Every state taxing authority has some measure of discretion to determine a taxpayer’s income under alternative methods if the taxing authority believes the taxpayer’s income, as determined under the state’s tax code, does not fairly represent the extent of the taxpayer’s activity in the state. Several recent cases highlight this trend.
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State & Local Tax (SALT)
Current Corporate Income Tax Developments (Part I)
During 2009, there were many changes in the area of state corporate income taxation. This article focuses on some of the more interesting items in the areas of nexus, tax base, allocable/apportionable income, and Sec. 338(h)(10) transactions.
The Recent Growth of Mandatory Unitary Combined Reporting
The use of mandatory unitary combined reporting has become increasingly popular among states in recent years, driven by state budgetary shortfalls and the perceived distortion of taxable income by multistate corporations filing separate company reports.
A Practitioner’s Guide to theTaxation of Telecommuting
This article discusses how state and local tax laws affect telecommuting and what the federal and state governments can do to prevent taxes from having a negative effect on the growth of the telecommuting movement.
An Overview of Major Property Tax Relief Measures
Every state employs some form of property tax relief program for the purpose of reducing the local property tax bill for taxpayers. A property tax relief program modifies the basic property tax model in an attempt to produce a smaller tax bill for at least some taxpayers. A relief program can target specific types of property or specific types of individuals for tax relief, or it may have a broad application.
Ohio’s CAT Upheld
The Supreme Court of Ohio has ruled that the state’s commercial activity tax (CAT) does not violate the Ohio constitution’s prohibition of excise or sales taxes upon food sales and purchases.
All Aboard: The Impact of the New York State MTA Payroll Tax on Alternative Investment Fund Managers
Assembly Bill A08180, establishing the Metropolitan Commuter Transportation Mobility Tax. The bill imposes a new tax on employers and self-employed individuals engaging in business within the 12 counties of the Metropolitan Commuter Transportation District.
Travel Sites Held to Owe Millions in Transaction Taxes to Various Jurisdictions
Online travel companies could be forced to pay millions in uncollected taxes, penalties, and interest under recent state court rulings in Georgia and California, with other jurisdictions to possibly follow.
New York Eliminates Temporary Stay Residency Exception
New York is very aggressive in making sure that those who work or live in the state pay their fair share of taxes. Because falling under the definition of a New York resident can be very expensive, it is extremely important to understand the rules.
Drop Shipments and Flash Title: Establishing Sales Tax Nexus in Complex Commercial Transactions
This column discusses substantial and attributional nexus and examines how nexus is asserted for sales and use tax purposes in drop shipment and flash title transactions.
Tax Amnesty Programs and Voluntary Compliance Initiatives: A Way to Mitigate Declining State Revenues
Since 2000, more than half of the states have offered tax amnesty programs one or more times.
Sales Tax Collection by Online Vendors
Amazon.com, a retail online vendor, recently suffered a setback in a New York court, where it was contesting a newly enacted New York statute requiring online vendors with no direct physical presence in New York to collect sales tax on goods sold into the state.
Refundable State and Local Tax Credits
The IRS has not issued published guidance on corporations’ tax treatment of refundable state and local tax credits. However, the Office of Chief Counsel, through a recent legal memorandum and other informal nonprecedential advisories, has provided insight as to the treatment of these credits.
Current Corporate Income Tax Developments (Part II)
During 2008, numerous state statutes were added, deleted, or modified; court cases were decided; regulations were proposed, issued, and modified; and bulletins and rulings were issued, released, and withdrawn. This article covers some of the more important developments in apportionment, unitary groups/filing methods, administration, flowthrough entities, and other significant corporate state tax issues.
Current Corporate Income Tax Developments (Part I)
During 2008, there were many changes in the area of state and local corporate income taxation. This article focuses on some of the more interesting items in the following corporate income tax areas: nexus, tax base, allocable/apportionable income.
Maryland Tax Court Adopts Economic Substance Doctrine
Two recent decisions highlight the Maryland Tax Court’s creation and use of the economic substance doctrine in cases involving the use of intangible holding companies.
California Combined Report Includes Unitary Insurance Subsidiary
The California State Board of Equalization ruled that a taxpayer’s combined report should include a wholly owned unitary insurance subsidiary.
State Research Credits
Practitioners with clients conducting qualified research could find some hidden gems among state research credits
Continued Trend Toward State Related-Party Expense Addback
In recent years, several states have enacted provisions requiring the addback of certain related-party expenses.
Massachusetts Corporate Tax Law Changes Effective in 2009
Massachusetts enacted a law aimed at simplifying the corporate tax structure and raising revenue while cutting corporate tax rates
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.
