April Economic Update

Custody Examinations

For nearly 80 years, Registered Investment Advisers (RIAs) have been subject to the "custody rule" [rule 206(4)-2] under the Investment Advisers Act of 1940, which protects their clients from the misuse or misappropriation of their clients’ funds and securities. In 2009, the Securities and Exchange Commission (SEC) updated the custody rules to further protect advisory clients. RIAs that have custody are now required to have an annual surprise custody examination. This examination is to be completed by an independent accounting firm that is registered with the Public Company Accounting Oversight Board (PCAOB).

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You Still Have Time to Make 2017 IRA Contributions

Tax-advantaged retirement plans like IRAs allow your money to grow tax-deferred — or, in the case of Roth accounts, tax-free. The deadline for 2017 contributions is April 17, 2018. Deductible contributions will lower your 2017 tax bill, but even nondeductible contributions can be beneficial.

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2018 Q2 Tax Calendar: Key Deadlines for Businesses and Other Employers

Here are some of the key tax-related deadlines affecting businesses and other employers during the second quarter of 2018. Keep in mind that this list isn’t all-inclusive, so there may be additional deadlines that apply to you. Contact us at learnmore@BoulayGroup.com or 952.893.9320 to ensure you’re meeting all applicable deadlines and to learn more about the filing requirements.

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Remote Seller Notice and Reporting Requirements

States have problems enforcing sales and use tax laws, period. This is especially true when remote sellers ship products to in-state customers but do not charge sales tax. Advocates of the status quo may argue that purchasers still have an obligation to self-assess use tax. But when was the last time you self-assessed tax for your online purchases? Assuming you said ‘never,’ you’re not alone. Self-assessment is virtually unheard of by most individual consumers. Businesses are better at self-assessments, but compliance is far from 100%.

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March Economic Update

Highlights of the Tax Cuts and Jobs Act for Bankers

Michael A. Crabtree, J.D., CPA, Partner, wrote an article entitled, "Highlights of the Tax Cuts and Jobs Act for Bankers," for the Minnesota Bankers Association's March/April 2018 issue of MBA News. Click here to read the article.

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Amazon Required to Identify FBA Sellers to State Authorities

Ever wondered how your business could wind up on some far-off state tax department’s hit list? How would another state, city or county jurisdiction ever know your company’s name, let alone have reason to question you about income taxes or sales taxes? These questions are common when businesses receive state tax questionnaires or notice letters. Conversations about how the department of revenue got your name generally result in guessing games. However, we do know that states are looking at one new method when it comes to sellers utilizing the Fulfilled By Amazon (FBA) program.

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Sales Tax Nexus Showdown – 'South Dakota v. Wayfair, Overstock and Newegg'

The U.S. Supreme Court established the physical presence standard for sales and use tax nexus 26 years ago with its Quill Corp. v. North Dakota decision. Nonetheless, in Quill, the Court said it was up to Congress to determine constitutional standards for allowing states to determine sales and use tax collection obligations. Congress has considered various legislative options but has yet to act, leading many states in recent years to create laws directly challenging Quill in the hope of motivating the Court to reconsider its physical presence standard. The states’ efforts paid off on Friday, January 12, 2018, when the U.S. Supreme Court granted certiorari in South Dakota v. Wayfair, Overstock and Newegg. This means the sales tax nexus issue will have its day in court once again.

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Home Equity Borrowers Get Good News from the IRS

Passage of the Tax Cuts and Jobs Act (TCJA) in December 2017 has led to confusion over some of the changes to longstanding deductions, including the deduction for interest on home equity loans. In response, the IRS has issued a statement clarifying that the interest on home equity loans, home equity lines of credit and second mortgages will, in many cases, remain deductible under the TCJA — regardless of how the loan is labeled.

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