tag:blogger.com,1999:blog-4845852850567999492Thu, 23 Feb 2012 14:34:00 +0000Info of interest to small business owners in DE, MD, PA, NJ and VA. Book reviews, state and federal legislative changes, etc.http://delmarvanexus.blogspot.com/noreply@blogger.com (First State CPAs LLC)Blogger3012539.16426-75.511633tag:blogger.com,1999:blog-4845852850567999492.post-7244679837745329082Thu, 23 Feb 2012 14:34:00 +00002012-02-23T06:34:00.321-08:00The Maryland Comptroller of the Treasury has replaced form MW507 with form MW507M (Exemption from Maryland Withholding Tax for a Qualified Civilian Spouse of a U. S. Armed Forces Servicemember) to be used beginning with tax year 2011. Affected taxpayers who have already filed Form MW507 for 2011 should contact their employers to obtain and complete Form MW507M, which will be effective retroactivehttp://delmarvanexus.blogspot.com/2012/02/md-makes-minor-form-replacement.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-6210677712367338199Wed, 22 Feb 2012 14:23:00 +00002012-02-22T06:23:00.109-08:00Services provided by the taxpayer that were accessed by its customers online and delivered to the customers electronically were not subject to the Virginia retail sales and use tax because no tangible personal property was transferred as a result of these transactions. The transactions were deemed a provision of services. http://delmarvanexus.blogspot.com/2012/02/va-deems-provision-of-all-digital.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-4845581799605320623Tue, 21 Feb 2012 14:09:00 +00002012-02-21T06:09:00.475-08:00In December the department issued a tax bulletin that explains existing sales tax nexus law for remote sellers and clarifies the law and the department’s authority to require e-commerce and other out-of-state sellers to collect sales tax. Examples of maintaining a place of business in the Commonwealth include, but are not limited to: (1) A remote seller storing its property or the property of http://delmarvanexus.blogspot.com/2012/02/pa-cracks-down-on-remote-sellers-re.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-2553132767122054390Thu, 09 Feb 2012 14:16:00 +00002012-02-09T06:16:00.714-08:00Delaware does not maintain reciprocity agreements with other states and, therefore, nonresidents who work in Delaware must still file a Delaware tax return. Likewise, Delaware residents who work out of state are required to file a return with Delaware AND with the state where they worked. http://delmarvanexus.blogspot.com/2012/02/reminder-if-you-worked-in-de-but-lived.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-5159871031895992636Tue, 07 Feb 2012 13:18:00 +00002012-02-07T05:18:00.114-08:00Libraries and Post Offices – The Comptroller’s Office will no longer supply area post offices and libraries with tax booklets. Each library will receive a CD Rom of all of our forms if requested. Splitting a direct deposit – Taxpayers can now have a tax refund deposited into multiple bank accounts by using Form 588. New Dependent Form 502B - Form 502B will be a required form to be attached tohttp://delmarvanexus.blogspot.com/2012/02/miscellaneous-2011-md-tax-return.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-7248635017240344675Fri, 03 Feb 2012 13:30:00 +00002012-02-03T05:30:02.239-08:00This federal bill was never put to a vote in the last session but hopefully it will reappear. If passed, then as of the January after enactment, an employee's wages would not be subject to personal income tax or withholding and reporting requirements in any state other than the employee's state of residence and a state in which the employee is present and performing employment duties for more http://delmarvanexus.blogspot.com/2012/02/proposed-legislation-mobile-workforce.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-3772166990417483615Wed, 01 Feb 2012 13:30:00 +00002012-02-01T05:30:02.077-08:00• The license fee for occupations requiring licenses has decreased to 0.4023% of aggregate gross receipts. • The contractors’ license fee has decreased to 0.6537% of aggregate gross receipts. • The manufacturers’ license fee is now 0.1886% of aggregate gross receipts. • The wholesalers’ license fee is 0.4023% of aggregate gross receipts. • The additional petroleum product wholesalers’ http://delmarvanexus.blogspot.com/2012/02/following-de-gross-receipts-tax-rates.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-2815170626515828782Mon, 30 Jan 2012 13:30:00 +00002012-01-30T05:30:05.432-08:00A basic HRA is an employer funded plan wherein an employer sets aside an amount of money to reimburse eligible employees for qualified expenses. For example, you might say that you will reimburse up to $2000 per year of medical expenses for 35+ hr/week employees who have been with the company for at least 2 years. The employer may deduct this as a fringe benefit and the employee does not have to http://delmarvanexus.blogspot.com/2012/01/sec-105hra-money-may-now-be-used-to-pay.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-2945631486746592046Fri, 27 Jan 2012 13:38:00 +00002012-01-27T05:38:00.500-08:00Taxpayers, who were victims of the Madoff Ponzi scheme, were entitled to file amended New Jersey gross (personal) income tax returns for 2005 through 2007 to claim refunds for interest, dividends, and capital gains reported and taxed in those years from which they received no economic gain. The income never existed and, therefore, was not taxable.http://delmarvanexus.blogspot.com/2012/01/new-jerseyponzi-scheme-victims-entitled.htmlnoreply@blogger.com (First State CPAs LLC)1tag:blogger.com,1999:blog-4845852850567999492.post-8689066456829283540Wed, 25 Jan 2012 13:34:00 +00002012-01-25T05:34:00.151-08:00Prior to claiming the exemption, any qualifying entity must enter into a memorandum of understanding with the Virginia Economic Development Partnership Authority ("VEDP"). A qualifying data center is a data center (1) that is located in a Virginia locality; (2) that on or after January 1, 2009, results in a new capital investment of at least $150 million; and (3) that on or after July 1, 2009,http://delmarvanexus.blogspot.com/2012/01/virginiasales-and-use-tax-exemption.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-7722221418082428795Mon, 23 Jan 2012 13:33:00 +00002012-01-23T05:33:00.647-08:00MD courts ruled that a taxpayer was not a resident of Maryland. The taxpayer worked in Maryland for part of the year prior to moving to Maryland the subsequent year. The court noted that facts such as the taxpayer’s driver’s license, automobile registration, voter registration, homeowners’ fees, real estate taxes, mortgage payments, and testimony indicated that the taxpayer intended to reside in http://delmarvanexus.blogspot.com/2012/01/marylandworking-in-md-for-part-year.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-8444747508208435327Fri, 20 Jan 2012 13:00:00 +00002012-01-20T05:00:12.884-08:00See FAQs at same link for more info about how property winds up on this list and how to claim it. http://www.revenue.delaware.gov/unprop/unprop_search.shtmlhttp://delmarvanexus.blogspot.com/2012/01/de-2011-searchable-unclaimed-property.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-8886583050393839277Wed, 18 Jan 2012 13:00:00 +00002012-01-18T05:00:05.411-08:00The state Department of Revenue (DOR) has been instructed to develop and operate a licensee tax responsibility program. The Secretary of Revenue will issue a notice to licensing agencies indicating those licensees and applicants who have unresolved tax obligations on not less than an annual basis and administrators of state agencies will provide the Secretary of Revenue with information regardinghttp://delmarvanexus.blogspot.com/2012/01/pa-governor-orders-implementation-of.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-1655716545779237082Mon, 16 Jan 2012 13:00:00 +00002012-01-16T05:00:09.465-08:00For tax years beginning after 2011, the legislation provides a deduction that uses a calculation that consolidates business income and/or loss and allows taxpayers to carry forward unutilized losses. A net loss in one category of personal income still cannot be used to offset income in another category of personal income. The four categories of business income included in the alternative http://delmarvanexus.blogspot.com/2012/01/guidance-on-new-jersey-alternative.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-691536751071108819Fri, 13 Jan 2012 15:51:00 +00002012-01-13T07:51:00.369-08:00George W. Donald, 46, was charged with two felony counts of failing to pay over state withholding taxes that were withheld from his employees’ wages during the years 2006 and 2007. Donald was also charged with five felony counts of failing to pay over rental use taxes collected from customers of his construction equipment rental business, Delaware Rental, during the years 2006 through 2010. Taxeshttp://delmarvanexus.blogspot.com/2012/01/delaware-georgetown-de-business-owner.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-1413282461064671433Wed, 11 Jan 2012 15:49:00 +00002012-01-11T07:49:00.111-08:00A Virginia corporation commercially domiciled and operated in a foreign country, and a corporation commercially domiciled out of state, were appropriately excluded from the consolidated return because they did no business in Virginia and lacked sufficient activities to generate income from Virginia sources or to create a positive apportionment factor. However, the parent co did not have to back http://delmarvanexus.blogspot.com/2012/01/virginiano-filing-requirement-but-still.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-3683437445630155069Mon, 09 Jan 2012 15:45:00 +00002012-01-09T07:45:00.309-08:00The New Jersey Legislature has passed a bill that would provide a credit against the corporation business tax. Partnerships, S corporations, and limited liability companies would be able to pass through the credit to their members. The business must utilize a facility of a minimum $20 million value, employ at least 100 full-time persons (retained or created), provide health care benefits, and be http://delmarvanexus.blogspot.com/2012/01/new-jerseyjobs-tax-credit.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-1517813001208835422Wed, 21 Dec 2011 09:12:00 +00002011-12-21T04:52:00.346-08:00DE routinely reconstructs tax returns for residents who are extremely delinquent and who have ignored repeated requests to file returns. They can use the income amounts reported to them by payees; bank statements, credit card statements, cancelled checks, customer bills and cash receipts; other methods (such as income earned in other years) to estimate income and the related taxes and these http://delmarvanexus.blogspot.com/2011/12/if-you-dont-file-tax-retrun-when.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-1168498221678048273Wed, 21 Dec 2011 09:04:00 +00002011-12-21T01:04:04.833-08:00Non-DE resident employed in DE must pay DE tax for work performed on site in DE and when working from home (in PA) for this same DE employer. The case hinged on the fact that she was working from home solely for her convenience and not for the convenience of her employer. It was 33 days - hardly seems worth the fight!http://delmarvanexus.blogspot.com/2011/12/non-de-resident-employed-in-de.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-6832664221200747762Wed, 21 Dec 2011 09:00:00 +00002011-12-21T01:00:36.995-08:00This provides a corporation business tax and gross (personal) income tax credit to taxpayers who employ members of the National Guard or members of a reserve component of the Armed Forces who have received orders for mobilization to active duty service. The credit would be equal to 20% of the salary and wages paid by the taxpayer during the privilege period or tax year up to $2,000 for each http://delmarvanexus.blogspot.com/2011/12/nj-passes-national-guardreservist.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-6431038662241221772Wed, 21 Dec 2011 08:54:00 +00002011-12-21T00:54:38.568-08:00As if income tax and sales tax nexus were not enough! A business not located in VA other than having an employee at a client's place of business year round may be required to obtain a business license. Certainly other nexus will follow!http://delmarvanexus.blogspot.com/2011/12/nowbusiness-license-nexus.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-6729743662166949316Wed, 21 Dec 2011 08:50:00 +00002011-12-21T00:50:53.244-08:00This applies to: detective agencies and private investigators; and fingerprint, polygraph, missing person tracing, and skip tracing services; bodyguard and personal protection, guard dog, guard, patrol, and security services; armored car services; and security systems services, including security, burglar, and fire alarm installation, repair, and monitoring services. http://www.state.nj.us/http://delmarvanexus.blogspot.com/2011/12/nj-new-su-pub-for-investigationsecurity.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-1045020732901837598Wed, 21 Dec 2011 08:46:00 +00002011-12-21T00:46:30.657-08:00Philadelphia Re-Entry Employment Program for Ex-Offenders credit (PREP credit) http://www.phila.gov/reentry/pdfs/Guide_the_Philadelphia_Reentry_Employment_Program_11911.pdfhttp://delmarvanexus.blogspot.com/2011/12/pa-offering-ex-offender-hiring-credit.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-5380777324744537198Wed, 21 Dec 2011 08:42:00 +00002011-12-21T00:42:15.896-08:00The fact that the major asset and revenue source of a DE company was a limited interest in a NJ company did not mean that the DE company owed the NJ corporate business tax. The 2 companies had some common board members but otherwise were not at all integrated or unitary. Even though the court ruled in favor of the taxpayer in this case it is worth keeping in mind that this might not be the best http://delmarvanexus.blogspot.com/2011/12/owning-large-limited-interest-of-nj-co.htmlnoreply@blogger.com (First State CPAs LLC)0tag:blogger.com,1999:blog-4845852850567999492.post-1636959598373962251Wed, 21 Dec 2011 08:26:00 +00002011-12-21T00:27:39.732-08:00In the case of leased labor, NJ has proclaimed that tax credits incentivizing employers to hire from various groups belong to the company actually utilizing the labor of the individual and not to the staffing service, even though the W-2 will be issued by the leasing company.http://delmarvanexus.blogspot.com/2011/12/leased-labor-tax-credits.htmlnoreply@blogger.com (First State CPAs LLC)0