In an article for Bloomberg Tax, Eversheds Sutherland attorneys Dan Schlueter and Fahad Mithavayani highlight how Hawaii and Texas are the latest states to join the trend to restrict the discoverability of attorney communications with expert witnesses and what it means for state tax litigation.
Hawaii Department of Taxation publishes guidance explaining taxation of software
On August 10, 2021, the Hawaii Department of Taxation issued Tax Information Release No. 2021-06, clarifying the treatment and taxability of software sales under Hawaii’s general excise tax (GET). According to the Information Release, the sale of prewritten software is considered the sale of taxable tangible personal property regardless of whether the software is
Marketplace Monday: Hawaii Issues Updated GET Marketplace Guidance
On October 17, 2019, the Hawaii Department of Taxation released Tax Information Release No. 2019-03 (“TIR”), which provided guidance regarding Hawaii’s Gross Excise Tax (“GET”) marketplace collection provisions effective January 1, 2020. On December 13, 2019, the Department issued a Revised 2019-03 to clarify the GET and use tax liability of marketplace facilitators and marketplace
Hawaii Department of Taxation Launches Tax Dispute Resolution Program
By Mike Kerman and Maria Todorova
Last month, the Hawaii Department of Taxation launched the Administrative Appeals and Dispute Resolution (AADR) Program, an informal appeals process intended to resolve tax disputes without litigation. Taxpayers may apply for AADR if they received a Proposed Notice of Assessment, a Final Notice of Assessment, or a Notice and
Bounty Hunters Gone Wild! States Turn to Controversial Contingent-Fee Auditors
Several states are turning to contingent-fee audit contractors, sometimes referred to as “bounty hunters,” as a means of increasing corporate income tax collections. Bounty hunter firms are compensated based on the tax assessed, thus encouraging these firms to aggressively assess taxpayers.
Not surprisingly, contingent-fee-based auditors are supporting legislation in several states that would require state tax agencies to enter into contingent-fee audit contracts. Contingent-fee audits are viewed by corporate taxpayers (and some courts) as unfair, hostile, and bad public policy because the auditors have a financial stake in the outcome of the audit.Continue Reading Bounty Hunters Gone Wild! States Turn to Controversial Contingent-Fee Auditors