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Washington Tax Insight June 2019

Politics and Congressional Activity Congress returned on June 3rd from a Memorial Day recess to face a number of pressing issues.  Negotiations on budget and spending legislation are in the hands of House Speaker Pelosi (D-CA) and Senate Majority Leader McConnell (R-KY) with a goal of reaching agreement in time to prevent the need to pass a continuing resolution prior to the start of the fiscal year on October 1st.  […]

June 12, 2019

Top State and Local Tax Issues for Private Equity Firms

Private equity firms face an increasingly complex tax environment. The combination of the 2017 Tax Cuts and Job Act, the historic U.S. Supreme Court Wayfair ruling last summer, and the growing trend of states adopting market-based sourcing, have put many new rules and regulations on the table. As these changes take effect, it’s more important than ever for firms to be up-to-date from a tax perspective. Here’s a brief look […]

May 23, 2019

What Market-based Sourcing Rules Mean for Private Equity Firms

Over the last few years, a transformation has been taking place in state and local income taxes—the shift to market-based sourcing for services income. Today, more than half of the states have adopted market-based sourcing. The result is more complexity and uncertainty for private equity firms. Cost of performance vs. market-based sourcing Historically, most states used the cost of performance (COP) method for apportioning service revenue to a particular state. […]

May 23, 2019