Matthew Setzer

Matthew Setzer

Reed Smith

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NJ Guidance on State Tax Addback: Refund Opportunity for Taxpayers Adding Back Capital Stock or Bank Taxes

For purposes of computing New Jersey corporation business tax, the statute requires a taxpayer to add back any taxes paid to other states on or measured by profits or income, or business presence or activity. Yesterday, the...more

3/20/2017 - Banks Corporate Taxes Property Tax State Taxes

File Federal Change with New Jersey? Apportionment Factor Must Also be Changed—Even if Statute of Limitations Otherwise Closed

On February 22, 2017, the Tax Court issued its decision in General Foods Credit Investors # 3 Corporation v. Director. The primary issue involved whether certain sale-leaseback assets belonged in the taxpayer’s property...more

2/27/2017 - IRS State Taxes Tax Court

MTC Proposed Apportionment Regulations Pass By Special Vote: Here’s What You Should Know

Today, the Multistate Tax Commission (“MTC”) held a special meeting where the whole Commission (a group of member states) voted to approve model apportionment regulations, including provisions concerning market...more

2/27/2017 - Multistate Tax Commission State Taxes

NJ Tax Court: Throwout Doesn’t Apply to P.L. 86-272 Receipts

The New Jersey Tax Court issued its decision today in Elan Pharmaceuticals, Inc., ruling that the Division of Taxation had improperly excluded receipts sourced to states in which the taxpayer was immune from income tax from...more

2/8/2017 - Income Taxes Sales Tax State Taxes Summary Judgment

New Jersey Tax Court Clarifies Sales Tax on Software

The New Jersey Tax Court recently issued a decision concluding that pre-written software sold on tangible media was tangible personal property for New Jersey sales tax purposes. Notwithstanding this decision, most business...more

1/12/2017 - Personal Property Tax Sales Tax Software State Taxes Vendors

Supreme Court of Ohio Sustains Factor-Presence Nexus for Some, But Opens Door for Apportionment of CAT Receipts for All

Yesterday, the Supreme Court of Ohio upheld the Ohio Commercial Activity Tax’s (“CAT”) $500,000 factor-presence nexus test in the face of a Commerce Clause challenge. Specifically, in Crutchfield Corp. v. Testa, the court...more

11/18/2016 - Commerce Clause Commercial Activity Tax Nexus OH Supreme Court Physical Presence Test Quill State Taxes

New Jersey Reverses Tax Policy on Petroleum-Based Consumer Products

If you sold petroleum-based consumer products into New Jersey and paid petroleum products gross receipts tax, you have a refund opportunity. The New Jersey Division of Taxation’s long-standing position is that...more

10/28/2016 - Gross Receipts Tax Manufacturers Petroleum Tax Policy

Supreme Court of Ohio Decision Provides a Cautionary Tale for Taxpayers, and Highlights Opportunities for Future Statutory...

In a Commercial Activity Tax (“CAT”) case involving several interesting procedural issues, the Supreme Court of Ohio yesterday reversed a Board of Tax Appeals (“BTA”) decision and held that the tax commissioner’s adjustments...more

10/28/2016 - Commercial Activity Tax Franchise Taxes Net Operating Losses OH Supreme Court Sales Tax Tax Appeals

NJ Tax Court: Despite Place-of-Performance Statute, Market Sourcing Applies to Services

On October 11, 2016, the New Jersey Tax Court published its long-awaited decision concerning the sourcing of interest and other fees related to credit card transactions. The court ruled against the taxpayers and held that...more

10/11/2016 - Credit Cards Financial Institutions Financial Services Industry Interchange Fees Tax Court

MTC Annual Meeting Update: Market-Sourcing Regulations Presented to Executive Committee

On July 28, the Multistate Tax Commission (“MTC”) held its Executive Committee Meeting. The Executive Committee voted to accept the Uniformity Committee’s recommendations for a taxpayer’s prospective change in its method of...more

7/29/2016 - Apportionment Broker-Dealer Financial Institutions Gross Receipts Hedging Market Based Approach Multistate Corporations Multistate Tax Commission Multistate Tax Compact Proposed Amendments State Taxes UDITPA

MTC Annual Meeting Update: MTC Approves Model Sales and Use Tax Nexus Statute

The Multistate Tax Commission (“MTC”) held its Annual Commission Meeting on July 27, 2016. Of note, the MTC voted to adopt the Model Sales and Use Tax Nexus Statute. In addition, the Arm’s-Length Adjustment Service Committee...more

7/28/2016 - Arm's Length Principle Multistate Tax Commission Nexus Physical Presence Test Quill Retailers Sales & Use Tax State Taxes Tax Audits Transfer Pricing

N.J. Legislature Changes BEIP Credit Conversion Terms Before July 11 Deadline

The N.J. Legislature has passed legislation that provides yet another variable for companies to consider before deciding whether to convert unpaid Business Employment Incentive Program (“BEIP”) grants into credits. Under...more

7/5/2016 - Grants Job Creation New Legislation State Legislatures Tax Credits

NJ Combined Reporting Update–Bill Continues Through Senate

Combined-reporting legislation continues to make its way through New Jersey’s Senate. Taxpayers should closely follow developments concerning this legislation to determine the impact on their companies. In January, we...more

6/14/2016 - Business Taxes Combined Reporting Legislative Committees Proposed Legislation State Taxes Tax Haven Tax Reform

Delaware Asks U.S. Supreme Court to Decide Escheat Dispute Between States

On May 26, 2016, Delaware filed a motion with the United States Supreme Court requesting leave to file a bill of complaint against other states regarding escheatment of uncashed “official checks.” Specifically, Delaware...more

6/6/2016 - Escheat Exclusive Jurisdiction Motion for Leave SCOTUS State of Incorporation State Sovereignty Unclaimed Property

Supreme Court of Ohio Hears Oral Argument in Crucial Case for Factor-Presence Nexus

The Supreme Court of Ohio heard oral argument in a case involving the Ohio Commercial Activity Tax (the “CAT”)—which provides that taxpayers have nexus with Ohio and are subject to tax if they have at least $500,000 of annual...more

5/4/2016 - Commerce Clause Commercial Activity Tax Internet Retailers Multistate Tax Commission Nexus OH Supreme Court Out-of-State Companies Quill Retailers SCOTUS State Taxes

NJ Tax Court Denies Interest Addback Exception - Does Your Company Still Qualify?

In a decision published April 26, 2016, the New Jersey Tax Court in Kraft Foods Global Inc. v. Director, Div. of Taxation ruled that a taxpayer couldn’t deduct interest paid to its corporate parent. The taxpayer’s...more

4/27/2016 - Add-Back Legislation Debt Exceptions Guarantors Income Taxes Kraft Promissory Notes Related Parties Tax Court Tax Deductions Tax Litigation

July 11 Deadline to Convert Unpaid N.J. BEIP Grant to Tax Credits

Under New Jersey’s Business Employment Incentive Program, approved businesses that created jobs in New Jersey were awarded annual cash grants. Nearly 500 businesses were awarded grants valued at $1.6 billion. Unfortunately,...more

4/6/2016 - Corporate Taxes Deadlines Economic Development Income Taxes Job Creation New Legislation State Taxes Tax Credits Tax Liability

New Jersey Appellate Court Issues Throwout Ruling

In a decision issued this morning, a New Jersey appellate court ruled that the throwout rule does not apply to intangible holding companies. New Jersey courts have not been kind to the throwout rule. When it was first adopted...more

12/5/2015 - Appeals Economic Presence Nexus Intangible Holding Company NJ Supreme Court Tax Court Tax Revenues

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