McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsNew York State Department Intends to Finalize Corporate Tax Regulations This Fall
By Michael J. Hilkin, Richard C. Call and McDermott Will & Emery on May 2, 2022
Posted In Allocation/Apportionment, Federal Tax, Local Tax, Nationwide Importance, New York
Almost seven years after it started releasing draft regulations concerning sweeping corporate tax reforms that went into effect back in 2015, the New York State Department of Taxation and Finance (Department) has issued guidance, stating that “the Department intends to begin the State Administrative Procedure Act (SAPA) process to formally propose and adopt” its draft...
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US Treasury Issues Guidance on the ARPA Claw-Back Provision
By Stephen P. Kranz, Mark Nebergall and McDermott Will & Emery on May 12, 2021
Posted In Constitutional Issues, Franchise Tax, Income Tax, Insurance Tax, Local Tax, Nationwide Importance, Property Tax, Sales Tax, Tax Base, Transaction Taxes
Earlier this week, the US Department of the Treasury (Treasury) issued formal guidance regarding the administration of the American Rescue Plan Act of 2021 (ARPA) claw-back provision. The guidance (Interim Final Rule) provides that the claw-back provision is triggered when there is a reduction in net tax revenue caused by changes in law, regulation or...
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Kansas Decouples from GILTI and 163j
By Stephen P. Kranz and McDermott Will & Emery on May 4, 2021
Posted In Federal Tax, Income Tax, Kansas, Tax Base
Yesterday afternoon the Kansas legislature overrode Governor Laura Kelly’s veto of Senate Bill (SB) 50, effectively enacting the provisions of the bill into law. Among those are provisions decoupling from certain Tax Cuts and Jobs Act (TCJA) provisions that taxpayers have been advocating for since 2018. Under the new law, for tax years beginning after...
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False Claims Act Risk for Unclaimed Property Holders
By Stephen P. Kranz, Eric D. Carstens and McDermott Will & Emery on Mar 15, 2021
Posted In False Claims Act, Nationwide Importance
In what has become an unfortunate trend, unclaimed property holders continue to be subject to lawsuits under state false claims acts (FCA – also called a qui tam or whistleblower action) for alleged underreporting and remittance of unclaimed property obligations. More than 30 states have a false claims act with whistleblower provisions and nearly all...
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Business Victorious in Unclaimed Gift Card False Claims Case
By Stephen P. Kranz, Eric D. Carstens and McDermott Will & Emery on Jun 26, 2020
Posted In Delaware
The Delaware Supreme Court gave Overstock.com a win in a False Claims Act (FCA) suit alleging the retailer failed to remit unclaimed gift card funds to the state. Overstock.com Inc. v. the State of Delaware and French, DE Sup. Ct., No. 327,2019 (June 25, 2020). A jury previously found Overstock liable for approximately $7.3 million....
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Washington Surtax on “Big Banks” Struck Down as Unconstitutional
By Stephen P. Kranz, McDermott Will & Emery and McDermott Will & Emery on May 18, 2020
Posted In Local Tax, Maryland, Oregon, Washington
On May 8, Washington’s 1.2% surtax on “specified financial institutions” (banks with at least $1 billion a year in net revenue) was struck down by a King County Superior Court judge. Judge Marshall Ferguson ruled that the tax, which is imposed on top of all other taxes, violates the Commerce Clause of the US Constitution...
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Cities Providing Local Tax Relief Efforts for Small Businesses Impacted by COVID-19
By Elle Kaiser and McDermott Will & Emery on Mar 20, 2020
Posted In California, Income Tax, Local Tax, Nationwide Importance, New York, Sales Tax
From coast to coast, both state and local tax authorities are rapidly responding to the Coronavirus (COVID-19). And while many of the relief efforts are appropriately aimed at supporting individuals who have been impacted by COVID-19, recent pronouncements from local leaders demonstrate that cities are also eager to implement measures supporting small businesses within their...
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An Uneven Playing Field: Judicial Deference to State Tax Administrator Interpretations
By Mark Nebergall, Stephen P. Kranz and McDermott Will & Emery on May 14, 2019
Posted In Audits, Constitutional Issues, Income Tax, Local Tax, Nationwide Importance, Sales Tax
Judicial deference to state tax agencies puts taxpayers at a steep disadvantage and wastes time and resources on costly tax disputes. A united advocacy effort can help promote passage of state-level legislation that takes the tax administrator’s thumb off the scales of justice in administrative and judicial review of tax determinations. Access the full article....
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New Mexico Administrative Hearings Office Issues Timely Opinion Regarding State Taxation of Subpart F Income and Dividends from Foreign Affiliates
By McDermott Will & Emery and McDermott Will & Emery on Apr 19, 2018
Posted In Federal Tax, Income Tax, Nationwide Importance, New Mexico, Tax Base
Earlier this month, the New Mexico Administrative Hearings Office issued an opinion that addressed the questions on the minds of many state tax professionals in the wake of federal tax reform: under what circumstances can a state constitutionally impose tax on a domestic company’s income from foreign subsidiaries, including Subpart F income, and when is...
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Overview of Minnesota’s Response to Federal Tax Reform
By Eric D. Carstens, Stephen P. Kranz and McDermott Will & Emery on Mar 29, 2018
Posted In Federal Tax, Income Tax, Local Tax, Minnesota, Nationwide Importance
Minnesota has several bills pending that would address the Minnesota state tax implications of various provisions of the federal tax reform legislation (commonly referred to as the Tax Cuts and Jobs Act). HF 2942 HF 2942 was introduced in the House on February 22, 2018. This bill would provide conformity to the Internal Revenue Code...
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