Tax Law

Recent Posts

Global Positioning of IP: State Research and Development Credits
Posted on 29 Sep 2016 by LexisNexis Tax Law Community Staff

by William H. Byrnes and Marvin Petry * Federal and state research and development (R&D) tax credits are powerful yet underutilized opportunities that can make a big difference in operating performance and cash flow for companies that rely on performing... Read More

Vexing Apportionment Challenges Stymie Flummoxed Tax Departments
Posted on 12 Aug 2014 by Peter Miller

The murky waters of state taxation, now characterized by single-sales-factor apportionment and economic nexus trends, continue to plague corner office decision-makers and the practitioners who counsel them. [See "Experts: Economic Nexus and Single... Read More

Taxation of New York City Real Property
Posted on 19 Jun 2017 by LexisNexis Tax Law Community Staff

by Steven Tishko * In New York City, real estate taxes have become an increasingly greater expense for property owners and landlords in recent years. As such, they are an ever-growing factor that any potential purchaser or tenant must account for in... Read More

Cha-Ching! Minnesota Supreme Court Holds Semi-Custom Software Subject to Sales Tax
Posted on 2 Oct 2014 by Eversheds Sutherland LLP

Posted by Sutherland SALT on September 29, 2014 By Derek Takehara and Andrew Appleby The Minnesota Supreme Court upheld the Minnesota Department of Revenue’s imposition of sales tax on a software company’s sale of partially customized... Read More

Access Denied: Pennsylvania Rules Company Not Entitled to Its Own Tax Records
Posted on 20 Oct 2014 by Eversheds Sutherland LLP

Posted by Sutherland SALT on October 17, 2014 By Ted Friedman and Pilar Mata The Pennsylvania Office of Open Records (OOR) determined that the City of Philadelphia Department of Revenue (City) was not required to provide use and occupancy tax... Read More

Qualifying Sales of Standard Financial Information Exempt from Washington Sales and Use Tax
Posted on 8 Jul 2014 by Neil Aragones

Last year, the Washington Legislature amended Wash. Rev. Code § 82.12 to provide an exemption from the state’s retail sales and use tax for sales of standard financial information to qualifying international investment management companies... Read More

Professional Responsibility for Florida Trust and Estate Lawyers
Posted on 15 Sep 2014 by Susan Calistri Boesger

... II. Ethical Guidelines The Florida Rules of Professional Conduct [Florida Rules of Professional Conduct 4-1.8(c), http://www.floridabar.org/ , retrieved August 23, 2014] provide guidance to attorneys on matters ranging from fees to communication... Read More

Taxation of Estates & Trusts in NJ and Residuary Trust A v. Director
Posted on 4 Nov 2013 by Diane L. Mutolo

Estates and trusts are subject to New Jersey gross income tax... Charitable trusts and trusts that form part of a pension or profit-sharing plan are expressly exempted from the gross income tax. Estate and trust income is taxed only once by New... Read More

Income Disparity: Just What the Campaign Doctor Ordered!
Posted on 30 Jul 2014 by Peter Miller

Are you running for high political office in your state? Is the race against your opponent too close to call? Do you need an issue to gin up your constituency – i.e., an issue with broad appeal that makes voters hyper-emotional? How would you like... Read More

New Jersey Refund Opportunities Associated With the Deductibility of Other States' Taxes
Posted on 16 Oct 2014 by Eversheds Sutherland LLP

Posted by Sutherland SALT on October 15, 2014 On October 2, in PPL Electric Utilities Corporation v. Director, Division of Taxation , No. 000005-2011, the New Jersey Tax Court determined that federal deductions for the taxpayer’s payments... Read More

Taxing the Corporation: Home Depot and the State's Claim of Right
Posted on 30 Dec 2013 by Allison Christians

The Arizona Court of Appeals recently issued a decision in the Home Depot case , which involves determining when the state has jurisdiction to tax a corporation. The case is about a domestic multi-state business but it has interesting implications for... Read More

Legislation Compelling in Ohio Tax Matters -- Good Morals?... NOT!
Posted on 14 Feb 2014 by Peter Miller

In the court of public opinion, the Ohio Department of Taxation has not been faring well in recent months. Late in 2013, the Ohio Inspector General found that the Department chose not to respond to taxpayer requests for $30 million in refunds –... Read More

Alternative Apportionment Disallowed in Indiana
Posted on 2 Dec 2013 by Sean Craig

The Indiana Department of Revenue (“Department”) sustained a taxpayer’s protest of an audit proposal requiring the taxpayer, an automobile manufacturer that filed a consolidated return with two other entities, to use an alternative apportionment... Read More

Affiliate Nexus: Nexus Creation Through Common Ownership
Posted on 17 Jul 2013 by LexisNexis Tax Law Community Staff

by Robert Desiderio * Over the past couple of decades, one issue that has plagued the courts in a number of states has been that of determining when nexus is created by corporations that are subject to common ownership and/or control. A number of states... Read More

MTC Meets With Economic Firms to Continue Its Transfer Pricing Effort
Posted on 7 Oct 2014 by Eversheds Sutherland LLP

Posted by Sutherland SALT on October 06, 2014 The MTC continued its foray into transfer pricing. In a highly anticipated meeting, the MTC engaged with seven economics firms—all of which could potentially offer their services to the MTC—to... Read More

  • Blog Post: Water's-Edge Election: Look Before You Leap and Calculate Before You Elect

    By J. Pat Powers - Baker & McKenzie LLP (martindale.com ®) General Editor - Charles J. Moll III - winston & Strawn LLP ,,, INSIGHT Taxpayers considering making a water's-edge election should review all current and planned transactions between (i) on the one hand, companies that...
  • Blog Post: Affiliate Nexus: Nexus Creation Through Common Ownership

    by Robert Desiderio * Over the past couple of decades, one issue that has plagued the courts in a number of states has been that of determining when nexus is created by corporations that are subject to common ownership and/or control. A number of states have taken the position that the existence of...
  • Blog Post: California Residency for Income Tax Purposes

    by Bradley R. Marsh and Dina B. Segal * People have long flocked to California for beautiful weather, rich agriculture, and immense business opportunities in a myriad of industries. In Nov. 2012, however, the state passed Prop. 30, which increased already high income tax rates. The rates, topping...
  • Blog Post: Oregon Unitary Reporting Mandate Reaches Tax Havens

    On August 1, 2013, Oregon Governor John Kitzhaber signed H.R. 2460, which requires for tax years beginning on or after January 1, 2014, the inclusion in a corporate taxpayer’s Oregon unitary tax return the income and apportionment factors of unitary corporations incorporated in certain 'tax...
  • Blog Post: Closing the Sales Tax Gap: Vermont Enacts Anti-Zapper Legislation

    An automated sales suppression device falsifies electronic records of sales in electronic cash registers or other point of sale (POS) systems. Known as “zappers” or “tax zappers,” they enable users to evade the levy of sales tax by underreporting sales records. Zappers are essentially...
  • Blog Post: For Now, Passage of Marketplace Fairness Act of 2013 Unlikely

    Last month, it was reported that the British Exchequer Secretary to the Treasury had privately communicated to the heads of six British online retailers that the British government would not seek a new online sales tax. [Stephanie Soong Johnston, "U.K. Rules Out Possibility of Online Sales Tax After...
  • Blog Post: Florida Simple Revocable Living Trust Agreement for Married Persons

    * by Susan Boesger, Esq. I. Considerations in Use of the Florida Model Simple Revocable Trust The Model Revocable Declaration of Trust is a "one party" trust. [A trust created by written instrument which is otherwise valid and complies with F.S. § 736.0403 will not be held invalid...
  • Blog Post: Red Alert! Sales Taxes on the Rise

    Before the bell rang on September 1st launching Ohio's 0.25 percent sales tax hike, the pending increase was a mere abstraction. But this harsh reality became palpable: One of the monthly payments I mailed out prompted a friendly reminder from the local business I patronize to send in another 41...
  • Blog Post: The Digital Goods and Services Tax Fairness Act of 2013

    In July, Senators Ron Wyden of Oregon (D) and John Thune of South Dakota (R) introduced The Digital Goods and Services Tax Fairness Act of 2013 (S.B. 1364). The Act would prohibit states or local jurisdictions from imposing multiple or discriminatory taxes on the sale or use of digital good or digital...
  • Blog Post: States Targeting Sales & Use Tax Suppression Software Scofflaws

    On October 4, Governor Brown of California signed into law Assembly Bill No. 781 (see 2013 Bill Tracking CA A.B. 781 and 2013 Bill Text CA A.B. 781 ), which creates a new criminal offense relating to the purchase, installation, use, transfer, or sale of any “automated sales suppression device or...
  • Blog Post: Georgia Tax Tribunal Issues First Decision

    The Georgia Tax Tribunal (“the Court”) commenced operations on January 1, 2013. The Court was established in 2012 when Georgia Governor Deal signed the Georgia Tax Tribunal Act of 2012. The Court has concurrent jurisdiction with the Superior Court to issue declaratory relief in most Georgia...
  • Blog Post: Income Tax Reform Tensions Vex Ohio Cities, Businesses

    All compliant taxpayers know that wrestling with tax liabilities involves far more than how to pay for them. Ongoing challenges are manifold – Taxpayers must all plan to control and minimize taxes; divine tax amounts payable; and pay timely. Problems and compliance efforts multiply proportionally...
  • Blog Post: Taxation of Estates & Trusts in NJ and Residuary Trust A v. Director

    Estates and trusts are subject to New Jersey gross income tax... Charitable trusts and trusts that form part of a pension or profit-sharing plan are expressly exempted from the gross income tax. Estate and trust income is taxed only once by New Jersey, either at the estate or trust level, or at...
  • Blog Post: State and Local Tax Issues in Construction

    BY: STEPHANIE LIPINSKI GALLAND Every business has an accountant or finance resource. This resource spends 150% of his or her time handling the cash flow, paying the bills, and filling out the requisite federal income tax returns. What is usually missing is time to focus on state and local taxes...
  • Blog Post: Ohio DOT Plays “Who Do You Trust?”

    Once hosted by Johnny Carson , Who Do You Trust? was a game show aired on the ABC television network In the late 1950s and early 1960s. Contestant couples competing to correctly answer a series of questions also faced a judgment call: The male was challenged to either answer the question himself or decide...
  • Blog Post: Alternative Apportionment Disallowed in Indiana

    The Indiana Department of Revenue (“Department”) sustained a taxpayer’s protest of an audit proposal requiring the taxpayer, an automobile manufacturer that filed a consolidated return with two other entities, to use an alternative apportionment method and to add back royalty expenses...
  • Blog Post: Taxing the Corporation: Home Depot and the State's Claim of Right

    The Arizona Court of Appeals recently issued a decision in the Home Depot case , which involves determining when the state has jurisdiction to tax a corporation. The case is about a domestic multi-state business but it has interesting implications for the taxation of multinationals. In brief, Home Depot...
  • Blog Post: Legislation Compelling in Ohio Tax Matters -- Good Morals?... NOT!

    In the court of public opinion, the Ohio Department of Taxation has not been faring well in recent months. Late in 2013, the Ohio Inspector General found that the Department chose not to respond to taxpayer requests for $30 million in refunds – and potentially withheld nearly 10 times that amount...
  • Blog Post: Emergency Regulations in Illinois Address Sales Tax Situsing

    The Illinois Department of Revenue (the “Department”) recently filed emergency regulations that provide guidance following the Illinois Supreme Court’s decision in Hartney Fuel Oil Co v. Hamer as to how sales should be sourced for local sales tax purposes. The emergency regulations...
  • Blog Post: New York State - New and Proposed Legislation Affecting Trusts and Estates

    In 2013, New York undertook a comprehensive review of the state's tax structure and made recommendations to improve and simplify the current tax system. This article discusses the findings of that review and the resulting legislation to implement changes. ... New York State Tax Reform and Fairness...
  • Blog Post: Qualifying Sales of Standard Financial Information Exempt from Washington Sales and Use Tax

    Last year, the Washington Legislature amended Wash. Rev. Code § 82.12 to provide an exemption from the state’s retail sales and use tax for sales of standard financial information to qualifying international investment management companies. Last week, the Washington Department of Revenue amended...
  • Blog Post: Competitive Posture Drives Emegency D.C. Business Tax Law

    The District of Columbia Council (the 'Council') voted recently, 12 to 1, to approve a motion to override Mayor Gray's veto of the FY 2015 Budget Support Emergency Act (the 'Emergency Act'), which makes signeificant changes to the business franchise tax, designed to make the District...
  • Blog Post: Income Disparity: Just What the Campaign Doctor Ordered!

    Are you running for high political office in your state? Is the race against your opponent too close to call? Do you need an issue to gin up your constituency – i.e., an issue with broad appeal that makes voters hyper-emotional? How would you like to motivate a constituency that is so expansive...
  • Blog Post: New Jersey Adopts "Click-Through" Nexus

    On June 30, 2014, the New Jersey Legislature approved Assembly Bill 3486, establishing “click-through” nexus in the state. [See the text of the bill at 2014 N.J. ALS 13 ]. Under the new law, an out-of-state seller may be required to collect New Jersey state sales tax on sales of tangible...
  • Blog Post: Vexing Apportionment Challenges Stymie Flummoxed Tax Departments

    The murky waters of state taxation, now characterized by single-sales-factor apportionment and economic nexus trends, continue to plague corner office decision-makers and the practitioners who counsel them. [See "Experts: Economic Nexus and Single-Sales-Factor Apportionment May Lead to Discrimination...