Tax Law

Recent Posts

Ownership of Tennessee Mortgages Does Not Create Nexus for Foreign Investment Fund
Posted on 30 Oct 2020 by Eversheds Sutherland LLP

A recent letter ruling from the Tennessee Department of Revenue concludes that the ownership of mortgages backed by Tennessee property was insufficient to subject a foreign investment fund (“Fund”) to the state’s franchise and excise taxes. Tennessee... Read More

Massachusetts Appeals Court Finds Indiana Utility Receipts Tax Deductible for Purposes of Massachusetts Corporate Excise Tax
Posted on 29 Oct 2020 by Eversheds Sutherland LLP

On October 7, 2020, the Massachusetts Appeals Court held that a taxpayer’s deduction for payment of the Indiana utility receipts tax (“URT”) was permitted for Massachusetts corporate income tax purposes. The taxpayer who was engaged in natural gas distribution... Read More

Out of State Taxpayer’s Gain on Minority Ownership Interest in Limited Partnership Subject to Tax.
Posted on 12 Oct 2020 by Eversheds Sutherland LLP

A New York City Administrative Law Judge held that a New Jersey S corporation (“Taxpayer”) was subject to New York City general corporation tax (“GCT”) on gain from the sale of a minority limited partner interest in a limited partnership that leased and... Read More

Something to Keep an Eye On: Texas Comptroller Says Web-Based Services for Eye Doctors Is Taxable Data Processing
Posted on 6 Oct 2020 by Eversheds Sutherland LLP

The Texas Comptroller of Public Accounts issued a private letter ruling concluding that several services provided to optometrists and ophthalmologists were subject to sales tax as data processing.  Specifically, the Comptroller determined that the taxpayer... Read More

Saving “At Risk” Losses – New Jersey Superior Court Holds Individual Allowed to Carry Forward Losses From Partnership
Posted on 1 Oct 2020 by Eversheds Sutherland LLP

The New Jersey Superior Court reversed the New Jersey Tax Court and held that an individual taxpayer was permitted to carry forward losses from a partnership incurred in 2009 to reduce the individual’s distributive share of the partnership’s income in... Read More

Business (Income) As Usual: Minnesota Supreme Court Rules Gain From Sale of LLC is Apportionable Business Income
Posted on 17 Sep 2020 by Eversheds Sutherland LLP

The Minnesota Supreme Court held that the gain from a corporation’s sale of its majority interest in a limited liability company (LLC) was apportionable business income subject to Minnesota corporate income tax. The Court explained that the corporation... Read More

Trouble at the Pump: Indiana Department of Revenue Concludes that a Holding Company is not Unitary with a Gas Station Partnership
Posted on 8 Sep 2020 by Eversheds Sutherland LLP

In Indiana Department of Revenue Letter of Findings No. 02-20191221 (Dated June 3, 2020, published August 26, 2020), the Department concluded there was a lack of a unitary business relationship between an out-of-state holding company and a partnership... Read More

Lost in customs: New York Tax Appeals Tribunal disallows deduction for royalties paid by foreign nontaxpayer affiliates
Posted on 31 Aug 2020 by Eversheds Sutherland LLP

On Aug. 6, the New York Tax Appeals Tribunal held that royalties received from a foreign affiliate are taxable and are not subject to New York’s royalty income exclusion provision under former Tax Law § 208(9)(o)(3). Prior to its amendment, Tax Law... Read More

Maine Takes a Jumbo Slice of Taxpayer’s $3.6 billion Frozen Pizza Business Sale
Posted on 23 Jun 2020 by Eversheds Sutherland LLP

The Maine Supreme Judicial Court recently held that a taxpayer was not entitled to alternative apportionment for approximately $3 billion in gains earned from the sale of a business unit. The taxpayer was a food and beverage manufacturer that sold its... Read More

Prohibited contacts: Washington Company’s Audit Disqualifies its Affiliates from Voluntary Disclosure Program
Posted on 10 Jun 2020 by Eversheds Sutherland LLP

The Washington Department of Revenue’s Administrative Revenue and Hearings Division ruled that a company’s audit disqualifies its affiliates from participating in the state’s voluntary disclosure (VDA) program. One of the criteria for participating in... Read More

Cleared for Takeoff: Texas Supreme Court finds Jet Sales Properly Sourced out of State
Posted on 14 May 2020 by Eversheds Sutherland LLP

The Texas Supreme Court held that a defense contractor was entitled to a refund of franchise tax because it had incorrectly sourced certain sales of military aircraft made to foreign governments to Texas on its originally-filed returns for the 2005 through... Read More

Michigan Court of Appeals Finds an Almost Five-Fold Sales Factor Increase to be Unconstitutionally Distortive
Posted on 19 Mar 2020 by Eversheds Sutherland LLP

The Michigan Court of Appeals recently held that the state’s statutory apportionment formula was unconstitutionally distortive as applied to a taxpayer’s Michigan Business Tax (MBT) liability. Therefore, the taxpayer was entitled to use an... Read More

New Jersey Tax Court Concluded SMLLC’s Share of Partnership Loss Not Business Loss
Posted on 17 Mar 2020 by Eversheds Sutherland LLP

The New Jersey Tax Court ruled that an individual owner of a single-member limited liability company (“SMLLC”) correctly reported his distributive share of partnership income reported by the SMLCC. The SMLLC owned a 50% interest in a partnership that... Read More

Failed Test – State of Washington Holds University of Utah Lab Not Exempt from Taxation
Posted on 13 Mar 2020 by Eversheds Sutherland LLP

The Washington Court of Appeals held that a laboratory created by the University of Utah was not a government entity exempt from Washington taxation. Affirming the lower court’s decision, the Washington Court of Appeals rejected Arup Laboratories, Inc... Read More

Ohio NBA Owner Wants Only the Net Taxed
Posted on 29 Jan 2020 by Eversheds Sutherland LLP

The owner of an NBA arena is appealing an Ohio commercial activity tax (CAT) determination arguing that gross receipts from ticket sales of third-party events hosted at the arena are not attributable to the owner. When the arena was not being used by... Read More