Upcoming National Meeting

2025 Spring Conference / Audit Session

This Spring Conference/Audit Session will bring multistate tax professionals, with various levels of experience in state and local income/franchise taxes and sales/use taxes together in an environment that allows for extensive interaction and exchange of information as well as updates on key SALT issues and insights regarding state tax trends and opportunities. The program is targeted to all level

books background

Newsletters & Media

Cost Conscious

ISSUE 24-25; December 13, 2024

Preparing for an Active 2025 – The softening of state revenues and the plethora of bills already prefiled for the 2025 session in many states indicate that 2025 will be a very active year for SALT legislation. Although 2024 was relatively quiet, there was some notable state legislation introduced that is likely to resurface in 2025. Which of the following would have the greatest negative impact on

Twitter

Bloomberg TAX

Week in Insights: SaaS Tax Platforms Are Tools, Not Replacements

January 05, 2025

This week, experts analyzed energy tax credit transfers, how tax can be integrated into business strategy, and more.

Smith Floats University Endowment Tax Hike to GOP House Members

January 04, 2025

House Ways and Means Chair Jason Smith (R-Mo.) floated a tax hike on university endowments during a Saturday all-member meeting among House Republicans, sources familiar with his comments said.

IRS PLR: Trust Modifications Do Not Impact Generation Skipping Transfer Tax Exemption (IRC §2601)

January 03, 2025

The IRS has published a private letter ruling on Section 2601 determining that certain trust modifications set forth in a supplemental settlement agreement will not cause the trust to lose its status as exempt from the generation skipping transfer tax (GST), and distributions from or terminations of interests in the trust will not be subject to the GST tax. [PLR 202452005]

IRS PLR: Extension Granted for Electing Optional Adjustment to Basis of Partnership Property (IRC §754)

January 03, 2025

The IRS has published a private letter ruling on Section 754 and Treasury Regulation Section 301.9100 granting an extension of time to a foreign company, classified as a partnership, to elect to adjust the basis of partnership property. The extension was contingent on the company’s filings containing adjustments to the basis of its properties to reflect any Section 734(b) or 743(b) adjustments that would have been made if the Section 754 election had been timely made. [PLR 202501001]

IRS PLR: Extension Granted for Electing Optional Adjustment to Basis of Partnership Property (IRC §754)

January 03, 2025

The IRS has published a private letter ruling on Section 754 and Treasury Regulation Section 301.9100 granting an extension of time to a foreign company, classified as a partnership, to elect to adjust the basis of partnership property. The extension was contingent on the company’s filings containing adjustments to the basis of its properties to reflect any Section 734(b) or 743(b) adjustments that would have been made if the Section 754 election had been timely made. [PLR 202452009]

IRS PLR: Tax Treatment of Planned Contingent Deferred Annuity Contract (IRC §72)

January 03, 2025

The IRS has published a private letter ruling on Section 72 concerning a life insurance company’s planned issuance of contingent deferred annuity contract’s to, or for the benefit of, individuals. The IRS determined that: 1) the contract will be treated as an annuity contract under Section 72; 2) the guarantee payments will be taxable as “amounts received as an annuity” under Section 72(b); 3) the account will not cause the contract to have a “cash value” or “cash surrender value” for purposes of Section 72, and will not otherwise be part of the contract for federal tax purposes; and 4) for purposes of Sections 72(c)(1) and 72(e)(6), the “aggregate amount of premiums or other consideration paid” for the contract will equal the sum of all contract fees paid to the life insurance company. [PLR 202452004]

IRS PLR: Extension of Time Granted to Elect Out of Automatic GST Exemption Allocation (IRC §2632)

January 03, 2025

The IRS has published a private letter ruling on Section 2632 and Treasury Regulation Section 301.9100 granting the taxpayer an extension of time to elect out of the generation-skipping transfer (GST) exemption automatic allocation rules concerning certain transfers to trusts. [PLR 202501004]

IRS PLR: Qualified Opportunity Fund Self-Certification Extension Granted (IRC §1400Z-2)

January 03, 2025

The IRS has published a private letter ruling on Section 1400Z-2 and Treasury Regulation Section 301.9100 granting the taxpayer an extension of time to file Form 8996 to self-certify as a qualified opportunity fund (QOF) effective when the taxpayer was formed based on the taxpayer acting reasonably and in good faith and granting relief will not prejudice the government's interests. [PLR 202501007]

IRS PLR: S Corporation Termination Inadvertent (IRC §1362)

January 03, 2025

The IRS has published a private letter ruling on Section 1362, concluding that the event causing the termination of the taxpayer's S corporation election was not reasonably within the control of the corporation or shareholders having a substantial interest and was not part of a plan to terminate the election. The taxpayer is granted permission to make an election to be an S corporation effective on a specific date. [PLR 202501005]

IRS PLR: Extension Granted for Electing Optional Adjustment to Basis of Partnership Property (IRC §754)

January 03, 2025

The IRS has published a private letter ruling on Section 754 and Treasury Regulation Section 301.9100 granting an extension of time to a foreign company, classified as a partnership, to elect to adjust the basis of partnership property. The extension was contingent on the company's filings containing adjustments to the basis of its properties to reflect any Section 734(b) or 743(b) adjustments that would have been made if the Section 754 election had been timely made, and the basis adjustments reflecting any additional deductions for recovery of basis related to the company's property that would have been allowable if the Section 754 election had been timely made, regardless of whether the statutory period of limitations on assessment or filing a claim for refund had expired for any year subject to the relief granted. [PLR 202452008]

Featured Resources

COST - Council on State Taxation

Amicus Briefs

Amazon Services LLC v. Department of Revenue

On November 19 COST filed a motion for leave to file an amicus brief at the South Carolina Supreme Court in support of Amazon Services LLC. Amazon Services LLC v. Department of Revenue. The Court of Appeals held that the Amazon. Services was in the business of selling tangible personal property and thus responsible for collecting and remitting sales tax on third-party sales made from the Amazon m

COST - Council on State Taxation

COST Studies, Articles & Reports

FY23 State And Local Business Tax Burden Study

The Council On State Taxation (COST) and the State Tax Research Institute (STRI) are pleased to announce the release of our 22nd annual study of state and local business taxes. The report, “Total State and Local Business Taxes: State-by-State Estimates for Fiscal Year 2023,” prepared by Ernst & Young LLP, shows all state and local business taxes paid in each of the 50 states and the District of Co

COST - Council on State Taxation

COST Comments & Testimony

Coalition Letter in Opposition to HB 5865 – 5868 – Property Tax Valuation

COST joined coalition letter to oppose property tax changes proposed in Michigan legislation focused on big box retailers using comparable sales for valuation.