This week, we’re pleased to support Tax Executives Institute’s (TEI) 75th Midyear Conference, held in Washington, DC.

SALT Partners Michele Borens and Todd Betor will present during the conference, covering the below topics:

  • Audits and Litigation in SALT: Top Emerging Trends
  • SALT Income Tax Sourcing vs. Indirect Tax Sourcing: Key Differences and Implications

For more information, including this year’s complete agenda, click here.

The New York Tax Appeals Tribunal affirmed a Division of Tax Appeals (DTA) ruling, holding that deferred compensation earned by a partnership should be allocated to New York based on the business allocation percentage (BAP) from the year in which the services were performed, rather than the year in which the deferred income was recognized.

Taxpayers were individual nonresident partners of a partnership that recognized management fees in 2017 that it had earned and deferred in prior years pursuant to IRC § 457A. The partnership had operated exclusively in New York during the years in which the fees were earned and deferred, such that the BAP for those years would be 100%, but operated on a multistate basis in 2017, with a resulting lower BAP. Taxpayers sought to apportion the deferred fees recognized in 2017 using the lower BAP for that year. The Tribunal held that the deferred compensation is allocated by utilizing the BAP of the partnership for each of the tax years the services were performed, despite the compensation having been only been recognized in 2017. The Tribunal also upheld penalties, despite the taxpayer’s reliance on written advice from an accounting firm, stating that the taxpayer had failed to show that its reliance was reasonable where the professional advice contradicted guidance provided by the State.

Decision Nos. 830479 and 830481, N.Y. Tax App. Trib. (12/12/24).

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: A trial court in what state recently ruled that a capital loss carryback generated by a water’s-edge group member can be used to offset a gain generated by a different member for purposes of the state’s business profits tax?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: In Maryland, a bill was recently introduced that would impose a 2 cent per ounce tax on what kind of beverage?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: A lawmaker in which state recently proposed a bill that would provide a tax credit in exchange for donations towards a monument to honor basketball star Caitlin Clark and her college coach, Lisa Bluder?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!

Meet Senator Claude, our February SALT Pet of the Month! Due to his gentlemanly disposition and active political engagement, he was inaugurated as a Senator upon his adoption. He responds to both “Senator” and “Claude,” though his paw-rent Alla Raykin, counsel in our Atlanta office, calls him Claude.

Claude is 7 years old and was adopted from a rescue that found him in rural North Georgia. He enjoys hiking, swimming and going on runs with Alla, even accompanying her for a few 5Ks last year!

His preferred snacks are cabbage and broccoli; in exchange for these, he will give a high five or perform a dance for whoever gives him a treat. Despite his senatorial duties, Claude believes his job is to protect everyone and loves running errands where he can greet people at the store or coffee shop.

We are ecstatic about having such a cuddly and kind senator representing our SALT family. Welcome, Senator Claude!

Calling all trivia fans! Don’t miss out on a chance to show off your SALT knowledge!

We will award prizes for the smartest (and fastest) participants.

This week’s question: In a recent budget proposal, the governor of which midwestern state proposed doubling the tax rate on sports betting wagers from 20% to 40%?

E-mail your response to SALTonline@eversheds-sutherland.com.

The prize for the first response to today’s question is a $25 UBER Eats gift card. This week’s answer will be included in our SALT Shaker Weekly Digest, distributed on Saturday. Be sure to check back then!

Midway through 2024, and without any notice, the California Franchise Tax Board (FTB) pulled all Technical Advice Memorandums from its website. Overnight, decades of responses by the FTB’s Legal Division to FTB staff requests regarding the interpretation of existing tax law or the application of existing tax law to a specific set of facts literally disappeared.

In this installment of “A Pinch of SALT” for Tax Notes State, Eversheds Sutherland Partners Tim Gustafson and Jeff Friedman discuss this disappearance and raise questions about the future of the FTB’s informal administrative guidance.

Read the full article here.