State Tax Alerts - This Week's Stories Worth a Second Look

Rusty Little

In case you missed them, the following is a summary of a few key state tax developments, news articles, and observations during the past week:

• SALT To Taste: Missouri Got It Right, But Will It Be Of Any Use? - In a recent decision, the Supreme Court of Missouri ruled in favor of a group of travel companies on a sales tax issue for which the travel companies have had limited success in other states.  Although this was a favorable decision, it is a reminder that these internet service business models are susceptible to attack. See full text of article here.
• California Governor Jerry Brown signs bill (AB 155) to delay "Amazon Law" until September, 2012 - from the LA Times
• Massachusetts and New York address sales tax issues relating to Groupon/Living Social arrangements - Massachusetts Working Draft Directive 11-XX and New York TSB-M-11(16)S
• Colorado amnesty program begins October 1 and runs to November 15 - details from their website

Amnesty Alert: MEDIA COMPANIES Voluntary Disclosure Initiative in NEW JERSEY

New Jersey’s Division of Taxation recently announced a voluntary disclosure initiative directed to media and media content companies beginning on August 15, 2011 and ending on November 15, 2011.

Several of the program details include:

• A look back period will be limited to four years. This includes the current period and the previous three years.
• All late filing penalties will be waived. A five percent amnesty penalty will be assessed for amnesty eligible periods; i.e., returns due on or after January 1, 2002 and prior to February 1, 2009.
• The amount of receipts earned by licensing intangible property cannot exceed ten percent of total gross receipts.
• Discretionary apportionment relief from “throwout” allocation may be granted on a case-by-case review.
• Within 90 days of execution of its VDA, the taxpayer should file its New Jersey Corporation Business Tax Returns for the disclosure period and remit the taxes due.
• Interest will be paid within 30 days of assessment.

For instructions and all of the specific principles of the program, please click here.

If you have any questions or require assistance regarding this voluntary disclosure offering, please feel free to contact Geoff Christian at 864-241-2009, gchristian@dlptax.com or Marshal Kline at 864-241-2005, mkline@dlptax.com.

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.

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.