Sutherland Legal Alert: Shades of Gray: District of Columbia Combined Reporting Unveiled

By Stephen P. Kranz , Diann L. Smith , and Charles C. Kearns On April 1 (fittingly), the District of Columbia's new Mayor, Vincent G. Gray, unveiled his proposed budget, B19-0203 "Fiscal Year 2012 Budget Support Act of 2011" (Budget Bill), which includes the long-awaited/feared combined...

Massachusetts Delays FAS 109 Relief to Corporate Taxpayers - Again

In 2008, Massachusetts enacted combined reporting for corporate income taxes. As tax practitioners are well aware, there are serious financial consequences to such changes, which go beyond the mere composition of the entities in the combined report. One such consequence is the financial accounting impacts...

Food Lion Loses Forced Combination Fight, Gains Penalties in NC Court of Appeals

Delhaize v. Lay has been a closely followed case on the North Carolina "forced combination" question. Interest waned a bit when the North Carolina Court of Appeals decided against Wal-Mart on the same issue in Wal-Mart Stores East v. Hinton, 197 N.C. App. 30 (N.C. Ct. App. 2009) . In Wal-Mart...

Bay State Firm's Nexus Gambit Ruled a Sham

The transfer of Massachusetts employees from an in-state company to its out-of-state parent was disregarded for tax purposes by the Massachusetts Appellate Tax Board ("the Board"). The transfer, which established Massachusetts nexus for the parent and caused the parent to be included in the...