While there are differences between the House and Senate tax reform bills that remain to be worked out between the two chambers, both bills are positioned to broaden the tax base and reduce the tax rate. This article highlights the possible impact on state income tax liabilities stemming from the base broadening provisions.
Wrapping Up October – and Looking Forward to November
As we wrap up October, you can view all of the topics we discussed over the last month and take a look at the State and Local Tax events where our lawyers will be speaking in November.
SALT Activities in November:
November 1, 2017: Jane May presented “State Conformity with Federal Income Tax Laws — Especially in Light of Possible Sweeping Federal Income Tax Legislation?” at the 2017 Annual Meeting of the California Tax Bar and California Tax Policy Conference.
November 2, 2017: Peter Faber presented an Update on SALT Developments at the Philadelphia Tax Conference. (more…)
McDermott extended its popular Tax in the City® program to Seattle, with a meeting on October 12 at the Amazon headquarters. McDermott established Tax in the City® in 2014 as a discussion and networking group for women in tax aimed to foster collaboration and mentorship, and to facilitate in-person connections and roundtable events around the country. The Seattle program was one of the best attended Tax in the City® events to date, featuring a CLE/CPE presentation about Privilege and the Ethics of Social Media by Cate Battin, Kristen Hazel and Jane May, followed by a roundtable discussion in which Elizabeth Chao and Sandra McGill discussed international issues related to income from digital products. Britt Haxton and Kristen Hazel discussed planning considerations related to federal tax reform, and Diann Smith provided the state and local tax considerations related to both issues. (more…)
Wrapping Up September – and Looking Forward to October
Upcoming McDermott Will & Emery SALT Activities in October:
October 9, 2017: Stephen Kranz is presenting about “State Corporate Tax Reform Trends” at the National Taxpayers Conference Annual Meeting, Washington DC.
October 12, 2017: Cate Battin, Kristen Hazel, Britt Haxton, Jane May, Sandra McGill, Diann Smith and Elizabeth Chao are hosting and presenting at the inaugural Tax in the City® event in Seattle, Washington. They will cover topics such as attorney-client privilege and the ethics of social media (CLE/CPE), recent developments around US Tax Reform, and updates on state and local tax issues for Seattle and the surrounding areas.
October 20, 2017: Peter Faber will present on “State and Local Tax Aspects of Acquisitions” at PLI’s Conference on the Taxation of Mergers & Acquisitions in New York.
October 24, 2017: Arthur Rosen will be a panelist in “The Great ‘Debate’: Views on Significant State Tax Issues and A Salute to Paul Frankel” at COST’s 48th Annual Meeting in Orlando, Florida.
October 25, 2017: Alysse McLoughlin will present about “Financial Services Hot Topics” at COST’s 48th Annual Meeting in Orlando, Florida.
October 27, 2017: Arthur Rosen will be moderating numerous panels at the National Association of State Bar Tax Sections 38th Annual Meeting in Washington, DC: “State and Local Tax Issues before Congress” and “International Tax Proposals – What They Are All About.”
October 28, 2017: Alysse McLoughlin will be speaking at the National Association of State Bar Tax Sections 38th Annual Meeting in Washington, DC about “Apportionment & Market Based Sourcing – Where Are We Now?” Additionally, Peter Faber will speak at this same conference about the “Top 10 Tax Issues,” with Arthur Rosen moderating that presentation.
Wrapping up September:
Our September 2017 blog posts are available on insidesalt.com, or read each article by clicking on the titles below. To receive the latest on state and local tax news and commentary directly in your inbox as they are posted, click here to subscribe to our email list.
September 6, 2017: While Virginia Supreme Court Holds “Subject-To-Tax” Means “Actually Taxed,” Determination of “Actually Taxed” is Relatively Broad for Purposes of Addback Exception
September 14, 2017: Illinois DOR Proposes Use Tax Nexus Standards for Trade Show Retailers
September 15, 2017: South Dakota Supreme Court Rules in Favor of Remote Retailers; Next Step US Supreme Court?
September 28, 2017: Republican Leaders Release Tax Reform [...]
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Upcoming McDermott Will & Emery SALT Activities in September:
September 14, 2017: Robin Greenhouse, Kristen Hazel, Sandra McGill and Alysse McLoughlin will be speaking at McDermott Will & Emery’s Tax in the City®: A Women’s Tax Roundtable meeting in New York City about local tax updates and ethics.
September 15, 2017: Jane Wells May is speaking in Austin, TX at the ABA Tax Section Meeting about “False Claims Acts and State Taxes.”
September 18, 2017: Mary Kay Martire is speaking in San Antonio, TX at the 2017 IPT Sales Tax Symposium about “Third Party Tax Enforcement Actions.”
September 19, 2017: Arthur Rosen is speaking in San Antonio, TX at the 2017 IPT Sales Tax Symposium about sales tax nexus –“Son of Quill: The Sequel.”
September 19, 2017: Stephen Kranz is speaking in San Antonio, TX at the 2017 IPT Sales Tax Symposium about uncollectible debts – “Breaking Bad from Bad Debt.”
September 26, 2017: Cate Battin and Mary Kay Martire are presenting a “National Update on Key SALT Issues” in Rolling Meadows, IL, at the 18th Annual SALT Conference of the Taxpayers Federation of Illinois.
September 28, 2017: Eric Carstens and Nick Furtwengler will be speaking at the TEI Emerging Tax Professionals Seminar, taking place in McDermott’s Chicago, IL office, about the SALT portions of “Acquiring or Expanding a Business,” “Integration and Compliance” and “The Audit Notice Arrives: Now What?”
Wrapping up August:
Our August 2017 blog posts are available on insideSALT.com, or read each article by clicking on the titles below. To receive the latest on state and local tax news and commentary directly in your inbox as they are posted, click here to subscribe to our email list.
August 1, 2017: Implications of Federal Partnership Audit Rules for State and Local Taxation
August 8, 2017: MTC Offers 18 State Marketplace Seller Amnesty Initiative
August 14, 2017: Resistance is not Always Futile: New Decision in Ongoing Delaware Unclaimed Property Audit Litigation
August 15, 2017: Illinois Court Upholds Cook County’s Beverage Tax Finding It Passes Constitutional Muster and Related Developments
August 16, 2017: Delaware (Re)Proposes Unclaimed Property Reporting and Examination Manual Regulation
August 18, 2017: MTC Marketplace Seller Voluntary Disclosure Initiative Underway
Wrapping up July—and Looking Forward to August
SALT Activities for August:
August 2, 2017: Diann Smith is moderating a panel at the 50th Multistate Tax Commission Annual Conference in Louisville, Kentucky about “The Significance of the MTC – Past, Present, and Future – from the Outside.”
August 5, 2017: Stephen Kranz is presenting about Unclaimed Property at the National Conference of State Legislatures (NCSL) SALT Task Force Meeting in Boston, Massachusetts, and will cover the following topics:
Wrapping up July:
Our July 2017 blog posts are available on insidesalt.com, or may be read below by clicking on the titles. To receive the latest on state and local tax news and commentary directly in your inbox as they are posted, click here to subscribe to our email list.
July 6, 2017: Connecticut Will Make You Disclose Personal Customer Data!
July 7, 2017: Tax Changes Implemented As Part of Revenue Package Supporting Illinois Budget
July 13, 2017: What Is Minimal Substantial Nexus?
July 24, 2017: House Judiciary Subcommittee to Consider Sensenbrenner Bill Tomorrow
Wrapping Up June
Our June 2017 blog posts are available on insidesalt.com, or read each article by clicking on the titles below. To receive the latest on state and local tax news and commentary directly in your inbox as they are posted, click here to subscribe to our email list.
June 5, 2017: Nexus is Crucial, Complex Connection for State Tax Professionals
June 6, 2017: Substitute Alert – Delaware Technical Corrections Bill
June 8, 2017: Inside SALT Event in McDermott Will & Emery’s New York Office
New York, NY: The annual Inside SALT event took place on Thursday, June 8, 2017 in McDermott’s New York office. Tax lawyers Peter Faber, Todd Harrison, Stephen Kranz, Alysse McLoughlin, Art Rosen, Diann Smith and Mark Yopp presented a substantive half-day program highlighting many State and Local Tax updates, including recent changes specific to the New York area, Nexus developments in digital taxation, and news related to apportionment, transfer pricing and unclaimed property. The event had a successful turnout, with tax executives from many of McDermott’s top clients, and culminated in a networking reception.
June 8, 2017: Tax in the City® Event in McDermott Will & Emery’s Chicago Office
Established in 2014 by McDermott Will & Emery LLP, Tax in the City® is a discussion and networking group for women in tax that fosters collaboration and mentorship and facilitates in-person connections and roundtable study group events around the country.
McDermott’s second Tax in the City® meeting of the year took place on Thursday, June 8, 2017 in the Chicago office. The event began with a CLE/CPE presentation on Privilege and the Ethics of Connectivity. After a break for lunch and networking around the room, the program continued with a roundtable discussion focusing on best practices for drafting tax provisions in commercial contracts. Kristen Hazel spoke about drafting Letters of Intent, then Britt Haxton covered credit agreements, Sandra McGill covered withholding tax provisions, and Jane May wrapped up with settlement agreements. Following that discussion, Mary Kay Martire passed our continuing discussion of the Illinois Grand Bargain over to Carol Portman, McDermott Alum and President of the Taxpayers Federation of Illinois, who shared with us some insights into the Illinois budget stalemate. The event concluded with Sandra McGill offering her insights into tax reform, as well as Kristen Hazel’s thoughts on preparing for new rules effective in 2018. The roundtable event aided great networking and conversations, and saw an impressive turnout with female tax leaders from many of McDermott’s client companies.
Inside SALT: Significant State Tax Developments and Opportunities
June 8, 2017 – New York, NY
Lawyers in McDermott Will & Emery’s State and Local Tax Group present an informative half-day program. A wide range of topics will be discussed, including:
You can still register! Click here to view more details and register for the event.
Tax in the City®: A Women’s Tax Roundtable
June 8, 2017 – Chicago, IL
McDermott Will & Emery’s Tax in the City® is a discussion and networking group for women in tax that facilitates in-person connections and roundtable study group events around the country.
At this year’s second edition of Tax in the City®, we will host a CLE/CPE discussion focusing on current developments in professional responsibility and ethics, including a presentation focused on ethical issues arising out of our increasing access to connectivity (such as Facebook, Twitter, and other social media outlets). This will be followed by a substantive lunch program featuring the following topics:
To find our more information about Tax in the City® and get involved in future events, please email khazel@mwe.com, jmay@mwe.com or smcgill@mwe.com.
Wrapping Up May – and Looking Forward to June
Our May 2017 blog posts are available on our Inside SALT blog, or read each article by clicking on the titles below. To receive the latest on state and local tax news and commentary directly in your inbox as they are posted, fill out the form on the right to subscribe to our email list.
May 16, 2017: Illinois Department of Revenue Affirms Cloud-Based Services Not Taxable
In two recent General Information Letters (GILs), the Illinois Department of Revenue (Department) reaffirmed that computer software provided through a cloud-based delivery system is not subject to tax in Illinois. The Department announced that while it continues to review cloud-based arrangements and may determine they are taxable at some point, any decision to tax cloud-based services will be applied prospectively only.
May 24, 2017: Illinois Bills to Watch
Just days away from the May 31 close of its regular legislative session, the Illinois General Assembly has yet to enact the comprehensive series of tax and budget reforms that were first proposed by the Illinois Senate leadership late last year. On May 23, the Senate passed a modified version of Senate Bill (SB) 9, the tax proposal we described in a previous post, without any Republican support, but it seems likely that Illinois’ Republican Governor will veto the legislation.
Looking forward to June:
June 8, 2017: Chicago – Tax in the City®: A Women’s Tax Roundtable
McDermott Will & Emery’s Tax in the City® network will host a CLE/CPE discussion focusing on current developments in professional responsibility and ethics, including a discussion focused on ethical issues arising out of our increasing access to connectivity.
June 8, 2017: New York – Inside SALT: Significant State Developments and Opportunities
McDermott Will & Emery’s New York State and Local Tax group presents a half-day program that will discuss a wide range of topics, including New York developments such as false claims and budget provisions, Nexus updates and developments in digital taxation, and new developments in apportionment, transfer pricing and unclaimed property.
On January 26, 2017, the Delaware House approved comprehensive unclaimed property rewrite legislation (SB 13) that was passed by the Senate (with committee amendments) last week. Our summary of many of the key provisions of the bill (as introduced) is available here. Because the amended version of SB 13 has now passed both chambers of the General Assembly, it will be sent to Governor John C. Carney Jr. for signature, and will become effective immediately upon his approval. Rumors are circling that follow-up legislation is likely, and may be considered this session. Senate Amendment The Senate Amendment adopted by both chambers made relatively minor changes to the introduced legislation. First, it struck all references to and the definition of “net card value” that was used to determine the amount presumed abandoned in the stored-value and gift card context. As passed today, “the amount unclaimed is amount representing the maximum cost to the issuer of the merchandise, goods, or services represented by the card.” The 5 year dormancy period tied to “the later of the date of purchase, the addition of funds to the stored-value card or gift card, a verification of the balance by the owner, or the last indication of interest in the property” was not changed. Second, the amendment struck all references to and the definition of “virtual currency.” This is significant because the introduced version of the legislation expressly included an expansive definition of virtual currency in the definition of “property” subject to escheat. While the inclusion of virtual currency in the definition of “property” is consistent with the approach taken in the Revised Uniform Unclaimed Property Act (RUUPA) adopted by the Uniform Law Commission (ULC) last year, the introduced Delaware legislation definition of “virtual currency” omitted two exclusions (the software or protocols governing the transfer of the digital representation of value and game-related digital content) contained in the RUUPA definition that were included after careful consideration to limit the potentially vast scope. By removing virtual currency entirely from the Delaware legislation, it will not be presumed to be property subject to escheat. Third, the Senate Amendment changes the timeframe that holders currently under audit have to submit a written application to participate in the Secretary of State VDA program or expedited audit process. As introduced, the Delaware legislation would have required these decisions to be made by July 1, 2017. As amended (and passed), this period would be extended to within 60 days from the date of the adoption of regulations pertaining to the methods of estimation used. Practice Note With the passage of this legislation, there is a lot for holders to consider. In particular, holders with an on-going audit will need to make the decision whether to: (1) make an election to join the Secretary of State VDA program; (2) expedite the audit; or (3) continue as-is. With new penalties and mandatory interest enacted as part of the legislation, securing waiver of penalties and interest should be a top [...]
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