This item looks at a trust-planning strategy that has received greater attention recently—an arrangement that can allow trust income to avoid state income taxes.
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State & Local Tax (SALT)
Watch Out for California’s Late-Filing Penalty for LLCs Investing in LLCs
Many LLCs that are not connected to California other than via investment interests in LLCs that are conducting business in California are unknowingly not complying with California’s filing requirements, especially if the California apportioned net income is small or a loss.
Clicking Through to Nexus? Sales Tax Nexus Lessons From 2013
Given the already-tenuous constitutionality of the idea of click-through nexus, it is not surprising that constitutional challenges have been raised in both New York and Illinois.
A Tale of Two States: “Throwout/Throwback Nexus” in New Jersey and California
This item next focuses on two states’ recent approaches to answering what it means to be “subject to tax” or “taxable.”
State Income Tax Filing Requirements for Same-Sex Married Couples in Light of Rev. Rul. 2013-17
Most states that ban same-sex marriage also prohibit legally married same-sex couples from filing a joint state income tax return. This item addresses some of the major filing requirements and issues that same-sex couples may encounter in filing their personal income tax returns.
The Next Debate: Taxation of Digital Goods and Services
With states looking for ways to increase revenue, a natural source may be the burgeoning area of digital goods and services. It is reasonable to ask, therefore, how states apply their sales and use tax provisions to these digital goods and services.
State Tax Tribunals: Is Taxpayer Representation by CPAs a Potential Independence Problem?
This item addresses whether a CPA representing a client in state tax tribunal has impaired his or her independence under the AICPA Code of Professional Conduct.
Case Law Opens Options for Trusts Looking to Minimize State Income Taxes
Armed with two planning strategies derived from recent cases involving the taxation and administration of trusts, tax advisers can take steps to alleviate the state tax burden on undistributed trust income.
Considerations for Filing Composite Tax Returns
Taxpayers and their advisers should consider some key issues before deciding that a composite return is the best choice.
State Trust and Estate Income Tax Return Checklist
The AICPA State & Local Tax Technical Resource Panel has developed a checklist to assist practitioners with compliance for trusts and estates.
Continuing Efforts to Amend the Multistate Tax Compact
Multistate Tax Compact changes would alter the model allocation and apportionment statute followed by many states for purposes of their corporation income tax laws.
Use Tax Reporting: Is Colorado Back in Business?
This column revisits the issues presented by the Direct Marketing Association’s suit against the Colorado Department of Revenue and the history thus far.
The Power of Entertainment Tax Credits
Many states have created tax credits to attract movie and television productions to their states. The most powerful incentives over the last decade have been state income tax credits.
Repeal of the California Enterprise Zone Tax Credit Program
California eliminated the California Enterprise Zone Tax Credit program and replaced it with a more limited hiring credit.
Colorado’s Amazon Law Revived by Appeals Court
The permanent injunction that a federal district court issued in March 2012 enjoining Colorado from enforcing its Amazon law requiring remote sellers to report sales in the state has been dismissed by an appeals court.
Internet Tax Freedom Act Preempts Illinois Click-Through Nexus Law
The Illinois Supreme Court held that Illinois’s click-through nexus law is expressly preempted by the federal Internet Tax Freedom Act, which prohibits states from imposing discriminatory taxes on electronic commerce.
States Increase Enforcement of Unclaimed Property Laws
Many states have now taken a variety of measures to promote compliance with unclaimed property laws, including increasing the number of audits, engaging third-party auditors, and offering voluntary disclosure programs.
New York State Proposes to Regulate Tax Return Preparers
The New York State Department of Taxation and Finance has proposed amendments to its Personal Income Tax Regulations and Procedural Regulations to regulate tax return preparers.
Leveraging Existing ERP Systems to Automate Use Tax Compliance
Today’s corporate tax departments are questioning whether they really need expensive bolt-on software for use tax compliance.
State Independent Tax Tribunals: A Popular Alternative to Resolving Disputes
The recent trend favoring the creation of independent tax tribunals as a means to resolve state tax issues prior to litigation is a significant development in the area of adjudicating state tax appeal controversies.
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.
