Latest Publications

Share:

Filing Season Reminder: Department Guidance Regarding Massachusetts Partnership and C Corporation Tax Return Filing Due Dates

Effective for tax years beginning after December 31, 2015, the due date for filing federal tax returns for C corporations and partnerships were revised. See Public Law 114-41, the “Surface Transportation and Veterans...more

Massachusetts to Move Forward With New “Cookie” Nexus Regulation Effective October 1

On September 13, Massachusetts issued a final regulation that will require many “internet vendors” without traditional “physical presence” in Massachusetts to collect and remit sales and use tax, effective beginning October...more

Disallowance of Deduction for Interest Paid to Hungarian Affiliate Serves as a Reminder of Department’s Continued Audit Scrutiny...

A case recently resolved at the Appellate Tax Board serves as a reminder that Massachusetts’ auditors continue to aggressively challenge the following intercompany transactions: - Interest deductions for interest paid to...more

Virginia Supreme Court Decides (Mostly) in Favor of Department in Lead Addback Case

On August 31, 2017, the Virginia Supreme Court issued a decision holding that a taxpayer can claim an exception to Virginia’s intangible expense addback on the basis that the related member receiving the intangible payment is...more

Filing Season Reminder: Revisions (and Challenges) to Alternative Apportionment Regulation

Any taxpayers considering taking an alternative apportionment position on its corporate excise tax returns this fall should remember that the Department adopted a revised alternative apportionment regulation, 830 CMR 63.42.1,...more

SJC Holds that Drop-Shipper has Burden of Proving Sales Were Not Subject to Sales Tax; Is Liable for Tax

In D & H Distributing Company v. Commissioner, the Supreme Judicial Court (“SJC”) considered whether the taxpayer, a distributor located outside of Massachusetts, bore the burden of proving that a drop shipment to a...more

Massachusetts State Tax Developments

Welcome to the latest Reed Smith update on recent developments in Massachusetts state tax. In this update, we’ll discuss the following developments: - Corporate excise tax implications of the Department’s decision to...more

Massachusetts Issues Proposed Regulation Imposing Sales or Use Tax Obligations on “Internet Vendors” Beginning October 1

On July 28, the Massachusetts Department of Revenue (the “Department”) issued Proposed Regulation 64H.1.7 (the “proposed regulation”) that, if adopted, would require “internet vendors” to collect and remit sales tax on sales...more

Massachusetts Appellate Tax Board Denies Multiple Points of Use Sales Tax Refund Claims

The Massachusetts Appellate Tax Board (“ATB”) has issued an order denying three sales tax refund claims involving multiple points of use (“MPU”) sourcing. In each case, vendors had filed refund claims arguing that their...more

California Supreme Court Holds Localities Can Apply Documentary Transfer Tax to Transfers of Interests in Property-Holding...

The California Supreme Court, in a 6-1 decision, has held that a city or county may impose documentary transfer tax on the transfer of the ownership interests in a legal entity that owns real property located in the locality....more

Pa. Governor’s Budget Proposal – 'No Broad-based Tax Increases'?

Pennsylvania Gov. Tom Wolf presented his budget address February 7, 2017. The proposed budget seeks $1 billion in new revenue from several tax proposals, such as a severance tax on natural gas drilling, corporate net income...more

Governor Baker Releases Proposed FY 2018 Budget Including Extending Sales Tax Collection to Online Retailers and Expanding Room...

On January 25, 2017, Governor Charlie Baker released his proposals for the Commonwealth’s fiscal year 2018 budget. Among the proposed tax/revenue changes in the proposal are the following: 1. Extending sales tax...more

The Nomination of Judge Neil Gorsuch: One More Vote to “Kill Quill”?

With states like Alabama and South Dakota attempting to place Quill’s physical presence rule before the U.S. Supreme Court, Judge Gorsuch’s concurring opinion in Direct Marketing v. Brohl—and his previous clerkship with...more

(US) There Are Two New York Real Estate Transfer Tax Proposals to Watch in Governor Cuomo’s Proposed Budget

New York Governor Andrew Cuomo introduced his FY 2018 budget proposal on January 17. The proposal includes several significant revenue-raisers, including a few that could impact the New York real estate market....more

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

Revitalized by Increased State Interest, the MTC Transfer Pricing Committee Pushes Ahead

On November 9, the Multistate Tax Commission’s Transfer Pricing Committee met to continue its effort to develop and implement a comprehensive transfer pricing program, through which states can identify and remedy allegedly...more

Virginia Supreme Court Grants Discretionary Review in Lead Addback Case

The Virginia Supreme Court has granted review of the Richmond City Circuit’s decision regarding the “subject to tax” exception to intangible addback. In a case of first impression, the Richmond City Circuit had determined...more

Maryland Tax Court Overturns Comptroller's Policy of Limiting Subtraction for Interest Received on Federal Obligations

The Maryland Tax Court recently ruled that a bank was entitled to deduct all of its interest received with respect to federal obligations for Maryland corporate income tax purposes, thereby generating net operating losses...more

With a New Name, MTC Transfer Pricing Program Moves Forward

On August 18, 2016, the Multistate Tax Commission’s Transfer Pricing Committee voted to adopt an Information Exchange Agreement, which permits states to share taxpayer information with other states participating in the...more

Massachusetts SJC Reaffirms Decision Sourcing 100% of Taxpayer’s Loans to Massachusetts — Confirms Opportunity for Out-of-State...

On August 12, 2016, the Massachusetts Supreme Judicial Court issued its decision in First Marblehead on remand from the U.S. Supreme Court. The decision reaffirms that many taxpayers that (1) file as financial institutions in...more

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

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

Pennsylvania Enacts Tax Bill as Part of Budget Package

Pennsylvania has enacted tax law changes projected to generate $752M in new revenue. The changes include severe restrictions on the vendor sales tax discount for timely filing, imposition of sales tax on digital downloads and...more

Massachusetts Court Issues 'True Debt' Decision

On June 8, the Massachusetts Appeals Court once again denied a taxpayer’s claimed deductions from the income and net worth tax base of the corporate excise tax. In a decision that will be a disappointment for taxpayers...more

Tom Brady’s suspension reinstated, so what are the potential Massachusetts tax consequences?

Deflategate and the NFL’s suspension of quarterback Tom Brady for 4 games has been the NFL’s biggest news story of the past two years. On April 25, 2016, the United States Court of Appeals for the Second Circuit ruled in...more

66 Results
/
View per page
Page: of 3

"My best business intelligence,
in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.