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
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.
Successfully Changing California Residency For Tax Purposes
It goes without saying that an individual is free to move about the country and to change their state of residency/domicile for state income tax purposes. However, that change is potentially complex under the law, especially when an individual who is a longtime resident/domiciliary of California plans to become a nonresident.
In this article for
Illinois Department of Revenue Plans Significant Expansion of Audit Fast Track Resolution Program
After a successful trial-run, the Illinois Department of Revenue (IDOR) recently announced plans to expand its Audit Fast Track Resolution (FTR) program to general income tax disputes in October.
The FTR program allows for the expedited resolution of audit disputes through a conference with a neutral mediator while a case is still under the jurisdiction
Check Your (Broadband) Credit Score: Mississippi Supreme Court Approves Telecom Companies’ Computation of Broadband Tax Credits
The Mississippi Supreme Court ruled that an affiliated group of telecommunications companies properly computed the Broadband Investment Credit in determining their franchise and income tax liabilities. The Broadband Credit may be used by a taxpayer to offset up to 50% of the taxpayer’s tax liabilities in a given year. The taxpayers filed separate Mississippi franchise
Iowa Department of Revenue Issues Guidance on Sales Tax Treatment of New Inflow-Outflow Billing Method for Investor-Owned Utilities
Effective July 1, 2020, Iowa law permits utility companies to utilize an inflow-outflow billing method for eligible distributed generation facilities. Under the inflow-outflow method, a generation customer is responsible for paying for the inflow kWh energy charge (sales to customer), while the amount of outflow kWh energy charge is credited to the customer (purchases from
Ownership of Tennessee Mortgages Does Not Create Nexus for Foreign Investment Fund
A recent letter ruling from the Tennessee Department of Revenue concludes that the ownership of mortgages backed by Tennessee property was insufficient to subject a foreign investment fund (“Fund”) to the state’s franchise and excise taxes.
Tennessee broadly applies its franchise and excise tax to the extent permitted by the U.S. and state constitutions. A
Massachusetts Appeals Court Finds Indiana Utility Receipts Tax Deductible for Purposes of Massachusetts Corporate Excise Tax
On October 7, 2020, the Massachusetts Appeals Court held that a taxpayer’s deduction for payment of the Indiana utility receipts tax (“URT”) was permitted for Massachusetts corporate income tax purposes. The taxpayer who was engaged in natural gas distribution operations in Massachusetts and other states, claimed a deduction for the URT it paid to Indiana
Out of State Taxpayer’s Gain on Minority Ownership Interest in Limited Partnership Subject to Tax.
A New York City Administrative Law Judge held that a New Jersey S corporation (“Taxpayer”) was subject to New York City general corporation tax (“GCT”) on gain from the sale of a minority limited partner interest in a limited partnership that leased and managed New York City real estate. The Taxpayer argued that the gain