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.
By Stephen P. Kranz, Richard C. Call, Michael J. Hilkin and David Jasphy on Aug 11, 2023
Posted In Allocation/Apportionment, Income Tax, Local Tax, Nationwide Importance, New York, Nexus, Unitary Business
On August 9, 2023, the New York State Department of Taxation and Finance (Department) released 417 pages of proposed regulations, an important step toward concluding a now almost decade-long process to implement corporate tax reform. The journey began in 2014 with the enactment of legislation modernizing the state’s corporate tax law. Thereafter, the Department released...
By Stephen P. Kranz, Michael J. Hilkin and Diann Smith on May 23, 2023
Posted In Allocation/Apportionment, Federal Tax, Income Tax, Minnesota, Nationwide Importance, New Jersey, Tax Base, Unitary Business
We previously reported that the Minnesota Legislature was considering imposing mandatory worldwide combined reporting through an omnibus tax bill. Subsequent to our report and in the face of numerous criticisms, Minnesota Senate leaders backed away from the proposal. But ominously, those same leaders said they would examine other tax increases to make up for the...
By Charles Moll, III and Michael J. Hilkin on May 12, 2023
Posted In California, Constitutional Issues, Income Tax, Massachusetts, State Tax, Unitary Business
The California Office of Tax Appeals (OTA) recently held that a California resident’s income tax paid to Massachusetts from the sale of his membership interest in a limited liability company (LLC) doing business in Massachusetts was not eligible for California’s other state tax credit. The OTA reached this conclusion while acknowledging that it “will result...
Be Careful What You Wish For: Minnesota May Be on the Precipice of Enacting Worldwide Combined Reporting at the Worst Possible Time
By Stephen P. Kranz, Michael J. Hilkin and Diann Smith on May 4, 2023
Posted In Federal Tax, Income Tax, Local Tax, Minnesota, Nationwide Importance, Tax Base, Unitary Business
It has been widely reported that the Minnesota Legislature has advanced an omnibus tax bill that would require the inclusion of the “entire worldwide income” of combined corporate income tax filers engaging in a unitary business. Tax press outlets have made the broad claim that mandatory worldwide combined reporting will “add foreign subsidiaries’ profits” to...
By Richard C. Call, Michael J. Hilkin and David Jasphy on May 2, 2023
Posted In False Claims Act, Franchise Tax, Income Tax, Interest and Penalties, New York, Procedure
New York Governor Kathy Hochul and the New York State Legislature have reached an agreement on the state’s fiscal year 2024 budget legislation. Most surprisingly, the legislation grants the New York State Department of Taxation and Finance the right to petition for judicial review of New York State Tax Appeals Tribunal decisions that are “premised...
Pennsylvania Supreme Court Rules Coupon Amounts Are Not Subtracted from Sales Tax Base Unless Sales Receipt Adequately Describes Taxable Item and Coupon
By Stephen P. Kranz and Michael J. Hilkin on Feb 24, 2023
Posted In Audits, Local Tax, Pennsylvania, Sales Tax, Tax Base, Transaction Taxes
Overturning a 6-1 en banc decision by the Pennsylvania Commonwealth Court, the Pennsylvania Supreme Court held that a coupon does not reduce the price upon which sales tax must be collected unless the coupon is adequately described and “linked” with the taxable item in accordance with Pennsylvania Department of Revenue (DOR) regulations. The case was...
By Charles Moll, III, Elle Kaiser, Michael J. Hilkin and Marcy Jo Mandel on Oct 21, 2022
Posted In California, Local Tax, Nationwide Importance, Sales Tax, Transaction Taxes
In Matter of Body Wise International LLC (OTA Case No. 19125567; 2022 – OTA – 340P), a California-based retailer collected amounts designated as “tax” related to jurisdictions where it was not registered to collect tax. The California Office of Tax Appeals (OTA) held that the retailer must remit those amounts to California, even though the...
More than Tax Compliance: California Legislation Requires Marketplace Facilitators to Track “High-Volume” Seller Information
By Charles Moll, III, Michael J. Hilkin and Elle Kaiser on Oct 7, 2022
Posted In California, Local Tax, Sales Tax, Transaction Taxes
The responsibilities of marketplace facilitators operating in California are expanding under legislation recently signed by Governor Gavin Newsom. Starting on July 1, 2023, an “online marketplace” will be required to collect and maintain specified contact and financial information related to its “high-volume third-party sellers.” The legislation is intended to “provide greater tools for law enforcement...
By Eric D. Carstens, Stephen P. Kranz, Michael J. Hilkin and Diann Smith 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...
New Mexico Proposes Regulations Addressing Gross Receipts Tax Treatment of Digital Advertising Services
By Eric D. Carstens, Stephen P. Kranz, Michael J. Hilkin, Mark Nebergall and Jonathan C. Hague 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....