended Until May 20th

By Jeffery L. Morris

If your company paid the Los Angeles Telecommunications Utility Tax (“L.A. UUT”) from October 19th, 20015 through March 15th, 2008 you are eligible for a refund. Fortunately, the  deadline has been extended to a postmarked-by date of May 20th, 2016.

Read more

LOS ANGELES 10% TELECOM TAX REFUND SERVICES GUIDE

By Jeffery L. Morris

There is a L.A. City telecommunication tax refund (“Telecom Refund”) available to every business that had a Los Angeles telephone service address for landline service and mobile telephone service between October 19, 2005 and March 15, 2008.

Read more
Download49.5 kb

Los Angeles settles for $92.5 Million in Telephone Utility Users Tax-Significant Refund Opportunity for Large Los Angeles Telephone Users

By Jeffery L. Morris

L.A. City preliminarily approved a $92.5M tax refund settlement for every business and individual who paid telephone utility tax on residential landline service, business landline service and mobile telephone service between October 19, 2005 and March 15, 2008. There will be a 120 day timeframe to participate by either claiming the undocumented safe harbor amount ($50 for mobile, $50 for business line service and $30 for residential landline) or documenting and claiming the actual tax paid during the refund period.

Virtually every business will want to elect the actual method in order to obtain the larger tax refund available.

Read more
Download106.5 kb