Tax Law

Recent Posts

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

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

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

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

Minnesota Tax Court Clarifies R&D Credit Calculation in Identical Cases
Posted on 18 Oct 2018 by Eversheds Sutherland LLP

In two cases, the Minnesota Tax Court clarified the extent to which the Minnesota research and development (R&D) credit is calculated based on the Internal Revenue Code’s defined terms. Minnesota law incorporates the Internal Revenue Code’s definition... Read More

North Carolina Supreme Court Decides in Favor of Taxpayer in Trust Nexus Dispute
Posted on 11 Jul 2018 by Eversheds Sutherland LLP

The North Carolina Supreme Court recently held that the presence in the state of a trust’s beneficiary is not sufficient to establish income tax nexus for the trust. In the Kimberly Rice Kaestner 1992 Family Trust case, the trust’s beneficiaries were... Read More

Oregon Deems Amendments to Statutory State Apportionment Formulas to Be Constitutional
Posted on 4 May 2018 by Eversheds Sutherland LLP

In another of the so-called “Compact” cases, the Oregon Supreme Court affirmed the decision of the Oregon Tax Court and held that: (1) the 1967 Oregon Legislature, in enacting Oregon Statute Section 305.655, did not clearly and unmistakably intend for... Read More

New Mexico Finds No Obstacle to Inclusion of Foreign Dividends and Subpart F Income in Consolidated Return Base
Posted on 26 Apr 2018 by Eversheds Sutherland LLP

The New Mexico Administrative Hearings Office affirmed the Taxation and Revenue Department’s assessment based on General Electric’s exclusion of foreign dividend and Subpart F income from its base income in its New Mexico consolidated return. In this... Read More