Tax Law

Recent Posts

State Tax Court: Conditions Apply to Forced Combined Reporting
Posted on 31 Oct 2011 by Sean Craig

In an unpublished opinion, the Indiana Tax Court held that the Department of State Revenue (the "Department") is required to exhaust all statutory methods for determining an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... 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

JobsOhio, Taxes and Budget Surpluses: One Man’s Meat, Another Man’s Poison
Posted on 8 Aug 2012 by Peter Miller

In an astounding 2-year turnaround, Ohio Gov. John Kasich's administration has turned a gaping $8 billion Ohio biennial budget deficit into an estimated $408 million surplus for fiscal 2013. The surplus estimated excludes an anticipated $500 million... 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

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

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

Combined Tax Reporting Proposals on 2012 Sate Legislative Agenda
Posted on 1 Mar 2012 by Sean Craig

The 2012 state legislative season is shaping up to be another banner year for combined reporting proposals in the various statehouses around the nation. At least eight state legislatures are considering such proposals, 1 but the prospects for enactment... Read More

Bay State Firm's Nexus Gambit Ruled a Sham
Posted on 18 Jun 2013 by Sean Craig

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... 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

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

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

California: 'Amazon' Sales Tax Collection Compromise Reached; America’s Cup Improvement Funding Approved
Posted on 3 Oct 2011 by Deanne Morton

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... Read More

Tennessee DOR Clarifies Conformity With IRC § 108
Posted on 5 Dec 2011 by Sean Craig

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"... Read More

Click-Through Nexus Struck Down in Illinois
Posted on 2 May 2012 by Sean Craig

As state tax policy has continued trying to keep up with the evolving changing of our nation's economy, one key issue has been the proper means of subjecting Internet-based retail transactions to state level sales & use taxation. Following the... 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

  • 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: SC Supreme Court Says No to Excluded Dividends-Related Expenses Deduction

    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 was not entitled to exclude expenses associated...
  • Blog Post: Subsidiary Stock Sale Proceeds Included in Sales Factor Denominator

    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 factor denominator. Oracle Corporation ("Oracle"...
  • Blog Post: Combined Tax Reporting Proposals on 2012 Sate Legislative Agenda

    The 2012 state legislative season is shaping up to be another banner year for combined reporting proposals in the various statehouses around the nation. At least eight state legislatures are considering such proposals, 1 but the prospects for enactment vary widely. The following is a brief overview of...
  • Blog Post: Illinois Amnesty Period Double Interest Penalty Restricted

    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 Ins. Co. v. Hamer, 2012 Ill. App. LEXIS 144 (Ill....
  • Blog Post: 2012 ALEC-Laffer Report Strikes Familiar Theme

    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 50 states, described in the report as "laboratories...
  • Blog Post: Click-Through Nexus Struck Down in Illinois

    As state tax policy has continued trying to keep up with the evolving changing of our nation's economy, one key issue has been the proper means of subjecting Internet-based retail transactions to state level sales & use taxation. Following the 2008 enactment of a click-through nexus law in New...
  • Blog Post: Illinois Closer to Establishing Tax Court

    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 will be comprised of no more than four administrative...
  • Blog Post: City by the Bay Takes on Panhandlers, Puppies, Payroll Tax Reform

    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 of panhandling in the city. Under this new program...
  • Blog Post: 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...
  • Blog Post: JobsOhio, Taxes and Budget Surpluses: One Man’s Meat, Another Man’s Poison

    In an astounding 2-year turnaround, Ohio Gov. John Kasich's administration has turned a gaping $8 billion Ohio biennial budget deficit into an estimated $408 million surplus for fiscal 2013. The surplus estimated excludes an anticipated $500 million windfall to the state from JobsOhio , the controversial...
  • 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...
  • Blog Post: Maryland Court Says Unitary Relationship Creates Nexus

    The Maryland Court of Special Appeals held that a company that lacks physical presence in Maryland has sufficient nexus to justify corporate income taxes based on its unitary relationship with an affiliate operating in the state. [ Comptroller of the Treasury v. Gore Enter. Holdings, Inc., 2013 Md. App...
  • Blog Post: California Taxpayers Whipsawed!

    QSBS Exclusion, Deferral Statutes Unconstitutional In August 2012, California's Second District Court of Appeal determined that the "qualified small business stock" (QSBS) exclusion and deferral statutes were unconstitutional. See Cal. Rev. & Tax. Code Sections 18038.5 and 18152...
  • Blog Post: 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...