State and Local Thinking -- October 2015

State and local Thinking October 2015SALT Alerts
SALT Alerts are available via Twitter.

Massachusetts Appellate Tax Board holds no bona fide debt in related-party transaction
The Massachusetts Appellate Tax Board has held that related-party transactions that occurred as part of a cash management system did not give rise to bona fide debt.   Read the SALT Alert.

U.S. Supreme Court vacates and remands Massachusetts case for further consideration based on Wynne
The U.S. Supreme Court on Oct. 13 issued a summary disposition for First Marblehead Corp. v. Commissioner of Revenue that granted the taxpayer’s petition for certiorari, vacated the judgment and remanded the case to the Massachusetts Supreme Judicial Court for further consideration in light of the U.S. Supreme Court’s recent decision in Comptroller of the Treasury v. WynneRead the SALT Alert.

California State Board of Equalization rules on business/nonbusiness income treatment of proceeds
The California State Board of Equalization recently ruled on the business/nonbusiness income classification of proceeds received by a taxpayer following two significant transactions.    Read the SALT Alert.

Washington Board of Tax Appeals holds merger extension and termination fees were isolated sales not subject to B&O tax
The Washington Board of Tax Appeals has granted a taxpayer’s motion for summary judgment and held that extension and termination fees the taxpayer received pursuant to a merger agreement were casual or isolated sales that were not subject to the state’s Business & Occupation (B&O) tax.   Read the SALT Alert.

FASB considers proposal on required financial statement disclosure of government assistance
Currently, U.S. GAAP does not have explicit requirements for government assistance disclosure. The Financial Accounting Standards Board (FASB) on July 24 considered a requirement that companies disclose in the footnotes of their financial statements the types and amounts of government assistance they receive.   Read the SALT Alert.

Oregon Supreme Court requires use of transaction-based approach to calculate cost of performance for sales factor purposes
The Oregon Supreme Court held on Sept. 11 that under the cost of performance method for sourcing sales other than sales of tangible personal property, sales should be sourced using a transactional rather than an operational approach.  Read the SALT Alert.

North Carolina enacts significant income, franchise and sales tax legislation, contingent upon further legislative action
North Carolina Gov. Pat McCrory on Sept. 18 approved legislation enacting significant changes to the taxation of corporations and individuals. Most of the tax legislation is contingent upon other legislation successfully becoming law.  Read the SALT Alert.

Kansas Department of Revenue provides post-Wynne guidance on credits for taxes paid to other states
The Kansas Department of Revenue on Aug. 15 became the first state tax authority outside Maryland to directly respond to the U.S. Supreme Court’s decision in Comptroller of the Treasury v. Wynne. The department’s issuance of a notice acquiesces to the Wynne decision and allows Kansas residents to take a credit for taxes paid to other states and localities within those states, both on a prospective and retroactive basis.  Read the SALT Alert.

Wisconsin Tax Appeals Commission finds intangible holding company has no liability but reserves right to assess operating company
The Wisconsin Tax Appeals Commission recently concluded that an out-of-state intangible holding company did not have a Wisconsin corporation income or franchise tax liability.    Read the SALT Alert.

Thought leadership from our State and Local Tax professionals

Grant Thornton publications

Year-end tax guide
You want to plan your taxes effectively, but the process doesn’t have to be painful. Our Year-end tax guide simplifies the complex, explaining what you need to know clearly and answering common tax questions. The guide is formatted for ease of use, presenting information at a glance, through easy-to-understand charts, tips, examples and case studies.  

Year-end tax guide: State and local tax  
As if your federal income, employment and investment tax burdens aren’t bad enough, state and local governments impose an even more byzantine collection of tax regimes on businesses and individuals.

  • October, IPT Insider, Mining for Refunds: Sales and Use Tax Savings Opportunities (and Pitfalls) in the Natural Gas Forgotten Frontier (Maryland, Ohio, Pennsylvania and West Virginia), written by Michael Cronin, SALT senior manager; Jeremy Jester, SALT senior manager; Savanna Milasuki, Tax senior associate; and Guinevere S.M. Seaward Shore, SALT senior associate.  
  • Sept. 30, Weekly State Tax Report, " ‘Gillette' Court Rejects Challenge to Repeal of Tax Compact," Jamie Yesnowitz, SALT principal, quoted.

Tax professionals

Meet Dale Busacker, SALT director in the Minneapolis office
Dale Busacker is a SALT director in the Minneapolis office with more than 30 years of SALT experience.
Dale has extensive experience in audit issues, filing protests and structuring planning opportunities regarding multistate income and sales tax.

Before he joined a major accounting firm to set up a SALT practice, he was the senior income tax division attorney in charge of administrative and interpretative rulings at the Minnesota Department of Revenue. He reviewed and presented legislative proposals, formulated and handled the adoption of rules and provided legal advice to auditors during tax audits.

Dale was a principal in the SALT group at EY before joining Grant Thornton.

He earned a JD from William Mitchell College of Law and a BA from Concordia College.

Tax professional standards statement
This content supports Grant Thornton LLP’s marketing of professional services and is not written tax advice directed at the particular facts and circumstances of any person. If you are interested in the topics presented herein, we encourage you to contact us or an independent tax professional to discuss their potential application to your particular situation. Nothing herein shall be construed as imposing a limitation on any person from disclosing the tax treatment or tax structure of any matter addressed herein. To the extent this content may be considered to contain written tax advice, any written advice contained in, forwarded with or attached to this content is not intended by Grant Thornton LLP to be used, and cannot be used, by any person for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.