The California Franchise Tax Board (“FTB”) recently issued a revised draft regulation regarding the procedures for a taxpayer to petition for alternative apportionment under section 25137(d), title 18 of the California Code...more
On May 23, 2019, the California Department of Tax and Fee Administration (DTFA) held an interested parties meeting to discuss proposed amendments to the sales and use tax regulations related to the recently enacted California...more
IMPORTANT SALT CONSIDERATIONS IN M&A: ARE YOU EXPOSED FOR SALT? -
Right now, we are seeing a lot of deal activity. 2018 was the third busiest year ever for mergers and acquisitions (“M&A”), with more than $3.8 trillion...more
On April 25, 2019, California Governor Gavin Newsom signed remote seller and marketplace facilitator sales and use tax legislation with a threshold of $500,000 of sales of tangible personal property, regardless of the number...more
The New Jersey Tax Court held yesterday, February 27, 2019, in a precedential published opinion that a royalty payor was not required to add back any portion of the royalties that it paid to a related licensor under the...more
The Tax Court of New Jersey released its state tax addback decision in Daimler Investments US Corporation v. Director, Division of Taxation on January 31, 2019. The Tax Court agreed with our assertion that amounts Daimler...more
On October 24, 2018, the California Department of Tax and Fee Administration (CDTFA), including Director Nick Maduros, held a meeting for taxpayers and stakeholders to discuss implementation of the California sales and use...more
Words Matter: Complying with State Tax Laws -
Statutes mean what they say. As the late Justice Scalia once quipped, the proper role of the courts “is to apply the text, not to improve upon it.” However, revenue departments...more
Stand Your Ground! Substantial Nexus Lives After Wayfair -
The U.S. Supreme Court decided in South Dakota v. Wayfair, Inc. that the U.S. Constitution does not require a physical presence in a taxing state in order for...more
7/23/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
The New York Appellate Division, First Department held that the U.S. Supreme Court’s 2015 decision in Comptroller v. Wynne does not render New York’s statutory residency scheme unconstitutional and upheld the dismissal of the...more
Chief Justice John Roberts quipped, “[w]hatever salience the adage ‘third time’s a charm’ has in daily life, it is a poor guide to Supreme Court decisionmaking.” However, the third time was indeed a charm for the states and...more
6/26/2018
/ Appeals ,
Commerce Clause ,
Constitutional Challenges ,
Internet Retailers ,
Interstate Commerce ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Reversal ,
Sales & Use Tax ,
SCOTUS ,
South Dakota v. Wayfair ,
Substantial Nexus
The Virginia Supreme Court granted the Company’s petition for rehearing and confirmed that the Department of Revenue’s interpretations that are not contained in regulations are entitled to no weight. ...more
There is a new governor in town and his name is Phil Murphy. And like President Trump, New Jersey Gov. Murphy has taxes on his mind.
During his days as a candidate and now as New Jersey governor, Phil Murphy has been...more
In a 4-3 decision, the Virginia Supreme Court held that the subject-to-tax safe harbor to the royalty addback was ambiguous and applies only to the extent that the royalties are actually taxed by another state. In addition,...more
When must state apportionment be fair? Always. If a state’s normal apportionment formula is operating unfairly with respect to your company, you need to consider the alternatives. The United States Supreme Court has...more
Penalties: You Can Win -
Penalties pose unique problems that are not directly associated with tax assessments. Over 90 years ago, the U.S. Supreme Court stated that, while interest is a form of compensation, penalties are...more
Effective May 11, 2016, the North Carolina General Assembly amended the royalty reporting option contained in Section 105-130.7A(a). As a result of the amendment, even if royalty payments are added back to the royalty...more
The New Jersey Supreme Court has denied certification in Lorillard Licensing Company LLC v. Director, Division of Taxation, making the Appellate Division's decision final. The Appellate Division affirmed the Tax Court in its...more
On January 6, 2016, the New Jersey Tax Court approved its January 14, 2014 decision in Lorillard Licensing Company LLC v. Director, Division of Taxation for publication, making the Tax Court decision precedential. The...more
New Jersey filed a notice of petition for certification (request for discretionary review) with the New Jersey Supreme Court seeking reversal of the Appellate Division’s December 4, 2015 decision that the Division may not...more
Mr. Scudder’s leadership is scheduled to commence on November 9, 2015.
Mr. Scudder returns to his native New Jersey from his dual roles as Chief Operating Officer of economic research and consulting firm Laffer...more
The Michigan Court of Appeals affirmed the Court of Claims’ decisions in cases that challenged the constitutionality of Michigan’s purported retroactive repeal of the Multistate Tax Compact effective January 1, 2008. The...more
Several significant tax cases have been decided in New Jersey in 2014. Perhaps even more notably, nearly all of them have been decided in favor of the taxpayer. The decisions address a broad spectrum of issues, including the...more
3/5/2015
The Indiana Department of Revenue recently concluded that a company that earned royalty income from licensing trademarks and trade names to two of its Indiana affiliates, and had no physical presence in the state, nonetheless...more
In This Issue:
- Where’s Walden? Finding Protection under the Due Process Clause
- Upcoming Speaking Engagements
- CFCs and Subpart F Income in a California Water’s-Edge Election and What’s Wrong with the Apple...more