State, Local Unincorporated Business Taxes Offer Opportunities, Traps for Unwary Taxpayers

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

A number of jurisdictions impose entity-level taxes on unincorporated businesses, either in the form of a franchise tax or based on revenue, net income, or some other measure. These taxes are potential traps for unwary businesses that may not be aware of their existence or how they work, say Brian Masterson and Michael Bloom of Venable LLP. In this interview, Masterson and Bloom discuss the intricacies of these state and city levies and offer guidance on how to avoid the pitfalls and make use of credits that may be available against the taxes.