The Trade Facilitation and Trade Enforcement Act of 2015 (Trade Act), signed in 2016 by President Obama, includes several tax-related provisions.
The Trade Act increases the penalty for failure to file a tax return on time. Before the Act, the minimum penalty was the lesser of $135 or 100% of the tax actually owed. The minimum penalty only applies if a return is filed more than 60 days after the due date for the return - taking extensions into account. The Act increases the $135 amount to $205 and applies to returns that are required to be filed in calendar year 2016 or later years.
Internet taxation | Previous legislation prevented state and local governments from imposing taxes on internet access or from imposing multiple or discriminatory taxes on electronic commerce. This moratorium expired on October 1, 2015, and the Trade Act permanently extends that moratorium. However, certain states that are currently imposing a tax on internet access are permitted to continue until June 30, 2020.
Questions? Contact your Berdon advisor. Berdon LLP, New York Accountants