- The U.S. Treasury Department along with other government agencies is seeking information regarding grandfathered group health plans and grandfathered group health insurance coverage.
- Final regulations under Code sections 6221 through 6241 were issued for purposes of implementing the centralized partnership audit regime.
- The U.S. Supreme Court unanimously held that West Virginia law that taxes the federal pension benefits of a retired U.S. Marshals Service employee—whereas the pension benefits of certain former state and local law enforcement employees were exempt from state taxation—violates the intergovernmental tax immunity doctrine under 4 U.S.C. section 111.
- A KPMG report provides impressions on a hearing (held 14 February 2019) on the first round of proposed regulations for implementing the opportunity zones provisions under the tax law enacted in December 2017.
- More states responded to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. (state sales tax implications of remote or online sales) with legislation or with administrative guidance.
- The Florida Department of Revenue issued a report addressing the state tax implications for corporate taxpayers of the U.S. federal law known as the “Tax Cuts and Jobs Act.” Florida does not have an individual (personal) income tax, so the report focuses entirely on corporate tax changes.
- An Illinois tax tribunal found that a taxpayer that operated a golf club that in turn was owned by an Illinois municipality could qualify for the state’s “governmental body” exemption on purchases that the taxpayer made to operate the club.
- An Ohio appellate court affirmed a lower court decision that receipts of the taxpayer (a Georgia-based wholesaler of lawn and garden products) were “sitused” to Ohio when the goods were picked up in Georgia and shipped to addresses in Ohio.
- The Virginia Supreme Court rejected the taxpayer’s argument that application of Virginia’s income-producing activity test to source its service receipts was unconstitutional. Under Virginia’s three-factor double weighted apportionment formula, nearly all of the taxpayer’s service revenues were sourced to Virginia where its employees, property, and computer servers were located, but 95% of the taxpayer’s sales were to customers outside Virginia.
Read TaxNewsFlash-United States