LexisNexis® Legal Newsroom
Speakers and Panels Announced! TEI's Audits & Appeals Seminar: Meeting the Tax Controversy Needs of In-House State Tax Professionals

For the second year, Sutherland Asbill & Brennan LLP is delighted to join TEI’s Audit & Appeals Seminar, sponsor, and lead a full day dedicated to state and local tax controversies covering: Understanding the State Tax Controversy Lifecycle Speakers: Marc A. Simonetti, Sutherland; Pilar...

Sutherland Expands SALT Practice to 40 Attorneys

We are pleased to announce that our SALT practice has expanded with the recent addition of five associates: Jessica N. Allen in Sacramento, Chelsea E. Marmor and Douglas J. Upton in New York, DeAndre R. Morrow in Washington DC and Alla Raykin in Atlanta. The group’s arrival to Sutherland’s...

Keep on Streamin': Kentucky Court Holds Taxes Inapplicable to Streaming Video Service

By Charles Capouet and Maria Todorova The Franklin County Circuit Court held that Netflix’s subscription-based streaming video service was not subject to Kentucky’s gross revenues tax, excise tax and school tax (“telecommunications taxes”) imposed on “multichannel video...

New Jersey Tax Court Rejects Application of 100% Apportionment Factor But Denies In-State Company's Bid to Use Three-Factor Formula

By Zachary Atkins and Open Weaver Banks The New Jersey Tax Court held that apportioning all of a company’s income to New Jersey for corporate business tax purposes, even with the allowance of a credit for taxes paid to separate-return states, failed to fairly reflect the company’s business...

New Jersey Tax Court Analyzes Credit Card Receipt Sourcing

By Douglas Upton and Andrew Appleby The New Jersey Tax Court determined that credit card issuers must source to New Jersey all of their interest and interchange fee receipts, and half of their credit card service fees, from New Jersey accountholders. The Tax Court concluded that the Division of Taxation’s...

Two Bites, Zero Success: South Carolina Court of Appeals Determines Department Did Not Satisfy Its Burden to Justify Alternative Apportionment

By Elizabeth Cha and Timothy Gustafson On October 26, 2016, the South Carolina Court of Appeals reversed a lower court ruling and determined the Department of Revenue (Department) failed to satisfy its burden of showing that the statutory apportionment formula did not fairly represent Rent-A-Center...

NYC Tax Appeals Tribunal Allocates Consulting Service Provider's Receipts Based on Location of Consultants

By Jessica Allen and Jonathan Feldman The New York City Tax Appeals Tribunal administrative law judge (ALJ) determined that a taxpayer’s receipts for consulting services should be allocated based on where the services were rendered, not where the solicitation and payment for the services occurred...

A Chiropractor's Delight: Taxpayer's "PoP" Makes Internet Backbone Service Not Taxable in Pennsylvania (Again)

By Stephen Burroughs and Maria Todorova The Commonwealth Court of Pennsylvania recently reaffirmed its decision that Level 3’s network infrastructure services (including local dial networks, telephone numbers and modems, i.e., Internet “backbone”) sold to retail Internet service providers...

Washington Supreme Court Holds B&O Tax Applies to Drop Shipments

By Charles Capouet and Andrew Appleby The Washington Supreme Court held that drop shipments and sales from out-of-state are subject to the Washington business and occupation (B&O) tax even when an in-state office was not involved in placing or completing the sales. A wholesaler of electronic components...

It's Always Better When We're Together: Colorado DOR Determines Payment of Sales Tax by Marketplace Provider Relieves the Jointly Responsible Retailers of Sales Tax Obligations

By Nick Kump and Amy Nogid The Colorado Department of Revenue (Department) released a non-binding general information letter, concluding that a marketplace provider’s payment of sales tax on transactions involving “jointly responsible” third-party retailers discharges the obligations...

Citigroup False Claims Act Lawsuit Remanded to New York State Court for Lack of Federal Question Jurisdiction

By Zack Atkins and Marc Simonetti A federal district court denied a taxpayer’s motion to dismiss a lawsuit brought under the New York False Claims Act (FCA) for lack of subject matter jurisdiction and remanded the action to state court. The relator, an Indiana University professor, alleges that...

Pardon My French, But You're A Taxpayer: Out-of-State Baker's Croissants Lead to B&O Nexus in Washington

By Zack Atkins and Tim Gustafson The Washington State Department of Revenue ruled that an out-of-state baker whose only in-state “presence” was its use of in-state independent commissioned sales representatives to solicit orders had substantial nexus with Washington and therefore was subject...

Sutherland Named Tax Practice Group of the Year for Third Consecutive Year by Law360

We are pleased to announce that Sutherland has been named Tax Practice Group of the Year for the third consecutive year by Law360, a nationwide legal news service. The award is given annually to firms that had the biggest wins and worked on the most important deals over a one-year period. Sutherland’s...

Illinois Supreme Court Pulls E-Brake on Chicago's Tax on Suburban Rental Car Companies

By Zack Atkins and Eric Coffill The Illinois Supreme Court invalidated a Chicago ruling obligating suburban car rental companies to collect Chicago’s personal property lease transaction tax on rental transactions occurring outside the city on the grounds that it violated the Illinois Constitution...

Florida Issues Nexus Guidance for Reinsurers

By Charles Capouet and Andrew Appleby The Florida Department of Revenue determined that a reinsurer did not have nexus with Florida for corporate income tax purposes. The Department first asserted that an insurer or reinsurer would have nexus with Florida if it was authorized to transact business in...

Two Eversheds Sutherland Attorneys Named 2017 Northern California Super Lawyers

SACRAMENTO—Eversheds Sutherland (US) LLP is pleased to announce that state and local tax (SALT) attorneys Carley A. Roberts and Eric J. Coffill were selected as top Northern California attorneys by Super Lawyers. The designations are the result of an annual survey conducted by the publication,...

Eversheds Sutherland Associate DeAndre Morrow Selected as one of The National Black Lawyers Top 40 Under 40

WASHINGTON — Eversheds Sutherland is pleased to announce that Associate DeAndre R. Morrow has been selected as one of The National Black Lawyers Top 40 Under 40. He joins an elite group of attorneys from Washington DC and across the country as members of the organization composed of outstanding...

Webcast: South Dakota v. Wayfair – Insights on the Oral Argument

On April 17, 2018, the US Supreme Court is poised to hear oral arguments in the case of South Dakota v. Wayfair. The Wayfair case will re-examine the 1992 holding of Quill v. North Dakota, in which the US Supreme Court ruled that states could not compel mail order retailers that lack a physical presence...

South Dakota v. Wayfair – Insights and Analysis

On April 17, the US Supreme Court heard arguments in South Dakota v. Wayfair, a case involving the states’ authority to tax online purchases. This is the first sales tax jurisdiction case heard by the US Supreme Court in 25 years and may have a significant impact on online sales across the country. About...

IRS to Crackdown on SALT Deduction Cap Workarounds

The IRS intends to issue regulations pertaining to states’ attempts to subvert the state and local tax deduction cap. The Tax Cuts and Jobs Act imposed a $10,000 ($5,000 for married individuals filing separately) limit on state and local tax deductions for federal income tax purposes. Certain states...

Maryland’s Limited Interest on Wynne Refunds Ruled Unconstitutional

Maryland Tax Court holds that Maryland’s limitation of interest on refunds resulting from the US Supreme Court’s decision in Comptroller of the Treasury of Maryland v. Wynne violates the US Constitution. In 2014, the Maryland legislature passed a law to retroactively limit the statutory interest rate...

Chicago Streaming Video Tax Does Not Violate Federal and State Law

On May 24, 2018, the Circuit Court of Cook County upheld the City of Chicago’s imposition of its amusement tax on streaming services. On June 9, 2015, the Chicago Department of Finance issued a ruling indicating that electronically delivered amusements are subject to the amusement tax. The circuit court...

New Jersey Court Holds That Taxpayer Not Entitled to Exception to State’s Interest Add-Back Requirement

In Kraft Foods Global, Inc. v. Director, Division of Taxation, 2018 WL 2247356 (May 17, 2018), the New Jersey Superior Court, Appellate Division, recently upheld a New Jersey Tax Court decision denying a taxpayer an exception to the state’s interest add-back requirement in determining the taxpayer’s...

New York Bill Introduced to Exempt GILTI

On June 11, 2018, Senate Bill 8991 was introduced by New York Senate Majority Leader John Flanagan. The Bill would decouple from the federal treatment of Global Intangible Low-Taxed Income (GILTI). View the full legal alert. Continue Reading…

US Supreme Court Overrules Physical Presence Standard, Leaves Plenty of Questions

In a 5-4 decision, the US Supreme Court today overruled its landmark decisions in Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Revenue of Illinois, disposing of the “physical presence” rule that has served as the bright-line standard for whether remote sellers are required...