KPMG reports: Alabama, Arkansas, California

KPMG reports: Alabama, Arkansas, California

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.


Related content

  • Alabama: The state’s tax tribunal held that amounts paid by a taxpayer to a related company for services performed by workers employed by the related company were not includable in the taxpayer’s own payroll factor. In reaching this conclusion, the tribunal declined to follow prior administrative law judge (ALJ) rulings that amounts paid for services of workers that were not employees of the taxpayer were nevertheless included in the taxpayer’s payroll factors. The tribunal rejected the Department of Revenue’s position that it was required to follow the ALJ rulings from years before the tribunal came into existence. Read a June 2020 report

  • Arkansas: The Department of Finance and Administration determined that although commissions received from restaurants by a food delivery service provider were not taxable, the provider was required to collect and remit tax on sales of food ordered through its online platform because it was considered a marketplace facilitator under Arkansas law. Read a June 2020 report

  • California: The Office of Tax Appeals released what appear to be conflicting decisions in two cases involving partnerships seeking relief from per-partner late-filing penalties. In a non-precedential decision, it was determined that California had conformed to the relief available under federal Rev. Proc. 84-35 and abated the penalty for both years. In the second decision, which was precedential, it was determined that California does not conform to the relief available in Rev. Proc. 84-35. Read a June 2020 report

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal