Are You "Looking Too Closely"?

When I work, I like to listen to a song called, "Looking Too Closely" by Fink. I originally heard the song in a "Suits" episode (which is my favorite show). This morning, as I sat in front of my computer reading all of the articles on federal tax reform for a client, analyzing state IRC. 382 NOL limitations and calculations, I thought about the words to this song and how they relate to state taxes. 

Sometimes you have to look closely at the facts, the law and do deep analysis to help clients and find answers that are beyond the surface. Other times, after going deep, you need to come back out of the hole you dug, and see the issue and situation from the bigger picture. Perhaps the answer is easier to see, and most likely easier to explain with a broader view. "Looking closely" may be required to fully understand the issue and flush out the parameters of a solution, but sometimes "looking too closely" can be what's keeping you from finding or explaining real solutions. Step back. Keep it simple.

"Do for one, what you wish you could do for everyone"

I published a state tax update yesterday, but to be honest - I didn't feel like it. The events in Las Vegas have made me feel 'heavy.' I felt it all day yesterday and again today. Can't shake it. It really puts everything in perspective. Makes you want to stop complaining. Take risks. Go for your dreams. Stop worrying about things that don't matter. Hug those you love hard. Life is short. Life is valuable. We must spread love and hope to everyone we meet. We must do for one, what we wish we could do for everyone. We must not live in fear, but live fearlessly. None of us know when our time is up, so let's make the best use of our time. 

Note: I got the quote, "do for one, what you wish you could do for everyone," from Andy Stanley.

State Tax Knowledge Update (27 items)- October 2, 2017

The following are state tax and business developments I have curated since September 21st, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. PRACTICE AND PROCEDURE: STATES KEEP TAXPAYERS AFLOAT BY PROVIDING TAX RELIEF FOR HARVEY AND IRMA VICTIMS

2. Cuomo Announces New Amazon Office in New York City will Create 2,000 Jobs

3. Whole Foods Told To Pay $3.5M On Add-Backs Per NY Tax Law

4. California holds IPM on withholding for pass through entities

5. State Tax Developments: Captives

6. Wisconsin Eliminates Alternative Minimum Tax

7. Alaska 80% DRD for dividends received from 80 20 company

8. State sales tax could be costing Nashville tech jobs

9. Multistate Insider: Local Policy Digest

10. California Governor Signs Cleanup Legislation Related to Restructuring of State BOE and New OTA

11. Virginia Governor Reminds that Amnesty Program Has Begun

12. New York Extends Gramm-Leach Bliley Transition Rules for Certain New York City Financial Institutions

13. New York City Tax Appeals Tribunal Requires Taxpayer to Recognize Property Gain on Final Tax Return

14. Taxpayer Asks US Supreme Court to Review Florida Supreme Court Holding Which Held that Taxing Satellite Services Versus Cable TV Services at Different Rates is Constitutionally Valid

15. Amended Oklahoma Rules Reflect Remote Seller and Affiliate Nexus Provisions

16. South Dakota Supreme Court Affirms that Remote Seller Economic Nexus Law is Unconstitutional

17. Wisconsin Governor Signs Budget Bill with Various Tax Law Changes Including Updated State Conformity to IRC, Revised Sourcing and Apportionment Provisions, and NOL Limitations

18. Proposed Alabama Amended Rule Reflects New Law that Includes Loans and Credit Card Receivables in Property Factor for FIET Purposes

19. California FTB Chief Counsel Ruling Addresses Impact of Recorded Goodwill for Deemed Water-Edge Election Business Assets Test

20. New Mexico AHO Holds in Taxpayer Favor that Interest Income from Payment-in-Kind Notes is Nonbusiness Income Allocable Out-of-State

21. North Carolina Supreme Court Affirms that Taxpayer Cannot Claim Interest Deduction for Market Discount Income on Discounted US Bonds

22. Illinois Appellate Court Holds that Internet Retailer Lacks Substantial Nexus and Thus Not Liable for Use Tax

23. Massachusetts Supreme Judicial Court Affirms that Wholesale Distributor Must Collect and Remit Tax on Goods Sold to Out-of-State Retailers in Drop Shipment Scenarios

24. Holders Beware: Delaware Department of State Notices to be Mailed in Two Weeks!

25. Why Does Missouri Want a Gross Receipts Tax?

26. Ohio’s Commercial Activity Tax: A Reappraisal

27. State and Local Tax Aspects of Republican Tax Reform Framework

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

State Tax Knowledge Update (37 items) - Sept 21, 2017

The following are state tax and business developments I have curated since September 12th, and posted in the LEVERAGE SALT LinkedIn group:

Some of the items may be on the same state/issue/topic, but they are from different sources which may give you a broader perspective to help your company or client.

1. VA sourcing rules constitutional IPA where work performed

2. AL group may use NOLs generated before consolidated election

3. State Rundown 9/13: The Year of Unprecedented State Budget Impasses Continues

4. Comments on South Dakota’s Challenge to Quill

5. Domestic tax quarterly webcast series: a focus on state tax matters

6. South Dakota Supreme Court – Sales tax economic nexus provisions unconstitutional; appeal to US Supreme Court expected

7. Virginia Denies Alternative Market Approach for Sourcing Sales

8. South Dakota Supreme Court Rules in Favor of Remote Retailers; Next Step US Supreme Court?

9. Florida Provides Guidance Regarding Sourcing of Services for Income Tax Purposes

10. Pennsylvania Department of Revenue Attempts to Tax Information Retrieval Services: An Overview of Letter Ruling SUT-17-002

11. Foxconn Tax Credit Package Enacted in Wisconsin

12. Zapper Fraud Case Results in Mandatory Real-Time Monitoring

13. INDIVIDUAL INCOME INSIGHTS: CHECKING UP ON CHECKOFFS

14. CORPORATE CLOSE-UP: VIRGINIA COURT DENIES CORPORATION USE OF ALTERNATIVE METHOD OF APPORTIONMENT

15. PROPERTY TAX POST: ARE STATES TAKING THEIR TAKINGS POWER TOO FAR?

16. CORPORATE CLOSE-UP: ILLINOIS (FINALLY!) FINALIZES MARKET-BASED SOURCING REGULATIONS

17. INDIVIDUAL INCOME TAX INSIGHTS: INCOME TAX CONSEQUENCES OF NONRESIDENT TELECOMMUTING

18. CORPORATE CLOSE-UP: THE FTB’S SMALL CAP SOLUTION TO ALLEGED FINANCIAL AND NON-FINANCIAL COMBINED REPORTING APPORTIONMENT DISTORTION

19. CORPORATE CLOSE-UP: DELAWARE CONTINUES DEVELOPING UNCLAIMED PROPERTY RULES

20. State Tax Filing Relief for Victims of Hurricanes Harvey and Irma

21. Examining the Potential Tax Implications of Streaming Video Distribution

22. Alabama Appellate Court Affirms that Certain Separate Company NOL Carryforwards Can Be Claimed on Consolidated Return

23. New Delaware Law Includes Retroactive Tax Law Changes for Series Captive Insurance Companies

24. Illinois Tax Tribunal Holds that Insurance Premium Financing Subs Must File as Part of Combined Return for Financial Organizations

25. New Mississippi Law Allows Department of Revenue to Contract with Third-Party Auditors on a Contingent Fee Basis

26. Proposed Regulations Reflect Recent Montana Law Changes that Expand Waiver of Composite Return or Withholding for Domestic Second-Tier Pass-Through Entities

27. Pennsylvania Trial Court Finds NOL Cap is Unconstitutional

28. Tennessee DOR Issues Chart and Examples Depicting Apportionment Calculations Under Various Elections

29. Virginia Circuit Court Denies Alternative Apportionment Request and Upholds Validity of Standard Cost-of-Performance Method to Apportion Income from Subscription-Based Services

30. Massachusetts DOR Finalizes New Regulation Adopting Bright Line Nexus for Some Remote Sellers

31. Proposed Amended Ohio Rule Addresses Bad Debts, Assignment of Accounts Receivables, and Financing Companies

32. Illinois DOR Proposes Use Tax Nexus Standards for Trade Show Retailers

33. DON'T MISS the 24th Annual Paul J. Hartman SALT Forum

34. 2017 Oregon Legislative Tax Update

35. How Much Does Your State Collect in Corporate Income Taxes Per Capita?

36. REMINDER: Supreme Court to Consider West Virginia Tax Credits Case

37. Maine: 2017 Legislative Changes

The above represents 'general curating' of state tax developments into one spot. If you still feel overwhelmed by the volume of state tax developments, please consider my 'custom curating' service. Meaning, clients hire LEVERAGE SALT to daily curate state tax developments relating to a specific industry, state(s), tax type and issue. You can make it as granular as you prefer. This allows you to reduce information overload, and only get the information you need to help your clients or company. This service is provided on a fixed-fee or subscription basis. Contact me at strahle@leveragesalt.com.

New York Advisory Opinion: Sales Taxability of Webinar and Live Stream Products

The New York Department of Taxation and Finance issued an Advisory Opinion concluding that the petitioner's webinar and live stream products are not taxable, but two of the optional services are subject to state and local sales tax.

Pennsylvania Court Rules NOL Limitation Unconstitutional (AGAIN)

The Pennsylvania Commonwealth Court ruled yesterday that the Pennsylvania net operating carryover deduction limitation is unconstitutional. The taxpayer, RB Alden Corp, is entitled to a 100% offset of its corporate net income tax.

The Court overruled all of the Commonwealth’s exceptions to the Court's June 15, 2016 decision, concluding that, consistent with Nextel, the $2 million net loss carryover deduction limitation set forth in section 401(3)4.(c)(1)(A)(I) of the Code violates the Uniformity Clause of the Pennsylvania Constitution as it applies to RB Alden, entitling RB Alden to a 100% offset of its corporate net income tax. As a result, RB Alden owes zero tax to the Commonwealth for Fiscal Year 2006.

Note: The Nextel case is currently pending before the Pennsylvania Supreme Court. Oral arguments were heard April 5, 2017. Nextel Commc'ns of the Mid-Atlantic, Inc. v. Pennsylvania, No. 98 F.R. 2012, 2015 BL 384486 (Pa. Commw. Ct., Nov. 23, 2015) During the year in the Nextel case (2007), the cap was $3 million or 12.5% of taxable income.

Pennsylvania's current cap is $5 million or 30% of taxable income, whichever is larger.