On March 4, 2022, a federal judge ruled that the federal Tax Injunction Act (âTIAâ) bars a challenge to Marylandâs Digital Advertising Gross Revenues Tax (âDigital Ad Taxâ) from proceeding in federal district court, but does not bar the plaintiffs from challenging Marylandâs prohibition on passing the tax to a customer âby means of a separate fee, surcharge, or line-itemâ (the âPass-Through Prohibitionâ). Chamber of Commerce of the United States of America v. Franchot, No.…
Ever since the U.S. Supreme Court overturned the physical presence nexus requirement for state sales and use taxes in South Dakota v. Wayfair, 138 S. Ct. 2080 (2018), taxpayers and practitioners have questioned the extent to which the Courtâs holding applies to locally administered sales and use taxes. This question is often rooted in the Courtâs statement in Wayfair that âStates may not impose undue burdens on interstate commerceâ and its reference to Pike v.…
In Siemens USA Holdings Inc. v. Geisenberger, No. 20-2991 (3d Cir. 2021), the Third Circuit found that the District Court erred (1) in holding that Siemensâ preemption claim was unripe, and (2) in denying Siemensâ motion for a preliminary injunction. Both the question of ripeness and the injunction request related to whether the escheat priority rules preempted certain audit procedures, as opposed to the validity of an assessment. Specifically, Siemens brought the lawsuit claiming, among…
Beginning November 1, 2021, the Louisiana Department of Revenue (âDepartmentâ) will be offering taxpayers the opportunity to participate in a voluntary transfer pricing âmanaged auditâ program (the âProgramâ). Pursuant to a recently released Department information bulletin, the purpose of the Program is to: Create an efficient and expedited resolution for corporate tax audits when transfer pricing issues exist; andProvide certainty and uniformity to taxpayers on the resolution of transfer pricing issues for open audit periods…