Pillsbury State & Local Tax partner Marc Simonetti, special counsel Zachary Atkins and associate Caroline Koo explore the recent Delaware court decision of Verisign and the implications it has for taxpayers in Tax Notes State’s SeeSALT Digest.
A Delaware state court invalidated the Delaware Division of Revenue’s policy limiting net operating loss (NOL) deductions for members of federal consolidated groups, holding that the policy violated the Uniformity Clause of the state constitution. Verisign, Inc. v. Director of Revenue, No. N19C-08-093 JRJ (Del. Super. Ct. Dec. 17, 2020). The decision presents a potential refund opportunity for Delaware corporate taxpayers who were members of a federal consolidated group, and for Delaware corporate income tax purposes had their separate-company NOL deductions limited to the group’s consolidated NOL.
Pillsbury attorneys Marc Simonetti, Zack Atkins and Caroline Koo explain.
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