McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsU.S. Supreme Court’s Wynne Decision Calls New York’s Statutory Resident Scheme into Question
By McDermott Will & Emery and Arthur R. Rosen on May 21, 2015
Posted In Connecticut, Constitutional Issues, Delaware, Income Tax, Maine, Maryland, Massachusetts, Nationwide Importance, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont
On May 18, the U.S. Supreme Court issued its decision in Comptroller of the Treasury of Maryland v. Wynne. In short, the Court, in a five-to-four decision written by Justice Alito, handed the taxpayer a victory by holding that the county income tax portion of Maryland’s personal income tax scheme violated the dormant U.S. Constitution’s...
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District of Columbia’s Transfer Pricing Enforcement Program and Combined Reporting Regime: Taking Two Bites of the Same Apple
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Apr 20, 2015
Posted In Allocation/Apportionment, Audits, District of Columbia, Income Tax, Local Tax, Tax Base, Transfer Pricing
In his recent article, “A Cursory Analysis of the Impact of Combined Reporting in the District”, Dr. Eric Cook claims that the District of Columbia’s (D.C. or the District) newly implemented combined reporting tax regime is an effective means of increasing tax revenue from corporate taxpayers, but it will have little overlap with D.C.’s ongoing...
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Delaware’s Unclaimed Property Audit Program Dealt Blow
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Mar 13, 2015
Posted In Constitutional Issues, Delaware, Unclaimed Property
The judge in a case challenging Delaware’s use of sampling and extrapolation to determine unclaimed property liability denied the state’s motion to dismiss and in doing so, seriously questioned the State’s approach. Temple-Inland v. Cook, U.S. Dist. Ct. (DE), Civ. No. 14-654-SLR (3/11/2015). Temple-Inland brought a suit against the State following an unclaimed property audit...
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Let the Training Begin: MTC Transfer Pricing Audits Draw Near
By McDermott Will & Emery, Diann Smith, Eric D. Carstens and Stephen P. Kranz on Mar 6, 2015
Posted In Income Tax, Nationwide Importance, North Carolina, Tax Base, Transfer Pricing
Deputy Executive Director Greg Matson (a nice guy at heart) announced this week that the Multistate Tax Commission (MTC) has hired its first transfer pricing training consultant and is scheduled to begin training state auditors. The training, titled “Identifying Related Party Issues in Corporate Tax Audits” will be hosted by the North Carolina Department of...
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Arizona’s 2015 TPT Amendments Have 99 Problems, but Origin Sourcing ain’t One
By McDermott Will & Emery, Diann Smith and Stephen P. Kranz on Jan 29, 2015
Posted In Arizona, Constitutional Issues, Nexus, Sales Tax, Transaction Taxes
Actually, there are really only two issues, but they are big issues. Arizona’s Transaction Privilege Tax has always been an anomaly in the traditional state sales tax system. Contrary to some commentators, however, the recent amendments do not, and could not, impose an origin tax on Arizona retailers for remote sales delivered out-of-state. That is...
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The New “Click-Through”?: New York Budget Proposal Requires Marketplace Providers to Collect Tax
By McDermott Will & Emery and Stephen P. Kranz on Jan 22, 2015
Posted In Constitutional Issues, Nationwide Importance, New York, Nexus, Sales Tax, Transaction Taxes
On January 21, Governor Cuomo delivered his State of the State address, along with proposing the new budget. The budget has a number of new tax proposals. One of those proposals would have a significant impact on e-commerce companies. Part X of the budget proposal amends the sales tax statutes to require marketplace providers to...
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Currency Conversion Concerns: New York Issues Guidance on Virtual Currencies
By McDermott Will & Emery on Dec 23, 2014
Posted In Income Tax, Nationwide Importance, New York, Sales Tax, Tax Base, Unclaimed Property
On December 5, 2014, the New York Department of Taxation and Finance (Department) released TSB-M-14(5)C, (7)I, (17)S. This (relatively short) bulletin sets forth the treatment of convertible virtual currency for sales, corporation and personal income tax purposes. The bulletin follows on a notice released by the Internal Revenue Service (IRS) in March of this year,...
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Three Strikes…Tax on Cloud Computing Out in Michigan?
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Dec 3, 2014
Posted In Michigan, Sales Tax, Transaction Taxes
If the Department of Treasury (Treasury) was hoping that the Michigan courts would simply overlook the previous two cloud computing losses this year in Thomson Reuters (previously covered here) and Auto-Owners (discussed here), they appear to have been mistaken. Last Wednesday’s Court of Claims opinion in Rehmann Robson & Co. v. Department of Treasury marked...
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Missouri DOR Burden of Proof and Notice Requirements Remain Uncertain After Veto
By McDermott Will & Emery and Eric D. Carstens on Jul 10, 2014
Posted In Missouri, Procedure
The Missouri General Assembly passed several tax-related bills at the end of the legislative session in mid-May that would have altered the Department of Revenue’s (Department) burden of proof and changed its notice requirements. While none of these bills ultimately passed due to vetoes by Governor Jay Nixon, the General Assembly is scheduled to review...
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Michigan Appeals Court Reaffirms True Object Test for Remote Access Software
By McDermott Will & Emery and McDermott Will & Emery on May 28, 2014
Posted In Michigan, Sales Tax
In Thomson Reuters, Inc. v. Department of Treasury, No. 313825 (Mich. Ct. App. May 13, 2014) (unpublished), the Michigan Court of Appeals, reversing the ruling of the Court of Claims, held that a taxpayer’s sale of online research products was not subject to Michigan use tax. The court held that the transaction was not taxable...
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