Latest COST Conscious

ISSUE 17-23; November 17, 2017

Auditor Evaluations – COST’s primary purpose in fostering dialogue with state tax administrators (and issuing Administrative Scorecards) is to encourage states to transform the auditor/taxpayer relationship from a strictly adversarial approach to a more customer-focused business model. In this vein, we encourage the establishment of Commissioner Advisory Groups and frequently reach out to administ

Latest Practitioner Connection

ISSUE 17-23; November 10, 2018

House Ways and Means Committee Approves Amended Tax Reform Legislation – The House Ways and Means Committee on November 9, 2017 approved by a party-line vote of 24 to 16 the ‘Tax Cuts and Jobs Act of 2017’ (HR 1) bill. The bill proposes to lower business and individual tax rates, modernize US international tax rules, and simplify the tax law, with significant impacts on numerous sectors of the eco


Will Goodlatte’s Retirement Lead to Federal Digital Tax Solution?


It’s not certain that Rep. Bob Goodlatte’s (R-Va.) retirement will open the door to long-awaited federal legislation addressing states’ taxing authority over remote retailers.

Will Multiple Briefs Sway Supreme Court to Take Digital Tax Case?


The U.S. Supreme Court has dozens of state attorneys general and interest groups knocking on its door to take up the issue of states’ taxing authority over remote retailers.

House GOP Tax Plan Draws Protests Over State Impact


Federal lawmakers and groups representing state and local governments are pushing back against a key deduction contained in the House Republican tax reform plan released Nov. 2.

Wave of Amazon HQ2 Bids Unlike Anything Experts Have Seen


Is the nationwide tidal wave of proposals for Amazon’s second headquarters an unprecedented incentive bonanza, a game-changer, or a PR-stunt precipitating a dozen more PR stunts?

Reworking Intercompany Loan Rules a Mixed Blessing for States


Treasury Department recommendations to simplify Obama-administration documentation requirements on intercompany lending may be good news and bad news for states deciding whether to conform.

First Digital Sales Tax Dispute Reaches U.S. Supreme Court


South Dakota’s Attorney General has filed the first of an expected wave of state petitions asking the U.S. Supreme Court to reconsider a 25-year-old opinion restricting states’ ability to tax remote retailers.

State Groups Vow Fight for Tax Deduction Despite Trump, Big Six


Groups representing state and local officials will lobby hard to persuade members of Congress not to go along with calls from President Donald Trump and GOP leaders to end the federal deduction for...

States Won’t Sweat Conformity to Retroactive Tax Reform


States that want to follow retroactive provisions of whatever tax reform package comes from Congress this year probably wouldn’t worry about legal challenges.

Federal Partnership Rules May Be Tricky for States: ABA Group


State and local governments may find themselves in a pickle when a new federal partnership audit regime goes into effect, according to a Sept. 11 letter addressed to Internal Revenue Service...

First U.S. Prosecution Over ‘Zapper’ Software Nets Guilty Plea


A Seattle-area restaurant owner accused of using software to hide receipts and steal sales tax revenue pleaded guilty Aug. 30 in the first such prosecution in the U.S., the Washington Attorney...

IRS Asked to Help States by Clarifying Partnership Audit Regime


An influential tax group is asking the IRS to clarify how proposed regulations will implement certain aspects of the new federal partnership audit regime.

Michigan’s Value-Added Tax: A Cautionary Tale for Feds, States


The U.S. has been among a small number of developed countries for most of the last century in resisting an academically revered economic policy—the value-added tax. Michigan’s failed VAT may help...

‘Looking at You, Kid': Tax Credits for Movies, TV in Focus


The stiff competition among states to lure the multibillion-dollar film and television industry with lucrative tax credits may be going through a Darwinian period where only the strongest survive.

State Deduction Needed for Tax Reform After Health Care Failure


Republicans’ failure to repeal the taxes underlying the Affordable Care Act makes eliminating the deduction for state and local taxes even more important to their tax reform plans.

Federal Tax Reform Driving States to Digital Sales Taxes


Federal lawmakers’ efforts to control states’ taxing authority over remote retailers is adding pressure as potential federal tax reform threatens to further deplete states’ coffers.

Federal Bills Fighting to Modernize Interstate Taxes


A House-passed bill standardizing rules for taxing nonresident workers will face stiff opposition from large states that stand to lose millions in revenue, an original co-sponsor of the Senate...

Businesses Face a Patchwork of Trade Show Tax Rules


Businesses that use trade shows to promote and sell their products would be well-advised to research the hosting state’s nexus rules if they hope to avoid long-term sales and use tax duties in that jurisdiction, tax practitioners told Bloomberg BNA.

Prolific Tax Whistle-Blower Must Rethink Strategy


A Chicago lawyer regarded as the most prolific tax whistle-blower in the U.S. will have to reconsider his relentless litigation strategy in light of a state appeals court finding him ineligible for...

IRS Releases Proposed Partnership Audit Rules After Delay


The IRS proposed rules to implement the new partnership audit regime after a regulatory freeze delayed release of the guidance for five months.

Parties Unveil Model State Statute for Partnership Audit Law


Practitioners have rolled out draft model legislation that many hope will serve as the starting point for uniform state statutes addressing the new federal partnership audit regime.

States No Longer Fretting Over Federal Tax Reform This Year


The pressure to go into special session or take immediate action this year in response to federal tax reform no longer exists for state lawmakers and governors

Gray Areas in State Tax Policies: Bloomberg BNA Survey


Lawmakers’ strategy to strike a decades-old, state-border restriction on taxing sales may prove fruitful before the U.S. Supreme Court, according to a leading state and local tax practitioner.

States Eye New York Whistle-Blower Law as Tax Fraud Tool


State lawmakers and tax administrators are taking a closer look at enacting whistle-blower statutes as a strategy for prosecuting big-ticket incidents of tax fraud and scooping revenue into state coffers.

Tax Reform Would Send States Back to ‘Drawing Board’


Most modifications materializing from a potential federal tax reform package would throw states’ personal and corporate income tax structures up in the air, according to a leading tax professional.

States to Battle White House for Tax Deduction, Muni Exemption


States and cities are fighting to preserve a deduction for taxes paid to local governments after the White House’s tax plan said it would jettison the popular tool.

States, Tax Groups Furiously Planning for Partnership Audit Law


States and taxpayers aren’t waiting for a fix to the new federal partnership audit regime as they wade further into it to assess how the law will shape state tax systems.

Carried-Interest Bill Gets Attention in Connecticut


A subcommittee in the Connecticut Legislature heard testimony April 11 from the group called Patriotic Millionaires on a bill that would end the carried-interest tax advantage that benefits...

Digital Sales Tax: Hit and Miss in States


States’ collective agenda to rope in lost revenue from remote sales has yielded mixed results so far in 2017.

Most States Sick Over GOP Health Bill, Impact on Budgets


Rick Noonan said he wanted to cry when he heard the American Health Care Act was getting closer to becoming law.

Rise of Machines to Spark Rise of San Francisco Taxes?


Whether San Francisco should adopt an automation tax to replace taxes lost to automated jobs is the subject of a hearing proposed by a supervisor backing CEO pay surcharges.

Online Sales Tax Marching Toward South Dakota High Court


The South Dakota Supreme Court could soon take up the state’s online sales tax that a lower court ruled unconstitutional.

End of An Era: State Tax Legend Paul Frankel Dies


A light has gone out in the state and local tax world with the passing of one of its most preeminent and beloved practitioners.

Kansas Passthrough Exemption on Life Support


A controversial income tax break came back from the dead in the Kansas Legislature Feb. 22, but it appears to have little chance of ultimately surviving the current legislative session.

Business Tax Burdens Possibly on States’ Chopping Block


State efforts to carve out business personal property from taxation are gaining steam amid continuing calls for states to remove business inputs from the sales tax base.

Import-Export Tax Idea Presents State Constitutional Pitfalls


States could run afoul of the Constitution by following a federal border-adjustments plan advocated by House Speaker Paul Ryan (R-Wisc.) to tax imports and exempt exports.

Trump’s High Court Pick May Shadow Scalia in State Tax Cases


Justice Antonin Scalia’s potential successor may be cut from a similar judicial cloth—but it remains to be seen how the Supreme Court nominee could shape state tax issues.

“High” Taxes—States Continue to Look to Marijuana to Generate Revenue


As Colorado and Washington continue to experiment with legalized marijuana, state lawmakers’ attention has turned to preserving the new revenues and tweaking tax provisions. Meanwhile, at least nine...

Taxation of LPs and LLCs: Variances Among States Pose Traps for the Unwary


Two of the most popular business structures for small business owners are limited liability companies (LLCs) and limited partnerships (LPs). These business entities offer a host of practical...

Corporate Close-Up: Five Things to Watch for in State Corporate Income Taxes in 2017


In Chinese astrology, 2016 is the year of the monkey, a symbol of mobility and action, apt for a year setting the stage for potentially massive tax overhauls. The coming year will be symbolized by...

Three Prominent State and Local Tax Practitioners' Outlook on What's Ahead in 2017


Bloomberg BNA recently asked three prominent state and local tax thought leaders about changes they see on the horizon for 2017. Below are the responses from EY's Joe Huddleston, KPMG's Harley Duncan...

Alabama to Push Online Tax Bill After High Court Clears Way


Alabama’s tax commissioner said she will ask the state Legislature to consider a Colorado-style reporting and notice requirement for out-of-state retailers that don’t collect and remit the state’s...

Comcast Scores Partial Win in California Tax Dispute


A California appellate court panel affirmed a trial court ruling that was a partial win for both Comcast and the Franchise Tax Board in a dispute about Comcast’s unitary ties with another company and...

Select State Tax News

Fla. Urges High Court To Turn Away Dish Network’s Tax Suit


The Florida Department of Revenue has asked the U.S. Supreme Court not to take up Dish Network LLC’s certiorari petition claiming the state’s communication service tax discriminates against satellite in favor of cable providers, saying there has been no...

November 20, 2017: Events Calendar: Berry, Dunn, McNeil & Parker, LLC : Top Takeaways: 2017 AICPA National Governmental Accounting and Auditing Update Conference (GAAC)


Every year, the American Institute of CPAs (AICPA) offers an update on governmental accounting and auditing. Here are some top takeaways. GASB 72: What We've Learned Fair value is an exit price, not an acquisition price-what you paid for the asset is...

Crowell’s Conversations: An Interview With Kevin Sullivan, Commissioner of the Connecticut Department of Revenue Services and President of the Federation of Tax Administrators, - Author: Jeremy Abrams.


TM Daily Tax Report : State Reproduced with permission from Daily Tax Report: State, DTRS 3/28/17, 11/20/2017. Copyright 2017 by The Bureau of National Affairs, Inc. (800-372-1033)...

St. Charles lawmaker proposing plan to preserve state revenue


@CDTCivilWar A proposal to break most of the ties between Missouri’s income tax and the federal income tax would cut the highest rate, eliminate a deduction for federal tax payments and exempt more...

Alcohol cut off from Forth Berthold due to liquor tax debate


NEW TOWN, N.D. - It's last call in New Town. Liquor stores and distributors are feeling the weight of a fight between the MHA Nation and North Dakota government over a 7 percent sales tax on alcohol...

Liberty Tax falls in 4 out of last 5 days November 20, 2017 16:00 EST


AMERICAN DAILY STOCK REPORT Liberty Tax Inc. (NASDAQ:TAX), NASDAQ's 41st largest Consumer product/services company by market cap, has decreased 10.0c (0.8%) to close at $US11.80. Compared with the NASDAQ-100 Index which fell 5.9 points (0.09%) in the...

Missouri mayors stress importance of low-income housing state tax credits


More than 20 Missouri mayors sent a letter to state officials asking them to reconsider recent cuts to low-income housing tax credits. (Mark Slavit/KRCG 13) COLUMBIA —  More than 20 Missouri...

What's in the Secret Air BnB Agreement?


: ...On Monday, AirBnB executives circulated a memo to lawmakers describing the “voluntary collection agreement” it has with other jurisdictions, and is seeking here.... Airbnb Agreements with...

The New Partnership Audit Rules: Are You and Your Clients Ready?


In late 2015, Congress passed the Bipartisan Budget Act of 2015 (the “BBA”) 1 as amended by the PATH Act of 2015. The BBA established a new partnership audit and assessment regime and repealed...

ND reservation limits alcohol sales


BISMARCK — Alcohol sales are drying up on an American Indian reservation in the heart of North Dakota's oil patch after tribal officials imposed new rules for retailers and wholesalers, including...

Spending up less than 1 percent in tentative 2018 Seneca County budget


WATERLOO — Seneca County Manager John Sheppard has done his job, presenting a tentative 2018 county budget to the Board of Supervisors and the public. It is now up to the board to turn that into a...

Corporate Close-Up: Minnesota Department of Revenue Revises Policy on Section 382 Limitations to Match Minnesota Tax Court Opinions and Statutory Law


/ by The Minnesota Department of Revenue’s official policy on Section 382 limitations finally caught up to the longstanding treatment of the Minnesota Tax Court when the Department revoked Revenue...



London: EN+ Group PLC has issued the following news release: En+ Group plc (the "Company", the "Group" or "En+"), a leading international vertically integrated power and aluminium producer with core assets located in Russia, today announces its...

Investors Should Not Tap Into Retirement Funds Early


Financial experts generally advise against borrowing from – and especially withdrawing early – from retirement accounts. And for good reason. Betterment certified financial planner Garrett Oakley...

Comparative Performance Report; Municipal Bonds; Puerto Rico; by Yield; November 17, 2017


COMPARATIVE PERFORMANCE REPORT Note: PV$1,000 (1 mo): Present Value of $1,000 invested a month ago Issuer CUSIP Last (USD) Yield (%) PV$1000 (1mo) Maturity Date S&P Rating Federally Taxable State Tax Puerto Rico Sales 74529JHR9 4.2 26.6 Aug 01, 2030...

Here are some deductions that can reduce your 2017 tax bill


Even with federal tax reform up in the air, there are steps taxpayers can take now to save come April 2018. Consider donating to charity certain assets that have appreciated in value or invest in a...

North Dakota ready to change online sales tax collection


BISMARCK, N.D. (AP) - North Dakota could level the playing field between online retailers and brick and mortar businesses should any federal changes to sales tax collection be made. North Dakota is among several states to have joined South Dakota in...

Darwin Automotive Revolutionizes Auto Dealer, Consumer Digital Retailing; Releases “Darwin Online”


Patented digital retailing application enables fully functional online F&I department, open 24/7 ISELIN, NEW JERSEY, USA, November 20, 2017 / / -- Darwin Automotive , a leading F&I...

State Chamber Survey: Workforce Again Tops Business Concerns


Workforce quality, supply have topped business worries for five consecutive years of State Chamber survey LINCOLN – Workforce quality and the availability of labor are again the top concerns of...