Richard C. Call Richard C. Call

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Richard C. Call focuses his practice on state and local tax litigation before administrative and judicial bodies, at all levels and in multiple states, with respect to income, franchise, gross receipts, and sales and use taxes. He also advises clients on the state and local tax consequences of business restructurings, as well as the impact of new state legislation on current business operations. Read Richard C. Call's full bio.

Texas Comptroller Announces Medical or Dental Billing Services are Not Taxable, Effective Immediately


By and on Jul 29, 2021
Posted In Insurance Tax, Local Tax, Nationwide Importance, Sales Tax, Texas

On June 4, 2021, the Texas Comptroller issued a policy statement (Accession No. 202106003L) announcing that it is not going to enforce its previously stated policy of taxing medical billing services. This guidance comes in response to a sales and use tax bill that was signed into law April 30, 2021, which excluded “medical or...

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Massachusetts Supreme Judicial Court Approves Sales Tax Apportionment for Software


By , , and on May 25, 2021
Posted In Allocation/Appointment, Constitutional Issues, Local Tax, Massachusetts, Nationwide Importance, Sales Tax

On May 21, 2021, the Massachusetts Supreme Judicial Court issued a decision affirming the Massachusetts Tax Appeal Board’s decision in favor of Microsoft and Oracle, ruling that the companies may apportion sales tax to other states on software purchased by a Massachusetts company from which the software was accessed and seek a tax refund. The...

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Indiana Tax Court Upholds Pharmacy Benefit Management Costs of Performance Approach


By and on May 21, 2021
Posted In Allocation/Appointment, Income Tax, Indiana, Local Tax, Nationwide Importance

The Indiana Tax Court held that a “pharmacy benefit management company” sold services as opposed to tangible personal property for tax years 2011 through 2013. The company’s receipts were properly sourced as revenue from services under the income producing activity/costs of performance rule, which in this case meant that all receipts were sourced outside of...

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Texas Governor Signs Bill Exempting Medical Billing Services from Sales Tax


By and on May 4, 2021
Posted In Insurance Tax, Sales Tax, Texas

Texas Governor Greg Abbott has signed HB 1445 into law, making “medical or dental billing services” exempt from sales tax. Under the statute, a “medical or dental billing service” is defined as “assigning codes for the preparation of a medical or dental claim, verifying medical or dental insurance eligibility, preparing a medical or dental claim...

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Wisconsin Court of Appeals Rules That Department Cannot Deny John Deere DRD Because of the Department’s Prior Guidance on Foreign Distributions


By , and on Feb 26, 2021
Posted In Local Tax, Nationwide Importance, Wisconsin

The Wisconsin Court of Appeals, District IV, issued its decision in Wisconsin Department of Revenue v. Deere & Company, regarding the treatment of distributions from foreign partnerships that are treated as corporations for federal tax purposes. There were two questions presented in the case. The first issue was whether distributions received by John Deere qualified...

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New York Issues Much-Anticipated Guidance on Taxation of Telecommuting Employees


By , and on Oct 23, 2020
Posted In Income Tax, Local Tax, Massachusetts, Nationwide Importance, New Hampshire, New Jersey, New York

Since the outset of the COVID-19 pandemic and work-from-home mandates, New York employers and their nonresident employees have been waiting for the Department of Taxation and Finance to address the million-dollar question: Do wages earned by a nonresident who typically works in a New York office but is now telecommuting from another state due to...

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State Tax Incentives, Clawbacks and COVID-19


By on Apr 28, 2020
Posted In Incentives, Nationwide Importance

Through various state and local tax incentives, many businesses have committed to grow their employee count or make substantial capital expenditures. Not surprisingly, companies may fall short on delivering those objectives in the short run. Long-terms plans may also need to change drastically. Companies should carefully consider the terms of their agreements with states to...

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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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