Tax Law

Recent Posts

Do CA and NY Get the ALEC–Laffer Message? Is the Message Believeable?
Posted on 9 Dec 2011 by Peter Miller

In the first full week in December, "wealthy" New Yorkers and Californians found themselves to be a step closer to seeing their income tax liabilities (state, not federal) rise. This trend appears to be counterintuitive to anyone that respects... Read More

Online Travel Companies Get A Good Decision in Missouri
Posted on 4 Oct 2011 by Sean Craig

The Missouri Supreme Court recently ruled that a group of online travel companies were not required to collect hotel and tourism taxes on the difference between the discounted amount received for a room by participating hotels and the amount that the... Read More

Subsidiary Stock Sale Proceeds Included in Sales Factor Denominator
Posted on 1 Feb 2012 by Sean Craig

In Oracle Corp. v. Dep't of Revenue State, 2012 Ore. Tax LEXIS 21 (Or. T.C. Jan. 19, 2012) , the Oregon Tax Court held that the gains from the sale of stock of a subsidiary which constituted business income were includible in the taxpayer's sales... Read More

Tennessee DOR’s Nettlesome Guidance on Related Party Intangible Expenses
Posted on 15 Nov 2012 by Sean Craig

It has been some time since a state tax department has promulgated any guidance on the issue of related party interest and intangible expenses. With fiscal cliffs and other budget problems, states have turned their focus to other means of cracking down... Read More

BIS, LLP v. Director, Division of Taxation: NJ Superior Court Gets It Right!
Posted on 6 Sep 2011 by Sean Craig

The recent decision of the Superior Court of New Jersey in BIS LP, Inc. v. Dir., Div. of Taxation , 2011 N.J. Super. Unpub. LEXIS 2269 (App.Div. Aug. 23, 2011) gives multistate taxpayers around the nation a reason to be optimistic that occasionally a... Read More

2012 ALEC-Laffer Report Strikes Familiar Theme
Posted on 13 Apr 2012 by Peter Miller

The just-released 5 th edition of Rich States, Poor States , the American Legislative Exchange Council's (ALEC) report on economic competitiveness of the states, reaches familiar conclusions shadowing those set forth in preceding editions: How the... Read More

Massachusetts Delays FAS 109 Relief to Corporate Taxpayers - Again
Posted on 7 Aug 2012 by Sean Craig

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... Read More

SC Supreme Court Says No to Excluded Dividends-Related Expenses Deduction
Posted on 16 Jan 2012 by Sean Craig

An out-of-state corporation that filed a South Carolina corporate income tax return excluded dividends generated from South Carolina income of certain wholly owned subsidiaries. However, the South Carolina Supreme Court ultimately decided that the taxpayer... Read More

State Taxation: Post-Election Fiscal Management and Priorities
Posted on 14 Nov 2010 by Peter Miller

In the aftermath of November election results, the states are all taking another hard look at their fiscal prospects. For the most part, but with a few exceptions, the picture is anything but bright. Incoming leadership (new and old alike) is reflecting... Read More

D.C. Struggles to Implement Combined Reporting Continue
Posted on 3 Oct 2012 by Sean Craig

On September 19, 2012, the District of Columbia Council approved an emergency bill amending the District's combined reporting provisions applicable for the 2011 tax year. Should the bill be approved by the Mayor, the emergency legislation will be... Read More

Illinois Amnesty Period Double Interest Penalty Restricted
Posted on 4 Apr 2012 by Sean Craig

The Illinois Court of Appeals, First Division, held that a taxpayer was not subject to a double interest penalty provided under an amnesty program for additional income taxes that could not be determined at the time of the amnesty period. Metro. Life... Read More

City by the Bay Takes on Panhandlers, Puppies, Payroll Tax Reform
Posted on 2 Jul 2012 by Deanne Morton

Last month, in what could be referred to as an "Only in San Francisco" moment, the City of San Francisco announced a new program called "Wonderful Opportunities for Occupants and Fidos" (WOOF, for short) to try to curb the problem... Read More

Illinois Closer to Establishing Tax Court
Posted on 6 Jun 2012 by Sean Craig

Illinois HB 5192 was recently passed in both houses of the Illinois legislature. If signed into law by Illinois Governor Quinn, the new court would be established as an independent agency separate from the Illinois Department of Revenue (IDOR). This court... Read More

Does the Wireless Tax Fairness Act Pass the "Fairness" Test?
Posted on 4 Nov 2011 by Susan Hughes

Would the Wireless Tax Fairness Act equalize tax burdens or would it instead enrich special industries? Over the past few years, the use of wireless telecommunications has erupted, with a virtual panoply of services available to consumers from a number... Read More

Kasich and Quinn: Tale of Two Statesmen
Posted on 30 Mar 2011 by Peter Miller

Ohio Gov. John Kasich is making good on his promise not to increase taxes in the Buckeye State. A raft of measures targeted at cost-cutting, privatizing government operations, and improving efficiencies is conceived to turn an $8 billion budget gap into... Read More

  • Blog Post: State Taxation: Post-Election Fiscal Management and Priorities

    In the aftermath of November election results, the states are all taking another hard look at their fiscal prospects. For the most part, but with a few exceptions, the picture is anything but bright. Incoming leadership (new and old alike) is reflecting intensively on the new political landscape. ...
  • Blog Post: Do You Know Your Client's State of Residency?

    As the filing deadline for federal and state income tax returns quickly approaches, practitioners should ask themselves if they really know where their client resides for state income tax purposes. Given the changes in the job market over the past few years, many individuals and families have moved and...
  • Blog Post: Kasich and Quinn: Tale of Two Statesmen

    Ohio Gov. John Kasich is making good on his promise not to increase taxes in the Buckeye State. A raft of measures targeted at cost-cutting, privatizing government operations, and improving efficiencies is conceived to turn an $8 billion budget gap into a balanced budget for the next biennium. The...
  • Blog Post: High Court Upholds Arizona Tuition Tax Credit Absent Taxpayer Standing

    On April 4, 2011, the U.S. Supreme Court decided a consolidated case, Ariz. Christian Sch. Tuition Org. v. Winn , 2011 U.S. LEXIS 2612 (U.S. Apr. 4, 2011) , Dkt. No. 09-987, and Garriott v. Winn , Dkt. No. 09-991, involving three of the most controversial subjects facing courts today-tax, education,...
  • Blog Post: Tax Breaks for Estates, Banks in Supply-Side Ohio Governor's Sights

    Love him or hate him, Ohio's new fearless leader, Republican Gov. John Kasich, is placing all his bets on supply-side theory to give the Buckeye state a fighting chance at economic growth. In broad terms, Kasich wants to reduce regulatory hurdles and other red tape hindering incentives for businesses...
  • Blog Post: Alabama Adopts Double-Weighted Sales Factor and Market Based Sourcing

    As states continue to search for the "best" (i.e. produces the most tax revenues) corporate tax system for our evolving economy, Alabama has joined the quest by adopting a double-weighted sales factor and moving to a market based sourcing rule. H.B. 434 was enacted on June 9, 2011, and applies...
  • Blog Post: BIS, LLP v. Director, Division of Taxation: NJ Superior Court Gets It Right!

    The recent decision of the Superior Court of New Jersey in BIS LP, Inc. v. Dir., Div. of Taxation , 2011 N.J. Super. Unpub. LEXIS 2269 (App.Div. Aug. 23, 2011) gives multistate taxpayers around the nation a reason to be optimistic that occasionally a court can properly apply unitary principles. Here...
  • Blog Post: Film Production Credits: “The Situation” Is More Controversial Than Ever

    When it comes to trying to jump start the economy, one method that readily springs to mind is the option of enacting credits targeted to particular industries to encourage economic development. On the surface, offering incentives to industries to locate or expand its operations in a state seems like...
  • Blog Post: California: 'Amazon' Sales Tax Collection Compromise Reached; America’s Cup Improvement Funding Approved

    On Friday, Sept. 23, 2011, California Governor Jerry Brown signed two newsworthy bills that he said would help to create new jobs within the state. The first involved the financing of preparations for the America's Cup sailing races to be held in San Francisco in 2013. The second would require out...
  • Blog Post: Online Travel Companies Get A Good Decision in Missouri

    The Missouri Supreme Court recently ruled that a group of online travel companies were not required to collect hotel and tourism taxes on the difference between the discounted amount received for a room by participating hotels and the amount that the travel service received for their services. 1 After...
  • Blog Post: State Tax Court: Conditions Apply to Forced Combined Reporting

    In an unpublished opinion, the Indiana Tax Court held that the Department of State Revenue (the "Department") is required to exhaust all statutory methods for determining an equitable allocation or apportionment of a taxpayer's income before forcing combination.1 Background AE Outfitters...
  • Blog Post: Does the Wireless Tax Fairness Act Pass the "Fairness" Test?

    Would the Wireless Tax Fairness Act equalize tax burdens or would it instead enrich special industries? Over the past few years, the use of wireless telecommunications has erupted, with a virtual panoply of services available to consumers from a number of providers. With the advent of any new method...
  • Blog Post: Tennessee DOR Clarifies Conformity With IRC § 108

    The Tennessee Department of Revenue ("the Department") recently published Letter Ruling #11-44 ("the Ruling"), which addressed many issues related to potential income or gain that may arise from the discharge of indebtedness ("COD"), as well as the ancillary effects on other...
  • Blog Post: Do CA and NY Get the ALEC–Laffer Message? Is the Message Believeable?

    In the first full week in December, "wealthy" New Yorkers and Californians found themselves to be a step closer to seeing their income tax liabilities (state, not federal) rise. This trend appears to be counterintuitive to anyone that respects the merits of theory advanced by the American Legislative...
  • Blog Post: Illinois Inconsistently Applies Amnesty Double Interest Penalty

    The Illinois Appellate Court recently found that a taxpayer who failed to pay a tax liability under the state's 2003 amnesty was subject to a 200% interest penalty, even though the taxpayer did not know it owed the tax until after a federal audit. [ Marriott Int'l, Inc. v. Hamer, 2012 Ill. App...
  • Blog Post: D.C. Struggles to Implement Combined Reporting Continue

    On September 19, 2012, the District of Columbia Council approved an emergency bill amending the District's combined reporting provisions applicable for the 2011 tax year. Should the bill be approved by the Mayor, the emergency legislation will be in effect for no more than 90 days, after which temporary...
  • Blog Post: Tennessee DOR’s Nettlesome Guidance on Related Party Intangible Expenses

    It has been some time since a state tax department has promulgated any guidance on the issue of related party interest and intangible expenses. With fiscal cliffs and other budget problems, states have turned their focus to other means of cracking down on perceived corporate tax abuse. The Tennessee...
  • Blog Post: States Target Inter-Company Cash Management Structure

    A common aspect of consolidated groups of companies is a centralized cash management function. While such a structure is a common item in corporate America, states are increasingly challenging any perceived tax benefits of such structures. Two states, Indiana and North Carolina, have taken recent actions...