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Part II: Federal and State Tobacco Taxes -- On Fire or Just Smoking?

by Daniel G. Mudd * In a follow-up to Part I (EIA 7184) [ "Basics of Federal and State Tobacco Taxes -- On Fire or Just Smoking?" by Daniel G. Mudd – Emerging Issues Analysis Commentary], which covered the Federal Excise Tax (FET) considerations for a company involved in the tobacco...

Professional Responsibility for Florida Trust and Estate Lawyers

... II. Ethical Guidelines The Florida Rules of Professional Conduct [Florida Rules of Professional Conduct 4-1.8(c), http://www.floridabar.org/ , retrieved August 23, 2014] provide guidance to attorneys on matters ranging from fees to communication, confidentiality, conflict of interest, and firm...

Cha-Ching! Minnesota Supreme Court Holds Semi-Custom Software Subject to Sales Tax

Posted by Sutherland SALT on September 29, 2014 By Derek Takehara and Andrew Appleby The Minnesota Supreme Court upheld the Minnesota Department of Revenue’s imposition of sales tax on a software company’s sale of partially customized software because the taxpayer failed to separately...

California Taxpayer Entitled to Attorney Fees After Successful Commerce Clause Challenge

Posted by Sutherland SALT on September 22, 2014 By Zachary Atkins & Prentiss Willson A California Court of Appeal held that a taxpayer who brought a successful facial challenge against a state taxing scheme met all of the requirements for an award of attorney fees and that the trial court abused...

On Standby: ISPs May Rely on Prior Guidance Until Congress or Massachusetts Legislature Addresses Taxation of Internet Access

By Stephanie Do and Andrew Appleby The Massachusetts Department of Revenue addressed the possible expiration and subsequent retroactive enactment of the federal Internet Tax Freedom Act (ITFA). The Department advised Internet Service Providers (ISPs) to continue to rely on Technical Information Release...

MTC Meets With Economic Firms to Continue Its Transfer Pricing Effort

Posted by Sutherland SALT on October 06, 2014 The MTC continued its foray into transfer pricing. In a highly anticipated meeting, the MTC engaged with seven economics firms—all of which could potentially offer their services to the MTC—to determine how best to tackle state transfer pricing...

View all the federal, state, and international tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center

View all the federal tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center View all the state tax news headlines for October 8th from TaxAnalysts® on LexisNexis Tax Center View all the international tax news headlines for October 8th from TaxAnalysts® on LexisNexis...

EU to Investigate Amazon Tax Ruling for State Aid Breach

The European Commission on October 7 formally launched an investigation into whether Amazon's Luxembourg subsidiary received a favorable transfer-pricing-related tax ruling that violates EU state aid rules. According to a commission release, the investigation focuses on a tax ruling granted by the...

Supporters Confident of MFA's Passage in December

Supporters of the Marketplace Fairness Act of 2013 (MFA) expressed confidence October 7 that the lame-duck Congress will finally pass the bill in December. The comments were made at the annual Streamlined Sales Tax Governing Board meeting in Rapid City, South Dakota, even as the bill remains stalled...

New Jersey Refund Opportunities Associated With the Deductibility of Other States' Taxes

Posted by Sutherland SALT on October 15, 2014 On October 2, in PPL Electric Utilities Corporation v. Director, Division of Taxation , No. 000005-2011, the New Jersey Tax Court determined that federal deductions for the taxpayer’s payments of Pennsylvania gross receipts tax and Pennsylvania...

Buying a Bit - Purchases of Bitcoins Are Not Subject to Sales Tax in Missouri

Posted by Sutherland SALT on October 16, 2014 By Mary Alexander and Charlie Kearns The Missouri Department of Revenue determined in a letter ruling that Bitcoins are intangible property not subject to tax under Missouri’s Sales and Use Tax Law. As explained by the taxpayer, Bitcoins are...

Lighting Dark Fiber: Washington Turns on Retail Sales Tax for Dark Fiber

Posted by Sutherland SALT on October 16, 2014 By Stephanie Do and Timothy Gustafson The Washington State Department of Revenue determined that a telecommunications company’s leases of dark fiber were competitive telephone services and thus subject to retail sales tax. The taxpayer leased...

Illinois Allows Intermediate Carrier to Source International Telecommunications Receipts Based on Its Property Factor

Posted by Sutherland SALT on October 17, 2014 By Derek Takehara and Andrew Appleby The Illinois Department of Revenue determined that a wholesale distributor of international telecommunications services could source its long-distance telephone receipts based on its Illinois property factor....

Access Denied: Pennsylvania Rules Company Not Entitled to Its Own Tax Records

Posted by Sutherland SALT on October 17, 2014 By Ted Friedman and Pilar Mata The Pennsylvania Office of Open Records (OOR) determined that the City of Philadelphia Department of Revenue (City) was not required to provide use and occupancy tax forms and documentation in the City’s possession...

Ohio Businesses Leaving Tax Money on the Table

Ohio Republican Gov. John Kasich and the Republican-dominated state legislature have been doing their level best to attract businesses to the Buckeye state. Under this commerce-wooing regime, small businesses have been graced with a 50 percent tax deduction on up to $250,000 of income for 2013 - and...

A Pinch of SALT: What New York Can Learn from California's Combined Reporting History

Posted by Sutherland SALT on October 27, 2014 As part of a sweeping law change, New York will require taxpayers to use a water’s-edge combined reporting method when filing corporate income tax returns beginning January 1, 2015. In this edition of A Pinch of SALT, Sutherland...

State DeathTax Considerations in Making Lifetime Transfers

Phasing out, and the eventual repeal, of the former state death tax credit in favor of a state death tax deduction has significantly impacted estate planning considerations for clients who now live in states that impose a state estate or inheritance tax. The elimination of the state death tax credit...

You're Gonna Have to Do More Than That: Passive Investment in California Limited Liability Company Insufficient to Meet Statutory Nexus Threshold

By Evan Hamme and Timothy Gustafson A California Superior Court held that passive membership in a limited liability company (LLC) is insufficient to meet California’s statutory “doing business” standard. In Swart Enterprises, Inc. v. California Franchise Tax Board , an Iowa corporation...

State Taxation of Foreign Source Income

by Robert Desiderio * States undertake a myriad of approaches to tax foreign source income, primarily due to the diverse operations of the taxpayers. Non-U.S. corporations may own U.S. entities as separate subsidiary corporations or as branches of the foreign parent. A U.S. corporation may operate...

Self-Awareness Skills a 'Must' for Ohio Taxpayers

What street did you live on in 1997? What was the make, model, and year of the car you were driving then? If you live in the Buckeye state, knowing the answers to questions like these may be helpful in your quest for an Ohio income tax refund. In fact, even if you don't live in Ohio, but are subject...

Red Alert! SCOTUS Strikes Down Maryland 'Piggy Back' Tax

Invalidation by the U.S. Supreme Court of local 'piggy back' taxes in Maryland could create a huge fiscal hole for the state. In Comptroller of the Treasury of Maryland v. Wynne et ux. , * the Court affirmed Md. State Comptroller of the Treasury v. Wynne, 431 Md. 147 (Md. 2013) , holding in a...

Alcohol Taxes and Incentives - The Spirit of the Law and What's Hoppin'

by Daniel G. Mudd * Basics of Federal Excise Tax on Alcohol Federal taxation of alcohol generally follows the same tax structure and controls as is used with other commodities and products sold in the United States which are subject to excise tax ( e.g. , tobacco, gasoline, etc.). Accordingly,...

U.S.Supreme Court's Same-Sex Marriage Ruling Could Simplify State Income Tax Filing

With the U.S. Supreme Court's June 26 ruling legalizing same-sex marriage nationwide, same-sex couples will no longer have to navigate the myriad state tax laws that previously did not recognize their marriages. The historic 5-4 decision in Obergefell v. Hodges means that the remaining 14 states...

Kansas Court's Education Funding Decision Threatens to Upend Approved Budget

After months of fighting over tax plans to fill a $ 400 million budget gap, the Kansas Legislature may be forced to return in a special session to find even more money to pay for schools. The state supreme court ruled last year in Gannon v. Kansas that the state's formula for funding schools was...

U.S. Supreme Court to Hear Arguments in Hyatt

The U.S. Supreme Court on June 30 agreed to hear arguments in a case involving whether the Nevada Supreme Court improperly denied the California Franchise Tax Board the same immunities Nevada applies to its own state agencies in tort cases. In California Franchise Tax Board v. Hyatt (Doc 2014-22936)...