Since late 2008, the New York State Department of Taxation and Finance has routinely taken the position that charges for application service provider (ASP) services, software-as-a-serve, or other online services may be subject to New York sales tax as licenses of software, which are taxable as sales of tangible personal…
(This alert was also published as a bylined article by Law360 on July 31, 2015.) Over five years into a personal income tax residency audit by the California Franchise Tax Board (FTB), Gilbert Hyatt filed a civil suit in Nevada state court against FTB alleging tortious conduct by FTB auditors.…
On May 15, 2015, the New York State Department of Taxation and Finance released Advisory Opinion TSB-A-15(2)S which concluded that sales of certain cloud computing services are not subject to New York State sales and use tax. The Advisory Opinion is noteworthy because of the Department’s position on the taxability…
On March 10, 2015, the New Jersey Division of Taxation issued Technical Advisory Memorandum TAM-2015-1, explaining its policy regarding convertible virtual currency. The IRS has held that convertible virtual currency (CVC), such as Bitcoin, is treated as property for U.S. federal income tax purposes. Consequently, transactions involving CVC are treated…
On March 3, 2015, the United States Supreme Court overturned the Tenth Circuit Court of Appeals’ decision in Direct Marketing Association v. Brohl. The Supreme Court held that the Tax Injunction Act (TIA), which bars federal courts from restraining the assessment, levy, or collection of state taxes, did not divest…
New York’s corporate tax reform includes sweeping changes affecting nearly every aspect of its corporation franchise tax. Although some taxpayers won’t feel the brunt of the changes until filing their 2015 tax returns in 2016, there are six decisions that should be made now. This article does not address imminent…
On December 5, 2014, the New York State Department of Taxation and Finance issued TSB-M-14(5)C, (7)I, (17)S, explaining its policy regarding convertible virtual currency. The IRS has held that convertible virtual currency (CVC), such as bitcoin, is treated as property for U.S. federal income tax purposes. Consequently, transactions involving CVC…
In 926 North Ardmore Avenue, LLC v. County of Los Angeles, the 2nd District Court of Appeal held that Proposition 13 changes in ownership prompted by transfers of legal entity interests should also be characterized as “realty sold,” resulting in the imposition of realty transfer taxes under the California Documentary…
As part of a sweeping law change, New York will require taxpayers to use a water’s-edge combined reporting method when filing corporate income tax returns beginning January 1, 2015. Continue Reading ›
On July 1, 2014, the United States Supreme Court agreed to review the 10th Circuit Court of Appeals decision in Direct Marketing Association v. Brohl.1 The Court of Appeals held that federal courts lack jurisdiction under the Tax Injunction Act (TIA) to address Direct Marketing Association’s (DMA) challenge to Colorado’s…