GAGNONtax Super Bowl and 2019 Tax Predictions
Bill Gagnon, President: Tax Reform will result in a second year of guidance and law changes (or lack thereof), creating even more complexity and uncertainty in the determination of state taxable income; and where there is uncertainty, there is a need for additional reserves. Further, expect a trend toward changes in entity form once individuals and small businesses have the advantage of seeing the “with and without” Tax Reform calculations associated with their 2018 earnings. Patriots take the win, 27-17.
Mike Hayes, Partner: We will see increased state scrutiny/nexus questionnaires for sales/use and income taxes because of Wayfair, resulting in an increased burden on internal tax departments who may need to start filing in a significant number of additional states. With this requirement will come a need for the use of technology to ease the burden and create efficiencies in companies big and small. Prediction courtesy of Tom Hellen, Patriots over the Rams, 31-23.
Paul Naehle, Partner, VP: The demand for ever-more sophisticated tax provisioning and sales/use tax technology will continue to increase. Emerging technology paired with decreased human resources and increased budget constraints will lead to the use/implementation of Artificial Intelligence and bots. Patriots win again, 34-30.
Carl Roscoe, Partner, General Counsel: The U.S. Supreme Court will deny certiorari to every appeal that seems remotely related to multistate taxation. SCOTUS typically hears one or two landmark cases in the area of state taxation each decade and they all but skipped the 2000s. Since 2018 gave us Wayfair, I’d suggest putting 2026 on your calendar just to check in to see what’s on the docket. Also, intense organized pressure from the Massachusetts sewing enthusiasts lobby will induce the legislature to strip away any distinction between sewing supplies and sewing equipment, allowing consumers to finally enjoy the same sales tax exemption for thimbles and scissors that they now enjoy for buttons and zippers. I’m a tad more certain about my first prediction than my second! Patriots beat the Rams, 31-20.