The Multistate Tax Commission’s (MTC) Executive Committee has approved a Model Mobile Workforce Statute which would limit an employer’s obligation to withhold state income taxes when it sends employees into a state for a limited time. Under current law, many businesses face the burden of withholding another state’s income tax from an employee’s compensation whenRead More
Events & Webinars
By: Jon R. Stefanik II On March 2, 2011, the Internal Revenue Service released a heavily redacted Appeals Settlement Guidelines document (the “Guidelines”) addressing the federal tax treatment of a corporation’s receipt of state and local tax (“SALT”) incentives to induce it to expand, maintain or relocate its facilities. The Guidelines are available here. UnderRead More
All businesses engaging in interstate commerce should be familiar with the Multistate Exemption Certificate, which can be used to support the resale exemption from sales and use tax in a substantial majority of states. Although each state has its rules with respect to whether a particular sale is exempt, the Multistate Tax Commission has createdRead More
Click here for the Department’s announcement. For more information regarding why it is critical to act now, please see our prior post regarding the Department’s Use Tax Initiative.
The U.S. District Court of Colorado entered an injunction against the Colorado Department of Revenue yesterday in favor of the Direct Marketing Association which is a global trade organization that includes Amazon, Inc. Essentially, the ruling bars the State of Colorado from enforcing a recent statute requiring out-of-state vendors to notify in-state customers of theirRead More
Any Ohio business not consistently filing an Ohio use tax return is exposed to an Ohio Department of Taxation (“Department”) investigation. If any of the following apply, and you do not regularly file an Ohio use tax return, immediate action is required: Purchases from non-Ohio vendors that do not collect Ohio sales tax; Taxable purchasesRead More
The Iowa Supreme Court recently handed down a decision in the case of Kentucky Fried Chicken v. The Iowa Department of Revenue and Finance, affirming the imposition of Iowa’s corporate income tax on KFC, despite lacking a physical presence in the state. The price tag for KFC was nearly a quarter billion dollars. KFC, whichRead More
Annually, The Tax Foundation ranks the 50 states according to how friendly their tax climate is to businesses. A friendly tax climate can be especially beneficial in difficult economic times, like the present, by attracting new business to the state thereby creating economic and job growth. “Taxes matter to business. Business taxes affect business decisions,Read More
As described in Part 1 of this article, the scope of the manufacturing exemption from Ohio sales and use tax is determined by the beginning and end of the “manufacturing operation.” A product being manufactured is complete, thereby ending the manufacturing process, when all the processes that alter the product’s state or form or enhance itsRead More
In a decision last week, the U.S. District Court for the Western District of Washington ruled that internet retail giant Amazon.com was protected from disclosing its customer names and certain other information to the North Carolina Department of Revenue. The Court ruled that the First Amendment protected the “disclosure of an individual’s reading, listening andRead More
