Alston & Bird Tax Blog

Kathleen Cornett

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About Kathleen Cornett

Kathleen Cornett is an associate on the Alston & Bird State & Local Tax Team. She focuses her practice on federal, state, and local tax controversy matters, as well as unclaimed property issues.

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Pushing Beyond the Limit: Examining the Scope of Subpoenas Issued During Unclaimed Property Audits

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A Delaware court quashed a subpoena aimed at an unclaimed property holder, but the victory may be short-lived. Our Unclaimed Property Team explores the latest court decision addressing a subpoena for records dating back to the 1990s. The subpoena asked for every check issued from 27 accounts over 20 years, including cleared and voided checks and checks issued to payees in other statesThe court found the subpoena too expansive and unreasonableThe third-party auditor’s incentives and motives were called into question Read the full advisory here. [...]Read more

New York Assembly Introduces a Bill on the Escheat of Virtual Currency

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New York Assembly Bill 8314, introduced on June 13, 2019, would provide for the escheat of virtual currency. The bill, which also directs the comptroller to create regulations establishing when electronic communication qualifies as “written contact” from an owner, defines “virtual currency” as “any type of digital unit that is used for  a  medium of exchange or a form of digitally stored value.” The definition is meant to be broadly construed and includes decentralized currencies and those with a central depository or administrator. However, the bill excludes online gaming currencies, [...]Read more

Colorado’s New Revised Uniform Unclaimed Property Act Should Prompt Holder Action

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Our Unclaimed Property Team examines the potential adverse impacts on holders as Colorado joins the list of states updating their unclaimed property laws by adopting a version of RUUPA that repeals its existing $25 reporting deduction but preserves the state’s existing treatment of gift cards.

Impacted holders should consider redomestication
Will the state apply the repeal retroactively and attempt to claw back deducted funds?
Gift cards and gift certificates – maintaining the status quo

Read the fill advisory here. [...]Read more

Delaware’s Escheats Law Is Back in Court

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Our Unclaimed Property Group examines the latest challenge to Delaware’s Escheats Law, regulations, and audit practices.

Lawsuit in response to state subpoena of holder’s records
Substantive challenge to audit practices even after recent Escheats Law amendments
Comparison to Plains All American Pipeline and Temple-Inland

Read the full advisory here. [...]Read more

Controlling Interest Transfer Taxes (Part Two)

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Some states impose a controlling interest transfer tax (CITT) in a simple, straightforward manner, but, as a whole, most states’ CITT statutes suffer from ambiguous terms, complicated calculations, and a lack of guidance. Even the states with seriously solid music scenes. In their second article for the Journal of Multistate Taxation and Incentives reviewing states’ CITT statutes (you can find the first one here), Clark Calhoun and Kathleen Cornett discuss the remaining nine states (including the District of Columbia) that tax the transfer of a controlling interest in an entity that owns real [...]Read more