In this episode of the SALTovation Podcast, Meredith Smith and Stacey Roberts explore the latest changes in California’s state and local tax landscape, focusing on recent conformity updates and the finalized market-based sourcing regulations. Joined by Michael Cataldo, they examine what these changes mean for taxpayers and the challenges of navigating apportionment nexus and compliance in today’s dynamic economic environment.

Cataldo shares his insights on pivotal income tax cases shaping California’s business climate and breaks down the complexities companies face in understanding business versus non-business income, especially in significant transactions like the sale of a business or its assets.

Key Takeaways:

• California updated state and local tax rules, including market-based sourcing.
• Changes affect apportionment nexus and compliance for businesses.
• Distinguishing business vs. non-business income is vital in major transactions.
• Recent tax cases are shaping California’s business landscape.
• Staying informed is essential for local and multistate taxpayers.

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Introductory Call

Introductory Call

In this episode of the SALTovation Podcast, Meredith Smith and Stacey Roberts continue their conversation with Michael Cataldo on the complex world of California tax litigation. They discuss pivotal topics such as distinguishing between business and non-business income, the impact of the throwout rule, and the intricacies of alternative apportionment.

Their conversation reveals how even a minor entry on a tax return can trigger significant consequences, from audits to penalties, and the importance of carefully reviewing tax software defaults, as relying solely on automated systems can lead to costly errors.

Key Takeaways:

• Early identification of potential tax issues can prevent audits and penalties.
• Differentiating between business and non-business income is critical in California tax filings.
• Understanding the throwout rule and alternative apportionment strategies can impact tax outcomes.
• Reliance on tax software defaults without careful review can lead to costly errors.

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Introductory Call

Introductory Call

Colorado’s recent elimination of the vendor fee marks a major shift in the state’s sales and use tax system, with big implications for small businesses and the wider economy. In this episode, we continue our conversation with Jenn Penn and Shanah Schaffer, breaking down what this change means for compliance, operational challenges, and the business community at large.

Together, we explore how business owners can collaborate to navigate these changes and advocate for a fairer tax landscape.

Key Takeaways:

• Vendor fee elimination impacts small businesses.
• Coalition works to simplify tax compliance.
• Collaboration helps navigate tax complexities.
• Legislative efforts address budget and policy changes.

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Introductory Call

Introductory Call