What is the practical risk that states attempt to apply Wayfair retroactively? And should taxpayers rush to limit exposure for historical periods by entering into voluntary disclosure agreements with states that might assess tax retroactively under Wayfair?
In an article originally published in Bloomberg BNA’s Weekly State Tax Report, Zach Gladney and Charles Wakefield explain why applying Wayfair retroactively would be misguided and unsuccessful.
To read the full article, click here. [...]Read more
The U.S. Supreme Court heard oral arguments in the latest challenge to Quill’s physical-presence standard for collecting state use taxes. Our State & Local Tax Group provides a first-hand account of the lively debate and analyzes the Justices’ willingness to overturn the 25-year-old standard.
South Dakota takes up Kennedy’s suggestion
What is the real-dollar impact?
Retroactivity becomes an issue
Read the full advisory here. [...]Read more
On July 5, 2016, the Court of Appeals of North Carolina affirmed the 2015 decision by the superior court in The Kimberley Rice Kaestner 1992 Family Trust v. N.C. Dep't of Revenue, which held that North Carolina was constitutionally prohibited from taxing the income of the plaintiff trust. Essentially, the state asserted jurisdiction to tax the trust's income based solely on the fact that the beneficiaries of the trust were North Carolina residents (the trust had no other connection with the state). The superior court rejected this assertion, concluding that the state could not impose the tax [...]Read more