Michael J. Hilkin

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Michael J. Hilkin represents clients in all aspects of complex state and local tax matters. He has a particular focus on tax controversy and transactional issues relating to state and local income, franchise, sales and use, gross receipts and other business taxes. Michael has extensive experience handling state and local tax issues before US administrative and judicial systems. Read Michael Hilkin's full bio.

Tax That DC?!?! FCA Suit on Residency Brings Business Intelligence Company into the Crosshairs


By , , and on Sep 2, 2022
Posted In Constitutional Issues, District of Columbia, False Claims Act, Income Tax, Local Tax, Nationwide Importance, Tax Base

For the first time since the enactment of the False Claims Amendment Act of 2020, the DC Attorney General’s (AG’s) Office has used its new tax enforcement powers to pursue an alleged personal income tax deficiency. This development brings to the forefront a long-simmering constitutional problem with DC’s statutory residency law and offers a stern...

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New Mexico Proposes Regulations Addressing Gross Receipts Tax Treatment of Digital Advertising Services


By , , , and on Aug 11, 2022
Posted In Allocation/Apportionment, Constitutional Issues, Local Tax, Nationwide Importance, New Mexico, Sales Tax, Tax Base, Transaction Taxes

On August 9, 2022, the New Mexico Taxation and Revenue Department published proposed regulations addressing the gross receipts tax (New Mexico’s version of a sales tax) treatment of digital advertising services. The Department states the proposed regulations do not reflect a change in policy but instead ensure the rules are consistent for all advertising platforms....

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Pennsylvania Cuts Corporate Tax Rate, Makes Other Changes to Corporate Tax Law


By , and on Jul 14, 2022
Posted In Federal Tax, Income Tax, Local Tax, Nationwide Importance, Nexus, Pennsylvania

Pennsylvania Governor Tom Wolf has signed into law omnibus tax legislation to implement the Commonwealth’s fiscal year 2022 – 2023 budget. Among other things, the enacted legislation: (1) cuts the corporate net income tax (CNIT) rate from 9.99% to 4.99% on a phased-in basis; (2) adopts market sourcing rules for intangible-related receipts; and (3) codifies the Pennsylvania...

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“Voluntary” in Name Only? New Jersey Introduces Transfer Pricing Initiative


By , , and on Jun 16, 2022
Posted In Audits, Income Tax, Interest and Penalties, New Jersey, Transfer Pricing

The New Jersey Division of Taxation (Division) has announced a “voluntary” transfer pricing initiative beginning June 15, 2022, and continuing through March 2, 2023. According to the Division, the initiative is targeted toward companies that have intercompany transactions that would be subject to transfer pricing adjustment. The initiative is broadly available to taxpayers with related...

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State False Claims Acts: “Knowing” Why They Matter for Tax Professionals


By , and on May 12, 2022
Posted In False Claims Act, Nationwide Importance

Like the federal government, many states have adopted False Claims Act (FCA) provisions that exclude tax matters from coverage. The federal model makes clear that matters under the Internal Revenue Service are not covered by the law,[1] and in the vast majority of cases, states also explicitly exclude tax from coverage.[2] However, there is a...

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Maryland Attorney General’s Office Says Taxpayers May Inform Customers of Increased Charges Resulting from Digital Advertising Tax


By , and on May 3, 2022
Posted In Constitutional Issues, Maryland, Nationwide Importance

In a brief filed on April 29, 2022, the Maryland Attorney General’s Office (Attorney General) agreed that the “pass-through prohibition” of the state’s digital advertising tax “does not purport to impose any restriction on what the taxpayer may say to the customer, or anyone else, about” increased billing charges because of the tax. Last year,...

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New York State Department Intends to Finalize Corporate Tax Regulations This Fall


By , and on May 2, 2022
Posted In Allocation/Appointment, 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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