The South Carolina Supreme Court issued its decision in CarMax Auto Superstores West Coast, Inc. v. S.C. Dep’t of Revenue, Opinion No. 27474 (S.C. Dec. 23, 2014), holding that the South Carolina Department of Revenue bore the burden of proof to invoke the use of an alternative apportionment method and failed to meet its burden. View the full Legal Alert.
Tea Party organizations and other right-wing groups had their applications for tax-exempt status held up in part because of hostility from IRS officials and employees, according to a congressional committee report (Doc 2014-30328) released December 23. The report, prepared by the majority Republican staff of the House Oversight and Government Reform Committee, concludes that conservative organizations were targeted for extra scrutiny by the IRS not only because of their political beliefs but also because officials and employees at the agency expressed "a general loathing" toward them.
View the entire article on LexisNexis® Tax Center
Discover the features and benefits of LexisNexis® Tax Center
The European Commission has made a formal request to the WTO for consultations with the United States regarding the extension of tax incentives for the aerospace industry that were passed by the Washington Legislature last year, according to a December 19 commission statement. The commission claims that extension represents Washington state's continuation of a program subsidizing Boeing Co. that was deemed "WTO inconsistent" in a 2012 WTO ruling and that its request is therefore a "consistent and necessary step" in the dispute.
View the entire article on LexisNexis Tax Center
The U.S. District Court for the District of Minnesota on December 22 denied a motion for preliminary injunction seeking to enjoin Medtronic Inc. from reimbursing its board members for any IRC Section 4985 excise tax liability caused by its proposed merger and inversion deal with Ireland-based Covidien PLC. In June Medtronic announced plans to acquire Covidien in a cash-and-stock transaction for $ 42.9 billion, with the new parent company's executive offices located in Ireland. The inversion would dramatically lower Medtronic's corporate income tax rate.
Covidien PLC and Medtronic Inc. on Tuesday agreed to a non-monetary settlement in a consolidated stockholder suit alleging that their proposed $42.9 billion merger undervalues Covidien and accusing Covidien directors of breaches of fiduciary duty, the ...read more
Today the Louisiana Fifth Circuit Court of Appeal held that a cable television provider’s video-on-demand (VOD) and pay-per-view (PPV) programming services are not tangible personal property and therefore not subject to sales tax. Newell Normand, Sheriff and Ex-Officio Tax Collector for the Parish of Jefferson v. Cox Communications Louisiana, LLC, Case No. 14-CA-563 (La. App. 5 Cir. December 23, 2014). Sutherland represented Cox in the matter.View the full Legal Alert.
Amicus briefs in support of both sides in Florida's same-sex marriage debate are flowing in following the U.S. Supreme Court's recent decision to let a stay expire Jan. 5 on a ruling overturning the state's ban on same-sex marriage. ...read more
READY FOR SECOND EDIT -- Language barriers, administrative complexities and limited information stand out among greatest cross-border tax challenges facing companies and individuals in the European Union, the European Commission said in a study released ...read more
A suit filed in Dallas state court alleges Chamberlain Hrdlicka White Williams & Aughtry PC exploited confidential information from an investment adviser client to help investors bring claims against the client related to a tax strategy dispute, costing ...read more
Wells Fargo Bank will pay most of Revel Casino Hotel’s outstanding $31 million property taxes, pending approval from Atlantic City and the bankruptcy judge presiding over the beleaguered casino’s case, a city official told Law360 on Tuesday ...read more
A Minnesota federal judge on Monday denied a bid by Medtronic Inc. shareholders to stop the company’s board from using company funds to reimburse board members’ tax liabilities stemming from the proposed merger with Covidien PLC, saying the ...read more
A group of Las Vegas-based strip clubs wants U.S. Supreme Court review of a Nevada Supreme Court ruling upholding a 10 percent “live entertainment” tax imposed on strip clubs but not other live entertainment, arguing it infringes their First ...read more
The Internal Revenue Service and U.S. Department of the Treasury released final regulations on Tuesday explaining that fully or partly foreign-owned businesses will have to file information returns with their income tax returns and cannot file them separately ...read more
The New Jersey Senate on Monday passed fast-tracked legislation that would consolidate agencies that oversee the state's Meadowlands region and reform a tax sharing system among 14 towns in Bergen and Hudson counties through a new hotel assessment ...read more
U.S. Rep. Michael G. Grimm, R-N.Y., pled guilty to a single tax charge in New York federal court Tuesday stemming from his past ownership of an Upper East Side fast-food restaurant, but said he didn’t plan to resign from office. ...read more
The Indiana Tax Court sided with Lowe’s Home Centers LLC in a dispute with the Indiana Department of State Revenue, saying the chain properly self-assessed and remitted use tax on materials it used in its home repair contracting work. ...read more
The Justice Department's offshore enforcement efforts in nontraditional tax haven jurisdictions continue to pay off after it announced December 22 that it has reached a deferred prosecution agreement with Israel-based Bank Leumi Group in which the bank admitted to conspiring to aid U.S. taxpayers in preparing and presenting false tax returns to the IRS by hiding assets and income in offshore accounts. As part of the agreement, filed in the Central District of California, Bank Leumi Group will pay the United States a total of $ 270 million -- $ 157 million of which represents a penalty for U.S. taxpayer accounts held at Leumi Private Bank in Switzerland.
Ohio Gov. John Kasich (R) on December 19 signed legislation involving municipal income taxes, the creation of a sales tax holiday, and adjustments to the rate brackets of the financial institution tax. HB 5 streamlines municipal income taxes across the state. SB 243 addresses various tax issues, including creating a three-day sales tax holiday in August 2015. Under HB 5, income for residents includes compensation from any source not exempted by the bill, net profits, and winnings from gaming. For corporations, passthroughs, and other business entities, income is limited to net profits after apportionment and allocation.
Ingersoll-Rand, a former New Jersey company that provides heating and cooling equipment and maintenance services to U.S. federal government agencies, was reportedly granted immunity from a ban on awarding federal contracts to inverted companies, despite a history of redomestication in tax havens. A global provider of industrial machinery and equipment founded in New York over a century ago, Ingersoll-Rand moved its tax domicile to Bermuda in December 2001 through a shareholder-approved reincorporation expected to improve its cash flows and reduce its worldwide effective tax rate. It moved its tax residency to Ireland in July 2009, again through a shareholder-approved reorganization. In preparation for the move, then-CEO Herbert L. Henkel touted Ireland's network of tax treaties with the United States, the European Union, and other countries where Ingersoll-Rand has major operations.
An epic battle at the U.S. Supreme Court over the Affordable Care Act’s future officially began Monday, as challengers seeking to curb health insurance subsidies filed an opening brief asserting that it would be “lawless” to allow the ...read more
Illinois Central Railroad Company sued the Internal Revenue Service in Illinois federal court on Monday, seeking to recover more than $12 million in allegedly overpaid federal taxes under the Railroad Retirement Tax Act on employee stock awards. ...read more
U.S. Rep. Michael G. Grimm, a New York Republican just elected to his third term, is expected to plead guilty Tuesday to a criminal charge that he aided in the filing of a false tax return in connection with a Manhattan eatery. ...read more
New York regulators ordered Ocwen Financial Corp. to pay $150 million in hard cash and barred the company from claiming a tax deduction on the restitution payments in a mortgage servicing settlement that could set a new standard for regulators accused ...read more
Reversing a U.S. Tax Court decision, the Ninth Circuit on Monday decided a family charity likely owed $100 million in back taxes for its use of a Midco transaction because it knew the transaction was fraudulent, sending the case back to be decided on ...read more
The New York State Department of Taxation and Finance’s Office of Chief Counsel said in an advisory opinion released Monday that a taxpayer’s contribution of a condominium to a trust in exchange for previously contributed cash is subject to ...read more