Arthur R. Rosen Arthur R. Rosen

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Arthur R. Rosen focuses his practice on tax planning and litigation relating to state and local tax matters for corporations, partnerships and individuals. Formerly the deputy counsel of the New York State Department of Taxation and Finance, as well as counsel to the governor's Temporary Sales Tax Commission and tax counsel to the New York State Senate Tax Committee, Arthur has also held executive tax management positions at Xerox Corporation and AT&T. He has worked in accounting and law firms in New York City. Read Arthur Rosen's full bio.

What Is Minimal Substantial Nexus?


By and on Jul 13, 2017
Posted In Constitutional Issues, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes

Can a seller have nexus with a state – so as to be obligated to collect and remit that state’s sales and use taxes – only in connection with certain sales that seller makes into that state?  In this article, the authors explore the concept that only certain transactions may be subject to that obligation,...

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Massachusetts Department of Revenue Repeals Directive 17-1


By and on Jun 29, 2017
Posted In Constitutional Issues, Massachusetts, Nexus, Procedure, Sales Tax, Transaction Taxes

The Massachusetts Department of Revenue (Department) has just issued Directive 17-2 revoking Directive 17-1 which adopted an economic nexus standard for sales tax purposes. Directive 17-2 states that the revocation is in anticipation of the Department proposing a regulation that would presumably adopt the standards of Directive 17-1. It appears that the Department took seriously, perhaps...

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Massachusetts DOR Sending Letters to Sellers Regarding July 1 Effective Date of Economic Nexus Directive


By and on Jun 28, 2017
Posted In Constitutional Issues, Massachusetts, Nexus, Procedure, Sales Tax, Transaction Taxes

Recently, the Massachusetts Department of Revenue (Department) sent letters to several companies regarding Directive 17-1. The Directive announces a “rule” requiring remote internet sellers to register for and begin collecting Massachusetts sales and use tax (sales tax) by July 1, 2017, if they had more than $500,000 in Massachusetts sales during the preceding year. The...

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Washington ALJ Upholds B&O Assessment on German Company’s Royalty Income


By and on Jun 16, 2016
Posted In Constitutional Issues, Nexus, Transaction Taxes, Washington

On May 31, 2016, the Washington Department of Revenue (DOR) Appeals Division released a Determination (No. 15-0251, 35 WTD 230) denying a German pharmaceutical company’s business and occupation tax (B&O) protest. The administrative law judge (ALJ) ruled that while the nondiscrimination provisions contained in Article 24 of the US-Germany Income tax Treaty (Treaty) “may apply,”...

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A Steep Slope — Vermont Supreme Court Finds AIG Not Unitary With a Ski Resort Based On a Clear and Cogent Evidence Burden of Proof


By and on Nov 30, 2015
Posted In Allocation/Apportionment, Constitutional Issues, Income Tax, Nationwide Importance, Tax Base, Unitary Business, Vermont

In the first Vermont Supreme Court decision addressing combined unitary reporting since Vermont’s combined reporting regime became effective in 2006, the court affirmed a lower court’s decision that AIG, the multinational insurance company, was not unitary with a ski resort operated by a subsidiary in Vermont; accordingly, a combined report covering the two businesses was...

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House Judiciary Committee Approves Three State Tax Bills


By , , and on Jun 18, 2015
Posted In Constitutional Issues, Income Tax, Local Tax, Nationwide Importance, Nexus, Sales Tax, Transaction Taxes

Yesterday, on June 17, 2015, three state tax bills were favorably reported to the United States House of Representatives (House) by the House Judiciary Committee (House Judiciary) after considering each during a half-day markup. The bills that were advanced included: (1) the Mobile Workforce State Income Tax Simplification Act (Mobile Workforce, H.R. 2315); (2) the...

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U.S. Supreme Court’s Wynne Decision Calls New York’s Statutory Resident Scheme into Question


By and on May 21, 2015
Posted In Connecticut, Constitutional Issues, Delaware, Income Tax, Maine, Maryland, Massachusetts, Nationwide Importance, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont

On May 18, the U.S. Supreme Court issued its decision in Comptroller of the Treasury of Maryland v. Wynne. In short, the Court, in a five-to-four decision written by Justice Alito, handed the taxpayer a victory by holding that the county income tax portion of Maryland’s personal income tax scheme violated the dormant U.S. Constitution’s...

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SCOTUS: Colorado Notice and Reporting Challenge Not Barred by the Tax Injunction Act


By , and on Mar 3, 2015
Posted In Colorado, Constitutional Issues, Nationwide Importance, Procedure, Sales Tax, Transaction Taxes

The United States Supreme Court released a unanimous decision today holding that the Tax Injunction Act (TIA), 28 U.S.C. § 1391, does not bar suit in federal court to enjoin the enforcement of Colorado notice and reporting requirements imposed on noncollecting out-of-state retailers. See Direct Marketing Ass’n v. Brohl, No. 13-1032, 575 U.S. ___ (March...

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ALJ: New York NOL Deduction Does Not Apply When Tax Is Not Paid on Income Base


By on Feb 17, 2015
Posted In Income Tax, New York

A New York State Division of Tax Appeals administrative law judge (ALJ) recently determined that a banking corporation was not required to hypothetically use a net operating loss (NOL) deduction to decrease its entire net income in a year in which its banking corporation franchise tax liability under Article 32 of the New York Tax...

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Taxation Vexation


By on Feb 17, 2015
Posted In Nationwide Importance, Transaction Taxes

In this article, McDermott partner Arthur R. Rosen interviews Art Rosen, whom he claims to “know quite well,” about vexing state tax litigation.  One instance that he found troubling came after he and two other taxpayer representatives presented their explanation of a case during a settlement hearing, only to have a Department of Revenue representative...

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