McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsBreaking News: Tennessee Submits Proposed Economic Nexus Regulation for Publication
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 16, 2016
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Tennessee, Transaction Taxes
Earlier today, the Tennessee Department of Revenue (DOR) submitted a new sales and use tax regulation for publication titled “Out-of-State Dealers” (Rule 1320-06-01-.129) that would administratively create an economic nexus threshold. With the submission, Tennessee becomes the most recent addition to the growing list of states seeking to directly attack the Quill physical presence standard. ...
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Alabama Issues Remote Sellers Use Tax Assessments, Newegg Inc. Appeals
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jun 15, 2016
Posted In Alabama, Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
Ever since Alabama’s new economic nexus regulation went into effect, litigation over its constitutionality has been expected given that Alabama Commissioner Julie Magee and Governor Bentley said as much when announcing it (Rule 810-6-2-.90.03, effective January 1, 2016). It appears that they finally got their wish. On June 8, 2016, Newegg Inc. (Newegg) filed a...
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Alabama Appellate Court Finds Photos Merely Incidental to Nontaxable Photography Services
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on May 6, 2016
Posted In Alabama, Audits, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
Last Friday, the Alabama Court of Civil Appeals handed the Department of Revenue (Department) a significant loss in their continued attempt to tax non-enumerated services and tangible property provided in conjunction with those services under the sales tax. See State Dep’t of Revenue v. Omni Studio, LLC, No. 2140889 (Ala. Civ. App. Apr. 29, 2016)....
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BREAKING NEWS: Sales Tax Battle Breaks Out in South Dakota; Quill’s Last Stand?
By McDermott Will & Emery and Stephen P. Kranz on Apr 29, 2016
Posted In Audits, Constitutional Issues, Nexus, Sales Tax, South Dakota, Transaction Taxes
This post is a follow-up to a previous post from April 21, 2016. Introduction On March 22, 2016, South Dakota Governor Dennis Daugaard signed into law Senate Bill 106, which requires any person making more than $100,000 of South Dakota sales or more than 200 separate South Dakota sales transactions to collect and remit sales...
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Should I Register in South Dakota?
By McDermott Will & Emery and Stephen P. Kranz on Apr 21, 2016
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, South Dakota, Transaction Taxes
Introduction On March 22, 2016, South Dakota Governor Dennis Daugaard signed into law Senate Bill 106, which requires any person making more than $100,000 of South Dakota sales or more than 200 separate South Dakota sales transactions to collect and remit sales tax. The requirement applies to sales made on or after May 1, 2016....
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Alabama Legislature Rejects (Yet Another) Attempted Digital Tax Expansion
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Mar 21, 2016
Posted In Alabama, Audits, Nationwide Importance, Sales Tax, Tax Base, Transaction Taxes
Last month, a much-anticipated bill drafted by the Alabama Department of Revenue (Department) was introduced in the Alabama Senate that would have expanded the definition of tangible personal property to include “digital goods.” See Senate Bill 242 (introduced February 16, 2016). Fortunately, the Senate Finance and Taxation Education Committee (Committee) rejected the bill on March...
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California Supreme Court Denies BOE Petition for Review in Lucent Technologies
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jan 26, 2016
Posted In Audits, California, Nationwide Importance, Procedure, Sales Tax, Tax Base, Transaction Taxes
Last week, the California Supreme Court denied the State Board of Equalization’s (BOE’s) petition for review in Lucent Technologies, Inc. v. State Bd. of Equalization, No. S230657 (petition for review denied Jan. 20, 2016). This comes just months after the California Court of Appeals held against the BOE and ordered it to pay Lucent’s $25...
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Michigan Backs Off Cloud Tax, Refund Opportunities Available
By McDermott Will & Emery, Eric D. Carstens and Stephen P. Kranz on Jan 14, 2016
Posted In Audits, Michigan, Nationwide Importance, Procedure, Sales Tax, Tax Base, Transaction Taxes
After refusing to back down on the issue for years, the Michigan Department of Treasury (Department) issued guidance last week to taxpayers announcing a change in its policy on the sales and use taxation of remotely accessed prewritten computer software. This comes after years of litigating the issue in the Michigan courts, most recently with...
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McDermott Lawyers Publish Reference Guide on State Taxation of Meal Delivery
By McDermott Will & Emery on Jan 12, 2016
Posted In Audits, False Claims Act, Local Tax, Nationwide Importance, Sales Tax, Tax Base
As the on-demand economy continues to boom, the delivery of everything! now! continues to be the mantra. In particular, delivery of meals and prepared food is the latest business model to see tremendous growth. Delivery of alcohol is coming not far behind. As restaurants and fast food chains shift from providing their own delivery (or...
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Focus on Tax Controversy – December 2015
By McDermott Will & Emery on Jan 4, 2016
Posted In Income Tax, Insurance Tax, Local Tax, Michigan, New Jersey, New York, Sales Tax, Tax Base, Virginia, Washington
McDermott Will & Emery has released the December 2015 issue of Focus on Tax Controversy, which provides insight into the complex issues surrounding U.S. federal, international, and state and local tax controversies, including Internal Revenue Service audits and appeals, competent authority matters and trial and appellate litigation. Mark Yopp authored an article entitled “Waiting for...
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