Tax Headlines

1827

Texas ~ Corporate Income Tax: Constitutional Challenge Dismissed for Lack of Jurisdiction

The Texas Supreme Court dismissed, for lack of jurisdiction, an original proceeding brought by a group of corporations (taxpayers) which claimed that the Texas franchise tax is unconstitutional. The taxpayers had argued that the tax violates the Equal and Uniform Clause of the Texas Constitution and the Equal Protection, Due Process, and Commerce Clauses of the United States Constitution.

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Pennsylvania ~ Corporate Income Tax: Bill Would Create Intangible Expense Addback, Implement Single Sales Factor

Legislation introduced in the Pennsylvania House of Representatives would create a corporate income tax addback for intangible expenses and would implement a single sales factor beginning in 2013. If enacted, the bill would also increase the net loss deduction, while decreasing the corporate net income tax rate, yearly beginning in 2014.

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President’s FY 2013 Budget Is Mix of Old and New Tax Proposals

President Obama unveiled his fiscal year (FY) 2013 federal budget proposals on February 13. At a Treasury Department press briefing on the same day, a senior Treasury official commented on the tax provisions within the president’s budget in conjunction with the release of the Treasury Department’s “Green Book,” General Explanation of the Administration’s Fiscal Year 2013 Revenue Proposals.

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Tax Court Had Jurisdiction to Determine Penalties in Partnership Case (Tigers Eye Trading, LLC, TC)

The Tax Court had jurisdiction to determine all items in a partnership case that would have been partnership items if the entity had, in fact, been a partnership, and had jurisdiction to determine penalties in the case of underpayments of tax. The case arose out of Son of BOSS tax shelter transactions that were popular at the time, and a decision had been stipulated between the parties.

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IRS Updates Amount of Excludable or Deductible Foreign Housing Expenses for 2012 (Notice 2012-19)

The IRS has published adjustments to the limitation on the amount of housing expenses that can be excluded or deducted from gross income under the foreign earned income provisions. A taxpayer whose entire tax year is within the period the taxpayer meets the tax home test and either the bona fide resident or physical presence test is limited to maximum housing expenses of $28,530 for 2012.

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House GOP Leaders to Introduce Payroll Tax Bill Without Jobless Benefits, Doctor Payments

With no progress made in reaching an agreement with Senate lawmakers over the extension of a soon-to-expire payroll tax cut, House Speaker John Boehner, R-Ohio, announced on February 13 plans to introduce legislation that would simply extend the payroll tax holiday for the remainder of the year while the conference negotiations continue regarding offsets, unemployment insurance, and the “doc fix” (Medicare physician payment rate).

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West Virginia ~ Property Tax: Attorney Representation Required for Appeals by Corporations

The West Virginia Supreme Court of Appeals held that the portion of a statute allowing a non-lawyer agent to appeal a property tax ruling of a county board of equalization and review to the circuit court and to engage in activities that constitute the practice of law is unconstitutional because it is a legislative encroachment on the court’s exclusive authority to define, regulate, and control the practice of law. The taxpayer, a corporation disputing the county assessor’s valuation of real estate owned by the corporation, was represented in its appeals to the circuit court by its vice-president rather than a licensed attorney. After the circuit court dismissed the corporation’s appeals because it failed to retain a lawyer, the taxpayer appealed.

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Utah ~ Sales and Use Tax: Nexus Bill Requiring Buyer Notice Introduced

A sales and use tax nexus bill that would impose buyer notice and other requirements on out-of-state sellers has been introduced in the Utah Senate. The bill would (1) require certain out-of-state sellers to give Utah customers notice of their potential Utah use tax liability on their purchases, and (2) prohibit such sellers from representing that no sales tax is due unless certain conditions are met, including the seller knowing that tax is not due.

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