Connecticut State & Local Tax Alert

Your source for Connecticut SALT updates

According to recent reports, the much anticipated second set of Opportunity Zone proposed regulations should be released by the Internal Revenue Service within the next couple of weeks. Bloomberg News reported on Monday, March 18, 2019 that the Internal Revenue Service sent the proposed regulations to the White House’s regulatory review office on March 12, 2019 and Treasury Secretary Steven Mnuchin indicated during a March 14, 2019 Senate Finance Committee hearing that the new guidance…
Join Shipman & Goodwin exempt organization tax attorney Ray Casella for this informative webinar discussing the new UBTI rules applicable to employer-provided parking. He will address questions about UBTI including: Why do we have it? How do we comply with it? How do we minimize it? Who should attend: Non-Profit Tax Exempt Organizations When: March 25, 2019, 12:00 PM – 1:00 PM EDT Where: Webinar REGISTER NOW! *Please note that this program is scheduled for…
As followers of this blog know, and as explained in our 2018 Connecticut Tax Law Update, Connecticut imposes sales tax economic nexus. In Connecticut, the definitions of the terms “engaged in business in the state” and “retailer” have been modified so as to now subject to Connecticut taxing jurisdiction, to the extent not prohibited by the United States Constitution, an out-of-state retail business that engages in the regular or systematic solicitation of sales of…
On Friday, March 8, Bloomberg News published an article claiming that the IRS is likely to issue additional regulations regarding states’ efforts to circumvent the state and local tax deduction limitation put in place pursuant to the Tax Cuts and Jobs Act. Bloomberg News quotes Scott Dinwiddie, of the IRS’s Income Tax and Accounting Division as having said, “From the IRS perspective, the workarounds certainly have not gone unnoticed.” It is unclear when such regulations…
Shipman & Goodwin attorney Louis Schatz authored the article Connecticut’s Response to the Tax Cuts and Jobs Act of 2017(Part II) for the New York State Society of Certified Public Accountants online tax publication, Tax Stringer. An excerpt from the article is provided below. This article is the second in a two-part series about Connecticut’s Response to the Tax Cuts and Jobs Act of 2017 (the “New Federal Tax Act”). This second part of the…
Shipman & Goodwin exempt organization tax attorney Ray Casella will present an informative webinar and lively discussion where he will answer questions about school tax obligations for employee and teacher parking and the new UBTI rules. The presentation will begin with a short explanation of UBTI, followed by relevant examples from the IRS. Schools will come away with answers to questions about UBTI including: Why do we have it? How do we comply with it?…
As part of his proposed budget presented to the General Assembly last week, Governor Lamont proposed the elimination of the Connecticut gift tax.  Presently, and as noted in the Governor’s budget proposal, Connecticut is the only state with a gift tax.  The Governor’s proposal would eliminate imposition of the gift tax but provide for a three-year look back period to identify and prevent gifts made in contemplation of death, essentially providing a back-stop to the…
When Connecticut enacted legislation in 2017 to become a mandatory withholding state, effective January 1, 2018, for Connecticut residents receiving pension, 401(k), IRA or annuity distributions, few would have imagined the difficulty residents and payers would have understanding the new rules, including how the exception from withholding would apply for rollover distributions. Nor would many have predicted the difficulties Connecticut residents would have with completing the Form CT-W4P, which attempted to mirror the wage withholding…
In 2016, the Connecticut General Assembly created the Connecticut Retirement Security Exchange, to facilitate the establishment and maintenance of an individual retirement account (“IRA”) program for Connecticut employees whose employers do not provide their own retirement plans. Under the program, private Connecticut employers, whether for profit or not-for-profit, who have five or more employees would have to provide covered employees with informational materials and automatically enroll them into the program. Employers who already maintain a…
For years now, the Connecticut Department of Revenue Services (DRS), the Connecticut Department of Labor (DOL) and the Internal Revenue Service (IRS) have been targeting Connecticut employers for worker misclassification audits. When a misclassification is discovered, these government entities can share information about employers who have misclassified employees as independent contractors. Thus, when one of these government entities finds a misclassification during an audit, audits from the other governmental entities are likely to arise. When a…