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Welcome to the September 2015 issue of the HA&W State & Local Tax (SALT) Newsletter.
With dozens of different taxes imposed by the 50 states (and thousands of local jurisdictions), we recognize how challenging it is to keep up with current issues and developments. This newsletter is designed to provide insights on developments in state and local taxes including new legislation, regulations, rulings and cases addressing issues such as corporate and personal income taxes, sales and use taxes, nexus, franchise/net worth taxes, etc.
This issue of the newsletter includes articles addressing (i) tax legislation in Connecticut (adopting combined reporting) and Alabama (enacting factor presence nexus), (ii) the Multistate Tax Commission’s recently released working draft of a new model sales factor sourcing regulation (Part 2 of 2), (iii) significant penalties imposed by Washington on a contractor that misused a resale certificate and (iv) the denial of a refund claim by South Dakota filed after an IRS audit.
In case you missed prior issues of this newsletter, please click here.
If you have any comments, questions or suggestions regarding current or future topics, or if you would like to learn more about HA&W’s SALT Practice, please email us at jeff.glickman@hawcpa.com. Thank you.
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Jeff Glickman, J.D., LL.M.
Partner-in-Charge, State & Local Tax Practice. |
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2015 Tax Legislation: Connecticut Adopts Combined Reporting and Alabama Enacts Factor Presence Nexus
By Jeff Glickman, SALT partner
Effective Jan. 1, 2016, Connecticut requires combined groups to file a combined return. In the southern half of the country, Alabama has enacted factor presence nexus for tax years beginning on or after Jan. 1, 2015. Read More
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Multistate Tax Commission Releases Working Draft of Model Market-Sourcing Regulations (Part 2 of 2)
by Tina Chunn, SALT senior manager
The Multistate Tax Commission is attempting to provide a model rule to assist in clarifying market-based sourcing of revenue. This article covers the third type of service transaction, other services. Read More
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Contractors Beware: Washington Imposes 50 Percent Penalty for Misuse of Resale Certificate
By Jeff Glickman, SALT partner
Taxpayers should not assume that what works in one state will work in another, as illustrated by a recent case in which a subcontractor misused a reseller permit and paid a hefty price. Read More
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Refund Requests After Federal Adjustments: How Timely is Timely?
By Jess Johannesen, SALT senior associate
The South Dakota Supreme Court recently ruled that Citibank was not entitled to a franchise tax refund because the request was not submitted within the statute of limitations – even though the request was filed within days of the federal adjustment to its net income. Read More
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Missouri Denies Sales Tax Refund Claim on Goods Shipped Outside the State
By Jess Johannesen, SALT senior associate
A company’s shipping terms can have an impact on sales tax compliance requirements, as they recently did for a Missouri display manufacturer. Read More
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Taxing Resident Trusts: Is Residency of the Beneficiary Enough?
By Jeff Weinkle, SALT manager
A trust is typically considered a taxable resident when the trust beneficiaries are state residents in the current year, but the constitutionality of that rule has recently been challenged. Read More
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UPDATE: New Jersey Clarifies Treatment of Bitcoin for Tax Purposes
On July 28, 2015, New Jersey issued TAM-2015-1(R) which clarifies the treatment of convertible virtual currency (CVC), such as Bitcoin, for New Jersey tax purposes. Read More
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About HA&W's State & Local Tax Practice
HA&W’s State & Local Tax (SALT) practice advises clients on the state and local tax implications of their business operations, allowing clients to strategically minimize their liabilities and risks. Our team has over 50 years of combined SALT experience in industry, state government, public accounting, and private law practice. We specialize in all areas of SALT, including matters related to corporate and personal income taxes, sales/use tax, nexus, franchise/net worth taxes, credits and incentives, and mergers & acquisitions. In addition, we represent clients in administrative matters before state revenue departments around the country, including audit defense and settlement negotiations, pursuing voluntary disclosure agreements, and obtaining letter rulings.
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