Tax Law

Recent Posts

Recent CA, TX and UT Tax Rulings on Income Tax, Unclaimed Property and Electricity Taxes
Posted on 13 Aug 2020 by Eversheds Sutherland LLP

In this episode we discuss three recent developments, including an electricity tax matter in California ( City of Arcata v. Pacific Gas & Electric Co. ) a Texas unclaimed property matter ( CKD Homes Direct, Ltd v. Comptroller ) and a Utah income tax... Read More

California Court of Appeal Finds That Sourcing of Income for Individuals Applies to Trusts
Posted on 24 Jul 2020 by Eversheds Sutherland LLP

The California Court of Appeal held that California income tax applies to the entire amount of trust income that is derived from California sources, even though a trust is managed in part by a non-resident trustee. The taxpayer had requested a refund... Read More

That’s None of Our Business – Idaho Supreme Court Rules Holding Company’s Gain from Sale of LLC Interest is Nonbusiness Income
Posted on 6 Jul 2020 by Eversheds Sutherland LLP

On May 22, 2020, the Idaho Supreme Court held that the gain realized by a corporate holding company on the sale of its 78.54 percent ownership interest in an LLC was nonbusiness income and therefore not subject to apportionment in Idaho. The LLC was formed... Read More

What Makes a California Resident?
Posted on 18 Jun 2020 by Eversheds Sutherland LLP

California imposes an income tax on the entire taxable income of state residents. For those individuals seeking to avoid taxation by the state, the question becomes: what makes a California resident for income tax purposes? In this podcast we provide... Read More

There’s No Turning Back: New York State Tax Appeals Tribunal Holds Retroactive Application of Statutory Amendments Violates Due Process
Posted on 11 Jun 2020 by Eversheds Sutherland LLP

The New York State Tax Appeals Tribunal struck down the retroactive application of legislative amendments to a taxpayer who reasonably relied on a precedential decision of the Tribunal that was final and irrevocable at the time the taxpayer sold his shares... Read More

What Makes a California Resident?
Posted on 3 Jun 2020 by Eversheds Sutherland LLP

California imposes an income tax on the entire taxable income of state residents. Cal. Rev. & Tax. Code § 17041. For those individuals seeking to avoid taxation by the state, the question becomes: what makes a California resident for income tax purposes... Read More

California May Be First to Allow Employers to File Group Income Taxes for Foreign Workers
Posted on 22 May 2020 by Eversheds Sutherland LLP

On May 18, 2020, the California Assembly Revenue and Taxation Committee unanimously passed Assembly Bill 2660 (AB 2660) out of committee. AB 2660 would allow employers to file income taxes on behalf of their foreign workers, specifically providing for... Read More

Recapture Not Required: COVID-19 May Excuse Businesses from Repayment of Nebraska Incentives
Posted on 7 May 2020 by Eversheds Sutherland LLP

The Nebraska Department of Revenue (“Department”) issued guidance explaining that Nebraska Advantage Act (“Act”) project-holders may not have to repay incentives if they cannot meet their project obligations due to COVID-19. The Act provides incentives... Read More

New York Continues to Disregard Taxpayer’s Reliance on Disregarded Entity Rules
Posted on 17 Apr 2020 by Eversheds Sutherland LLP

The New York State Tax Appeals Tribunal affirmed a New York State Division of Tax Appeals determination denying a refund claim to a taxpayer that sought to apply the income sourcing rules for registered broker-dealers to receipts from its separate investment... Read More

California Franchise Tax Board Provides Extension for Taxpayers
Posted on 31 Mar 2020 by Eversheds Sutherland LLP

The California Franchise Tax Board just issued Notice 2020-02 , providing an extension to July 15th for taxpayers to file income/franchise tax refund claims, protests, or appeals and petitions for rehearing at the Office of Tax Appeals that would normally... Read More

Look to Florida: Florida Department of Revenue Provides Guidance for Sourcing Income from Software User Fees
Posted on 20 Mar 2020 by Eversheds Sutherland LLP

The Florida Department of Revenue determined that a platform software company should source its income from user fees and from its sale of services on a market basis, based on the location of the customer to which the services are provided. The platform... Read More

Out of Time: Massachusetts Dismisses Taxpayer’s Attempt to Seek Refund as Untimely
Posted on 9 Oct 2019 by Eversheds Sutherland LLP

Massachusetts Court of Appeals held that a taxpayer could not rely on timely applications for refund of deficiency assessments to also seek refund resulting from alleged overstatement of sales factor in corresponding years’ returns, where the initial... Read More

Over-Hall: U.S. Supreme Court Holds States Retain Sovereign Immunity from Private Suits in Other States, Overturning Nevada v. Hall
Posted on 11 Jun 2019 by Eversheds Sutherland LLP

In a 5-to-4 decision, the US Supreme Court held that states retain sovereign immunity from private suits brought by individuals in courts of other states, and therefore, overruled its prior decision in Nevada v. Hall , 440 US 410 (1979). The decision... Read More

Podcast: P.L. 86-272 Protection for Deliveries
Posted on 31 Jan 2019 by Eversheds Sutherland LLP

In this podcast , Eversheds Sutherland state and local tax attorney Chris Lee discusses California Technical Advice Memorandum 2018-3 and the application of P.L. 86-272 to deliveries by private trucks. 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