Tax Law

Recent Posts

An Overview of the California Research and Development Credit
Posted on 9 May 2019 by Eversheds Sutherland LLP

The California research and development credit is frequently a high-ticket item for taxpayers. Indeed, according to the California Franchise Tax Board’s (FTB) 2017 Annual Report, $1,440,103,626 of corporation tax research credits were allowed in... Read More

Eversheds Sutherland SALT Scoreboard Publication—First Quarter 2019
Posted on 23 Apr 2019 by Eversheds Sutherland LLP

This is the first edition of the Eversheds Sutherland SALT Scoreboard for 2019. Since 2016, we have tallied the results of what we deem to be significant taxpayer wins and losses and analyzed those results. This edition of the SALT Scoreboard includes... Read More

INSIGHT: Multistate Tax Commission considers alternative combined reporting statute, Public Law 86-272 guidance and post-Wayfair issues
Posted on 7 May 2019 by Eversheds Sutherland LLP

In this article for Bloomberg Tax, Eversheds Sutherland attorneys Jeffrey Friedman, Stephanie Do and Michael Hilkin discuss the topics covered at the April 25 Multistate Tax Commission Uniformity Committee meeting in Denver, including revisions to the... Read More

GILTI As Charged: Maryland’s Latest Inhospitable Tax Stance
Posted on 7 May 2019 by Eversheds Sutherland LLP

On April 17, 2019, the Maryland Comptroller of the Treasury issued Tax Alert 04-19, “Maryland guidance on the reporting and taxation of IRC Section 951A global intangible low taxed income,” further cementing the state’s tax climate as one that is bad... Read More

Glass Half-Full: Tennessee Court of Appeals Applies “Dominant Business Activity” Test, Rules for Taxpayer in Business Tax Dispute
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a business that sold and installed automotive glass and also made repairs to automotive glass was properly classified as a seller of tangible personal property (glass), and not as a seller of services, for purposes... Read More

Pass This On: Washington Court of Appeals Holds Prescription Drug Payments Subject to B&O Tax
Posted on 5 Apr 2019 by Eversheds Sutherland LLP

On March 26, 2019, the Washington Court of Appeals held that a pharmacy benefit management company’s payments from clients (e.g., health maintenance organizations, health insurers, etc.) for the value of prescription drugs, were subject to the Washington... Read More

Proposed Legislation in North Carolina May Mitigate Tax on State Incentives
Posted on 8 Apr 2019 by Eversheds Sutherland LLP

The North Carolina legislature has introduced S.B. 622 , which would make significant changes to a wide range of North Carolina taxes. Among those changes, the legislation would allow a deduction, to the extent included in federal taxable income, for... Read More

Ohio is Seeing Green: CAT Imposed on Out-of-State Seller’s Sales That Were Completed Out of State
Posted on 9 Apr 2019 by Eversheds Sutherland LLP

The Court of Appeals of Ohio held that a Georgia-based wholesaler of lawn and garden products established nexus and its sales were properly included in the Commercial Activity Tax (CAT) base. The taxpayer was a wholesaler of garden equipment that did... Read More

Ohio is Seeing Green: CAT Imposed on Out-of-State Seller’s Sales That Were Completed Out of State
Posted on 9 Apr 2019 by Eversheds Sutherland LLP

The Court of Appeals of Ohio held that a Georgia-based wholesaler of lawn and garden products established nexus and its sales were properly included in the Commercial Activity Tax (CAT) base. The taxpayer was a wholesaler of garden equipment that did... Read More

Proposed Legislation in North Carolina May Mitigate Tax on State Incentives
Posted on 8 Apr 2019 by Eversheds Sutherland LLP

The North Carolina legislature has introduced S.B. 622 , which would make significant changes to a wide range of North Carolina taxes. Among those changes, the legislation would allow a deduction, to the extent included in federal taxable income, for... Read More

Pass This On: Washington Court of Appeals Holds Prescription Drug Payments Subject to B&O Tax
Posted on 5 Apr 2019 by Eversheds Sutherland LLP

On March 26, 2019, the Washington Court of Appeals held that a pharmacy benefit management company’s payments from clients (e.g., health maintenance organizations, health insurers, etc.) for the value of prescription drugs, were subject to the Washington... Read More

Glass Half-Full: Tennessee Court of Appeals Applies “Dominant Business Activity” Test, Rules for Taxpayer in Business Tax Dispute
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The Tennessee Court of Appeals held that a business that sold and installed automotive glass and also made repairs to automotive glass was properly classified as a seller of tangible personal property (glass), and not as a seller of services, for purposes... Read More

I’ve Been Wrong Before: The New York Department of Taxation and Finance Imposes Sales Tax on a Marketplace Operator
Posted on 27 Mar 2019 by Eversheds Sutherland LLP

On March 8, 2019, the New York Department of Taxation and Finance released an Advisory Opinion ruling that an online marketplace operator that facilitates taxable software sales is a “vendor” liable to collect sales tax. The Department relied on a rarely... Read More

Indiana Supreme Court Holds Driver Was an Independent Contractor, Not Employee
Posted on 29 Mar 2019 by Eversheds Sutherland LLP

The Indiana Supreme Court recently held that a company properly classified a driver as an independent contractor, not an employee, for unemployment insurance tax purposes. The company connected drivers with vehicle manufacturers that needed large vehicles... Read More

Incidentally, Damage Waivers Are Subject to South Carolina Sales Tax
Posted on 29 Mar 2019 by Eversheds Sutherland LLP

The South Carolina Court of Appeals upheld the imposition of sales tax on sales of optional “waivers,” which were sold to renters and relieved them from liability of damaged or stolen rental property. Rent-A-Center East, Inc. and Rent Way, Inc. (collectively... Read More