Tax Law

Recent Posts

New York Disregards Taxpayer’s Reliance on Disregarded Entity Rules
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The New York Division of Tax Appeals denied a refund claim to a taxpayer that sought to apply the income sourcing rules for registered broker-dealers to accept receipts from its separate investment advisory business. The taxpayer structured its broker... Read More

New York Disregards Taxpayer’s Reliance on Disregarded Entity Rules
Posted on 2 Apr 2019 by Eversheds Sutherland LLP

The New York Division of Tax Appeals denied a refund claim to a taxpayer that sought to apply the income sourcing rules for registered broker-dealers to accept receipts from its separate investment advisory business. The taxpayer structured its broker... Read More

Texas Comptroller: Sales of Fuel Oil to Foreign Ships in Texas Waters Are “Texas Sales” for Apportionment Purposes
Posted on 28 Feb 2019 by Eversheds Sutherland LLP

The Texas Comptroller determined that a taxpayer was required to include in its sales factor numerator its receipts from sales of bunker fuel oil to foreign ships in Texas ports. The taxpayer argued that the sales were not from “business done” in Texas... Read More

New York Sustains Retroactive Application of Statutory Amendments to the Empire Zones Act
Posted on 4 Feb 2019 by Eversheds Sutherland LLP

A New York State Administrative Law Judge ruled that the retroactive application of amendments to the state’s Empire Zones statute—disqualifying a taxpayer from the tax reduction credits—did not violate the taxpayer’s constitutional due process rights... Read More

Louisiana Court Limits Availability of Refund Procedure
Posted on 31 Jan 2019 by Eversheds Sutherland LLP

The Louisiana Court of Appeal, First Circuit held that a taxpayer was not entitled to a refund of franchise tax under an interpretation of the franchise tax law by the Department of Revenue that was struck down in Utelcom, Inc. v. Bridges, 2010-0654 ... Read More

California FTB Chief Counsel Issues Ruling on Financial Corporations and Interest Rate Hedging Contracts
Posted on 20 Dec 2018 by Eversheds Sutherland LLP

On November 2, 2018, the Chief Counsel of the California Franchise Tax Board issued Chief Counsel Ruling No. 2018-01, determining: (1) that a taxpayer servicing mortgages was not a financial corporation for purposes of the corporation franchise tax; and... Read More

Physical Presence Standard Still Applies for Texas Franchise Tax After Wayfair
Posted on 9 Nov 2018 by Eversheds Sutherland LLP

The Texas Comptroller of Public Accounts recently ruled that the physical presence nexus standard continues to apply for the Texas Franchise Tax, even after South Dakota v. Wayfair, Inc., 585 U.S. ___ (2018). As a result, a California company whose only... Read More

Eversheds Sutherland SALT Scoreboard Publication–Third Quarter 2018
Posted on 1 Nov 2018 by Eversheds Sutherland LLP

This is the eleventh edition of the Eversheds Sutherland SALT Scoreboard, and the third edition of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT... Read More

Taking Taxpayers for a Ride: California Upholds Mandatory Combined Reporting for Interstate Motorcycle Retailer
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

The California Court of Appeals affirmed a trial court’s holding that the California Franchise Tax Board can require interstate unitary businesses to use combined reporting, even though combined reporting is optional for intrastate unitary businesses... Read More

New Mexico Court of Appeals Upholds Tax Treatment of Franchise Trademark Royalties
Posted on 28 Sep 2018 by Eversheds Sutherland LLP

The New Mexico Court of Appeals upheld the imposition of gross receipts tax on certain trademark-related royalty fees received by an out-of-state corporation pursuant to its franchise agreements with New Mexico businesses. The court examined whether,... Read More