When a company distributes property to its shareholders, tax consequences arise for the distributing corporation and the receiving shareholder. This item addresses the state tax consequences to the shareholder, which can differ between states with separate-return filing rules and states that follow the federal consolidated-return filing rules.
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State & Local Tax (SALT)
Desirability, Mechanics of Making Sec. 362(e)(2) Elections for State Tax Returns
Sec. 362(e)(2) acts as a barrier to prevent two taxpayers from obtaining the benefit associated with the built-in loss amount, by requiring an election to preserve the loss in either the parent or subsidiary.
Maryland Personal Income Tax Regime Violates Constitution
In a 5–4 decision, the Supreme Court held that Maryland’s personal income tax regime violates the dormant Commerce Clause because it results in double taxation of some income earned in interstate commerce, amounting to an impermissible state tariff, and thus discriminates against interstate commerce.
Are Alternative Investments Worth Their SALT for Tax-Exempt Organizations?
This item discusses some of the state and local tax reporting challenges faced by tax-exempt organizations with passthrough (i.e., Schedule K-1) UBTI from alternative investments.
Developments on Missouri’s Sales Tax Exemption for Manufacturing
Recent Missouri Supreme Court decisions refine the scope of sales tax exemptions for certain machinery, equipment, and products.
Crowdfunding Contributions and State Sales and Use Taxes
This item focuses on state sales and use taxes and the implications of recent guidance from the Washington State Department of Revenue.
Sales and Use Taxes in a Digital Economy
This column highlights the complexities of taxing digital products through the example of streaming content, discusses the increasing use of digital currencies and how states have begun to react, addresses the challenges of determining what is a true service and what is a license of technology, and looks to the horizon and upcoming trends.
Supreme Court Invalidates Maryland’s Personal Income Tax Structure
The Supreme Court held that the personal income tax system imposed by the state of Maryland, which did not give taxpayers a credit against their county income tax for taxes paid to other states, violates the dormant Commerce Clause
Refunds of State Credits Are Includible in Income
The Tax Court held that refunds of three types of New York targeted economic development tax credits must be included in the taxpayers’ income.
Supreme Court Holds Challenge to Colorado Reporting Requirements Can Go Forward
Reversing the Tenth Circuit, the Supreme Court held that the Tax Injunction Act did not bar a suit that sought to enjoin the state of Colorado from enforcing a law requiring out-of-state sellers to notify Colorado customers of their use tax liability for purchases and report tax-related information about the purchases to the customers and the Colorado Department of Revenue.
Indiana: Where Market-Based Sourcing and Income-Producing Activity Collide
The Indiana Department of Revenue has blurred the edges of two approaches to sourcing sales to create a potential trap for the unwary, opportunity for the savvy, and fertile ground for litigation.
Sec. 529A ABLE Accounts May Be Set up Before the IRS Issues Guidance
The IRS announced on Tuesday that state ABLE programs that are established before the Service issues guidance under Sec. 529A will be deemed to comply with the rules when they are issued.
Supreme Court Holds Trade Association Can Challenge Colorado’s Amazon Law
The federal Tax Injunction Act does not prevent the Direct Marketing Association from challenging a Colorado law imposing notification and reporting requirements on out-of-state retailers the U.S. Supreme Court held on Tuesday.
Extended Yet Again: The Debate Over State Taxation of Internet Access Will Be One for the 114th Congress
Congress has batted the issue of taxation of internet access about for almost two decades. Will 2015 be the year something changes?
Multistate Tax Compact Amendments May Have Major Effect on States
Recent Multistate Tax Compact amendments address significant issues and may result in statutory amendments in some states.
New York’s Tax Reform and Its Impact on Small Business
The New York executive budget legislation for fiscal year 2014–2015 was signed by Gov. Andrew Cuomo on March 31, 2014. What impact does New York’s tax reform have on smaller, nonbanking businesses? And what is the impact on smaller businesses primarily located outside New York state?
Recent State Tax Developments
Several important developments have occurred in the area of state taxation so far in 2014.
Another Tax Enforcement Trap? The Qui Tam Action in New York v. Sprint Nextel Corp.
New York is using a relatively new type of tax enforcement mechanism against Sprint Nextel Corp.: a qui tam action.
New York Tax Reforms Include Significant Changes for Nexus, Calculation of NOLs
New York tax law changes affect almost every aspect of corporate franchise and bank taxes.
Unclaimed Property: Current Issues and Trends
To reduce the odds of an unwelcome surprise in the form of a hefty abandoned or unclaimed property assessment, companies need to stay on top of the latest AUP issues, including court challenges and legislative developments.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
