The Massachusetts Appellate Tax Board (“ATB”) has—on its own motion—reconsidered and reversed a 2017 decision that denied refund claims for sales tax paid on software downloaded onto servers located in Massachusetts, but used outside of Massachusetts. Taxpayers that paid Massachusetts sales tax on software used outside the Commonwealth may have a refund opportunity and should … Continue Reading
A case recently resolved at the Appellate Tax Board serves as a reminder that Massachusetts’ auditors continue to aggressively challenge the following intercompany transactions: Interest deductions for interest paid to foreign affiliates that are not members of the unitary combined group—even if the foreign affiliate is domiciled in a country with a comprehensive tax treaty … Continue Reading
In D & H Distributing Company v. Commissioner, the Supreme Judicial Court (“SJC”) considered whether the taxpayer, a distributor located outside of Massachusetts, bore the burden of proving that a drop shipment to a Massachusetts customer was a “sale at retail” upon which the distributor had an obligation to collect Massachusetts sales or use tax. The transactions … Continue Reading
The Massachusetts Appellate Tax Board (“ATB”) has issued an order denying three sales tax refund claims involving multiple points of use (“MPU”) sourcing. In each case, vendors had filed refund claims arguing that their customers were eligible for refunds of sales tax charged on the full sales price of software delivered to Massachusetts to the … Continue Reading
On Friday, August 12, the Massachusetts Supreme Judicial Court (the “SJC”) reaffirmed its decision in First Marblehead—that a financial institution that is commercially domiciled in Massachusetts can be required to source 100% of its loans to Massachusetts for purposes of computing its property factor numerator. See The First Marblehead Corp. v. Commissioner, Supreme Judicial Court … Continue Reading
Deflategate and the NFL’s suspension of quarterback Tom Brady for 4 games has been the NFL’s biggest news story of the past two years. On Monday, the United States Court of Appeals for the Second Circuit ruled in favor of the NFL, overturning a lower judge decision to vacate Patriots quarterback Tom Brady’s four-game Deflategate … Continue Reading
With oral argument and briefing complete, the Massachusetts Department of Revenue’s authority to increase the net worth component of a taxpayer’s corporate excise using its “true debt” analysis is under review by the Appeals Court in National Grid Holdings, Inc. et. al. v. Commissioner. The appeal should be of particular interest to taxpayers because, in … Continue Reading
On January 6, the Massachusetts Supreme Judicial Court (“SJC”) issued its decision in Regency Transportation v. Commonwealth, finding against the taxpayer. The taxpayer in Regency was a trucking company that purchased vehicles in states that did not charge sales tax on the purchases. Regency used the vehicles more than half the time outside of Massachusetts … Continue Reading
Today, the Massachusetts Supreme Judicial Court (“SJC”) heard oral argument in Regency Transportation v. Commonwealth, a case in which the taxpayer is challenging the Department of Revenue’s assessment of use tax on the full purchase price of vehicles that it purchased outside of Massachusetts and used more than half the time outside of Massachusetts as … Continue Reading
On October 13, the United States Supreme Court granted a request for review in the case of First Marblehead Corporation v. Massachusetts Commissioner of Revenue, and summarily vacated the decision issued January 28, 2015, by the Supreme Judicial Court of Massachusetts. The case has been remanded to the Supreme Judicial Court for further consideration in … Continue Reading
The Massachusetts Supreme Judicial Court has agreed to accept jurisdiction and hear the taxpayer’s appeal in Regency Transportation, Inc. v. Commissioner, a case in which the Appellate Tax Board, (“ATB”) upheld the Department of Revenue’s assessment of use tax on trucks which, although stored and serviced in Massachusetts, were purchased outside of Massachusetts and used for transportation … Continue Reading
In a case to watch for interstate trucking companies, Regency Transportation, Inc. is appealing a use tax assessment upheld by the Massachusetts Appellate Tax Board (“ATB”). Regency had challenged the Department of Revenue’s assessment of use tax on trucks which, although stored and serviced in Massachusetts, were purchased outside of Massachusetts and used for transportation … Continue Reading
On October 31, 2014, the Massachusetts Taxpayers Foundation put on their annual tax conference with panels comprised of a mix of tax practitioners and government officials covering the latest issues in Massachusetts taxes. As always, the conference provided great content and an opportunity for taxpayers, practitioners and government officials to get up-to-speed on the latest … Continue Reading
An active bench at the Supreme Judicial Court heard oral argument in First Marblehead Corp. & Gate Holdings, Inc. v. Commissioner, Docket No. 2013-P-0935 this morning; posing pointed questions to both parties. At issue is whether Gate Holdings (“Gate”) is entitled to look to the activities of third-party loan services for purposes of sourcing its … Continue Reading
The ATB recently received a petition challenging the imposition of sales tax on the early termination fee charged by a mobile telecommunications The Department asserted at audit that the early termination fees were charges for telecommunications services and, thus, subject to Massachusetts sales tax. The taxpayer is now challenging that assessment. Read more about the … Continue Reading
As we previously reported, last year the Appellate Tax Board issued a decision expanding the application of the sham transaction doctrine to transactions intended to transfer Massachusetts payroll and property to a corporation that otherwise lacked nexus with Massachusetts. The case, Allied Domecq Spirits and Wines USA, Inc. v. Commissioner, Mass. App. Ct. Dckt No. 2013-P-0984, … Continue Reading
