Media Mentions
2012
“Pushing Aside Sound and Fury on Click-Through Nexus Laws”
Sales & Use Tax Monitor, January 15, 2012
Arthur Rosen asserted that the issue of whether online retailers should be subject to state sales tax is “being driven by [in-state] retailers who believe they are being discriminated against, and by state governments who want more revenue.” Mr. Rosen noted that because advertising from out-of-state does not establish a sales tax nexus while personal selling does, e-commerce firms with websites need to verify “if what they are doing is advertising or really face-to-face sales on behalf of a retailer.”
Arthur R. Rosen, State & Local Tax, Tax
2011
“Cloud Computing Emerges as Tax Conundrum as States Seek to Squeeze ‘New Paradigm’ into Old Ways of Thinking”
BNA Daily Tax Report, December 29, 2011
Arthur Rosen said that even though use of cloud computing services “is really a throwback to an old idea” of computer time-sharing with third parties, cloud computing vendors are so uncertain about the tax status of their services that they are charging their customers state sales tax – which some customers may refuse to pay, or may seek refunds on from the state. Mr. Rosen noted that New York has been among the more aggressive states in taxing pre-written software as tangible personal property, but he contended that the state has little legal or factual basis for its position.
Arthur R. Rosen, State & Local Tax, Tax
“Moves and Appointments”
Tax Notes Today, December 8, 2011
Madeline Chiampou, Nathaniel Dorfman, Caroline Hong Ngo, Lindsay LaCava and Timothy Shuman were noted as the Tax Practice associates named to McDermott’s partnership effective January 1, 2012.
Madeline M. Chiampou, Nathaniel J. Dorfman, Lindsay M. LaCava, Caroline Hong Ngo, Timothy S. Shuman, International Tax, State & Local Tax, Tax
“The Best of 2011”
State Tax Notes, December 5, 2011
Arthur Rosen was named by this authoritative publication as “one of the top 10 individuals who influenced tax policy and practice” and “one of the top 10 tax lawyers” for 2011.
Arthur R. Rosen, State & Local Tax, Tax
“Why is the Supreme Court Reluctant to Take Up a State Tax Appeal?”
Tax Incentives Alert, December 01, 2011
Arthur Rosen was quoted about why the Supreme Court is often loath to hear a tax dispute. “I think that what you see is an unwillingness by the Supreme Court to deal with cases that it feels should be resolved by Congress. You look at Quill, and the court said Congress should deal with it because it is a Commerce Clause case revolving interstate commerce and Congress should regulate that. Most of the cases that are denied are dormant Commerce Clause cases.”
Arthur R. Rosen, State & Local Tax, Tax
“Feds, State Move Cautiously on Internet Sales Tax Plans”
Boston Business Journal, November 25, 2011
Arthur Rosen defined the primary issue for making Internet retailers pay state and local sales tax as, “Can a state require a seller with no physical presence in a state to collect and remit sales tax on sales made to customers in that state.” Mr. Rosen noted that controversy over taxing out-of-state retailers dates at least to the 1930s, when mail-order catalogues were the concern.
Arthur R. Rosen, State & Local Tax, Tax
“Supreme Court Finds State Tax Cases as Appetizing as Rhubarb, But Why?”
State Income Tax Monitor, November 15, 2011
Arthur Rosen attributed the US Supreme Court’s reluctance at considering state and local tax cases to “an unwillingness by the Supreme Court to deal with cases that if feels should be resolved by Congress,” particularly those related to the Commerce Clause. However, Mr. Rosen stated that he believes “the court needs to be more active. There are three branches of government and they overlap.”
Arthur R. Rosen, State & Local Tax, Tax
“Tax Break Package Ballooning, with Business Interests Trying to Lead the Legislation”
Chicago Tribune, November 6, 2011
Fred Ackerson assessed current attempts in the Illinois legislature to expand the focus of a business tax cut bill by saying that in such efforts “public policy usually comes in No. 3” behind state revenue needs and business tax relief desires. “In terms of a coherent policy that shapes it all so it makes sense, that happens maybe once every other generation,” he added.
Fred M. Ackerson, State & Local Tax, Tax
“Status of BAT Bill Unclear as Congress Considers State Revenue Impact”
State Tax Today, October 19, 2011
Arthur Rosen said a Congressional Budget Office estimate of a $2 billion cost to the states from a bill to establish a national standard for state business activity tax nexus based on physical presence “should not create any impediment at all” to passing the bill because the figure “represents a miniscule percentage of the taxes collected by the states.” Mr. Rosen noted the benefits to business of a single standard, saying, “The concept of exporting tax to those who are not part of a government’s constituency or local society is politically attractive but just wrong.”
Arthur R. Rosen, State & Local Tax, Tax
“Amazon Invites California Affiliates to Return”
TaxAnalysts/State Tax Today, October 6, 2011
Arthur Rosen, commenting on California’s one-year suspension of enforcing state tax nexus requirements against business affiliates of Amazon.com, said that such “click-through nexus provisions are very, very weak because in almost every factual situation they don’t meet the Scripto/Tyler Pipe requirement” that a business affiliate be “significantly associated” with a remote seller’s ability to establish and maintain a state sales market.
Arthur R. Rosen, State & Local Tax, Tax
“Thank You, State Tax Notes”
State Tax Notes, September 5, 2011
Arthur Rosen, a regular contributor to this highly influential publication, was listed among several other tax practitioners who were called “the most influential people in the business right now.”
Arthur R. Rosen, State & Local Tax, Tax
“Someone Might Sue N.Y. to Collect More Taxes from Your Company”
State Income Tax Monitor, June 15, 2011
Matthew Boch, Catherine Battin, and Jane May were cited here as authors of an earlier article about how New York State has become the first to authorize qui tam whistleblower claims regarding tax matters. This summary noted that the authors had called the concept of circumventing the normal audit/appeal process “unsettling,” particularly if other states follow suit.
Catherine A. Battin, Matthew Boch, Jane Wells May, State & Local Tax, Tax
“CME Group Relocation Threat May Veil Push for Reformulation of State Tax Burden”
Chicago Tribune, June 12, 2011
Jane Wells May said of a temporary increase in the Illinois corporate income tax, which reportedly has led CME Group to seek a change in the income tax formula for financial trading: “These rules really come down to: What income can Illinois tax?”
Jane Wells May, State & Local Tax, Tax
“Tax Penalties in N.Y. Residency Case Raise Red Flags for Snowbirds”
Palm Beach Daily News, March 5, 2011
Arthur Rosen warned individuals who spend substantial time living in tax-friendly Florida that they may be not able to claim residency if they still maintain a home in high-tax New York. He advised such persons to avoid New York tax problems by both reducing year-round accessibility of their home there (renting it out for several months a year), and by keeping careful records to show that they have not been in New York more than 183 days annually. Mr. Rosen noted that New York is one of the most aggressive states at collecting taxes, and suggested maintaining records of out-of-state residency for at least four years after filing a New York return.
Arthur R. Rosen, State & Local Tax
“Taxpayer Hunting Season in the Empire State”
BNA Tax Management – Multistate Tax Report, February 25, 2011
Matthew Boch, Catherine Battin and Jane Wells May wrote that the amendment of the New York False Claims Act to allow whistleblower suits to enforce state and local tax statutes is a first for any state. The authors believe it “undermines fair and efficient tax enforcement” by sending taxpayers into high stakes litigation instead of the normal audit and appeal processes. Because, like New York, other states are also in need of additional revenue, the state’s action “may be the harbinger of a new era of tax disputes” in many jurisdictions that now prevent whistleblower suits in tax matters.
Catherine A. Battin, Matthew Boch, Jane Wells May, State & Local Tax
“Tax Court: International Business Machines Corp. v. Director, Division of Taxation”
New Jersey Law Journal, February 14, 2011
Peter Faber and Leah Robinson were identified as counsel for plaintiff IBM in their successful Tax Court appeal of the New Jersey Division of Taxation’s position that IBM needed to include extraterritorial income for New Jersey corporation business tax purposes. The court held that the Director of the Division of Taxation acted outside his statutory authority when taking that position.
Peter L. Faber, Leah Robinson, State & Local Tax
“Sales Tax – Declaratory Relief”
New Jersey Law Journal, January 24, 2011
Peter Faber and Leah Robinson were identified as plaintiff’s counsel in their successful Tax Court effort to secure declaratory relief on behalf of their client, an employer that had received notice from the Director, Division of Taxation, that the company would be subject to sales tax based on its business activities as described in documents received in prior settled litigation.
Peter L. Faber, Leah Robinson, State & Local Tax, Tax
2010
Peter Faber was quoted in an April 18 New York Times story about how states are increasingly raising cash through “sin taxes” on alcohol, gambling and adult services. “The honest way to raise more revenue would be to raise income tax rates,” Mr. Faber said. “But it is more politically attractive to tax these kinds of things. No one can get mad at you for taxing people who drink too much.”
Peter L. Faber, State & Local Tax, Tax
Arthur Rosen was quoted by The New York Times on March 22, in a story about how some states are aggressively collecting income taxes from persons (from athletes and entertainers to sales reps) who are employed elsewhere but do a small amount of work in that state. Noting that the more aggressive states may force other states to follow suit, Mr. Rosen stated: “If everybody goes after everybody, nobody wins. … In this interstate war of ‘you tax my rich guy and I tax your rich guy,’ it’s just a wash, a preposterous flurry of tax returns.”
Arthur R. Rosen, State & Local Tax, Tax
2009
Art Rosen was featured in State Tax Notes (October 19) focusing on current state tax trends. A key issue for Mr. Rosen is "working to encourage Congress to pass BATSA." The BATSA would create a bright-line test to determine when an out-of-state business must pay taxes to a state jurisdiction. "There's considerable logic for congressional support of the legislation," said Mr. Rosen. "Income taxes are supposed to be imposed where a company earns its income - where its capital and labor are located. Income is earned where a company has property and payroll. It makes no sense to try to attribute income to other states simply because you have sales there." The issue impacts everything from e-commerce to international sales, and although there is a strong case for greater tax treatment uniformity. Mr. Rosen noted that "states balk when they have to make significant changes to achieve real uniformity."Arthur R. Rosen, State & Local Tax, Tax
Arthur Rosen was quoted by Sales & Use Tax Monitor on September 15 concerning possible state efforts to apply sales tax to legal service bills. He noted that if details can be worked out on who the billing attorney is and where the service was provided, “then the tax is administrable. Whether it is a good idea or not is really another question.” From the government’s standpoint, Mr. Rosen added, “If you’re looking to tax every service and expand the [tax] base, then I don’t see why you wouldn’t tax legal services … If all services should be taxed, then attorney services should be, too. We’re not all that special.”
Arthur R. Rosen, State & Local Tax, Tax
Fred Ackerson was quoted by State Income Tax Monitor on May 31 concerning various state tax provisions that make companies add back to taxable income any deductions taken for royalties and interest to affiliates. Mr. Ackerson predicted that states will embrace the logic of recent court decisions holding that challenges to addbacks must prove that they result in a disproportionate appointment of income." "You've got two standards that are at loggerheads for the interpretation of the unreasonable vs. reasonable addback," he said, and warned companies not to pay any tax that they may later challenge as an unreasonable addback. "It's always harder to ask for it back through an amended return," he noted.
Fred M. Ackerson, State & Local Tax, Tax
Keith Staats was quoted on May 31 by State Income Tax Monitor on so-far unsuccessful attempts to roll back Cook County's 10.25 percent sales tax. If a rollback does happen, he noted, "it's going to change all the sales tax returns and rate schedules for the state." Right now, Mr. Staats added, "taxpayers registered there are just having to wait and see what happens."
Peter Faber was quoted in a May 30 New York Times article about companies that establish shell entities in Delaware to take advantage of that state's low taxation. He noted that in some cases a single clerk in a Delaware office may tend to dozens of shell companies. "I've seen a lot of companies with solid structures, and more with not," Mr. Faber said of the Delaware entities.
Peter L. Faber, State & Local Tax, Tax
Peter Faber told CFO.com on May 1 that states will likely increase their tax enforcement efforts on businesses in order to raise revenue. "We're seeing an intensification of audit activity for corporations, which is where I think the states feel the big money is," he declared.
Peter L. Faber, State & Local Tax, Tax
Arthur Rosen told Sales and Use Tax Monitor on April 30 that it is not a new phenomenon for governmental entities to make "temporary" tax increases permanent. "It's always been that way. The 1913 federal excise tax on phones was passed to fund the war and was never repealed," he explained. "It's much more common than not for temporary taxes not to be repealed."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the January 15 issue of Sales & Use Tax Monitor about the potentially higher taxes in New York on items such as non-diet soft drinks. As for Gov. David A. Paterson's request to tax digital downloads of media such as books and music, "we went through this with Streamlined over the past four years," said Mr. Rosen. "The business community was able to convince the SSTP powers-that-be that each digital product needed to be examined individually. We hope to do the same in New York," he added.
Arthur R. Rosen, State & Local Tax, Tax
Blake Rubin was quoted in the January 8 issue of Tax Notes in an article about how section 1001 lacks a definition of recourse or nonrecourse debt, so such a classification can be based on state law, according to practitioners at a January 7 District of Columbia Bar luncheon on classification of partnership liabilities. "That was the thinking that we had all signed onto until we read this case," said Mr. Rubin, referring to Great Plains Gasification Associates et al. v. Commissioner, T.C. Memo. 2006-276, No. 10578-01 (Dec. 27, 2006).
Blake D. Rubin, State & Local Tax, Tax
2008
Roy Crawford was quoted in the November issue of Tax Incentives Alert about the suspension of the deduction for NOL carryforwards in California. "It's a real incentive for a lot of businesses," noted Mr. Crawford. "There are so many start-ups out here that count on that credit as 'adventure money,'" he added.
Roy E. Crawford, State & Local Tax, Tax
Art Rosen was quoted in the November 15 issue of the Sales & Use Tax Monitor about two counties on Long Island, N.Y., facing combined government shortfalls exceeding $50 million (with declining sales tax collections being a major culprit). Some officials think sales tax increases could be in the offing. "I wouldn't be surprised," said Mr. Rosen. "People are concerned that jurisdictions are overestimating their revenues because spending is down."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the August 31 issue of Sales & Use Tax Monitor about a new law requiring that online retailers collect sales tax on purchases made by state residents if they have any affiliates - including Web affiliates - with physical presence in New York. "I think that you'll find that the Assembly in New York is much more pro-revenue than the Senate was," said Mr. Rosen.
Arthur R. Rosen, State & Local Tax, Tax
Roy Crawford was quoted in the August 15 issue of State Income Tax Monitor about how a court threw out California authorities' seemingly convoluted argument for disallowing an insurance company's deductions for management fees. Mercury General Corp. was reimbursed by two insurance subsidiaries for providing certain management services. The Franchise Tax Board balked at allowing a deduction for expenses under a "but-for" test. "That test says that if a parent has an expense and somehow expects that the subsidiary will pay a dividend, part of the expense will be disallowed because they'll get a dividend someday," said Mr. Crawford.
Roy E. Crawford, State & Local Tax, Tax
Art Rosen was quoted in the May 15 issue of Sales & Use Tax Monitor in an article regarding the complexity of sales tax compliance in the state of New York. "The rules are so arcane," Mr. Rosen said. "It makes it so difficult. In New York, a Twix bar is taxable if it's on the shelf with candy and exempt if it's on the shelf with cookies. Little marshmallows are used for cooking and therefore exempt, but big marshmallows are considered candy and therefore taxable," he added.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the May 15 issue of Sales & Use Tax Monitor in an article regarding the case of Amazon.com Inc./Seattle vs. the New York Supreme Court and its potentially huge implications for companies making sales into states where they lack a physical presence. "So far, no state has enacted anything close to what this does in New York," Mr. Rosen said. "There are several states that will impose nexus on a company that has a brick-and-mortar affiliate in a state, but that's as far as it goes," he added.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the March 15 issue of State Income Tax Monitor about how a guilty plea and an agreement to pay restitution over tax fraud will not always pull you off the state's hook. "A lot of people get blindsided by this," said Mr. Rosen. "Unless the taxation department signs off on the plea agreement, they are not prevented from seeking past due tax, penalties and interest. The attorney general can offer a deal, but the tax department doesn't have to honor it."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the March 15 issue of Sales & Use Tax Monitor about how company tax pros should not be surprised when an auditor turns to an alternative methodology or when a tax appeals panel upholds that back-up approach. "It's been going on pretty regularly over the last 15 years," said Mr. Rosen.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the February 29 issue of Sales & Use Tax Monitor about how the New York Taxation Division has undertaken some creative approaches to calculate a business' taxable sales, when that taxpayer lacks the proper records to satisfy the auditor. "The state can pick any method that they want to on an audit, when there are insufficient records," pointed out Mr. Rosen. "The taxpayer usually can't prove the method was unreasonable if the records are not there."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the February 5 issue of State Income Tax Monitor about how the U.S. Supreme Court won't hear arguments from two affiliated limousine companies and their owner who say New York authorities persecuted them with a sales and use tax assessment. "You need to be able to prove that there was malicious intent," said Mr. Rosen. "There are people in the department of taxation that do tend to probably act in that way, but it's difficult to prove," he added.
Arthur R. Rosen, State & Local Tax, Tax
2007
Art Rosen was quoted in the August 15 edition of Sales & Use Tax Monitor on how New York state's fraud penalty against a corporation for uncollected sales tax was voided, and then the penalty against the individual responsible officer was. "This one's pretty clear. It says if there's a conciliation notice saying the company is not guilty of fraud, then the fraud charges are removed vis-à-vis the responsible person," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Peter Faber was quoted on May 22 on The Wall Street Journal Online about the challenge by a Kentucky couple to a Kentucky state law that exempts interest on bonds issued within Kentucky while taxing interest on most non-Kentucky municipal bonds. Most states that have a state income tax, such as New York and California, have similar laws. "This is an issue of great national importance that involves many investors in state and local bonds," said Mr. Faber.
Peter L. Faber, State & Local Tax, Tax, Tax Controversy, Tax Exempt Bonds
Fred Ackerson was mentioned in the May 14 edition of the Crain’s Chicago Business about recently joining McDermott’s Tax Department in Chicago.
Fred M. Ackerson, State & Local Tax, Tax
Fred Ackerson was mentioned in the May 8 edition of the Daily Deal/The Deal and the May 10 edition of the Chicago Daily Law Bulletin about recently joining McDermott’s Tax Department in Chicago.
Fred M. Ackerson, State & Local Tax, Tax
Art Rosen was quoted in the April 30 issue of Sales & Use Tax Monitor about the tangible version of a product is exempt from sales tax while the electronic version is taxable. "I read that opinion and thought, 'Whoa, you don't see that every day,'" Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax, Tax Controversy
Art Rosen was quoted in the April 15 issue of Sales & Use Tax Monitor about how the Taxation and Finance Department ruled that an out-of-state seller of service contracts established sufficient nexus in New York to have to register and collect sales and use tax. "New York, like California, has been a physical presence state when it comes to determining nexus," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Peter Faber was quoted in the March 27 edition of The New York Times in an article about the New York governor's office closing "loopholes" that corporations use to reduce their tax bills in order to balance the state budget, although many business leaders say there are no loopholes to close.
Peter L. Faber, State & Local Tax, Tax
Art Rosen was quoted in the February 15 and February 28 issues of State Income Tax Monitor on the $1 billion in business and personal tax cuts including in New York mayor Michael Bloomberg's preliminary city budget. "Even with the increase, the per-partner deduction is out of touch with reality," Mr. Rosen said. "There should be something related to compensation levels rather than just a small flat amount for the deduction."
Arthur R. Rosen, State & Local Tax, Tax
Keith Staats was quoted in the February 15 issue of Sales & Use Tax Monitor in an article concerning the compliance and legal difficulties of the tax holiday proposals of Chicago mayoral candidate Dorothy Brown. The holidays would apply only to certain areas and certain businesses resulting in complicated enforcement and questionable constitutionality. "You can't implement a sales tax holiday without enabling legislation," Mr. Staats said.
Art Rosen was quoted in the January 31 issue of the Sales & Use Tax Monitor and in the February issue of Tax Incentives Alert in an article about sales tax exemptions on property capital improvements in New York. “New York has always been very mechanical in the way they apply the capital improvement part of the sales tax law. They look at the letter of the law rather than the merits of an individual case,” Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was mentioned in the February issue of the Metropolitan Corporate Counsel as one of the overall planning chairs for the upcoming New York State Bar Association’s Eleventh Annual New York State and City Tax Institute.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the February issue of Managing Accounts Payable for a speech he recently gave at NYU, where he stated that the atmosphere of the new Congress was more friendly to the passage of the Streamlined Sales Tax.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the January 15 issue of Sales & Use Tax Monitor citing the MTC 95-1 bulletin as the interpretation used by New York tax authorities to apply sales tax to vendors using in-state, third-party repair services for service contracts purchased online.
Arthur R. Rosen, State & Local Tax, Tax
2006
Art Rosen was quoted in the November 30 issue of State Income Tax Monitor on West Virginia Supreme Court of Appeals' decision to uphold economic nexus on MBNA America Bank's marketing. According to Mr. Rosen, the decision underscores "the definite need for federal legislation like H.R. 1956," which would order a physical presence nexus standard for state business activity taxes.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the November 15 issue of Sales & Use Tax Monitor in an article on the appointment of Barbara G. Billet as acting commissioner of the New York Taxation and Finance Department following the resignation last month of Andrew S. Eristoff. "One of the things I've learned in many years in the business is that the attitude of the person at the top of the agency will trickle down to the line people eventually," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the October 15 issues of State Income Tax Monitor and Sales & Use Tax Monitor in an article about a company official who tried to avoid liability for unpaid sales tax. In reference to the official's claim that the signatures on tax returns weren't his, Mr. Rosen said, "I'm surprised the state didn't try to get this guy for lying to them on top of what he owed. They must be getting soft or something."
Arthur R. Rosen, State & Local Tax, Tax
Peter Faber was mentioned in the September 5 issue of Tax Analysts about State Tax Notes publishing its 15th anniversary issue. Mr. Faber's essay on changes in tax practice over the last 15 years will appear in the issue.
Peter L. Faber, State & Local Tax, Tax
Art Rosen was quoted in the August 31 issue of Sales & Use Tax Monitor in an article detailing the pitfalls companies face in distributing promotional materials in different tax jurisdictions, where local laws may or may not levy sales or use taxes on the materials. Mr. Rosen noted that such a company would need to keep detailed records in case of an audit, and considering the difficulty involved they would have to make a decision. "Either you do want to do it on your own or make an arrangement with the company that's delivering the materials for you to keep track of where you are sending the items for tax purposes," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the June 30 issue of State Income Tax Monitor about rolling stock having a decent chance once they get beyond administrative appeals and into court. "I'd say it's about 50-50" odds, he said
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the May 31 issue of State Income Tax Monitor and the June 15 issue of Sales & Use Tax Monitor in an article about RICO claims. "the bottom line is that it appears that RICO, proposed as a tool to force a company to collect tax by another taxpayer, is not allowable," he said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the May 15 issue of Sales & Use Tax Monitor in an article about the Streamlined Sales Tax Project. "It seems to me that the problems with enacting the laws in states like Tennessee, Ohio, Texas and Utah regarding origin-based sourcing will [effectively] keep them out of the process for the foreseeable future," he said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the January 15 issue of Sales & Use Tax Monitor in an article about how a sales tax overpayment can be credited against a previous underpayment-provided the company meets specific conditions. "If you send in a check and you tell the state how to apply it, they have to apply it that way," Mr. Rosen said. "If you don’t specify how the payment is applied, the state can do what it wants with it," he added.
Arthur R. Rosen, State & Local Tax, Tax
2005
Art Rosen was quoted in the October 31 issue of State Income Tax Monitor in an article about the legal fees and value of precedent involved when making a decision on taking a tax case to court. "Insofar as any court case can be considered 'typical,' about $100,000 in outside legal fees is a decent ballpark figure for a tax dispute of $1 million, " said Mr. Rosen.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the September 15 issue of State Income Tax Monitor in an article about MCI will need to pay $315 million-plus in back state income taxes to 14 states and the District of Columbia when it operated as WorldCom. Many more states are expected to come after MCI. "I have never seen the 'management foresight' concept put forth before by a major taxpayer. I think you can expect states to be hyper-vigilant about this in the future," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Peter Faber was mentioned in the July 17 issue of The Wall Street Journal - Sunday in a tax Q&A column in regard to filing of an appeal to the U.S. Supreme Court on behalf of Tennessee man, a Firm client, who had to pay New York taxes on all of his income even though he spent only about 25 percent of his working days in New York. Mr.Faber mentioned he knows of other similar cases.
Peter L. Faber, State & Local Tax, Tax
Peter Faber was quoted in the July 13 issue of The Wall Street Journal in a business brief about his filing of an appeal to the U.S. Supreme Court from the New York's Court of Appeals' ruling that a Tennessee man, a Firm client, had to pay New York taxes on all of his income from a New York employer – even though he spent only about 25 percent of his working days in New York.
Peter L. Faber, State & Local Tax, Tax
Peter Faber was mentioned in the April 6 issue of the Wall Street Journal. The article discusses a recent ruling by New York's Court of Appeals that a computer specialist from Nashville, Tennessee has to pay New York taxes on 100 percent of his income from a New York employer – even though he spent only about 25 percent of his time in New York and the other 75 percent in Tennessee. The decision will be appealed to the U.S. Supreme Court. Mr. Faber commented, "If this decision stands up, there will be virtually no limit on the ability of states to tax nonresident telecommuters."
Peter L. Faber, State & Local Tax, Tax
Thomas Donohoe was quoted in the March 21 issue of the Chicago Sun-Times, noted as the attorney representing the Illinois Chamber of Commerce in its lawsuit against the state of Illinois challenging the Industrial Commission Operation Fund Surcharge.
Thomas H. Donohoe, State & Local Tax, Tax
Art Rosen was quoted in the February 7 issue of The Bond Buyer about the reintroduction of the business-activity tax bill. "There simply is not basis for any contention" that the bill would cause significant state revenue losses," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Peter Faber was quoted in the January 3 issue of the New York Law Journal in an article regarding a case that bears critical importance to the future of telecommuting in the state of New York. Even though Thomas Huckaby of Tennessee spends little time in New York and virtually does no work in New York, the state of New York claims it can tax 100 percent of his income since his employer is based in Queens. "Mr. Huckaby's case presents the plight of a nonresident telecommuter. Telecommuting did not exist when the regulation at issue first appeared on the scene, but it is widespread now," Mr. Faber argued in his brief.
Peter L. Faber, State & Local Tax, Tax
2004
Peter Faber was quoted in the New York Sun on August 4 regarding the proposal that would require states to tax the income of nonresidents based on the physical location of the employee during work hours, not the address of the employer. Mr. Faber explained that "as applied to telecommuters the current rules are just awful. Federal legislation is what happens when state tax departments adopt positions that people regard as unfair."
Peter L. Faber, State & Local Tax, Tax
Art Rosen was quoted in the Sunday, July 18 issue of the Los Angeles Times in regard to taxing out-of-state athletes as a result of the so called "jock taxes" on nonresidents. Mr. Rosen commented that virtually every state with an income tax system has the right to tax the income of visiting out-of-towners, but that nonresident tax laws are often vague and it is tough to figure out when a diligent taxpayer should be filing a return in another state. While there does not appear to be hope for the hapless athlete, Mr. Rosen commented that federal legislation (HR 3220) would address the problem of how much time in a state is sufficient to subject a business to tax in that state. HR 3220 would implement a 21-day rule under which a business could only be subjected to tax in a state if it had tangible property or employees in the state for more than 21 days.
Arthur R. Rosen, State & Local Tax, Tax
Peter Faber was quoted in the May 3 edition of the New York Law Journal in an article regarding a ruling that a Tennessee resident, who telecommutes to his New York employer must pay income tax on 100 percent of his earnings even though he only spends a quarter of his time there. Under the convenience of the employer test, out-of-state employees of in-state employers are allowed to allocate income between their home and working states, but only if they work out of New York due to the employer's necessity. Mr. Faber argued that the test contradicts Tax Law §631, which allows New York to tax nonresidents only on income resulting from work "carried on" in this state.
Peter L. Faber, State & Local Tax, Tax
Peter Faber was quoted in the April 30 weekend edition of The New York Sun in an article regarding a lawsuit challenging New York's income tax on telecommuters from other states. McDermott is representing a computer programmer, Thomas Huckaby, from Tennessee who lost in a lower appellate court and plans to take his case to the Court of Appeals. In November, the Court of Appeals rejected a similar case from a Manhattan law school professor, who worked part-time from his home in Connecticut. Mr. Faber said the case failed because the court focused on the fact that professor's real job was in New York. "...In Huckaby's case, in contrast, his real job is working in Tennessee...He's a computer programmer, so he could do that anywhere," commented Mr. Faber.
Peter L. Faber, State & Local Tax, Tax
2002
Arthur Rosen was mentioned in the August 9 issue of Kiplinger Business Forecasts regarding the proposed Streamlined Sales Tax Project, which goal is to bring to order over 7500 state and local sales taxes. Mr. Rosen commented that the project could justify applying other taxes to businesses headquartered outside their respective state borders.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the July 18 issue of The New York Times regarding a bill, which recently passed that would let companies avoid state and local taxes. Those companies supporting the bill, currently represented by a McDermott Will & Emery team led by Mr. Rosen, say that with this bill the obligation to pay state and local taxes will merely be shifted to benefit those places where companies use state and local services. Mr. Rosen commented that, "There need be not one penny less of state tax revenue collected."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in, "Setback in State Sales-Tax Plan Hurts Push for Levies on Web Sales," published in the July 15 issue of The Wall Street Journal. The effort to simplify state sales tax, which was to be a precursor to convincing Congress to allow states to tax internet transactions, hit a setback when retailers and state officials could not come to agreement on a uniform tax code. Mr. Rosen commented that whatever they do come up with needs to be a "harmonization among the states." Currently, Mr. Rosen said, the states are considering a "subjective, mushy standard" that won't win the backing of the business community.
Arthur R. Rosen, e-Business, State & Local Tax, Tax
Art Rosen was quoted in the ABA Journal eReport on June 21 in regard to New Jersey's recent tax levy that demanded tax payments from more than 11,000 lawyers on any income from working in New Jersey pro hac vice during the past six years. Mr. Rosen said the levy raises quite a few questions, including the difference between making a physical appearance or simply signing paperwork filed in the state, among others.
Arthur R. Rosen, State & Local Tax, Tax
Arthur Rosen was interviewed by emarketer.com regarding HR 2526, a proposed bill that states a business must have substantial physical presence in a state, or nexus, in order for the state to impose business activity taxes.
Arthur R. Rosen, State & Local Tax, Tax, Tax - e-Business
2001
Peter Faber was quoted in the April 2 issue of Business Week in regard to New York state's practice of taxing non-residents on all of their income, including income earned outside the state. Mr. Faber argued that the practice is unfair citing a case he is working on where he has petitioned the state commissioner of taxation and finance to reconsider the issue.
