2018 ABA/IPT Advanced State Income, Sales/Use & Property Tax Seminars
Partner Alysse McLoughlin spoke on “The Kitchen Sink: Unconventional Arguments in Defense of Assertions of Income Tax” at the 2018 ABA/IPT Advanced State Income, Sales/Use & Property Tax Seminars hosted in New Orleans on March 19-23, 2018.
More and more, taxpayers are facing states’ aggressive assertion of income tax, particularly as a result of adoption and application of economic nexus standards. Taxpayers face the need to defend against these new aggressions, but arguments that states’ economic nexus standards are unconstitutional have not been prevailing. Taxpayers need to be creative. This panel will not address economic nexus standards, but will instead discuss alternative means of disputing application of tax. The panel focused its attention, for example, to states’ doing business statutes as a defense to imposition of tax and addressed how treaties may be used as a weapon, and looked at how P.L. 86-272, and state analogies to 86-272, apply in the context of economic nexus. More broadly, they encouraged attendees to creatively consider what other arguments should be made (the kitchen sink) when defending against states’ new assertions of tax.