Upcoming National Meeting

2024 Spring Conference / Audit Session

This three and a half day conference 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

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Newsletters & Media

Cost Conscious

ISSUE 24-08; April 19, 2024

State Corporate Income Tax Filing Methods (Part 1) – In recent years, many states have either changed or considered changing their default corporate tax filing. New Jersey adopted water’s-edge combined reporting in 2019 only to come back in 2023 with a proposal to allow the Director of Tax to “decombine” taxpayers. Maine, New Hampshire, and Vermont have studied the implementation of mandatory worl

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Bloomberg TAX

Money-Market Fund Assets Tick Higher as Tax Season Winds Down

April 25, 2024

Money-market assets edged higher, driven by a pick-up in institutional funds, on expectations short-term rates will remain elevated and as the tax season winds down. 

Case: Petitioner’s Judgment Lien Was Perfected According to Federal Law, Judgment Lien Had Priority Over Tax Liens (E.D. Va.) (IRC §6323)

April 25, 2024

Plaintiff, an attorney who obtained a judgment lien against his former client to collect attorney's fees and costs, was entitled to priority under the Federal Tax Lien Act over the IRS's tax liens, a district court held, granting Plaintiff's motion for partial summary judgment. In 2018, Plaintiff filed suit in D.C. against Client for breach of contract; Client died during that litigation and Client's estate was substituted as the new defendant. In May 2019, Petitioner filed the favorable judgment in a Virginia (VA) court, obtaining liens against Client's real property under VA law. In July 2020, the IRS assessed Client's tax liability for 2016 and 2017 and obtained liens against Client's real property under I.R.C. §6321. Plaintiff filed suit seeking to establish priority of his judgment lien over the tax liens. The court held that Plaintiff qualified as a "judgment lien creditor" with priority over the IRS under §6323(a) because he recorded the judgment in May 2019 as required by VA law, thus "perfecting" his judgment under Treas. Reg. §301.6323(h)-1(g), which states that recording is required to perfect if required by local law. The IRS argued Plaintiff could not be a "judgment lien creditor" because Client died before Plaintiff obtained the judgment, the probate court's control over Client's real property at the time the judgment was filed precluded Plaintiff's priority, and Plaintiff did not have a writ of fieri facias as required by VA law. The court rejected this argument, noting that the government was attempting to incorporate additional requirements into the federal definition of "judgment lien creditor." The court also rejected the IRS's argument that Plaintiff could not get an attorney's lien under VA law, because VA permits attorneys not barred in the state to obtain such a lien. [Karl v. Rettig, No. 1:23-CV-00028 (AJT/JFA) (E.D. Va. Oct. 27, 2023)]

Louisiana Governor Seeks New Constitution to Support Tax Rewrite

April 25, 2024

The Louisiana House is approaching a vote on Gov. Jeff Landry's plan for a constitutional convention, which the governor touted Thursday as a way to create a more concise and functional document, and a framework for his plans for tax code overhaul.

Case: Signature of Acting Group Manager on Penalty Approval Form Was Sufficient to Satisfy Statute, Evidence of Time or Effort Spent on Review Not Required (T.C. Memo) (IRC §6751)

April 25, 2024

The acting group manager's signature on a civil penalty approval form satisfied the statutory requirement that the penalty form have written supervisory approval, held the U.S. Tax Court in a memorandum opinion, granting the government's motion for partial summary judgment. After examining Taxpayer's return, a revenue agent recommended assessment of a penalty, which was approved by her acting group manager via his signature on a civil penalty approval form the next day. Taxpayer argued that the acting group manager did not dedicate sufficient time or effort to the review due to his temporary role and the quick turnaround. The court rejected that argument, finding the statute does not impose a requirement that the government provide information on the comprehensiveness of the manager's review and only mandates that there be written supervisory approval, which was evidenced by the acting group manager's signature. [Estate of Glassman v. Commissioner, T.C. Memo 2024-51 (Apr. 24, 2024)]

FORVIS Brings On Managing Directors to State, Local Tax Practice

April 25, 2024

Karin Ecroyd and Scott Smith have joined FORVIS as managing directors in its state and local tax practice in New York and Nashville, respectively, the firm said Thursday.

Valero Tussles With IRS Over Alternative Fuel Credit for Butane

April 25, 2024

Valero Marketing & Supply Co. filed a lawsuit seeking a $74.92 million refund of federal excise tax, which the company says it overpaid in large part because the IRS refused to recognize that its fuel mixes containing butane are eligible for the Alternative Fuel Mixture Credit.

North Carolina Governor Would End Further Corporate Tax Cuts

April 25, 2024

North Carolina Gov. Roy Cooper is proposing to keep the current income tax rates for corporations and high-income individuals, rather than having them decline as scheduled.

Chicago Watchdog Seeks Transit Merger to Close Deficit (1)

April 25, 2024

Chicago’s public transit agencies should consolidate and jointly address an estimated $730 million deficit looming in 2026, according to a report from the Civic Federation, a local watchdog group. 

Motor Company Director Rebukes IRS Tax Lien, Seeks $2 Million

April 25, 2024

The managing director of a Houston motor control company sued the IRS for $2 million for allegedly using federal tax liens to interfere with his business.

Brazil Tax Reform Rules to Be Reviewed Every 5 Years

April 25, 2024

Efficacy and effectiveness of the new rules for tax on consumer products and services will be reviewed every 5 years, according to a draft bill with the regulations submitted to Congress.

Featured Resources

COST - Council on State Taxation

Amicus Briefs

Garcia, D. v. American Eagle Outfitters, Inc.

COST’s brief in the Supreme Court of Pennsylvania Western District addresses whether a class action filed under Pennsylvania’s consumer protection laws for alleged overcollections of sales tax should be dismissed.

COST - Council on State Taxation

COST Studies, Articles & Reports

Mandatory Worldwide Combined Reporting: Elegant in Theory but Harmful in Implementation

This paper documents the harmful and unnecessary implications surrounding state adoption of mandatory worldwide combined reporting (MWWCR), by Douglas L. Lindholm and Marilyn A. Wethekam of the Council On State Taxation (COST).

COST - Council on State Taxation

COST Comments & Testimony

Letter to the Legislature in Support of S.B. 150, Centralization of Accommodations Taxes

COST submitted testimony in support of Alabama legislation S.B. 150 and H.B. 220, seeking centralization of accommodations taxes.