Troy M. Van Dongen
Subscribe to Troy M. Van Dongen's PostsTroy Van Dongen focuses his practice on the resolution of state and local tax (SALT) controversies through negotiation and litigation. He advises clients across the country in a variety of state and local tax matters, including income, franchise, sales, and use taxes, and he has a particularly strong background in property taxation. Read Troy Van Dongen's full bio.
Remote Retailers Held Responsible for Tax Collection in Washington
By Troy M. Van Dongen and Elle Kaiser on Feb 6, 2024
Posted In Franchise Tax, Income Tax, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes, Washington
If there’s a lesson to be learned from the Washington Court of Appeals’ recent holding in Orthotic Shop Inc. and S&F Corporation v. Department of Revenue, No. 39321-6-III (Jan. 23, 2024), it’s that the use of a marketplace does not eliminate a remote seller’s tax responsibilities, particularly for pre-Wayfair periods. The dispute in Orthotic Shop involved...
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OTA Finds CDTFA’s Audit Methodology Arbitrary
By Charles Moll, III, Troy M. Van Dongen, Marcy Jo Mandel and Elle Kaiser on Jul 24, 2023
Posted In Audits, California, Sales Tax
In Appeal of Colambaarchchi (OTA Case No. 21017152; 2023-OTA-302), a California-based retailer was audited by the California Department of Tax and Fee Administration (CDTFA) for years 2016 through 2019. Upon audit, CDTFA determined that taxable sales went unreported. In calculating the extent of the underreporting, CDTFA used various indirect methods for different periods in the...
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California Supreme Court Lets It Stand That CDTFA Can Decide Who Is and Is Not a Retailer
By Charles Moll, III, Troy M. Van Dongen and Elle Kaiser on Apr 28, 2023
Posted In California, Local Tax, Nationwide Importance, Sales Tax
On April 26, 2023, the Supreme Court of California declined to review the Second District Court of Appeal’s decision in Grosz v. California Dep’t of Tax & Fee Admin. In the underlying case, Stanley Grosz, a business owner based in Fresno, California, filed suit seeking a declaration that the California Department of Tax and Fee Administration (CDTFA)...
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Seattle Payroll Expense Tax Upheld by State Appellate Court
By Troy M. Van Dongen on Jun 23, 2022
Posted In Federal Tax, Local Tax, Nationwide Importance, Washington
This week, the Washington Court of Appeals affirmed a lower court’s decision to dismiss a challenge to the recently enacted payroll expense tax in Seattle, WA. Seattle Metro. Chamber of Commerce v. City of Seattle, No. 82830-4-I, 2022 WL 2206828 (Wash. Ct. App. June 21, 2022). The tax, which went into effect on January 1,...
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Washington State Capital Gains Tax Held Unconstitutional
By Troy M. Van Dongen on Mar 8, 2022
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance, Washington
The Washington State capital gains tax, which went into effect on January 1, 2022, has been held unconstitutional by the Douglas County Superior Court. Created in 2021, the tax was ostensibly labeled an “excise” tax in an effort by the Washington State Legislature (Legislature) to avoid difficulties associated with implementing an income tax in the...
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CDTFA Proposes Significant Revisions to Chapters 4 and 13 of the Sales Tax Audit Manual
By Charles Moll, III, Troy M. Van Dongen, Marcy Jo Mandel and Elle Kaiser on Feb 10, 2022
Posted In Audits, California, Local Tax, Nationwide Importance, Sales Tax
On February 2, 2022, the California Department of Tax and Fee Administration (CDTFA) held an interested parties meeting (IPM) to discuss proposed amendments to sales tax audit manual (AM) Chapter 13, “Statistical Sampling,” and Chapter 4, “General Audit.” Prior to the IPM, the CDTFA released a lengthy discussion paper outlining the extensive proposed changes to...
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Washington State’s Mandatory Withholding for Long-Term Care Put on Hold
By Troy M. Van Dongen on Jan 27, 2022
Posted In Insurance Tax, Local Tax, Nationwide Importance, Washington
In 2019, the Washington State Legislature (Legislature) established the Long-Term Services and Supports Trust Program (LTSS Trust Program) to provide funding for eligible beneficiaries that they can apply to the cost of their long-term care. The LTSS Trust Program is funded through a 0.58% payroll tax on employee wages, which went into effect on January...
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Governor Newsom Announces New Relief for Remitting California Sales Tax
By Charles Moll, III, Troy M. Van Dongen, Marcy Jo Mandel and Elle Kaiser on Dec 1, 2020
Posted In California, Interest and Penalties, Nationwide Importance, Sales Tax
On Monday, November 30, 2020, Governor Gavin Newsom announced that California will provide temporary tax relief for eligible businesses impacted by restrictions imposed to control the COVID-19 pandemic. The announcement indicates that the Governor will direct the California Department of Tax and Fee Administration (CDTFA) to: Provide an automatic three-month extension for taxpayers filing less...
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Alert: California False Claims Expansion Bill Advances to the Senate
By Stephen P. Kranz, Charles Moll, III, Troy M. Van Dongen and Elle Kaiser on Jun 16, 2020
Posted In California, False Claims Act, Illinois, Interest and Penalties, Nationwide Importance, New York, Procedure
Like the days of the Old West, last week a masked gang held up local businesses demanding their wallets. Unlike the days of the Old West, this was not the hole-in-the-wall gang, but the California State Assembly who, on June 10, 2020, approved AB 2570, a bill that authorizes tax-based false claims actions. If passed, AB...
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False Claims Never Die in California
By Stephen P. Kranz, Charles Moll, III, Troy M. Van Dongen, Elle Kaiser and McDermott Will & Emery on Jun 4, 2020
Posted In California, False Claims Act, Illinois
Recently, AB 2570 has cleared the Assembly Appropriations Committee, which authorizes tax-based false claims actions—allowing private, profit-motivated parties to bring punitive civil enforcement lawsuits. The bill is now on the Assembly floor for consideration and faces a June 19 house-of-origin deadline for passage. The bill is similar to a bill that failed to pass last...
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