Tax Law

Recent Posts

New York City Tax Tribunal finds that ownership of a flow-through interest can create nexus.
Posted on 13 Mar 2019 by Eversheds Sutherland LLP

The New York City Tax Tribunal held that an out-of-state corporate taxpayer, with an indirect interest in a limited liability company investment fund engaged in business in New York City, had nexus with the City and was subject to tax on capital gain... Read More

New Jersey Upholds Assessment Addressed to Wrong Taxpayer and Routed to Wrong Location
Posted on 9 Feb 2019 by Eversheds Sutherland LLP

The New Jersey Tax Court rejected a taxpayer’s due process claim finding that the Division of Taxation properly issued the notice of assessment. The taxpayer made three arguments: (1) that the Division issued the assessment in the name of the predecessor... Read More

Don’t Bank on It: South Carolina Administrative Law Court Holds Banks Not Allowed to Utilize NOL Carryforwards
Posted on 23 Jan 2019 by Eversheds Sutherland LLP

The South Carolina Administrative Law Court found that the taxpayer bank could not deduct net operating loss (NOL) carryforwards when computing its bank tax liability. The taxpayer argued that banks should be allowed to deduct NOLs regardless of whether... Read More

Deference by Alabama Court of Appeals to DOR’s Statutory Interpretation
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

In interpreting an ambiguous statute allowing for a tax credit against the state’s financial institution excise tax (FIET), the Alabama Court of Appeals held in favor of the Department of Revenue’s interpretation. Alabama imposes a 6½% FIET on the net... Read More

Minnesota Supreme Court Upholds Commissioner’s Use of Alternative Apportionment for Financial Institution
Posted on 26 Jul 2018 by Eversheds Sutherland LLP

The Minnesota Supreme Court held that the state’s standard apportionment method did not fairly reflect the taxpayer’s net income allocable to the state, reversing the Tax Court’s ruling. The taxpayer, a national financial institution, transferred its... Read More

Utah Taxes Online Banking Service Provider
Posted on 26 Jan 2016 by Eversheds Sutherland LLP

By Liz Cha and Amy Nogid The Utah State Tax Commission ruled that sales to financial institutions in Utah of the right to use online banking software, finance and budget tool software, online bill payment software, mobile banking software, and a mobile... Read More

Sourcing the Ticker Tape: California Ruling Addresses Sourcing of Financial Information Provider's Services
Posted on 29 Feb 2016 by Eversheds Sutherland LLP

By Hanish Patel and Marc Simonetti In a Chief Counsel Ruling, the California Franchise Tax Board (FTB) ruled that, for purposes of determining its sale factor, a financial information provider should source the sales of its information services based... Read More

New Jersey Tax Court Rules on Inclusion of Mortgage-Related Receipts in Receipts Factor Numerator
Posted on 11 Apr 2016 by Eversheds Sutherland LLP

By Charles Capouet and Todd Lard The New Jersey Tax Court ruled on the sourcing of mortgage-related receipts received by a bank and also held that the Division of Taxation could not throw out receipts from the bank’s denominator. The taxpayer... Read More

Cell Phone Insurance Not Subject to South Carolina Sales Tax
Posted on 16 Dec 2015 by Eversheds Sutherland LLP

By Samantha Trencs and Andrew Appleby A South Carolina administrative law judge (ALJ) determined that cell phone insurance is not subject to South Carolina sales tax even though the wireless provider sells it with taxable communication services. Alltel... Read More

NYC Tax Appeals Tribunal Holds Subsidiary Not Required to Be Included in Banking Corporation Tax Return
Posted on 16 Jun 2016 by Eversheds Sutherland LLP

By Charles Capouet and Madison Barnett The New York City Tax Appeals Tribunal held that a bank filing a combined New York City bank tax return properly excluded from its combined group a Connecticut investment subsidiary that primarily held mortgage... Read More

Sales Tax Considerations in Financing Transactions--Does Substance over Form Govern?
Posted on 19 Jan 2016 by Eversheds Sutherland LLP

When a company undertakes a financing transaction, federal and state income tax considerations most frequently take priority in the tax department. In certain financing transactions, however, one would be remiss to ignore potential sales tax issues that... Read More

Fresh Tracks: Vermont Supreme Court's First Unitary Ruling Separates Insurer from Ski Resort
Posted on 25 Nov 2015 by Eversheds Sutherland LLP

By Liz Cha and Timothy Gustafson In its first decision on combined unitary reporting since Vermont adopted combined reporting in 2006, the Vermont Supreme Court held that the AIG insurance group was not unitary with its wholly owned ski resort subsidiary... Read More