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Tag: IRS Rules
Sales Tax on AI Model “Inference-as-a-Service”
Introduction Texas businesses offering AI model inference-as-a-service (IaaS), where users access pre-trained models for predictions via API, must determine sales tax applicability to avoid compliance risks and penalties. Inexperienced advisors may misclassify these services, leading to undercollection or overpayment, impacting profitability. Are you correctly applying Texas sales tax to your AI inference services in 2025? […]
Carbon Capture Credits & Texas C-Corps: Franchise-Tax Offset
Introduction Texas C corporations involved in carbon capture projects can benefit from federal tax credits, but understanding their interaction with Texas franchise tax is crucial to maximize savings and ensure compliance. Inexperienced advisors may overlook how these credits influence franchise-tax calculations or fail to leverage them for offsets, leading to missed opportunities or overpayments. Are […]
Crypto Mining Incentives vs High Franchise Tax Apportionment in Texas
Introduction Texas has become a hub for cryptocurrency mining due to its abundant energy resources and favorable regulatory environment, but crypto miners must balance lucrative state incentives against the complexities of high franchise-tax apportionment. Inexperienced advisors may overlook how Texas franchise tax calculations can erode the benefits of incentives like property tax abatements, leading to […]
Unemployment Tax Rate Changes: Founder Budgeting Tips
Introduction Texas startup founders must anticipate fluctuations in unemployment tax rates to maintain accurate budgets and cash flow, as unexpected increases can strain early-stage finances. Inexperienced advisors may overlook rate changes or fail to leverage credits, leading to overpayments or compliance issues. Are you incorporating the latest unemployment tax rate changes into your 2025 budgeting […]
1099 vs W-2 in Texas: Worker-Classification Penalties
Introduction Texas business owners hiring workers must navigate the critical distinction between independent contractors (1099) and employees (W-2), as misclassification can trigger significant federal and state penalties, inflating tax liabilities and disrupting operations. Inexperienced advisors may misinterpret worker status criteria, leading to costly audits or missed tax benefits. Are you classifying your Texas workers correctly […]
Terminating a Texas Trust: Final Form 1041 & Franchise-Tax Impact
Introduction Trustees and beneficiaries in Texas often encounter complexities when terminating a trust, including navigating federal tax filings and state franchise tax obligations, where mishandling can result in penalties, delayed distributions, or unexpected tax liabilities. Inexperienced advisors may overlook the need for a final Form 1041 or fail to address Texas franchise tax implications, prolonging […]