The BR State + Local Tax Spotlight: April 2022
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Note from the Editors
Welcome to the April 2022 edition of The BR State + Local Tax Spotlight. We understand the unique demands of staying on top of important State + Local Tax developments, which happen frequently and across numerous jurisdictions. Staying updated on significant legislative developments and judicial decisions helps tax departments function more efficiently and improves strategy and planning. That is where The BR State + Local Tax Spotlight can help. In each edition, we will highlight for you important State + Local Tax developments that could impact your business. In this issue, we will be covering:
- An Oklahoma Supreme Court decision holding that the limitations period for a company’s refund claim began running from its extended return deadline;
- A Texas Supreme Court decision holding that, for purposes of sales factor sourcing, a company’s services are performed where its personnel or equipment is physically located; and
- A California intermediate appellate court decision ordering that $1.7 million in late filing and payment penalties be waived as the company relied upon an employee’s misrepresentations that tax returns were filed and payment was remitted to the City of San Francisco.
We invite you to share The BR State + Local Tax Spotlight with your colleagues and visit Blank Rome’s State + Local Tax webpage for more information about our team. Click here to add State + Local Tax to your subscription preferences.
Eugene J. Gibilaro and Anna Uger
Court Holds Actual Extended Filing Date is Key in Determining Timeliness of Refund Claim
By Craig B. Fields
The Oklahoma Supreme Court held that a corporation’s refund claim was timely because it was filed within three years from the filing of its original return on extension. In doing so, the Court rejected the Oklahoma Tax Commission’s (“Tax Commission”) assertion that the claim had to be filed within three years of the return’s due date without extension. Read More»
A Common-Sense Approach to Sales Factor Sourcing
By Nicole L. Johnson
For years, departments of revenue have interpreted their states’ sourcing statutes to use a market-state approach. Those attempts have ranged from reasonable interpretations to outlandish ones. Recently, the Texas Supreme Court beat back such an attempt by the Comptroller. Read More»
California Appellate Court Orders Penalty Waiver
By Eugene J. Gibilaro
On March 30, 2022, a California intermediate appellate court held that penalty waiver of approximately $1.7 million was required for the taxpayers, owners, and operators of San Francisco boutique hotels, inasmuch as the taxpayers established that they “exercised ‘ordinary business care and prudence in the payment of their tax obligations.’” Read More»
WHAT’S SHAKING: BLANK ROME STATE + LOCAL TAX ROUNDUP
Blank Rome’s nationally prominent State + Local Tax attorneys are thought leaders in the community as frequent guest speakers at various local and national conferences throughout the year. Our State + Local Tax attorneys believe it is necessary to educate and inform their clients and contacts about topics that will impact their businesses. We invite you to attend, listen, and learn as our State + Local Tax attorneys interpret and discuss key legal issues companies are facing and how you can put together a plan of action to mitigate risk and advance your business in accordance with state and local tax laws. Read More»