On May 18, the California Office of Tax Appeals (“OTA”) issued a pending precedential decision holding that community income derived from nonqualified stock options (“NQSOs”) and restricted stock units (“RSUs”) granted to a resident in exchange for services performed exclusively in California and vested while a California resident is taxable California source income to a
Case closed: The New Jersey Tax Court rules NOL carryforwards were protected by the statute of limitations
On May 27, the New Jersey Tax Court held that the New Jersey Division of Taxation could not eliminate a taxpayer’s net operating losses generated during years beyond the statute of limitations. The division’s proposed reduction was based on a transfer pricing adjustment between related entities for years never audited by the division and otherwise
Taxpayers take a bath in Oregon statute of limitations dispute
On May 24, 2021, the Magistrate Division of the Oregon Tax Court denied a taxpayer’s motions for summary judgment, finding the taxpayer’s claim for refund was filed beyond the statute of limitations. Specifically, on December 4, 2015, the taxpayer filed its Oregon corporation excise tax return for tax year end February 28, 2015. The taxpayer
NY Tax Appeals Tribunal rules mandatory S corporation election triggered based on IRC definition of income
On May 17, 2021, the New York Tax Appeals Tribunal (“Tribunal”) held that when determining whether a New York C corporation must mandatorily elect to be treated as an S corporation as a result of the investment ratio test provided by New York Tax Law § 660(i), such test requires that “federal gross income” adopt
So nice to win twice – New Jersey Tax Court again finds that P.L. 86-272 preempts the AMA
The New Jersey Tax Court denied the Division of Taxation’s motion for reconsideration and again found that the Alternative Minimum Tax is preempted by P.L. 86-272. Previously, the New Jersey Tax Court granted summary judgment in favor of the taxpayer and held that the AMA, which was repealed for tax years beginning on or after
Oregon Tax Court Issues Ruling on Inclusion of Commodity Hedging Receipts in Sales Apportionment Factor
On April 14, 2021, the Oregon Tax Court issued a ruling on cross motions for summary judgment in a case involving the inclusion of receipts from commodity hedging activities in the taxpayer’s sales apportionment factor. Chevron filed amended Oregon corporation excise tax returns including its gross hedging receipts in its Oregon sales apportionment factor, and
Illinois Tax Tribunal denies 80/20 exclusion
The Illinois Tax Tribunal issued an order denying PepsiCo Inc. and Affiliates’ (“PepsiCo”) motion for summary judgment and found that PepsiCo’s subsidiary, Frito-Lay North America, Inc. (“FLNA”), was not an excluded 80/20 company and must be include in the PepsiCo Illinois unitary group corporate income tax return.[1] As originally filed, PepsiCo excluded FNLA from
New York Appellate Division holds compensation paid to both client facing and back office employees must be accounted for in computing NYC receipts factor
The New York State Supreme Court, Appellate Division, affirmed a New York City Tax Appeals Tribunal decision regarding the proper method for calculating a corporation’s receipts factor for General Corporation Tax purposes. The corporation offered a subscription-based service that allowed its clients access to experts and consultants in a broad variety of disciplines, and access
Practice What You Preach: Court Finds Wisconsin DOR’s Denial of Dividends-Received Deduction Contrary to Guidance
The Wisconsin Court of Appeals held that guidance issued by the Department of Revenue required the Department to allow a dividends-received deduction for cash distributions received by a taxpayer from a foreign partnership that was classified as a corporation for federal purposes. The taxpayer based its claim to the deduction on published guidance in effect
Quick Update: California, Wisconsin and Idaho
In this episode of the SALT Shaker Podcast, host Chris Lee discusses a California income tax matter concerning the sourcing of an individual’s income, a Wisconsin corporate income tax matter involving the dividends received deduction, and two Idaho individual income tax decisions addressing domicile.
Questions or comments? Email SALTonline@eversheds-sutherland.com.
