In what is hopefully one of the last of the old modifiable decisions in tax cases by North Carolina Administrative Law judges, the NCDOR allowed the ALJ to relieve a shareholder of transferee tax liability, but still modified the ALJ opinion. 10 REV 04058; Cherry v. Dep’t of Revenue (May 16, 2012).
The Case: The DOR wanted to collect a corporation’s sales taxes from one of its shareholders. The corporation had operated a restaurant that closed. The DOR auditor caused the petitioner Cherry to sign sales and use tax forms after the fact. When the taxes were not paid the DOR attempted [...]Read more
Technocom Business Systems Inc. v. North Carolina Dep’t of Revenue; No. COA11-655 (NCAPP 2/21/2012). Taxpayer sold and leased equipment. It also serviced the equipment sold and leased and charged customers for the maintenance service. It also bought property to use in performing its service agreements. It did not pay use tax on the purchases of that property. A final determination was made that taxpayer owed use tax on its purchases of such property. Taxpayer also erroneously collected sales tax on the charges for its maintenance agreements, which were services and not taxable sales of property. [...]Read more
Earlier this year the General Assembly made significant changes in the statutes authorizing forced combinations of multistate corporate groups for income tax filing. The DOR has been scrambling to figure out how to enforce the old law and the new law, as reflected in three notices it has issued, discussed below, as well as a revised voluntary disclosure program discussed below. The changes offer significant promise for corporate taxpayers.
Undated 2011 Notice: The first notice stated that (a) the old forced combination statue, GS 105-130.6, would be applied in assessments proposed before New Year’s [...]Read more
Please click here to read an article by Ethan Millar and Kendall Houghton on current developments in unclaimed property. This article was published in the Sept. 12 edition of State Tax Notes.
Please click here for a recent paper by Atlanta SALT partners Jeff Glickman and Mike Petrik regarding two of the most significant issues in state tax during 2011: click-through nexus provisions (or “Amazon laws”) and the taxation of cloud computing.
Click here to read a chapter by SALT partner Mary Benton (with Art Rosen and Cass Vickers) that recently appeared in the materials for the 2011 NYU Institute on State and Local Taxation conference.
The article discusses, inter alia, different states’ treatment of digital goods for sales tax purposes, as well as a number of issues related to the income tax treatment of digitally-delivered goods and services, including nexus, P.L. 86-272, and apportionment of receipts from the sale of digital goods and services.
States have recently started to use third party contract auditors to conduct transfer pricing audits of taxpayers. Such audits have resulted in large assessments made pursuant to the states’ “discretionary authority.” This article, recently published by Kendall Houghton and Maryann Luongo in the IPT’s August 2011 Tax Report (see p. 15), discusses the use of third party contract auditors in the transfer pricing arena as well as some of the issues that arise during such audits.
Who are the representatives, adjudicators, and other people involved in a property tax appeal? This presentation, given by Mary Benton and Tim Peaden at this year’s IPT Annual Conference in San Antonio, explores that question.
This presentation was given by Tim Fallaw at this year’s CBIZ and MHM Annual Conference.
Last week, Alston & Bird’s Jack Cummings served as local counsel to the Council On State Taxation (COST) in the preparation and filing of COST’s amicus brief urging the N.C. Supreme Court to review the Delhaize case. The case involved North Carolina’s forced combination of Delhaize and one of its affiliates. The argument portion of the brief can be viewed by clicking here. We will update this blog as soon as we learn whether the N.C. Supreme Court has decided to grant review in this case.