Tax

July 6, 2020

Hearings Senate Committee on Health, Education, Labor and Pensions (HELP): “COVID-19: Update on Progress Toward Safely Getting Back to Work and Back to School” Tuesday, June 30, 2020: The Senate HELP committee held hearing in its continuing series on Americans returning to work and school during the COVID-19 pandemic. Find more details on the hearing here. Why this is important: Senate HELP Committee Chair Lamar Alexander (R-TN) suggested during the hearing that either states or Congress…

SALT Shaker

Pump the Brakes: North Carolina Supreme Court Determines that Brake-Pad Manufacturer Does Not Qualify for Special Apportionment Rule for Public Utilities

By Michael Kerman & Eric Tresh

July 6, 2020

The North Carolina Supreme Court affirmed a lower court decision that held that a manufacturer of brake pads used by railroads did not qualify for an exception to the state’s standard three-factor apportionment formula that allows “public utilities” to instead apportion their income using a single-sales factor formula. In February 2019, the North Carolina Superior Court reasoned that the taxpayer did not meet either of the two statutory requirements for qualifying as a “public utility.”…

SALT Shaker

That’s None of Our Business – Idaho Supreme Court Rules Holding Company’s Gain from Sale of LLC Interest is Nonbusiness Income

By Justin Brown & Eric Tresh

July 6, 2020

On May 22, 2020, the Idaho Supreme Court held that the gain realized by a corporate holding company on the sale of its 78.54 percent ownership interest in an LLC was nonbusiness income and therefore not subject to apportionment in Idaho. The LLC was formed in 2003 and manufactured and sold tangible personal property. The LLC had operations in most states, including a factory located in Idaho. The LLC and the corporate holding company shared…

IRS Streamlined Procedures

Reasonable Cause & IRS Penalty Abatement

By Board-Certified Tax Law Specialist

July 6, 2020

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Reasonable Cause & IRS Penalty Abatement Reasonable Cause & the IRS Reasonable Cause & Abatement of IRS Penalties: When it comes to the IRS and penalties, there are (generally) two situations in which reasonable cause is primarily used. In the first scenario, a person may have already been issued an IRS Penalty, and they are seeking to abate the penalty by proving the mistake was reasonable. In the second scenario, a person realizes they are…

Tax Controversy Posts

Too Big for District Court: Overpayment Interest and Subject Matter Jurisdiction

By James R. Malone Jr.

July 6, 2020

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Taxpayers who pay more tax than is due have the right to sue for a refund after exhausting their administrative remedies, and they may file suit either in a district court or in the Court of Federal Claims, as the courts have concurrent jurisdiction. 28 U.S.C. § 1346(a)(1). In addition to recovering the excess tax, taxpayers are entitled to overpayment interest. I.R.C. § 6611(a). Normally, the tax and the interest travel together, but in some…

Tax Law for the Closely Held Business

Out of New York, But Still Being Taxed By New York? Look to the Source

By Lou Vlahos

July 6, 2020

New York Diaspora?[i] Like most every other state in the Union, New York has experienced its share of fiscal stress over the last few decades. The source or cause of its problems? Well, that may depend upon the respondent to whom this question is posed and, unfortunately, the side of the political aisle on which they place themselves.[ii] However, almost everyone agrees that there are many factors and forces to which the State’s…

Compensation and Benefits Global Insights

COVID-19: Expenses of Working from Home – The Tax Rules

By Victoria Murphy

July 6, 2020

Back view of Asian business woman talking to her colleagues about plan in video conference. Multiethnic business team using computer for a online meeting in video call. Group of people smart working from home.

The coronavirus (COVID-19) ‘lock-down’ has necessitated large swathes of the working population to perform their duties from home. As a result, working-from-home has become the ‘new normal’ for many employees in recent months. Employers will be considering how best to assist their employees to work most efficiently and effectively from home while the lock-down endures. In doing so, keeping in mind the tax implications of their actions will be beneficial. An Existing Exemption Assets (such…

Zalma on Insurance

Made Whole Doctrine Does Not Apply to a Self-Insured-Retention

By Barry Zalma

July 6, 2020

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The Made-Whole Doctrine Does Not Apply To First-Dollar Risk in New Jersey A self-insured retention or deductible is an amount of risk that the insured has agreed to assume in exchange for a lower premium cost for the insurance policy. Where the award from a subrogation action against a third party is insufficient to reimburse both the insured’s self-insured retention and the carrier’s loss in excess of the self-insured retention, to place priority of recovery…

Zalma on Insurance

A Video of True Crime Stories from Heads I Win, Tails You Lose

By Barry Zalma

July 6, 2020

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Heads I Win, Tails You Lose – True Crime Stories of Insurance Fraud See the full video at https://youtu.be/AWRB2d_zYjE The title, “Heads I Win, Tails You Lose” is meant to describe insurance fraud as it works in the Unites States. It means that whenever a person succeeds in perpetrating an insurance fraud everyone who buys insurance is the loser. If the fraud succeeds the insurer must charge more premium to cover the expense of defending…

Zalma on Insurance