Tax Headlines


Minnesota ~ Multiple Taxes: Process for Supreme Court Review Clarified

The Minnesota Supreme Court has granted the respondent’s motion to dismiss the petition for writ of certiorari in a corporate franchise tax case because the petition was untimely. In doing so, the court clarified the process for appeals by the court under §271.10 (subd. 2), Minn. Stats., which allows a party to seek review of a final order of the tax court by obtaining a writ of certiorari from the Minnesota Supreme Court within 60 days after “notice of the making and filing of the order” of the tax court. In the case examined by the court, the tax court issued Findings of Fact, Conclusions of Law (which included a stay for 15 days to allow the parties to consider whether to move for rehearing, amended findings, or a new trial), and Order for Judgment reversing an order of the Minnesota Commissioner of Revenue in a corporate franchise tax case on August 20, 2012.

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IRS Provides Guidance on Principal Reduction Alternative in Home Affordable Modification Program (IR-2013-8; Rev. Proc. 2013-16)

The IRS has issued guidance for borrowers, mortgage loan holders and loan servicers who are participating in the Principal Reduction Alternative offered through the Home Affordable Modification Program (HAMP-PRA), a program offered by the Departments of Treasury and Housing and Urban Development. Treasury and HUD established HAMP to help financially distressed homeowners lower their monthly mortgage payments.

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California ~ Corporate Income Tax: Nexus Established Due to Employee’s In-State Activities

The FTB advises a taxpayer that its corporate subsidiary, which had a single employee located in California, was doing business in the state during pre-2011 tax years and therefore was subject to corporation franchise and income taxes during those years because the employee’s transactions were conducted for the purpose of the subsidiary’s financial or pecuniary gain or profit and went beyond the P.L. 86-272 protections.

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