Foreign Gifts

For quite a few taxpayers, filing their yearly tax returns doesn’t go much beyond the trusty old Form 1040.  There are of course many other forms for reporting to the IRS and one that is especially worth noting is Form 3520, a return for reporting transactions with foreign trusts and the receipt of foreign gifts.…

Nexus

In the world of tax, “nexus” is something of a magic word.  It’s the catalyst, the decider that lies between taxation and tax-exempt.  Put most simply, nexus is a collective term that refers to all the links, the connections, the contacts, etc. between a taxpayer and political jurisdiction (e.g. a state).  This is of paramount…

Alphabet Soup

It can be helpful to think of sales tax and use tax as mirror images of each other.  They’re closely related and they’re generally two ways of getting at the same thing.  In both cases the state is collecting a tax on a purchase or a service.  The main difference is whether that tax appears…

Sales Tax

These days it’s all about sales tax.  Senator Durbin hasn’t introduced his Main Street Fairness Act, the bill that would allow states to tax online retailers, but he is expected to do so soon.  In the mean time, several states have introduced legislation to create their own versions of the affiliate tax law first adopted in New…