Post-Election Insights Part 2: Potential Tax Impacts for Individuals

Michigan’s state income tax rate will be reduced from 4.25% to 4.05% for the 2023 tax year. This temporary tax rate reduction will apply to all individuals and fiduciaries. The announcement was made by Michigan Treasurer Rachael Eubanks on March 29, 2023 following the release of the state’s fiscal year 2022 Annual Comprehensive Financial Report. 

As e-commerce business continues to grow and evolve, the US tax landscape attempts to follow. However, taxation on digital activity is not always a clear or easy path. For example, in Maryland the constitutionality of its 1st in the nation tax on digital advertising gross revenue has been challenged. 

The Tax Court issued an opinion in Alon Farhy v. Commissioner, 160 T.C. 6 ( April 3, 2023), finding that the Internal Revenue Service lacked statutory authority to assess penalties under Internal Revenue Code §6038(b)(1) or (2) against a taxpayer who failed to file Form 5471