Income Tax

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Nexus, apportionment, market-based sourcing, voluntary disclosures... no single business can stay on top of all the state-by-state legislation and regulatory guidance changing SALT income tax strategies today.

That’s why Eversheds Sutherland has a multistate team of attorneys dedicated to knowing the latest — and using it to your advantage...Read More

The New York Tax Appeals Tribunal ruled that a semiconductor manufacturer was eligible to use the carryover refund from both the Empire Zone investment tax credit (EZ-ITC) for new businesses and the qualified investment project (QUIP)/significant investment project (SCIP) tax credit in the same year, resulting in a $152.3 million refund for the 2014 tax…

On January 19, 2023, the Michigan Court of Appeals held that a taxpayer, transitioning from the Michigan Business Tax (MBT) to the Corporate Income Tax (CIT), cannot claim prior MBT business losses on its first CIT return. For tax years 2008 through 2011, the taxpayer filed MBT tax returns and claimed employment tax credits. In…

The Nebraska Supreme Court upheld a lower court decision that a couple, partial owners of large trucking company, failed to prove that they changed their domicile from Nebraska to Florida for income tax purposes from 2010 to 2014. The taxpayers argued that they had changed their domicile to Florida, asserting that they had acquired a…

A recent significant precedential and unanimous decision by the California Office of Tax Appeals, Matter of the Appeal of Beckwith, provided more guidance on how to determine California domicile and residency for state personal income tax purposes.

In his article for Law360, Eversheds Sutherland Senior Counsel Eric Coffill provides five domicile takeaways and…

The District of Columbia occupies a unique position among subnational jurisdictions in the United States given its status as a nonstate, federal enclave. The District’s status allows it to impose individual income tax on only residents under the district clause of the US Constitution, the Home Rule Act of 1973, and implementing statutes that are…

On August 31, 2022, the California Office of Tax Appeals (“OTA”), in the Matter of the Appeal of B. Housman and B. Pena, held that an Australian software company holder, Housman, and his wife are California residents and Housman is entitled to a stepped-up basis as a result of a valid check-the-box election to be…

The California Office of Tax Appeals held that a taxpayer was a California resident and domiciliary when he redeemed shares of his Tennessee-based employer in 2012. Accordingly, the taxpayer was assessed additional state income tax on the value of the redeemed shares.

In 2008, the taxpayer moved from California to Tennessee and purchased a home.…

The Maryland Court of Special Appeals affirmed the tax court’s decision that a Macy’s captive insurance company is exempt from Maryland corporate income taxes on interest payments received from a Macy’s affiliate. Maryland imposes a premium receipts tax on unauthorized insurance companies, which includes the taxpayer captive insurer in this case. The taxpayer captive insurer…

The increase in people who work remotely means some financial planners may need to reassess clients’ income sources to avoid a tax surprise.

In his article for Journal of Financial Planning, Eversheds Sutherland Senior Counsel Eric Coffill examines key issues related to the state income taxation of nonresident equity-based compensation and how to avoid…

On September 26, 2022, the Ohio Court of Common Pleas in Morsy v. Dumas, held that Cleveland’s municipal income tax on remote workers was unconstitutional on an “as applied” basis. The taxpayer lived in Pennsylvania and was employed by a company located in Cleveland, Ohio.

Prior to the COVID-19 pandemic, Morsy would stay in…