Last week, our International Tax Group examines the Ninth Circuit repeating itself in reversing a unanimous Tax Court holding on the validity of the Treasury's regulations under Section 482. We examine the reconstituted panel's significant decisions, which in many ways follow the first panel's conclusions.
Altera v. Commissioner, Parts 1, 2, and now, 3
What is the meaning of “commensurate with income”?
What does this case say about previous standards under Chevron?
Read the full advisory here. [...]Read more
The multistate unclaimed property landscape continued to evolve rapidly in 2018, and we expect more of the same in 2019. Kendall Houghton and Michael Giovannini look at unclaimed property issues in this issue of Retail: What's in Store.
Read the publication here. [...]Read more
Over the next few weeks, we will be hosting weekly 30 minute webinars where our attorneys will walk through key elements of the new TCJA regulations packages, addressing corporate and international issues and state tax matters.
The first session occurs January 15 at 11am when Jack Cummings and Scott Harty walk through key elements of 163(j) interest deductibility.
On October 24, 2018, the California Department of Tax and Fee Administration ("CDTFA") held a stakeholder's meeting to discuss the impact of South Dakota v. Wayfair on use tax collection in California. Among those at the meeting from the CDTFA were Nicolas Maduros (Director), Trista Gonzalez (Chief of Tax Policy), and Robert Tucker (Assistant Chief Counsel). For the majority of the meeting the CDTFA fielded questions from attendees.
During the course of the meeting, the CDTFA explained its planned response to Wayfair. California Rev. & Tax. Code Section 6203(c) states that California's sales [...]Read more
The IRS’s opening salvo of proposed regulations under the Tax Cuts and Jobs Act’s global intangible low-taxed income is as complex as you would think. Our International Tax Group cuts through the clutter to address the key takeaways:
Computation of GILTI inclusion
GILTI guidance still to come
Read the full advisory here. [...]Read more
In December, we wrote about a new gift card law in New York that took effect on Christmas day (http://www.alston.com/advisories/ny-gift-card-legislation/), which was enacted by Senate Bill S. 4771-E. Under that now-effective law:
Gift card issuers are prohibited from charging a service fee before the twenty-fifth month of dormancy, and any service fees that are applied after this time must be waived and put back on the card if the card is used within three years of the issue date.
No gift card may have an expiration date of earlier than five years from the date the card was issued or the [...]Read more
Clark Calhoun explores the implications of a decision from the U.S. Supreme Court in an article published in IPT Insider. (See p. 10 of the linked document.)
In Comptroller of the Treasury of Maryland v. Wynne, the U.S. Supreme Court declared Maryland’s income tax credit scheme unconstitutional, holding that the state’s failure to provide a full credit for the state and local taxes paid to other states was internally inconsistent and, therefore, violated the dormant Commerce Clause. Calhoun's article focuses on a similar tax credit issue, the constitutionality of which seems highly suspect [...]Read more
The impact of the burden of proof on state tax appeals cannot be overstated. Taxpayers often lose tax appeals on the basis that they failed to satisfy the seemingly elusive burden of proof. Apart from limited instances in the arena of alternative apportionment, taxpayers bear the burden of proof in nearly every state tax appeal. As the reasoning goes, taxpayers should bear the burden of proof because it is the taxpayers that possess the necessary information and, thus, are in the best position to establish the proper amount of state tax liability. But should this always be the case?
In [...]Read more
For decades, the determination of whether debt issued between related parties should properly be characterized as equity has provided grounds for frequent disputes between taxpayers and the Treasury Department and the IRS (together, “the government”). Congress attempted to address this issue through the enactment of IRC § 385(a) (as part of the Tax Reform Act of 1969), which authorizes the Treasury Department to prescribe regulations as necessary or appropriate to determine whether an interest in a corporation should be treated as debt or equity. However, the government had not done so – [...]Read more
Few laws, if any, have had a bigger impact on a state’s taxing authority than California’s Proposition 13 (Prop 13). Famously passed in 1978 amidst a housing market boom, Prop 13 was intended to protect taxpayers from dramatic rises in their annual property tax bills by limiting the ad valorem taxes on real property to 1 percent of the full cash value of the property at acquisition, with a 2 percent annual cap on assessment increases.
Perhaps the most friction-laden aspect of Prop 13 is the ‘‘change in ownership’’ requirement. Prop 13 permits local assessors to reassess tax based [...]Read more