Now showing items 11-20 of 47
Improper Documentation and Maintenance of Files Can Lead to the Loss of Exemptions
Items purchased for resale are not taxable in Texas, however, a purchases must provide a resale certificate to a purchaser in order to qualify for an exemption from sales and use tax. Sellers should keep these certificates ...
LLC Remains Patent Holder of Asset for Capital Gain Purposes
Three co-inventors obtained patents for their inventions. Later, in exchange for membership interests in a new LLC, the inventors transferred their interests in the product to the company. The IRS ruled that the LLC was ...
Court Allows Direct Foreign Tax Credit for Tax Paid by Disregarded Entity
A direct foreign tax credit was proper when a company organized under Luxembourg laws by a U.S. parent company made or accrued advanced corporate income tax payments to Luxembourg. The company’s members did not have joint ...
Activities of Disregarded Entity Do Not Create UBTI
A Section 501(c)(6) trade group formed a wholly owned disregarded limited liability company for the purpose of providing trade show services. The IRS ruled that the activities of the disregarded LLC did not create unrelated ...
S Election Did Not Trigger Recapture of Dual Consolidated Losses Where Closing Agreement Was Signed
A discussion of an IRS ruling stating that under certain circumstances, an S corporation election would not trigger a dual consolidated losses recapture if a closing agreement was entered into by the parent company, its ...
Penalties for Failing to File Sales Tax Report and Pay Taxes
The failure to file sales and use tax reports can lead to the imposition of civil and criminal penalties and interest; the Texas Comptroller can choose to waive the civil penalties and interest.
Taxpayers Must File Annual and Information Reports to Comply with the Franchise Tax
Taxpayers must file an annual report with the Texas Comptroller of Public Accounts by May 15 of each year unless they have been approved for a filing time extension.
The Taxation of Motor Vehicles is Governed by Separate Tax Rules
Motor vehicle sales are subject to the Texas motor vehicle sales and use tax with few exemptions. County tax assessors collect the majority of Texas motor vehicle sales and use tax.
Tips on Using Exemption Certificates to Rebut the Presumption That All Sales Are Taxable
Exemption certificates allow purchasers to obtain goods without paying Texas sales and use taxes. Both sellers and purchasers should retain copies of the exemption certificates for a minimum of four years for protection ...
Understanding the Sales Taxation of Services and Enumerated Services
The sales of services are exempt from Texas sales tax, however, there is a long list of statutorily taxed services. Texas courts apply an essence of the transaction test to determine whether a mixed transaction is taxable.