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:

• Still Alive and Kickin’: “Cost of Performance” Sourcing for Sales - While many states are moving away from the cost of performance approach in favor of marketplace sourcing, cost of performance is still alive and kickin’. Re-discover some of the benefits and considerations of using cost of performance and examine whether an opportunity still exists to take advantage. Read entire SALT To Taste article here.
• The Marketplace Equity Act was introduced to Congress this week. This new online sales tax collection bill differs from the Mainstreet Fairness Act in many ways – from the Tax Foundation Tax Policy Blog
• eBay Voices Disapproval of Current Internet Sales Tax Bills – from eBay’s public policy blog
• The New York Department of Taxation and Finance will eliminate 37 of its 42 in-house legal counsel positions (no, that’s not a typo – this will have major ramifications in a lot of areas) – from timesunion.com
• How will the IRS amnesty program to convert independent contractors to employees affect the state treatment? Article from Forbes
• Harrisburg, Pennsylvania Files for Bankruptcy – from Businessweek

SALT To Taste: Still Alive and Kickin': "Cost of Performance" Sourcing for Sales

Kellie Lanford; Marshal Kline

While many states are moving away from the cost of performance approach in favor of marketplace sourcing, cost of performance is still alive and kickin'.  Re-discover some of the benefits and considerations of using cost of performance and examine whether an opportunity still exists to take advantage.

Read our latest newsletter here.

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

Rusty Little

A few state tax developments, blog posts, news articles, and observations from the past week:

• Surprise, Surprise, Surprise . . . state tax auditors are looking at your company website - Avoid surprises!
• Indiana Tax Court Issues Interesting Opinion on Sourcing of “Dock Sales” - from Tax Executives Institute's Daniel De Jong
• Ohio's consumer use tax amnesty program begins Oct 1, 2011 - click here for the details
• New York is the 48th state to do this:  Cuomo Signs Mobility Law for New York CPAs - from Accounting Today 
• IRS to roll-out fingerprinting process for preparer registration program - From CPA Letter Daily 
• Momentum grows to swap income tax for sales tax in states - from the Kansas City Star 
• States Pursue Sales Tax Revenue Vanishing Into Computing Cloud - from Bloomberg
• Bloomberg to acquire BNA for $990 million - from Washington Post
• H&R Block to sell RSM McGladrey back to McGladrey & Pullen - from Boston Business Journal

Reminder - Dow Lohnes Price launched its new website design this week at www.dlptax.com.  Check it out when you have a minute.

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.