The one-time IRC §965 income inclusion for untaxed foreign earnings generated by a controlled foreign corporation (âCFCâ) is not eligible for deduction from Nebraska taxable income as a âdeemed dividendâ according to a recent Nebraska Supreme Court decision, Precision Castparts Corp. v Nebraska Dept. of Revenue, 317 Neb. 481 (2024). Precision Castparts Corp. (âTaxpayerâ), an aerospace component manufacturer, sought a declaratory order from the Nebraska Department of Revenue (âDepartmentâ) authorizing the company to amend its…
The Massachusetts Supreme Judicial Court held that an online retailer was not required to collect and remit the stateâs sales and use tax prior to the United States Supreme Courtâs 2018 decision in South Dakota v. Wayfair because its use of apps, cookies, and content delivery networks (CDNs) did not create âphysical presenceâ nexus, as required prior to the Wayfair decision, and the Wayfair âeconomic nexusâ standard could not apply retroactively. U.S. Auto Parts Network,…
On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the stateâs Digital Advertising Tax (âDigital Ad Taxâ) as violating the Internet Tax Freedom Act (âITFAâ) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.).  The judge issued her ruling from the…
A new lawsuit filed by Wayfair, LLC in Jefferson County Court (Colorado) seeks to address a question left open by the U.S. Supreme Courtâs landmark 2018 Wayfair decision that permits states to impose a sales or use tax collection obligation based on an economic nexus threshold: Does this decision apply to locally-administered sales or use taxes? While many localities have asserted that the same economic nexus standards should apply at the state and local levels,…