Spring 2021

Letter from the Chair

I am honored to serve as Chairman of the Taxation Section of the State Bar of Michigan for the 2020-2021 fiscal year. Prior to the pandemic, our Section had approximately 1,300 active members. During the pandemic occurring during the prior fiscal year and continuing during this fiscal year, we continue to enjoy a national reputation as one of the leading state bar taxation sections. Our prior chair, James Combs, delivered on commitments by Tax Council despite the pandemic ensuring programs moved to virtual programs and he led an increasing in grants to recipients so that taxpayers with the greatest needs for professional tax advice were served. Mr. Combs delivered during our “new normal” and for that we should all be thankful for his efforts, years of leadership, professional insight and guidance. Read More

Committee Reports

Lena Gionnette is the current Chair of the Employee Benefits Committee. If you are interested in presenting, have an idea for a topic, or want to become ac­tively involved with the Committee, please contact Lena at lgionnette@nixonpeabody.com. Read More

The Shift to a Telecommuting Workforce in the Age of COVID-19: MI State & Local Tax Implications

shifting.jpgBy Marjorie B. Gell

On March 23, 2020, Michigan Governor Gretchen Whitmer issued a statewide stay-at-home order to help slow the spread of COVID-19 (“the coronavirus” or “the pandemic”).  Almost overnight, the way that Michigan companies conduct business-as-usual was turned on its head. Countless businesses have been forced to shut down as a result of the coronavirus. Other businesses, including traditional brick-and-mortar businesses, as well as service-based companies such as law firms, have continued to operate during the pandemic by requiring employees to “telecommute” from home.  When an employee’s temporary work location is maintained outside of the employer’s tax jurisdiction, unexpected tax consequences can arise. Because it is expected that many employees will continue to work remotely well into 2021 and beyond, the change in employees’ worker locations have both short-term and long-term tax implications. Read More

Facilitative Costs and The Tax Ramifications of Investment Expenses in Trusts

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By Neal Nusholtz

Suppose in 2019 that you are trustee of a $3 million simple trust set up after the death of a second parent. The trust will distribute all net income including capital gains equally to three children, all of whom are unmarried and each of which earns less than $30,000.00. Read More