Massachusetts ~ Sales and Use Tax: Click-Through Nexus Bill Introduced

Legislation has been introduced in the Massachusetts Senate that would establish a presumption that a person is a “vendor” if the person enters into an agreement with a Massachusetts resident under which the resident, for a commission or other consideration, refers potential customers, whether by a website link or otherwise, to the person, and the person’s cumulative gross receipts from all sales to Massachusetts customers referred by residents with such an agreement are greater than $10,000 during the preceding 12 months.

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Guidance Provided on Including Deficiency Reserves to Determine Statutory Reserves (Notice 2013-19)

The IRS has provided guidance on whether, for purposes of applying the limitation set forth in the flush language of Code Sec. 807(d)(1) (the statutory reserve cap), deficiency reserves are included in the amount taken into account with respect to a life insurance contract in determining statutory reserves under Code Sec. 807(d)(6) . The flush language of Code Sec. 807(d)(1) limits the reserve for a contract to the amount that would be taken into account with respect to the contract in determining statutory reserves.

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No Revenue, No Sequester Fix, Says Reid

On the eve of Senate debate on two competing bills to stave off an impending $85 billion in federal spending cuts slated to take effect on March 1, Senate Majority Leader Harry Reid, D-Nev., said, if Republicans do not accept revenue as part of the agreement, then he believes the sequester should take effect. Neither bill is expected to garner enough votes for passage.

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Revenue-Neutral Tax Reform is Top Priority for Ways and Means, Camp Says

Comprehensive tax reform will likely pass the House Ways and Means Committee by the end of 2013, the panel’s chairman said on February 26. Chairman Dave Camp, R-Mich., told reporters that House Speaker John Boehner, R-Ohio, supports his effort to complete work on revenue-neutral legislation and has reserved bill number HR 1 as the legislative vehicle. Camp met with Capitol Hill reporters in a closed-door briefing to detail the committee’s activities for the next two years.

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JCT Issues “Blue Book” for Tax Laws Enacted in 112th Congress

The Joint Committee on Taxation (JCT) has released its “General Explanation of Tax Legislation Enacted in the 112th Congress” (“Blue Book” ), which follows the chronological order of the tax legislation as signed into law. The Blue Book includes a description of present law, that is, law in effect just prior to enactment of the new provision, an explanation of the new provision, and the effective date.

The Blue Book is divided into 13 parts. Those parts are:

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