Following a taxpayer’s appeal of a local Virginia county (County) Business, Professional and Occupational License (BPOL) tax assessment, the Virginia Tax Commissioner held that the taxpayer’s remote employees’ payroll was properly excluded from the numerator of the payroll apportionment calculation. The taxpayer was headquartered out of state and maintained offices worldwide, including an office in
New York False Claims Act case remains in federal court
The Southern District of New York denied a plaintiff-relator’s motion to remand a dispute over the defendant’s transfer pricing arrangement brought under the New York’s False Claims Act to New York state court. The plaintiff initiated the suit on behalf of the State of New York in state court alleging that the company did knowingly
Idaho Governor Little signs rate reductions and income tax rebate bill into law
On February 4, Idaho Governor Little signed into law HB 436, which will decrease individual and corporate income tax rates. HB 436 was passed and signed into law in just over 20 days after being introduced. Specifically, the legislation lowers the corporate income tax rate from 6.5% to 6% and consolidates the personal income
Breaking domicile is hard to do: Arkansas OHA holds couple did not abandon Arkansas domicile
In a decision dated January 18, 2022, the Arkansas Office of Hearings and Appeals (OHA) held that a married couple remained domiciled in and residents of Arkansas for individual income tax purposes for the 2013 through 2018 tax years, rejecting the couple’s assertion that they had abandoned their Arkansas domicile by relocating to another state.
Washington state refund claim enters no fly zone
The Washington Court of Appeals recently issued a divided (2-1) decision in a case involving Washington’s “benefits received” test for apportioning service income. The Court ruled that the “benefit” of an airplane design firm’s services were received in Washington, where the taxpayer’s direct customer, Boeing, manufactured the airplanes incorporating the taxpayer’s airplane designs, rather than
Not my domicile: Indiana DOR drops assessment against taxpayer who moved out of state
On July 27, the Indiana Department of Revenue found that a taxpayer had abandoned her Indiana domicile and was therefore no longer subject to Indiana state income despite the taxpayer erroneously listing her permanent address with her employer as her old Indiana-based address.
The taxpayer protested the imposition of Indiana income tax and provided the
Workaround this: No income tax credit for Maine taxpayer who paid Connecticut pass-through entity tax
The Maine Board of Tax Appeals (Board) disallowed a resident individual taxpayer’s claim for a Maine income tax credit for taxes paid to Connecticut by the taxpayer’s limited liability company (the Company). The Company, treated as an S corporation for federal purposes, paid Connecticut’s entity-level tax on pass-through entities (a tax that operates as a
Already home: New York ALJ determines taxpayer is a statutory resident in same year of establishing domicile
A New York Administrative Law Judge recently determined that a taxpayer was liable for income tax as a statutory resident of New York State and New York City for the entire 2014 tax year, as he maintained a permanent place of abode in New York City and was physically present in New York State and
Multistate Tax Commission adopts updated P.L. 86-272 guidance
The Multistate Tax Commission (MTC) adopted its long-awaited guidance interpreting Public Law (P.L.) 86-272 protections for internet businesses on August 4, 2021. P.L. 86-272 was passed by the U.S. Congress in 1959, and protects businesses from the imposition of state income tax when the business’s only activity in the state is the solicitation of orders
Domicile, residency and personal income tax: what should you consider?
On this episode of the SALT Shaker Podcast, Host and Eversheds Sutherland Associate Jeremy Gove is joined by Partner Tim Gustafson to delve into the intricacies of personal income tax, residency and domicile.
The two discuss the numerous tests various jurisdictions use in determining when a taxpayer is a domiciliary, and even when not domiciled