Department of Revenue

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In Revenue Ruling 2021-001, the Alabama Department of Revenue ruled that IT services provided by a foreign company with no physical presence in Alabama are not subject to sales tax. The foreign company provided an information technology system remotely to an Alabama production plant. Although the company provided these services remotely, it would also…

On April 29, 2021, Georgia Governor Brian Kemp signed SB 185, limiting the application of administrative deference in Georgia tax controversies. This law seeks to level the playing field in state tax litigation matters by reducing the level of deference accorded to the Department of Revenue’s interpretations of ambiguous laws. The law provides that…

The North Carolina Department of Revenue released a private letter ruling, concluding that a web-based product used to handle administration, management, and record-keeping via a Software as a Service model was not subject to sales and use tax. Consumers accessed the software application, which was running on a cloud-based infrastructure. The ruling states: “North…

The South Dakota Department of Revenue issued updated guidance regarding the application of sales tax to sales of Internet access and internet-related services. In particular, the Department added “Internet e-mail services” and “web hosting” to the list of exempt Internet-related services. However, the Department removed “live chat or conferencing fees” from the list. The Department…

The Illinois Department of Revenue issued a private letter ruling determining that for purposes of the Retailers’ Occupation Tax (ROT) and the Services Occupation Tax (SOT), a taxpayer that procured marketing materials on behalf of its clients properly sourced these sales to the location of the product manager, the employee responsible for procuring the materials.…

On February 17, 2021, the Washington Department of Revenue issued a Preproposal Statement of Inquiry regarding a proposed new rule for the business and occupation tax workforce education investment surcharge for select advanced computing businesses. A public meeting on the proposed rule is scheduled for March 10, 2021. Interested parties can submit written comments in…

The Illinois Department of Revenue issued responses to Frequently Asked Questions regarding marketplace facilitators, marketplace sellers, and remote retailers. The Department considers food ordering and delivery services to be marketplace facilitators if they: (1) list or advertise food or drink for sale by a marketplace seller in a marketplace; and (2) either directly or indirectly,…

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…

On January 26, the South Carolina Department of Revenue issued Revenue Ruling #21-2, which provides guidance regarding the state’s conformity to Internal Revenue Code (IRC) Section 163(j).

IRC Section 163(j) Background:

  • For tax years beginning before January 1, 2018, IRC Section 163(j) limited business interest expense deductions for certain interest paid or accrued by

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The Iowa Department of Revenue issued a bulletin explaining its sales tax exemption for purchases of computers, along with the recently-enacted exemption for purchases of computer peripherals. The exemption applies to computers and computer peripherals used in processing or storage of data or information by an insurance company, financial institution, or commercial enterprise. The guidance…