On May 27, the New Jersey Tax Court held that the New Jersey Division of Taxation could not eliminate a taxpayer’s net operating losses generated during years beyond the statute of limitations. The division’s proposed reduction was based on a transfer pricing adjustment between related entities for years never audited by the division and otherwise
NOL
Maryland Comptroller’s Limitations on NOLs Ruled Invalid
By Alla Raykin & Todd Lard on
Posted in In the News, Income Tax
The Maryland Tax Court reversed the Comptroller’s disallowance of NOLs and essentially struck down a regulation that limited the usage of pre-nexus NOLs. The Comptroller disallowed the taxpayer’s use of NOLs accumulates by entities with no nexus in Maryland that subsequently merged into the taxpayer. The Comptroller relied on a regulation enacted in 2007 that…
Don’t Bank on It: South Carolina Administrative Law Court Holds Banks Not Allowed to Utilize NOL Carryforwards
By Suzanne Palms & Jonathan Feldman on
Posted in Financial Services, In the News
The South Carolina Administrative Law Court found that the taxpayer bank could not deduct net operating loss (NOL) carryforwards when computing its bank tax liability. The taxpayer argued that banks should be allowed to deduct NOLs regardless of whether it is paying under the income or the franchise tax, because of the state’s conformity with…
Indiana Affirms Taxpayer’s Section 382 NOL Limitation Calculations
By Todd Lard & Justin Stone on
Posted in Noteworthy Cases
An Indiana taxpayer claimed net operation loss deductions (“NOLs”) on its adjusted gross income. The NOLs were acquired by the taxpayer as part of a corporate acquisition. The Indiana Department of Revenue did not dispute that the taxpayer was entitled to the NOLs, but limited the NOLs by an “asset ratio” based on the assets…