The California Franchise Tax Board (FTB), California Department of Tax and Fee Administration (CDTFA) and California Employment Development Department (EDD) announced tax relief for certain California counties affected by severe winter storms.
Got Remote Workers? Supreme Court of Ohio Upholds Pandemic Rule for Municipality Tax
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The Supreme Court of Ohio has held the Ohio legislature did not violate the Due Process Clause of the U.S. Constitution by directing an Ohio citizen to pay taxes to the municipality where the employee’s principal place of work was located rather than to where the employee actually worked.
TEI’s 2024 Midyear Conference
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SALT attorney Aruna Chittiappa will speak at TEI’s 2024 Midyear Conference on March 19.
PLI’s Hot Topics in State and Local Tax 2024
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SALT partner Evan Hamme will speak at PLI’s Hot Topics in State and Local Tax 2024.
2024 ABA-IPT Advanced Sales and Use Tax Seminar
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SALT partner Carley Roberts will moderate a panel at this year’s ABA-IPT Advanced Sales and Use Tax Seminar.
California Trial Court Denies FTB’s Motion to Vacate and Modify Judgment that Declared Technical Advice Memorandum 2022-01 and FTB Publication 1050 Invalid
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A California trial court denied the Franchise Tax Board’s (FTB) motion to vacate and modify the judgment declaring FTB Technical Advice Memorandum (TAM) 2022-01 and FTB Publication 1050 invalid underground regulations adopted in violation of the Administrative Procedure Act.
New York State Tax Appeals Tribunal Rejects Sourcing of Partnership Income to that Partnership’s Operating Location
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The New York State Tax Appeals Tribunal (Tribunal) held that a taxpayer’s distributive share income from a partnership was intangible income properly sourced to the taxpayer’s residence and not to the location of the partnership’s underlying operations. In the Matter of Greenberg, the taxpayer was a New York resident partner in a partnership operating an investment fund from Connecticut. The taxpayer sought to credit her tax paid to Connecticut against her 2014 and 2015 New York State personal income tax liability. On audit, the New York State Department of Taxation and Finance (Department) disallowed the credit, asserting that a partner’s “carried interest” income (i.e., a partner’s compensation based on the performance of the fund’s investments) is sourced as intangible income to the taxpayer’s residence. The Department thus asserted that the taxpayer was not eligible for the credit because the income was sourced to the taxpayer’s New York residence and not to Connecticut where the partnership operated.
Try, Try Again—NY’s Convenience of the Employer Rule Sources Nonresident Wages to NY Even During the Pandemic
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A New York nonresident taxpayer, Edward Zelinsky, recently filed a notice of exception to a Division of Tax Appeals’ (DTA) determination that he must allocate all his wages to New York under the so-called “convenience of the employer” rule.[1] Zelinsky, a Connecticut resident who had previously challenged New York’s controversial sourcing rule, petitioned the DTA after the Department of Taxation and Finance (Department) denied his personal income tax refund claims for the 2019 and 2020 tax years. Although he was required to work from his Connecticut residence during the COVID-19 pandemic, which covered most of the 2020 tax year, the DTA upheld the rule allocating all Zelinsky’s wages to New York.[2]
California Credit Claim Denials: California OTA Issues Two Opinions Rejecting Taxpayers’ Submitted Evidence to Substantiate Claimed California R&D Tax Credits
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The California Office of Tax Appeals (OTA) recently issued two opinions addressing the burden of proof taxpayers must meet to substantiate entitlement to California’s research and development (R&D) tax credit for qualified expenditures under California Revenue and Taxation Code section 23609. In both opinions, the OTA ruled in favor of the California Franchise Tax Board, holding each taxpayer failed to meet its respective burden to substantiate the R&D tax credit claimed.
Congratulations, Zack and Evan!
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The SALT team would like to extend our congratulations to Zachary Atkins and Evan Hamme on their promotions to Partner!
