Tax Apportionment Shift Hits Multistate Companies

Geoff Christian comments on a troublesome area of state taxation for multistate businesses and how income is apportioned among various states in an interview with CFO magazine.

Click here to read the full article.

Alternative Apportionment Methods: Will South Carolina Ruling Have Nationwide Impact?

In the March/April issue of Journal of State Taxation, Geoffrey Christian and James Helms discuss the South Carolina Supreme Court’s Media General decision and question whether other states will also broaden their alternative apportionment provisions.

Read full article here.

Reprinted with permission by Journal of State Taxation.

SALT To Taste: New Jersey Provides Additional Guidance Regarding Addbacks

The New Jersey Division of Taxation recently issued Technical Advisory Memorandum, Add Back of Related Member Interest Expense (TAM-13) to apply the New Jersey Tax Court's decision in Beneficial New Jersey, Inc. v. Director, Division of Taxation, Docket No. 009886-2007(N.J. Tax Ct., Aug. 31, 2010).  According to this court decision and TAM-13, related party interest payments can qualify for New Jersey's "unreasonable" exception to the addback rules. This newsletter looks at how the Court determined when the "unreasonable" exception may be utilized to deduct related party payments.

Read this SALT To Taste newsletter here.

SALT To Taste: Taxpayer Gets "Creamed" Pursuant to Court's Application of the Operational Function Analysis

The Tennessee Supreme Court characterized capital gains recognized as part of a taxpayer's reorganization as apportionable business income under the unitary/operational function test and Tennessee's statutory functional test.  This edition of our newsletter focuses on the Tennessee Supreme Court's application of the operational function analysis while our last newsletter (see "Tennessee Supreme Court Freezes Taxpayer Arguments in Blue Bell Creameries Case") looked at the Court's analysis of the capital gains pursuant to Tennessee's statutory functional test.

Read this SALT To Taste newsletter here.

SALT To Taste: Tennessee Supreme Court Freezes Taxpayer Arguments in Blue Bell Creameries

The first of two newsletters discussing the Tennessee Supreme Court's recent decision.  This newsletter discusses the Court's analysis of the capital gains pursuant to Tennessee's functional test.  Our upcoming newsletter will include a discussion of the Court's application of the operational function analysis as a part of the unitary business principle.

Read this SALT To Taste newsletter here.

Washington State Tax Amnesty Program

Washington State has enacted a temporary amnesty program beginning February 1, 2011 and ending April 30, 2011. Under the program, penalties and interest will be waived with respect to state business and occupation taxes, state public utility taxes, and state and local sales and use taxes, if those taxes became due to the Washington Department of Revenue before February 1, 2011.  The following steps are required for those taxpayers wishing to enter the amnesty program.

View complete announcement here.

Are You Being Diligent with Your Due Diligence? A Look at Unclaimed Property

In the January/February issue of Journal of State Taxation, see how you can avoid unnecessary scrutiny from both states and rightful property owners by staying on top of your due diligence reporting responsibilities.  Diligent efforts now will lessen your risk of costly lawsuits and damages stemming from claims of property owners.

Click to view full article here.

Reprinted with permission by Journal of State Taxation.

Which State is Not Like the Others?

Virginia has some unique rules in determining whether a taxpayer is "doing business" within its borders. Ruling Request P.D. 10-279 provides an interesting view regarding Virginia's determination of who is "subject to tax" when compared to the wave of nexus decisions sweeping the nation. 

Read complete announcement here.

Colorado Provides Additional Sales Tax Guidance for Out-of-State Retailers

Colorado's FYI Sales 79:  Sales of Taxable Items Over the Internet provides pertinent information aimed at out-of-state retailers who do not collect Colorado sales or use tax.  If certain thresholds are met, these out-of-state retailers must provide additional sales tax information to customers and to the Colorado Department of Revenue.

Read complete announcement here.

A Perspective on Change - Where Does Fair Apportionment Stand?

In the November/December issue of Journal of State Taxation, Geoffrey Christian and James Helms explore the concept of fair apportionment in light of Media General Communications, Inc. et al. v. South Carolina Department of Revenue and other recent decisions.

Click here to view full article.

Reprinted with permission by Journal of State Taxation.

Amazon.com Click-Through Nexus Case Remanded

On November 4, 2010, the Appellate Division of the New York Supreme Court remanded a sales and use tax case involving Amazon.com, LLC and Overstock.com, Inc. for further discovery.  The Appellate Division remanded the case back to the lower court primarily due to a lack of factual information needed to determine if New York's "click-through nexus" statute violates the Commerce and Due Process Clauses "as applied" to the Plaintiffs' facts.  The decision also provided additional insight regarding the court's view of Internet activities that constitute solicitation for sales tax purposes.

Read entire SALT To Taste newsletter here.

SALT To Taste: Are Nonbusiness Income Audits Scary? Does Dracula Have Fangs?

Nonbusiness income audits can be one of the scariest thoughts imaginable to most corporate taxpayers.  Using the proper constitutional and statutory arguments can take the fright and tax bite out of nonbusiness income audits.

Read this SALT To Taste newsletter here.

North Carolina Information Request Violates First Amendment

A U.S. District judge has ruled that Amazon.com is not required to turn over critical personal information as part of a sales tax audit to the North Carolina Department of Revenue.  

Read announcement here.

SALT To Taste: Will California Ever Make Up Its Mind?

California is once again changing its mind on the Joyce/Finnigan rule.  By incorrectly using the Joyce or Finnigan approach, a taxpayer can easily understate or overstate a state's sales factor.  Learn which states currently follow a Joyce or Finnigan approach and the implications of using each method to help you stay alert on this growing tax issue.

Read this SALT To Taste newsletter here.

SALT To Taste: Blackbeard, State Taxes and Amnesty . . . Say What?

Examine some of the state tax amnesty programs currently being offered and discover which states provide waivers for penalties, and in some cases, interest before these programs expire.

Read this SALT To Taste newsletter here.

Digging Deep [WebCPA]

The reality of the recession has affected the tax policies of nearly every state, as dwindling receipts coupled with constant or increased expenses have left most states in a budgetary crisis mode.


In this article, Geoff Christian discusses the difference in filing methods can amount to several million dollars.

Read full story here at Accounting Today for the WebCPA.

South Carolina Supreme Court Media General Decision Alters the Landscape for Combined Reporting by Taxpayers

On June 14, 2010, the South Carolina Supreme Court reversed a long-standing policy in the state and ruled that a communications company and its subsidiaries could file on a combined basis. In Media General Communications v. South Carolina Dept. of Rev., the court held that the state's relief statute, incorporating UDITPA § 18, provided the department the necessary authority to permit combined reporting. In this interview, BNA speaks with Geoffrey J. Christian, member of Dow Lohnes Price Tax Consulting Group LLC, in Greenville, S.C., about the decision. Dow Lohnes Price served as a consultant to the taxpayer and helped to develop its tax strategy.

Read Geoffrey J. Christian's interview by Dolores W. Gregory here.


Reproduced with permission from Tax Management Multistate Tax Report, Vol. 17 No. 8 (August 27, 2010). Copyright 2010 The Bureau of National Affairs, Inc. (800-372-1033) www.bna.com

Court Rules on Entity Apportionment in Tax Case [WebCPA]

A case decided on June 14, 2010, by the South Carolina Supreme Court may have nationwide implications on tax reporting.


Geoff Christian discusses the decision.

Full story here at Accounting Today for the WebCPA.

South Carolina Supreme Court Decision Reached in Alternative Apportionment Case

This announcement provides a description of the recent ruling handed down by the South Carolina Supreme Court in Media General, Inc. et al. v. South Carolina Department of Revenue. Dow Lohnes Price developed an alternative apportionment position to fairly reflect the apportionment of taxpayer’s income to South Carolina and provided legal, computational, and analytical expertise in this case beginning with the audit phase through litigation.

See complete announcement here.

SALT To Taste: Searching for Lost Credits

For companies that may have overlooked state tax credits, this article discusses how value for credits may still be recovered even from closed tax years.

Read this SALT To Taste newsletter here.

SALT To Taste: Are You Being Diligent with Your Due Diligence? A Look at Unclaimed Property

Avoid unnecessary scrutiny from both states and rightful property owners by staying on top of your due diligence reporting responsibilities.  Diligent efforts now will lessen your risk of costly lawsuits and damages stemming from claims of property owners.

Read this SALT To Taste newsletter here.