Tax Law

Recent Posts

Check Your (Broadband) Credit Score: Mississippi Supreme Court Approves Telecom Companies’ Computation of Broadband Tax Credits
Posted on 30 Oct 2020 by Eversheds Sutherland LLP

The Mississippi Supreme Court ruled that an affiliated group of telecommunications companies properly computed the Broadband Investment Credit in determining their franchise and income tax liabilities.  The Broadband Credit may be used by a taxpayer to... Read More

Louisiana Loses Jeopardy!
Posted on 29 Oct 2020 by Eversheds Sutherland LLP

A Louisiana court of appeals affirmed a trial court decision dismissing for lack of personal jurisdiction the Louisiana Department of Revenue’s (“Department”) petition to collect corporate and franchise taxes on over $3.6 million in royalties from nonresident... Read More

No Double Trouble Here – Michigan Court of Appeals Holds Merged Banks Entitled to Refund as Single Taxpayer
Posted on 11 May 2020 by Eversheds Sutherland LLP

The Michigan Court of Appeals reversed and vacated the Tax Tribunal’s order and held that merged entities that are a unitary business group (“UBG”) must be treated as single entity for purposes of calculating the franchise tax and that corporate income... 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

Out at the Races: Louisiana Court of Appeal Issues Mixed Decision on Horse Racing Facility Owner’s Franchise Tax Audit Adjustments
Posted on 6 Feb 2020 by Eversheds Sutherland LLP

On January 8, 2020, the Court of Appeal of Louisiana partly affirmed and partly reversed a district court’s rejection of the Louisiana Department of Revenue’s franchise tax audit changes for a taxpayer that owned and operated, through subsidiaries and... Read More

No Mixed Signals – Texas Appellate Court Finds Telecomm Signal Sales Are Not Tangible Personal Property
Posted on 10 Sep 2019 by Eversheds Sutherland LLP

Consistent with a prior decision of a sister appellate court, Texas’ Texarkana Court of Appeals held that the sale of telecommunication products and signals constitutes the sale of a service for purposes of Texas’ franchise tax. The taxpayer sold electrical... 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

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