The Circuit Court for Cook County in Illinois issued an eagerly awaited order explaining its bench decision on April 25, which declared Illinois’s “click-through nexus” law unconstitutional.
Advertisement
Topics
State & Local Tax (SALT)
Colorado’s “Amazon” Law Requiring Out-of-State Retailers to Report Sales Held to Be Unconstitutional
A federal district court held that the Colorado law requiring out-of state retailers to report information about customers’ purchases to each customer and to the state is unconstitutional.
Ethical Considerations in Reporting Use Taxes on State Income Tax Returns
As more states allow residents to report a liability for state use taxes on their individual income tax returns, practitioners will have to explain to clients their obligations in reporting use tax liability and address the professional standards for reporting use tax on a state income tax return.
The Evolution of Sales Tax Nexus Expansion Laws
Over the past three years, several states have expanded the activities that create sales tax nexus for out-of-state retailers without a physical presence in the state.
Mail-Order Book Seller Has Nexus with State
The Tennessee Court of Appeals held that a corporation that sells books and other publications through the mail to students in schools and home-schooled students had substantial nexus with Tennessee because teachers and parents of the students purchasing the books and publications assisted in ordering and distributing them.
Different States’ Approaches on Sales Tax Treatment of “Deal of the Day” Instruments
Guidance on the sales tax treatment of prepaid discount vouchers or “deal of the day” certificates purchased on internet sites has been provided by several states recently, with more likely to follow soon.
States Battle for R&D Investment by Enhancing Tax Incentives
When evaluating the potential tax effect of research and development investments, taxpayers should be aware of the generous tax incentives offered by many states that can add to the benefit received for the federal R&D credit.
How Does One Tax a Cloud?
State revenue departments face perplexing questions when deciding whether (and how) to tax cloud computing.
Software and California Sales and Use Tax
This item addresses the sales and use tax implications of canned software (prewritten programs) under two recent California cases in light of that state’s current statutory scheme.
California’s Click-Through Nexus Law
In 2011, California enacted a “click-through nexus” law requiring out-of-state online retailers to collect sales tax on all taxable sales of tangible personal property made through internet-based referrals, effective Sept. 2012.
California Changes Combined Reporting for Assignment of Combined Group Sales
For tax years beginning on or after January 1, 2011, California requires that receipts from the sale of tangible personal property of all members of a combined reporting group be assigned (i.e., sourced) to California, regardless of whether a specific member has nexus in the state.
States Increase Use of U.S. Treasury Offset Program for Collection of State Income Taxes
Budget-weary states are increasingly relying on the federal tax intercept program to collect state income tax liabilities.
New Developments in Sourcing Services for Telecommunication Companies
Effective planning and recordkeeping in the apportionment area call for an in-depth understanding of a taxpayer’s business model, including technology-based processes and the related cost accounting systems used, in order to source revenues to the appropriate jurisdiction.
Selected Issues Concerning the State Income Taxation of Nonresident Trusts and Estates
This column discusses selected state income tax issues for nonresident trusts that are a direct result of several recent challenges, including societal and marketplace conditions, increasingly complex tax laws, and declining state revenues.
Appendix: States That Assess an Income Tax on the Flowthrough Entity
This appendix is published as part of the June 2011 State and Local Tax column: Uncertain Tax Positions for Flowthrough Entities: What Is an Income Tax?
Uncertain Tax Positions for Flowthrough Entities: What Is an Income Tax?
This column examines the unique state tax issues that arise under ASC 740 for privately held business entities that are organized as flowthrough entities.
AICPA Speaks Out Against Proposed Model Sales and Use Tax Statute
The AICPA testified at a hearing May 18 to voice its opposition to a model statute drafted by the Multistate Tax Commission (MTC) that would authorize states to require nonresident companies to report sales transactions with in-state consumers in an effort to increase use tax compliance.
The Emergence of Factor Presence Nexus Standards
Several states have replaced traditional nexus standards with factor presence nexus standards to trigger taxes based upon gross receipts and income.
Current Corporate Income Tax Developments (Part II)
This article covers some of the more important developments in the areas of apportionment, unitary groups/filing methods, administration, flowthrough entities, and other significant corporate state tax issues.
Current Corporate Income Tax Developments, Part I
Part I of this two-part article focuses on nexus, tax base, allocable/apportionable income, and Sec. 338(h)(10) transactions.
PRACTICE MANAGEMENT
2026 tax software survey
CPAs rate their return preparation software’s performance during this year’s tax season.
