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Tax Archives

Developments in Ohio Tax Law

At first glance, the distinction between "business income" and "nonbusiness" income appears unequivocal. Recent case law followed by an ambiguous technical memorandum, however, created uncertainty among the legal and accounting communities. The distinction is crucial, as the maximum Ohio tax rate for business income is 3% whereas the nonbusiness income tax rate is capped at 4.997%.[1]

So You Want to Start a Charity

Everyday people want to know if they can to turn an activity they enjoy into a tax-exempt charity. Probably the most common reason people want to create a tax-exempt charity is to receive tax deductible donations. To receive tax deductible donations, the organization would have to be exempt under Internal Revenue Code Section 501(c)(3). For an organization to be exempt under Section 501(c)(3), the organization has to meet certain basic requirements.

Tax Treatment of Crowdfunding

Crowdfunding has become a popular way for many entrepreneurs to raise necessary capital from online donations. Projects for which crowdfunding has been used varies greatly in size, industry, and what a contributor may expect in return. While some crowdfunding has been on a very small scale, some projects have eclipsed more than $100 million dollars.

New Law Requires 501(c)(4) Organizations to File with the IRS

On December 18, 2015, President Obama signed The Protecting Americans from Tax Hikes Act (the "Act"). The Act contains a requirement that 501(c)(4) social welfare organizations file a notice with the IRS. Prior to the Act, 501(c)(4) organizations could, but were not required to, submit a Form 1024 requesting tax-exempt status from the IRS.

Ready to Throw Out Those Old Tax Records?

Once again, the tax filing season is behind most Americans, leaving in its wake another batch of paper and electronic records for taxpayers to add to what may already be a large collection of old tax papers and files. So, how long should you keep these files, and what documents should be saved in the archives?

Is "Standing" Required Before Boards of Zoning Appeals?

The Board of Zoning Appeals ("BZA") of a political subdivision in Ohio is an administrative body which conducts "quasi-judicial" proceedings. BZA decisions can be appealed under Ohio Revised Code §2506.01. State ex rel. Travelcenters of Am., Inc. v. Westfield Township Zoning Comm (1999) 87 Ohio St.3d 161.

An Overview of the Process of Appealing a Decision of the Board of Revision

The Board of Revision is traditionally the starting point for appealing the County's valuation of your real property. But is a Board of Revision determination final, or is further review available? Further review is available; determinations of the Board of Revision may be appealed to either the Board of Tax Appeals or the Court of Common Pleas. Below are some fast facts regarding the appeals process.

U.S. Supreme Court holds that severance payments are subject to FICA

In a case decided earlier this year, United States v. Quality Stores, Inc., the U.S. Supreme Court resolved a split among the circuits and held that severance payments that are not linked to the receipt of state unemployment benefits are "wages" subject to FICA withholding. This decision overturned the Court of Appeals for the Sixth Circuit which had concluded that the taxpayer, Quality Stores, Inc., was entitled to a refund of FICA taxes paid with respect to severance payments. While not a favorable decision for the taxpayer, it does offer employers some certainty that severance payments, not linked to the receipt of state unemployment benefits, are subject to FICA.

Federal Government Delays ACA Employer Mandate

The federal government recently issued final regulations that apply to the "employer mandate" or "play or pay" provisions under the Affordable Care Act (ACA). These provisions require employers with 50 or more employees to offer full-time employees (and their dependents) the opportunity to enroll in an adequate and affordable employer-sponsored health plan or pay a penalty. Last year, the government postponed enforcement of the new mandate until 2015. Now, the government has provided a further delay for employers with 50 to 99 employees and modified for one-year the coverage requirement that applies to employers with 100 or more employees: