News & Analysis as of

Tax Audits State Taxes

Procopio, Cory, Hargreaves & Savitch LLP

GAO Report Signals Intensified IRS Scrutiny of Puerto Rico Act 60 Residents

The U.S. Internal Revenue Service (IRS) appears to be entering a new and far more aggressive phase of enforcement focused on taxpayers claiming Puerto Rico residency and Act 60 (formerly Act 22) incentives or benefits. The...more

Vorys, Sater, Seymour and Pease LLP

Ohio Legislature Proposes Changes to the Taxpayer Bill of Rights

The General Assembly has recently proposed legislation to update Ohio’s Taxpayer Bill of Rights. House Bill 613 (H.B. 613) has been introduced but not yet assigned to a committee for review. The Bill offers several sweeping...more

Vorys, Sater, Seymour and Pease LLP

Ohio Board of Tax Appeals Rejects Tax Commissioner’s Request for Proof Requirements not Required by Statute and Restores Fair...

The Ohio Board of Tax Appeals (Board) has found that chargebacks, i.e., above the line price reductions, are not discounts to the customer and should not be included in “gross receipts” for Commercial Activity Tax (CAT)...more

Rivkin Radler LLP

Escape from New York – It’s Not That Easy

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It’s not at all unusual to encounter the owner of a New York business who dreams about leaving the State. The reasons often given for the desired move include, among others, the cost of doing business in New York, the State’s...more

Hanson Bridgett

No Joke. California Office of Tax Appeals Rules Against Comedian in Residency Dispute

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California residents seeking to change their residency status and avoid California tax must be prepared to substantiate their relocation. Simply moving to another state is not enough to relinquish California residency and tax...more

Allen Barron, Inc.

How Might Marrying a Non-US Citizen Affect Your Taxes

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How might marrying a non-US citizen affect your taxes? What are some of the hidden issues that the IRS, California, and other state tax agencies may raise in an audit?...more

Cole Schotz

Snowbirds’ Wings Clipped by New York Tax Appeals Tribunal

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In a recent decision, the New York Tax Appeals Tribunal issued a sharp reminder to ‘snowbirds’ that changing domicile is about substance, not paperwork. In Matter of John J. Hoff & Kathleen Ocorr-Hoff, DTA No. 850209 (N.Y....more

Kilpatrick

5 Key Takeaways | Proactive Sales Tax Strategies for Effective Risk Management and Compliance

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Kilpatrick’s David Hughes recently spoke at the Institute for Professionals in Taxation (IPT) Sales Tax Symposium on “Proactive Sales Tax Strategies for Effective Risk Management and Compliance.” The session addressed...more

Allen Barron, Inc.

The Risk of California FTB Audits is Increasing

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Did you know that the number of California FTB audits is increasing when compared to the trend of IRS audits in 2025? The California Franchise Tax Board, or FTB, has recently invested in advanced data processing systems and...more

Allen Barron, Inc.

You Need an Experienced Tax Attorney when Tax Issues Strike

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Why do you need an experienced tax attorney when tax issues strike? What do you need to know about communications with the IRS and California's tax agencies?...more

Foster Garvey PC

Hobby Loss Rules Revisited

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With the Corporate Transparency Act hopefully in our rearview mirrors, I decided to take a brief break from my ongoing series on Subchapter S and report on a different topic. In the last few weeks, the Magistrate Division of...more

Arnall Golden Gregory LLP

April Rules Day: Georgia Department of Revenue Streamlines Film Tax Credit Audit Rules

Effective March 12, 2025, the Georgia Department of Revenue (“GADOR”) issued Policy Bulletin IT-2025-01 implementing various updates to its Mandatory Film Tax Credit Audit Program....more

Rivkin Radler LLP

New York Tax Continues to Inconvenience Nonresidents Working Remotely

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Last Friday, New York’s Governor Hochul delivered the following remarks at the annual meeting of the Business Council of New York State:“Someone asked me today, are we going to raise income taxes? I said, ‘I’m not raising...more

Rivkin Radler LLP

New York’s Tax Treatment of Compensatory Restricted Stock and Dividends in the Hands of a Nonresident Executive

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As far back as I can remember, the end of August has always elicited a sense of dread comparable to what many schoolchildren, and a fair number of adults, experience every Sunday afternoon. In retrospect, I cannot say that...more

Blank Rome LLP

Whose Income Producing Activity Is It Anyway?

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Both states and taxpayers have struggled with how to correctly source service receipts for apportionment purposes. The myriad of state sourcing provisions certainly do not add any clarity to the issue. Muddying the waters...more

Thompson Coburn LLP

[Webinar] Preserving Income Tax Benefits from Estate Tax Audits; S Corporation Sales; Partnership Redemptions - January 31st,...

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Drawn from Steve Gorin’s 4th quarter 2023 newsletter, this course discusses preserving income tax benefits from estate tax audits and selected issues relating to S corporation sales and partnership redemptions....more

Foster Garvey PC

The Oregon Legislature and the Oregon Department of Revenue Bring Some New Year Cheer to the State’s Taxpayers and Tax Community –...

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The Oregon Legislature, in House Bill 3373, created the Office of the Taxpayer Advocate within the Oregon Department of Revenue. The new law became effective on September 25, 2021. According to the Oregon Department of...more

BakerHostetler

[Podcast] Don't Pick Me! The Multistate Tax Commission Audit Nomination Process

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The Multistate Tax Commission recently issued a policy position on not disclosing which states nominated a taxpayer for a joint audit or why they were nominated. Matt Hunsaker discusses....more

Eversheds Sutherland (US) LLP

Louisiana Department of Revenue implements managed audit program to address transfer pricing issues

The Louisiana Department of Revenue (the Department) issued Revenue Information Bulletin No. 21-029 (the Bulletin), inviting corporate income taxpayers to resolve intercompany transfer pricing issues via the Louisiana...more

Blank Rome LLP

You Had Your Chance: New Jersey Tax Court Prohibits Audit Adjustments to Closed Years

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The New Jersey Tax Court held that the Division of Taxation (“Taxation”) cannot assess tax in years open under the statute of limitations if the tax is attributable to the elimination of net operating loss (“NOL”)...more

Rivkin Radler LLP

Thinking About ‘Avoiding’ NY Tax Increases? Then Think About The False Claims Act

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According to Justice Learned Hand, “Any one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to...more

BakerHostetler

[Podcast] When State Tax Agencies Speak from Both Sides of the Mouth

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In Wisconsin Department of Revenue v. Deere & Company, the Department of Revenue tried to disallow a dividends received deduction for distributions from a Luxembourg entity despite published guidance conflicting with its...more

BakerHostetler

What Happened at the Multistate Tax Commission Annual Committee Meetings?

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Throughout November, various Multistate Tax Commission committees held virtual annual meetings (due to COVID). In this episode, Matt Hunsaker runs down the highlights from each meeting, including technical corrections to...more

Buckingham, Doolittle & Burroughs, LLC

Ohio Commercial Activity Tax: Proposed Rule Allows Retroactive Consolidated Filing Election

In our previous post, we explained the Ohio Department of Taxation proposed a regulation change to limit a taxpayer’s ability to make a retroactive consolidated filing election for Ohio Commercial Activity Tax purposes (CAT)....more

BakerHostetler

Leaving on a Jet Plane: How to Change Tax Residency

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Many people are looking to move out of high tax jurisdictions - for a variety of tax and non-tax reasons. State tax officials audit residency changes with vigor. Betsy Smith joins Matt Hunsaker in the virtual studio to...more

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