Once-in-a-Lifetime Tax Incentive: Employee Retention Credit extended to Q3 and Q4 2021, and expanded for start-ups and struggling businesses.

On August 4, 2021, the IRS released additional guidance concerning the Employee Retention Credit (ERC) for Q3 and Q4 2021. See IRS Notice 2021-49. A notable expansion to eligible businesses includes any business started after February 15, 2020. Further, any employer experiencing a significant decline in quarterly gross receipts for Q1 to Q3 2021 will... Read More

Ohio’s Budget Bill tax changes aim to increase Ohio investment and reduce burdens on recovering businesses

Ohio’s Biennial Budget Bill (Am. Sub. H.B. 110) was signed into law by Governor DeWine on June 30, 2021. The bipartisan bill boasts substantial measures to boost school and scholarship funding, create incentives for investing in Ohio, provide relief to businesses hit hard by COVID-19, and even allow college student-athletes to benefit from their own... Read More

Ohio Sales / Use Tax: Who controls your trash? Critical contractual distinction determines tax exemption for waste haulers, creating potential refund opportunities.

The Ohio Supreme Court recently ruled that a waste-hauler was entitled to Ohio’s transportation-for-hire exemption from sales / use tax on trucks used to haul trash to customer-designated locations. In N.A.T. Transportation, Inc. v. McClain, the Court determined the waste had not been abandoned, distinguishing from a previous case, since these customers controlled the destination... Read More

Out-of-State Remote Workers may Create Substantial Nexus as COVID-19 Protections Expire

In response to the COVID-19 pandemic, as work-from-home became the norm, many states provided safe harbors such that remote workers teleworking in the state would not create nexus for corporate income tax and sales / use tax purposes. Thus, businesses with teleworking employees were not burdened with additional state tax obligations during the pandemic. Now... Read More

Challenge to Ohio’s COVID-19 Remote Worker Withholding Statute Dismissed

In the fall 2020, Ohio passed a law giving employers flexibility to withhold income taxes as if employees were still working at the office, even if they were working remotely in a different municipality due to COVID-19. See H.B. 197. It essentially provided administrative relief to employers because they are not required to withhold tax... Read More

Ohio commercial activity tax – NASCAR hits Roadblock as broadcast and media revenue sitused to Ohio based upon viewership data

For Ohio commercial activity tax (CAT), gross receipts from certain intellectual property, such as trademarks, trade names, patents and copyrights, are sitused to the location where the purchaser uses or has the right to use the property. R.C. 5751.033(F). NASCAR’s revenue from the broadcast of its races “encompassed territory both inside and outside of Ohio.”... Read More

Significant Real Property Tax Savings Available for Property Owners Affected by COVID-19

Yesterday, Governor DeWine signed S.B. 57 into law, which allows property owners to reduce their 2020 property tax bills by filing a special “COVID-19 Complaint” with the county due by September 2, 2021. Complaints may be filed beginning August 3, 2021. Additionally, the statutory restriction for filing only one complaint in a 3-year valuation period... Read More

SALT Cap Workaround – Ohio provides PTE investors who elect workaround with income tax benefit.

Individuals are limited to deducting $10,000 ($5,000 for married filing separate) of state and local taxes (SALT) on their Federal income tax. Generally, income earned by pass-through entities (PTE) is taxed at the investor level, meaning business owners lose a valuable Federal income tax deduction for state taxes paid on income earned by businesses they... Read More

Ohio Domicile: Taxpayer could have prevailed with simple affidavit

In a recent Board of Tax Appeals Case, taxpayers contested the Department’s assessment of personal income taxes for 2014-16, asserting that they were not Ohio residents. See Anthony R. Joy & Robin E. Miller, (et. Al.), v. Jeffrey A. Mcclain, Ohio BTA Case No. 2020-239. However, the taxpayers made two critical mistakes that ultimately resulted in... Read More