The Eversheds Sutherland SALT Team is always excited to see what kind of pets our clients and friends have. Our team features a different pet at the end of every month, and we want to feature YOURS! Featured pets will receive a fun prize from the SALT Team.

To submit your pet to be featured, visit the Eversheds Sutherland SALT Shaker App, click “Pet of the Month” in the drop-down, then click “Submit A Pet.”

Don’t have the app? It is available for download in the Apple App Store, Google Play and the Amazon Appstore.

View previously-featured furry friends.

Happy Birthday to Jeff Friedman, SALT lawyer, Tax Chair and yes, Yankees fan.

Read our May 2018 posts on stateandlocaltax.com or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Eversheds Sutherland SALT Shaker app.

• SALT Pet of the Month: Fiver
  Meet Fiver, the adorable pet rabbit belonging to Brandi Drake, Strategic Tax Senior Director at Charter Communications.
• Chicago Streaming Video Tax Does Not Violate Federal and State Law
  On May 24, 2018, the Circuit Court of Cook County upheld the City of Chicago’s imposition of its amusement tax on streaming services.
• Indiana Enacts IRC Conformity Bill, Decouples from Certain Federal Tax Reform Provisions
  On May 14, 2018, Indiana Governor Eric Holcomb signed into law H.B 1316 (the Bill). The Bill provides a number of changes to Indiana’s tax laws, including responding to provisions of the federal Tax Cuts and Jobs Act.
• Maryland’s Limited Interest on Wynne Refunds Ruled Unconstitutional
  Maryland Tax Court holds that Maryland’s limitation of interest on refunds resulting from the US Supreme Court’s decision in Comptroller of the Treasury of Maryland v. Wynne violates the US Constitution.
• New York City: Penalty Relief Available for Certain Section 965 Underpayments
  The New York City Department of Finance recently announced the availability of penalty abatements for certain taxpayers that have underpaid business taxes due to the inclusion of Section 965 income.
• Oregon Imposes 911 Tax on Out-of-State Retailer with No Physical Presence
  The Oregon Tax Court held that the state was not constitutionally prohibited from imposing its statewide 911 tax on an out-of-state VOIP service provider with no physical presence in the state.
• Oregon Deems Amendments to Statutory State Apportionment Formulas to Be Constitutional
  In another of the so-called “Compact” cases, the Oregon Supreme Court affirmed the decision of the Oregon Tax Court and held that: (1) the 1967 Oregon Legislature, in enacting Oregon Statute Section 305.655, did not clearly and unmistakably intend for Oregon to enter into a binding contract that would bind the states under the Oregon and federal contract clauses, and (2) the 1993 Legislature’s repeal of part of Oregon Statute Section 305.655 did not violate the Oregon Constitution by not setting out the text of that statute.
• IRS to Crackdown on SALT Deduction Cap Workarounds
  The IRS intends to issue regulations pertaining to states’ attempts to subvert the state and local tax deduction cap.

FEATURED PUBLICATIONS

• State Tax After TCJA: Treatment Of International Income
  The Tax Cuts and Jobs Act, P.L. 115-97,[1] made sweeping changes to the Internal Revenue Code, and will have far-reaching implications for state tax systems that broadly conform to the IRC. In this article for Law360, Eversheds Sutherland attorneys Jeffrey Friedman, Eric Tresh, Todd Lard and Todd Betor focus on the major state income tax implications of the TCJA’s international tax provisions, including: the transition tax imposed by revised IRC § 965; the foreign-source dividends received deduction, or DRD, allowed by new IRC § 245A; the tax on global intangible low-taxed income, or GILTI, in new IRC § 951A and related deduction in IRC § 250; the deduction allowed for foreign-derived intangible income, or FDII, in new IRC § 250; and the base erosion anti-abuse tax, or BEAT, imposed under new IRC § 59A.
• A Pinch of SALT: Implications of the MTC’s Market-Based Sourcing Model Regulations
  It is more complicated to determine an in-state sale regarding the provision of multistate services or licenses of intangibles. Historically, states looked to a taxpayer’s costs of performing the service or licensing the intangible. Some states have become critical of this cost-of-performance method and replaced it with a market-based method of computing in-state sales. In this edition of A Pinch of SALT, Eversheds Sutherland Partner Jeffrey Friedman discusses the recent amendments to the Multistate Tax Commission’s (MTC) Model General Allocation and Apportionment Regulations; how the model regulations can be further improved; how states are responding to the model regulations; and what is next for the MTC.

FEATURED EVENTS

• Eversheds Sutherland SALT Shakes Things Up in the Big Easy!
  Eversheds Sutherland was delighted to sponsor and lead the two days of TEI’s Audit and Appeals seminar focused on State and Local Tax Controversy (May 2–3, 2018).
• State and Local Tax Day
  The Eversheds Sutherland SALT team presented at the Tax Executives Institute (TEI) Denver Chapter State and Local Tax Day on May 15, 2018, in Lakewood, Colorado.
• TEI’s 2018 Region II Forum
  Eversheds Sutherland is a proud co-sponsor of the 2018 TEI Region II Tax Forum taking place June 4-5, 2018, at the Borgata Hotel in Atlantic City, New Jersey. The Tax Forum will include four plenary and ten breakout sessions offering a wide selection of federal, international, and state and local topics.

EVENTS – LEARN ABOUT OUR UPCOMING EVENTS

The Eversheds Sutherland SALT Team is always excited to see what kind of pets our clients and friends have. Our team features a different pet at the end of every month, and we want to feature YOURS! Featured pets will receive a fun prize from the SALT Team. The deadline for May submissions is Friday, May 25.

To submit your pet to be featured, visit the Eversheds Sutherland SALT Shaker App, click “Pet of the Month” in the drop-down, then click “Submit A Pet.”

Don’t have the app? It is available for download in the Apple App Store, Google Play and the Amazon Appstore.

View previously-featured furry friends.

The Eversheds Sutherland SALT team presents at the Tax Executives Institute (TEI) Denver Chapter State and Local Tax Day on May 15, 2018, in Lakewood, Colorado. Details of their presentations are below.

The Future of Sales Tax Collection – Update on Wayfair and Sales Tax Preparedness
Speakers: Michele Borens

Oh So GILTI – Update on State Tax Implications of Federal Tax Reform
Speakers: Robb Chase and Maria Todorova

Not A Class Act – The Recent Aggressiveness of Local Taxing Authorities and Class Action Lawsuits
Speakers: Michele Borens

Legislative Roundup – Update on State Tax Legislative Developments
Speaker: Michele Borens and Alla Raykin

Slicing the Pie – Update on State Tax Apportionment Litigation
Speakers: Maria Todorova and Ted Friedman

Eversheds Sutherland was delighted to sponsor and lead the two days of TEI’s Audit and Appeals seminar focused on State and Local Tax Controversy (May 2 – 3, 2018). Over the past two days, the conference featured unique and practical content including:

Industry Perspective on SALT Tax Controversy

Moderated by Jeff Friedman, this discussion demonstrated the perspectives and strategies of in-house state tax controversy practitioners.

Speakers included:

• Linda Kim, The Wonderful Company
• Denise Helmken, General Mills
• Ken Wright, Smithfield Foods
• Chris Lee, Koch Companies Service

Perspectives from the Other Side – State Tax Attorney Panel

Moderated by Pilar Mata from Tax Executives Institute, state tax attorneys from Maryland, Ohio and Texas revealed their department organization, decision drivers and advice for taxpayers.

• Ray Langenberg, Texas Comptroller of Public Accounts
• Christine Mesirow, Taxation Section, Ohio Attorney General’s Office
• Brian Oliner, State of Maryland

All Rise – A View from the Bench

Moderated by Richard Pomp from the University of Connecticut School of Law, this discussion offered valuable insight into the inner workings of three state adjudicative bodies, best practices for taxpayers and counsel alike, and the jurists’ thoughts on the state of state tax.

• Martha Blood Wentworth, Indiana Tax Court
• Douglas Bramhall, California Office of Tax Appeals
• Cade Cole, Louisiana Board of Tax Appeals

On Wednesday, May 2, Eversheds Sutherland hosted a reception at House of Blues New Orleans. A good time was had by all!

  

 

Eversheds Sutherland is a proud co-sponsor of the 2018 TEI Region II Tax Forum taking place June 4-5, 2018, at the Borgata Hotel in Atlantic City, New Jersey. The Tax Forum will include four plenary and ten breakout sessions offering a wide selection of federal, international, and state and local topics.

The Eversheds Sutherland Tax Team presentations are listed below. Eversheds Sutherland will also sponsor the hospitality reception from 5:00 p.m. – 6:30 p.m. on June 4.

• US federal tax reform
  ES Speaker: Partner Robb Chase
• International implications of US tax reform
  ES Speaker: Partner Aaron Payne
• Tax considerations in restructuring and mergers and acquisitions  
  ES Speaker: Partner Taylor Kiessig
• SALT implications of US tax reform
  ES Speaker: Attorney Todd Betor
• IRS audit update
  ES Speaker: Partner Jim Mastracchio
• SALT considerations in restructuring and mergers and acquisitions
  ES Speaker: Partner Maria Todorova
• Partnership and joint venture update
  ES Speaker: Partner David Roby
• SALT controversy and related business decisions
  ES Speaker: Partner Jonathan Feldman
• Ethics
  ES Speaker: Partner Vanessa Scott
• International implications of US tax reform
  ES Speaker: Partner Daniel Nicholas
• Managing tax controversies – A global perspective
  ES Speaker: Partner Susan Seabrook
• State tax policy under the new US order
  ES Speaker: Partner Todd Lard
• Accounting methods and significant issues and tax-planning opportunities
  ES Speaker: Partner Ellen McElroy
• Financial reporting considerations post reform: The interplay of Section 451(b) and ASC 606
  ES Speaker: Attorney Mike Resnick

View details and register now!

Notes:

• The $225 registration fee covers all of the technical sessions, breakfast, lunch and refreshments on both days, as well as our Monday evening reception.
• Breakfast, luncheons and the reception are open to spouses, guests and vendor-sponsors as well.
• To reserve your hotel room, use the Tax Executives On-Line Booking Link or call (609) 317-1000 and mention the TEI Conference Code GBTAX18
• Golf, casinos, transportation to the Boardwalk, spa and other activities are available at all times; arrangements can be made. Attendees will be responsible for fees/costs.

Read our April 2018 posts on stateandlocaltax.com or read each article by clicking on the title. For the latest coverage and commentary on state and local tax developments delivered directly to your phone, download the latest version of the Eversheds Sutherland SALT Shaker app.

• SALT Pet of the Month: Gracie
  Meet Gracie, the 15-week-old Australian Shepherd/Golden Retriever mix belonging to Eversheds Sutherland SALT Of Counsel Doug Mo and his wife Marcia.
• South Dakota v. Wayfair – Insights and Analysis
  On April 17, the US Supreme Court heard arguments in South Dakota v. Wayfair, a case involving the states’ authority to tax online purchases. This is the first sales tax jurisdiction case heard by the US Supreme Court in 25 years and may have a significant impact on online sales across the country.
• Georgia Legislature Enacts Significant Income, Sales, and Property Tax Legislation
  The Georgia legislative session concluded on March 29, 2018. In addition to two major bills relating to federal tax reform, Georgia enacted several other pieces of notable tax legislation.
• Maryland Enacts Legislation Adopting Single Sales Factor Apportionment
  On April 24, Maryland Governor Larry Hogan signed Senate Bill 1090 and House Bill 1794, which adds Maryland to the growing list of states that are moving towards a single sales factor formula to apportion corporate net income.
• New Mexico Finds No Obstacle to Inclusion of Foreign Dividends and Subpart F Income in Consolidated Return Base
  The New Mexico Administrative Hearings Office affirmed the Taxation and Revenue Department’s assessment based on General Electric’s exclusion of foreign dividend and Subpart F income from its base income in its New Mexico consolidated return.
• New York State Budget Adopts Substantial Changes in Response to Federal TCJA
  The New York Legislature passed its 2018-2019 Fiscal Year budget on March 30, 2018, which is expected to be signed into law by Governor Cuomo.
• Oregon Legislature Passes IRC Conformity Legislation, But Decouples from Certain Federal Tax Reform Provisions
  On April 10, 2018, and April 13, 2018, Oregon Governor Kate Brown signed into law S.B. 1529 and S.B. 1528 (the Bills), respectively, which provide a series of changes to Oregon’s income tax laws in response to recent federal tax changes as part of the federal Tax Cuts and Jobs Act.
• Pennsylvania Court Finds Wholesaler of Electricity Subject to Gross Receipts Tax
  The Commonwealth Court of Pennsylvania affirmed a decision by the Board of Finance and Revenue that found American Electric Power Service Corporation (“Taxpayer”) was subject to Pennsylvania’s gross receipts tax as a wholesale seller of electricity.
• What are the State Tax Implications of International Tax Reform?
  What are the State Tax Implications of International Tax Reform? Jeff Friedman and others outline the key points at the COST 2018 Spring Audit Session/Income Tax Conference in snowy Boston, Massachusetts.

FEATURED PUBLICATIONS

Eversheds Sutherland SALT Scoreboard Publication–First Quarter 2018
Eversheds Sutherland SALT releases the ninth edition of its SALT Scoreboard, and the first of 2018. Each quarter, we tally the results of what we deem to be significant taxpayer wins and losses and analyze those results. This edition of the SALT Scoreboard includes insights regarding New Jersey’s attempted taxation of foreign source income, Virginia’s corporate income tax addbacks, and Detroit’s sales factor numerator. View our Eversheds Sutherland SALT Scoreboard results from the first quarter of 2018!

FEATURED EVENTS

• TEI’s Audits and Appeals Seminar
  Eversheds Sutherland is delighted to sponsor and lead the two days of the seminar focused on State and Local Tax Controversy (May 2-3, 2018) during TEI’s 2018 Audits & Appeals Seminar.
• Georgetown Law’s 2018 Advanced State and Local Tax Institute
  Eversheds Sutherland is a proud sponsor of the Georgetown Law 2018 Advanced State and Local Tax Institute taking place May 31–June 1, 2018, in Washington DC. Eversheds Sutherland Tax hosts and sponsors a welcome reception at our DC office from 6:00–7:30 p.m. Eastern standard time, on May 30, 2018.
• TEI’s 2018 Region II Forum
  Eversheds Sutherland is a proud co-sponsor of the 2018 TEI Region II Tax Forum taking place June 4-5, 2018, at the Borgata Hotel in Atlantic City, New Jersey. The Tax Forum will include four plenary and ten breakout sessions offering a wide selection of federal, international, and state and local topics.

EVENTS – LEARN ABOUT OUR UPCOMING EVENTS