Alston & Bird Tax Blog

nexus

Digital Services Taxes and Nexus for Foreign Tax Credit Purposes

By and

Our International Tax Group reviews Treasury’s proposed regulations that would add a jurisdictional nexus requirement to the analysis used to determine whether a foreign tax is an income tax for foreign tax credit purposes. What is the new jurisdictional nexus requirement?Why is Treasury worried about Europe’s digital services taxes?What are the arguments against the new nexus requirement? Read the full advisory here. [...]Read more

‘Wayfair’: What Are the Practical Retroactivity Concerns?

By and

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 Supreme Court Weighs a New State Tax Nexus Standard, Again

By and

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

State & Local Tax ADVISORY: Georgia Legislation Roundup 2017: General Assembly Fails to Pass Economic Nexus Bill

By

Which tax bills survived sine die? Our State & Local Tax Group reviews the three major tax bills of the 2017 Georgia General Assembly.
• HB 329 – the omnibus bill
• HB 225 – the rideshare bill
• HB 283 – the IRC conformity bill

Read the full advisory by clicking here. 

North Carolina Appellate Court Affirms that Taxation of Trust’s Income is Unconstitutional

By

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