Courts returned to business in a big way in 2021, following the pandemic-related slowdown in 2020. Over the year, there were several noteworthy income tax and sales tax decisions, as well as two First Amendment cases from the highest courts in Maryland and Ohio that reached opposite results and could be headed to the U.S.
A Pinch of SALT
Congress’s preemption of state tax laws is not commandeering
By Jeffrey Friedman & Alla Raykin on
Posted in In the News
There are several federal statutes that limit state and local taxation, including the Internet Tax Freedom Act and Public Law 86-272. Ever since the U.S. Supreme Court handed down its decision in Murphy v. National Collegiate Athletic Association, there have been calls to apply the “anti-commandeering doctrine” to invalidate or limit these federal laws.…
Transfer pricing and its effects on state tax
By Chris Lee & Justin Brown on
Posted in Podcast
In this episode of the SALT Shaker Podcast, host and Associate Chris Lee is joined by Associate Justin Brown to discuss transfer pricing and how it affects state tax and in particular how states may use transfer pricing or other theories to make adjustments to sales tax. Recently, some jurisdictions have challenged sales tax on…
A Pinch of SALT: Heads They Win, Tails You Lose: New York Decombination and Discretionary Adjustments
Posted on
Posted in New York, Policy and Legislation
In their article for State Tax Notes, “Heads They Win, Tails You Lose: New York Decombination and Discretionary Adjustments,” Sutherland attorneys Marc A. Simonetti, Andrew D. Appleby and Sahang-Hee Hahn assert that the New York State Department of Taxation and Finance applies its combined reporting and discretionary authority provisions arbitrarily to maximize its tax…
A Pinch of SALT: Wynne-ing Isn’t Everything: Remedies for Unconstitutional Taxes
Posted on
Posted in In the News, Noteworthy Cases
In this edition of A Pinch of SALT, Jeff Friedman, Pilar Mata and Mary Alexander examine the requirements and ramifications of states’ attempts to apply prospective-only remedies to unconstitutional taxes and explore why Maryland State Comptroller of the Treasury v. Wynne is not an appropriate case for prospective-only relief.
Read “Wynne-ing Isn’t …
A Pinch of SALT: Considerations When Executing Waivers
Posted on
Posted in In the News
Before entering into agreements with taxing authorities to extend the statute of limitations, taxpayers should consider the legal implications of these agreements, which often are dictated by the states. In this edition of A Pinch of SALT, Sutherland SALT’s Jonathan Feldman, Kathryn Pittman and Maria Todorova explore issues that taxpayers should consider before entering into…
A Pinch of SALT: Between a Rock and a Hard Place: Third-Party Enforcement Actions
Posted on
Posted in In the News
In the latest edition of A Pinch of SALT, Carley Roberts, Jack Trachtenberg and Tim Gustafson discuss the significant increase in third-party enforcement actions, including consumer class actions and qui tam actions involving state tax questions, which is forcing corporate taxpayers to assess unfamiliar and possibly conflicting risks in connection with their compliance obligations.…
A Pinch of SALT: Intrastate Apportionment: Ripe for Equitable Relief?
Posted on
In the latest edition of A Pinch of SALT, Sutherland SALT’s Carley Roberts, Prentiss Willson and Maria Todorova discuss the California Franchise Tax Board’s recent chief counsel ruling stating that California’s alternative apportionment provisions do not apply to the combined group’s intrastate apportionment results.
Read “Intrastate Apportionment: Ripe for Equitable Relief?”…
A Pinch of SALT: Applying False Claims Acts in State Taxation
Posted on
False claims act (FCA) statutes allow private persons to bring civil actions against alleged wrongdoers on behalf of the government. FCAs and qui tam actions vary, but generally impose significant penalties for “knowingly” failing to comply with a state law. In this edition of A Pinch of SALT, Sutherland SALT’s Jack Trachtenberg, Jeff Friedman and…
A Pinch of SALT: Demystifying Accountant-Client Privileges in State Tax Litigation
Posted on
Understanding states’ various approaches to accountant-client privileges can make the difference in protecting communications from disclosure in litigation. In this edition of A Pinch of SALT, Sutherland SALT’s Pilar Mata and Melissa Smith examine the scope and breadth of accountant-client privileges that have been adopted by some states.