Course Title and Length||
Learning Objectives: Participants should be able to…||
Level of Instruction (LOI), Prerequisites (P/R), Advance Preparation Required (APR)|
|Limits on States' Ability to Tax (Tax, 2 hours)||When does a taxpayer become subject to Hawaii's or another state's taxes? Are there limits to the kind of taxes states can impose? In an economy where many States are hungry for revenue, it is important for taxpayers and practitioners to understand that the States have limits. This examines what they are, including the significance of "nexus" and the "sourcing rules" that every state tax system has to have.|
- Identify U.S. constitutional provisions limiting the States' power to tax.
- Identify fact patterns giving rise to nexus.
- Understand sourcing rules and why they are necessary to a State tax system.
- Understand why no State taxes interest on federal obligations, airline revenues, and qualified plans.
|Confidence and Conclusions (Ethics, 2 hours)||How confident are you in your client's tax positions? They could be on a return, or they could be undisclosed. Consequences and penalties may apply depending on how strong the position is.|
- Distinguish between various position confidence levels such as Reasonable Basis, Substantial Authority, and More Likely than Not.
- Be familiar with taxpayer and preparer penalties and the disclosure rules.
|GET and Use Tax Special and Problem Situations (Tax, 2 hours)||Many people make the mistake of thinking that the Hawaii GET and Use Taxes are simple. But it is so fundamentally different from other states' taxes that even experienced multistate practitioners have difficulty understanding it. It impacts taxpayers even when there is little or no net income, so practitioners and businesses alike should understand its nuances. This intermediate level course explores special and problem situations that should deliver value to your business or your clients. |
- Identify revenue that may be subject to tax and distinguish exempt revenue
- Identify situations where the law allows a lower tax rate, such as wholesaling and wholesale services
- Be familiar with GET sourcing rules
- Identify when Use Tax applies and at what rate
P/R: Familiarity with Hawaii GET