McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsSALT Implications of Proposed Section 385 Debt/Equity Regulations
By McDermott Will & Emery on May 18, 2016
Posted In Audits, Federal Tax, Income Tax, Local Tax, Nationwide Importance, New York
On April 4, 2016, without warning, the US Department of the Treasury proposed a new set of comprehensive regulations under section 385. There had been no advance indication that regulations were even under consideration. Although the Treasury indicated that the proposed regulations were issued in the context of addressing corporate inversions, their application went well...
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Michigan Department of Treasury’s New Acquiescence Policy: A Model for Other States
By McDermott Will & Emery on Apr 20, 2016
Posted In Local Tax, Michigan, Procedure
On February 16, 2016, the Michigan Department of Treasury announced its new acquiescence policy with respect to certain court decisions affecting state tax policy. The Treasury’s acquiescence policy is similar to the Internal Revenue Service’s (IRS) policy of announcing whether it will follow the holdings in certain adverse, non-precedential cases. In Michigan, while published decisions...
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NYS Tax Department Relaxes Investment Income Identification Rules
By McDermott Will & Emery on Jan 11, 2016
Posted In Income Tax, New York
The New York State Department of Taxation and Finance has announced that it would extend the time for certain taxpayers to identify stocks as being held for investment so that income from those stocks would be tax-exempt [TSB M-15(4.1)C, (5.1)I]. Instead of having to make the identification on the date on which the stock is...
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Tax Breaks for Data Centers: The Numbers Might Be Cloudy
By McDermott Will & Emery on Dec 23, 2015
Posted In Incentives, Income Tax, Nationwide Importance, Property Tax, Sales Tax
States are competing aggressively to attract data centers with various tax incentives. Data center companies and their business customers are taking them up on their offers. But are these incentives really a good deal for the businesses? Tax incentives that seem attractive at first glance may not be beneficial when they are examined in the...
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NYS Tax Department Revised Sales Tax Publication Answers Some Questions but Not Others
By McDermott Will & Emery on Dec 4, 2015
Posted In New York, Nexus, Sales Tax
The New York State Department of Taxation and Finance (Department) has just revised its Guide to Sales Tax in New York State, Publication 750. The Guide will be particularly useful for companies that are just starting to do business in New York State. It provides a well-organized and easy-to-read outline of the steps that should...
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Tax on Tax Credits: U.S. Tax Court Addresses Federal Taxation of Refundable State Credits in Maines
By McDermott Will & Emery on Jul 27, 2015
Posted In Incentives, Income Tax, Nationwide Importance
As more and more states offer refundable tax credits to induce economic development, it is critical for businesses weighing incentive offers to take into consideration the federal income tax implications of an award. While a payment may be called a “credit” and claimed on a state tax return, that payment might nonetheless constitute taxable income...
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California’s Harley-Davidson Decision Rides over Nexus Lines
By McDermott Will & Emery on Jul 13, 2015
Posted In California, Constitutional Issues, Income Tax, Nationwide Importance, Nexus
On May 28 2015, The California Court of Appeals issued a decision in Harley-Davidson, Inc. v. Franchise Tax Board, 187 Cal.Rptr.3d 672; and it was ultimately about much more than the validity of an election within California’s combined-reporting regime. It also tackled issues and, perhaps most importantly, blurred lines surrounding the Commerce Clause’s substantial nexus...
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Inside the New York Budget Bill: Department Issues Guidance Regarding Investment Capital Identification Procedures
By McDermott Will & Emery on Jul 10, 2015
Posted In Income Tax, Local Tax, New York, Tax Base
On July 7, 2015, the New York Department of Taxation and Finance issued guidance (TSB-M-15(4)C, (5)I, Investment Capital Identification Requirements for Article 9-A Taxpayers) on the identification procedures for investment capital for purposes of the New York State Article 9-A tax and New York City Corporate Tax of 2015. Income from investment capital is generally...
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NYS Tax Appeals Tribunal Provides Guidance Respecting Unitary Business Determinations
By McDermott Will & Emery on Jun 2, 2015
Posted In Income Tax, Nationwide Importance, New York, Unitary Business
The New York State Tax Appeals Tribunal has just provided timely guidance respecting the unitary business rule in New York State. In SunGard Capital Corp. and Subsidiaries (DTA Nos. 823631, 823632, 823680, 824167, and 824256, May 19, 2015), the Tribunal found that a group of related corporations were conducting a unitary business and that they...
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Plain and Simple: Maryland Tax Court Holds Insurance Company is Exempt from Corporate Income Taxes
By McDermott Will & Emery on May 13, 2015
Posted In Income Tax, Insurance Tax, Maryland, Procedure
Although taxpayers often complain that complying with the tax laws imposed by the numerous state and local taxing jurisdictions that exist in the United States is a burdensome process, many of these tax statutes also provide benefits to taxpayers in the form of exemptions, deductions and credits. Taxpayers who structure their affairs according to the...
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