State & Local Taxes
Current Corporate Income Tax Developments (Part II)
Authors’ note: This article is written in general terms and is not intended to be a substitute for specific advice regarding tax, legal, accounting, investment planning, or other matters. While all reasonable care has been taken in the preparation of this outline, Deloitte Tax LLP accepts no responsibility for any errors it may contain, whether caused by negligence or otherwise, or for any losses, however caused, sustained by any person or entity that relies on it.
1 AZ DOR, Corp. Tax Rul. CTR 07-1 (4/3/07).
2 General Motors Corp. v. California Franchise Tax Bd., B165665, 2007 Cal. App. Unpub. LEXIS 669 (Cal. Ct. App. 1/29/07).
3 Microsoft Corp. v. California Franchise Tax Bd., 39 Cal4th 750 (Cal. 2006).
4 Square D Co. v. California Franchise Tax Bd.,CGC 05-442465 (Cal. Super. Ct., San Francisco Co. 4/11/07).
5 The Limited Stores, Inc. v. California Franchise Tax Bd.,152 CalApp4th 1491 (Cal. Ct. App. 6/8/07).
6 General Mills, Inc. v. California Franchise Tax Bd.,No. 439929(Cal. Super. Ct., San Francisco Co. 9/26/07).
7 California Franchise Tax Board, Tax News (December 2007).
8 General Motors Corp. v. California Franchise Tax Bd.,39 Cal4th 773 (Cal. 2006).
9 Microsoft Corp. v. California Franchise Tax Bd.,39 Cal4th 750 (Cal. 2006).
10 KS DOR Final Written Determination, WFD-P-2007-1 (1/8/07).
11 Appeal of Alaska Airlines, Inc., Cal. SBE Letter Decision No. 342596 (3/1/07).
12 Appeal of Finnigan Corp., 88-SBE-022 (8/25/88). The Finnigan rule says that in computing the numerator of the sales factor, P.L. 86-272 must be applied on a unitary-business-group basis.
13 CA FTB Chief Counsel Rul. No. 2007-2 (6/4/07).
14 ID State Tax Comm’n Rulings Nos. 18719 and 19549 (4/20/07).
15 Welch Packaging Group Inc. v. Department, Cause No. 49T10-0503-TA-21 (Ind. T.C. 11/13/07).
16 Fluor Enters., Inc. v. Department, 730 NW2d 722 (Mich. 2007).
17 In re Disney Enters., Inc., 830 NYS2d 614 (N.Y. App. Div. 2007).
18 U.S. Bancorp v. Department, 2007 Ore. Tax LEXIS 41 (Or. T.C. 3/13/07).
19 FedEx Ground Package Sys., Inc. v. Commonwealth, 922 A2d 978 (Pa. Commw. Ct. 2007).
20 Rules 34 TX Admin. Code §3.549(e)(5), (e)(38) and 34 TX Admin. Code §3.557(e)(5), (e)(33)(D).
21 Comptroller v. Home Interiors & Gifts, Inc., motion for rehearing denied, Dkt. No. 05-0939 (Tex. 6/1/07); Home Interiors & Gifts, Inc. v. Comptroller,175 SW3d 856 (Tex. Ct. App. 2005).
22 RR Donnelley and Sons Co. v. Department, No. TX 2005-050288 (Ariz. T.C. 6/29/07).
23 IN DOR, Ltr. of Finding No. 05-0500 (11/29/06).
24 IN DOR, Ltr. of Finding No. 05-0519 (11/16/06).
25 In re The Talbots, Inc., DTA No. 820168 (N.Y. Div. of Tax App., Admin. Law Div. 3/22/07).
26 In re Hallmark Mktg. Corp.,DTA No. 819956(N.Y. Tax App. Trib. 7/19/07).
27 In re Premier Nat’l Bancorp, Inc., DTA No. 819746 (N.Y. Tax App. Trib. 8/2/07).
28 Wal-Mart East Stores, Inc. v. Hinton,06-CVS-3928 (N.C. Super. Ct., 12/31/07).
29 VA Pub. Doc. No. 07-174 (11/14/07).
30 AL DOR, Rev. Rul. No. 07-001 (10/15/07).
31 CA FTB Publication 3556, Tax Information for LLCs (rev. March 2007).
32 CA FTB Publication 689, Don’t Gamble with Your Taxes: Incorporating in Nevada (rev. February 2007).
33 Appeal of Eli Lilly & Co., CA SBE Summary Decision No. 330522 (2/1/07).
34 Bender v. District of Columbia, 906 A2d 277 (D.C. 2006), cert. denied, S. Ct. Dkt. 06-719 (U.S. 2/20/07).
35 IN DOR, Supplemental Ltr. of Finding No. 02-0518 (11/1/06).
36 IL DOR, Publication 129, Pass-Through Entity Income (January 2007).
37 Sasol N. Am. v. Commissioner,Dkt. No. C273084 (Mass. App. Tax Bd. 9/5/07).
38 MO DOR, Ltr. Ruling No. LR 4110 (10/1/07).
39 NJ Admin. Code §§18:7–20.1 and 20.2 (2007).
40 NYS Dep’t of Tax’n and Fin., TSB-M-07(2)C, (1)I [Amendments to the Business Corporation Franchise Tax Regulations Relating to the Taxation of Corporate Partners] (1/17/07).
41 NYS Dep’t of Tax’n and Fin., Important Notice N-07-23 (November 2007).
42 In re National Bulk Carriers, Inc.,TAT (E) 04-33 (GC) (N.Y.C. Tax App. Trib. 11/30/07).
43 Hilloak Realty Co. v. Commissioner, No. E2006-00213-COA-R3-CV (Tenn. Ct. App. 3/29/07).
44 TX Comptroller, Tax Policy News (December 2007).
45 VA Pub. Doc. No. 07-150 (9/21/07).
46 WI DOR, News: New Requirements for Composite Returns (2/20/07).
47 Ryan & Co. AR, Inc. v. Weiss,No. 06-1266 (Ark. 9/27/07).
48 CA FTB Public Service Bulletin, Protective Claims—Amnesty Penalty (5/22/07).
49 GTE v. Revenue Cabinet,889 SW2d 788 (Ky. 1994).
50 Comptroller v. Colonial Farm Credit, ACA,918 A2d 514 (Md. Ct. Spec. App. 2007).
51 Tyson Foods, Inc. v. Department, No. 272929 (Mich. Ct. App. 9/20/07).
52 OK Office of the Attorney General, Opinion No. 07-25 (8/28/07).
53 2006 Act 119 (SB 993).
54 SC DOR, Rev. Proc. No. 07-1 (12/14/07).
55 www.window.state.tx.us/taxinfo/taxprocess/.
56 TX Comptroller, Tax Policy News (August 2007).
57 TX Comptroller, Tax Policy News (September 2007).
58 NYS Dep’t of Tax’n and Fin., TSB-M-07(1)C [Additional Supplement to the Disclosure of Certain Transactions and Related Information Regarding Tax Shelters] (1/11/07).
59 NYS Dep’t of Tax’n and Fin., TSB-M-07(4)C and (4)I [Amendments to the Procedural Regulations Relating to New York Reportable Transactions] (3/8/07).
60 Such disclosure was contingent on the DOR adopting enabling rules, which it adopted under OAR 150-314.308.
61 Wright, “Michigan Business Tax: Overview and Issues to Consider,” 38 The Tax Adviser (December 2007): 750.
62 In re Bausch & Lomb, Inc., DTA No. 819883 (N.Y. Tax App. Trib. 12/20/07).