Rules addressing state taxation of gains or losses that arise from the sale of interests in a passthrough entity are complex and differ from state to state.
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State & Local Tax (SALT)
Income taxation of trusts in California
The California Superior Court determined that all income, including California-source income, is subject to the apportionment formula.
States sue over state and local tax deduction cap
Four states have sued in U.S. district court, asking to invalidate the $10,000 limit on the deduction for state and local taxes enacted as part of last year’s tax overhaul.
Supreme Court overturns Quill’s physical presence requirement
The U.S. Supreme Court held that states can assert nexus for sales and use tax purposes without requiring a seller’s physical presence in the state.
State and local tax implications of federal tax reform for tax-exempt organizations
Tax-exempt organizations and state taxing authorities may not yet have had time to consider how the federal changes may affect each other.
The Tax Cuts and Jobs Act: State tax considerations, impacts, and responses
State are weighing the many consequences of federal tax reform.
IRS to clarify rules on payments in lieu of state and local taxes
The IRS announced that it intends to issue regulations explaining that legislation attempting to recharacterize state and local taxes as charitable contributions will be subject to interpretation under federal tax law.
Supreme Court to hear South Dakota v. Wayfair: Has the twilight of Quill arrived?
South Dakota is challenging, and attempting to have overturned, the physical presence nexus standard for the collection of sales and use taxes.
Supreme Court hears oral arguments in sales tax nexus case
The Supreme Court heard oral arguments in a case with broad remote sales tax collection ramifications.
Ohio CAT: Three key considerations
This item discusses Ohio commercial activity tax return preparation and ways to mitigate the unintended consequences of noncompliance.
A new state tax appeals era begins in California, but questions remain
California recently revamped its state tax agency system and the associated tax appeals process.
Blurred lines of business: Nexus and New Jersey’s corporation business tax
Three recent cases serve as a tool for taxpayers seeking guidance on when an out-of-state corporation owning a passive ownership interest in a passthrough entity doing business in New Jersey might be found to have nexus.
Proposed changes to services sourcing under California’s market-based sourcing regulations
This column discusses the definition of “benefits received” under the regulation for sourcing service receipts.
Sales-and-use-tax nexus in the internet age: What’s a retailer to do?
States have gotten creative and taken matters into their own hands in an attempt to collect lost tax revenue.
States probing boundaries of ‘physical presence’
States are attempting to increase revenues by enacting laws that expand the definition of nexus-creating activities.
Sales-and-use-tax considerations of software as a service
This column discusses compliance considerations, including nexus, taxability, and how to source
the revenues from customers.
Sales-and-use-tax pitfalls in the construction and real estate industries
This item examines the most common sales-and-use-tax problems and the preventive measures companies can take to avoid these issues or handle them in an audit.
State tax considerations for foreign companies with inbound U.S. investments
Non-U.S. taxpayers generally are surprised by the degree of complexity involved in complying with U.S. state and local taxes.
Small Iowa corporation successfully challenges California’s $800 franchise tax
A state’s franchise taxes can result in increased compliance costs in addition to the burden of the taxes themselves.
The canned software conundrum: Inconsistent state corporate income tax treatment
This item discusses the interplay between Public Law 86-272 (15 U.S.C. §§381–384) and the federal
treatment of computer software, as well as two states’ approaches to the corporate income tax treatment of canned software.
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.
