State and Local Tax

By Jordan M. Goodman and Joe Carr, Tax Partner, BDO USA. Please feel free to reach out to the authors with questions.  A new trend in state and local tax reporting in California combines certain income tax and unclaimed property reporting requirements on 2021 and future business income tax returns to enhance compliance. The increased compliance efforts of the California…

Effective January 1, 2022, the California Franchise Tax Board (“FTB”) has the authority under Assembly Bill 466 to share information with the State Controller’s Office (“SCO”) relating to a taxpayer’s compliance with the California’s unclaimed property laws. To gather this information, the FTB has added a few questions to California’s business entity tax returns for tax year 2021, including whether…

As we move into harvest season, we here at Cover Your SaaS (CYS) have cultivated a fresh crop of updates for your enjoyment. Keen observers will note that there has been a somewhat larger gap than usual between newsletters and we admit, it has been a minute. Of course, absence makes the heart grow fonder so we are excited to…

On January 21, 2021, the Chicago Department of Finance (“Department”) issued an anticipated Information Bulletin (“Nexus Bulletin”) providing guidance on nexus and establishing a prospective “safe harbor” for certain taxes, including electronically delivered amusements under the Chicago’s Amusement Tax (“Amusement Tax”) Ordinance and nonpossessory computer leases taxed under the Chicago Personal Property Lease Transaction Tax (“Transaction Tax”) Ordinance.

On November 16, 2020, the City Council for the City of Chicago (“City Council”) amended the Chicago Personal Property Lease Transaction Tax Ordinance (“Ordinance”), eliminating the lower rate of tax on a nonpossessory lease of a computer, which includes “cloud” software products.

With the holidays upon us, it seems like a good time to take a pleasant stroll through the cloud computing and digital product SALT developments you and your clients should be aware of. We returned to the “classic” format for this edition, organizing the stories by jurisdiction, headlining them in summary fashion, and then providing context and snappy analysis. If you have follow-up questions, please let us know.

Welcome to the third edition of Cover Your SaaS. Following a brief mid-summer hiatus from which the authors returned pale as ever, we dive once more into the cloud computing and digital product SALT developments you and your clients should be aware of. This is a bumper edition, so we have organized the updates by general topic rather than solely by jurisdiction.

Welcome to the second edition of Cover Your SaaS, your new favorite(ish) semi-regular publication from HMB Legal Counsel’s State & Local Tax team. Far from accepting a sophomore slump, this edition boldly delves into SALT developments in the digital products sphere, the importance of separately stating charges, and the dangers of straying into taxable telecommunications.

Welcome to the first edition of Cover Your SaaS, a new semi-regular publication from HMB Legal Counsel’s State & Local Tax team. Using the latest in news-scanning technology, i.e., the daily emails that land in our inbox, our goal is to keep you updated on key SALT developments in the digital and cloud computing space.

House Bill 3394, approved by the Governor on August 27, 2019 and effective immediately (Public Act 100-589), amends the Business Corporation Act of 1983 (“BCA”) to add new Section 8.12 and amend Section 14.05.

In a prior post, I explained the basics of the Chicago Personal Property Lease Transaction Tax (“Transaction Tax”), including the applicability of the tax to tangible personal property and software, potentially applicable exemptions and exclusions from the tax, and collection issues. This follow-up post in the Practitioner Series further clarifies the application of the Transaction Tax to “cloud” software products and explores the interplay with the Illinois Retailers’ Occupation Tax (“ROT”).

State taxation of corporate partners in multistate partnerships raises interesting issues. In many circumstances, the corporate partner is subject to multistate taxation and is therefore engaged in the process of allocating and apportioning its income on a multistate basis.

The "Parking Lot Tax" has recently been targeted by the Cook County Department of Revenue. In the past 3-5 years, we have seen a significant uptick in the Department's audit activity, and challenges to Taxpayer positions. Their efforts have primarily focused on the enforcement of its Amusement, Tobacco, and Gasoline and Diesel Taxes. However, more recently, the Department has turned its attention to its Parking Lot Tax.

The Illinois Franchise Tax is a weird tax. It is imposed on the privilege of exercising a franchise in Illinois or, in the case of foreign corporations, for the authority to transact business in the state. It is administered by the Illinois Secretary of State, not the Department of Revenue, and is measured by paid-in capital. Knowing the ins and outs of the Franchise Tax is a must for any corporation doing business in the state.

Like many states, Illinois and a number of Illinois localities impose motor fuel taxes. Although these taxes are each generally similar, they function slightly differently and are administered by different agencies. It is important not only for retailers of motor fuel, but any business that uses motor fuel in the operation of its business to understand the different layers of motor fuel taxes in Illinois.

The Illinois Constitution was adopted on December 15, 1970. The constitution sets forth the taxing powers of home rule units and describes the exclusive power of the General Assembly to raise revenue. Because the constitution creates the framework for how Illinois' taxing system functions, this post will discuss the constitution's general structure and the impact it has on Illinois taxes.

At the close of an audit, in addition to tax and interest, a taxpayer may also be assessed various types of penalties that can be substantial and even surpass the underlying tax liability. However, there are several courses of action for seeking penalty abatement, which can often prove to be a worthy exercise for taxpayers.

Like most states, Illinois statutes and regulations permit taxpayers and the Director of the Department of Revenue to obtain alternative apportionment of Illinois base income. Although case law is relatively scant, alternative apportionment remains an important means of reaching a fair income tax liability in the State. And with the State's amorphous treatment of market based sourcing, alternative apportionment is likely to become an increasingly important tool, particularly in resolving controversies.

Financial organizations in Illinois are required to follow different apportionment rules than general service providers. Prior to December 31, 2017, such businesses were also required to file separate unitary business returns from taxpayers that filed their income tax returns under the standard apportionment rules. Beginning with the tax year ending December 31, 2017, however, financial organizations must be included in the combined return with the entire unitary business group. It is therefore crucial for taxpayers to understand the nuances as to how to calculate the apportionment factor for financial organizations in Illinois.

The Commerce Clause and interstate commerce were thrust into the spotlight last week, as the United States Supreme Court reversed the longstanding physical presence standard for sales tax nexus.

As we have discussed previously, Illinois localities have adopted a variety of unique taxes, such as the Chicago Personal Property Lease Transaction Tax, the Amusement Tax, and dozens more. Illinois localities may also impose a local option tax which is imposed in addition to the state Retailers' Occupation Tax ("ROT"). Illinois localities use a unique sourcing methodology. Whereas sales of tangible personal property to Illinois are subject to a destination-based sourcing method under the Illinois Use Tax Act, the local ROT is an origin-based tax. Exactly where a sale originates, however, has been a source of much debate.

In calculating the Illinois sales factor, Illinois employs both a "throw-back" and "throwout" rule. While many states employ some form of throw-back rule, Illinois' adoption of both a throw-back and throwout rule is unique.

Illinois? treatment of leases is an anomaly when compared to almost all other jurisdictions. While most jurisdictions impose sales tax on the lease receipts collected from the lessee, the user of the equipment, Illinois differs by treating the lessor as the user of the equipment. As such, the lessor is subject to Illinois use tax.

In a previous post, we addressed the basics for calculating Illinois base income. In this post, we will focus on Illinois' general apportionment rules, and in later posts, we will discuss Illinois' combined reporting rules and the specific treatment of insurance companies and financial organizations in more depth.

Now that we have provided a primer on procedural issues at Illinois, Chicago, and Cook County, it's time to jump into the fun stuff! Illinois has a relatively high corporate income tax rate compared to most states. While calculating Illinois base income is generally straightforward, certain aspects are rather complex, particularly with respect to foreign income and dividend income from certain types of investment companies.

A recent national trend in the practice field of state and local tax has been the uptick in local jurisdictions' audit activity. The Cook County Department of Revenue has taken aggressive positions in the interpretation of its tax ordinances which has led to increased litigation in the administrative proceedings before the Cook County Department of Administrative Hearings. This post provides an overview of the Department's audit and ensuing D.O.A.H. processes and will highlight some of the procedural differences compared to other jurisdictions such as Chicago and Illinois.

There's no way around it: Illinois is a complicated state in which to do business. This post is the first in a series that will address how to navigate even the most byzantine aspects of Illinois's tax structure. More specifically, this post will address the unique rules regarding tax audits and appeals throughout each stage in the state.

Three years ago, Illinoisans cheered the changes to the motor vehicle leasing law that were to lead to tax savings for lessees and level the playing field with other state's leasing laws. Now, as the first wave of three-year leases comes to an end, lessors can no longer afford to overlook these changes regarding the post-lease charges.

Today marks the first time in over two years that Illinois will be operating under a budget. This is a result after the House voted to override Governor Rauner?s veto of Senate Bill 9. The House garnered the necessary votes to end the two year stalemate full of political puffery and sparring. Some of the relevant changes that Illinois? taxpayers should be aware of are noted below. All changes are effective July 1, 2017, unless otherwise noted.

Since the South Dakota v. Wayfair ruling, which upheld the state's sales tax law without requiring a physical presence, states and businesses have frequently referenced it in state tax cases. In some litigation, courts have recognized the case as an appropriate precedent, but other courts have been less accepting, particularly in non-sales and use tax matters. Jordan M. Goodman isn’t surprised by this and discusses the Wayfair decision with Law360.

Minnesota may become the third state to adopt the Multistate Tax Commission's new guidance on P.L. 86-272, which outlines what is and what is not an in-state business activity. Many tax practitioners, including HMB’s Jordan M. Goodman, have raised general concerns with the MTC guidance, stating that it is overboard and would diminish P.L. 86-272’s protections without any changes to the federal law.

Join HMB and Crowe LLP on June 22, 2023, for an informative webinar on state updates and emerging trends in unclaimed property. Our experienced speakers will cover the latest trends in unclaimed property compliance, reporting and audit defense, providing practical insights and advice for navigating the complex world of unclaimed property. Don’t miss out on this insightful program!

A coalition is proposing that Congress modernize the Tax Injunction Act (TIA) out of increasing concern that challenges to state taxes involving questions of federal law or the U.S. Constitution are not reviewed by federal courts. But does anyone want more cases in the federal court system? Jordan M. Goodman shares his thoughts on expanding the TIA with Tax Notes here.

After nearly three decades of outstanding service, HMB Legal Counsel announces that Marilyn A. Wethekam is leaving the practice of law and joining the Council on State Taxation (COST) as Of Counsel. Marilyn is a foundational member of HMB’s State and Local Tax (SALT) Group and has played a prominent role in building its success. Since joining the firm in…

Join David Hughes at the Sales Tax Institute’s Advanced Sales & Use Tax Workshop from April 19-21! David will lead deep-dive sessions focused on trending sales and use tax topics. He will also provide an industry update for professional services, discussing the latest legislative developments and state-specific updates.

State tax partnership law is seeing an increased focus on what happens when a nonresident owner of a partnership or LLC sells his or her ownership interest. David A. Hughes discusses this emerging topic with Law360 and shares his insights on investee apportionment.

Join Jordan M. Goodman and David A. Hughes for their National SALT Update on May 23, 2023 at the AGN North American Regional Meeting.

On May 16, 2023, Jordan M. Goodman and David A. Hughes will provide a National SALT Update for the Nebraska TEI Chapter. Join them as they share recent and noteworthy developments in the SALT world.

On May 5, 2023, David A. Hughes will discuss the limits of the attorney-client privilege rule from a tax perspective at ABA’s May Tax Meeting.

Join Jordan M. Goodman on May 8, 2023, for “Situs: Who Can tax the Transaction” at COST’s Intermediate/Advanced Sales & Use Tax School. Jordan will discuss the importance of situsing sales for sales tax purposes.

Congratulations David Hughes for being elected a Fellow of the American College of Tax Counsel! David was selected for his extraordinary accomplishments and demonstration of a high standard of excellence and ethical performance in tax law.

On March 13, 2023, Jordan will participate in a Mock Audit at the UPPO Conference where he will be playing the role of legal advisor defending a client in the midst of an unclaimed property audit.

The Annual “Big Easy Brawl returns! You don’t want to miss Jordan M. Goodman and Professor Richard D. Pomp going head-to-head as they discuss their perspectives on current SALT issues and policies at the 2023 ABA-IPT Advanced Sales & Use Tax Seminar.

Advanced Tax Seminars next week? Be sure to check out one of David A. Hughes’ presentations!

Marilyn A. Wethekam was recently featured in Tax Notes’ Behind the Board series. In her article, “Paying It Forward,” Marilyn reflects on her SALT career and shares the milestones, challenges and lessons she has experienced.

Jordan M. Goodman provides a nationwide State and Local Tax Update for the Houston TEI Tax School.

The ABA Tax Section’s SALT committee is pleased to welcome three judges from the Indiana, Oregon and Arizona Tax Courts who will share their insights and observations from the courtroom. David and the judges will touch on a variety of topics, including judicial philosophy, analytical frameworks, persuasion and the use of experts in SALT cases.

Illinois has overhauled its unclaimed property statutes and regulations, including the recent law change requiring “negative reporting,” which requires all businesses to file an Illinois unclaimed property return even if there is nothing to report. Join David A. Hughes and BDO's Illinois unclaimed property team for a webinar on February 28th that will emphasize what businesses need to know about the state's unclaimed property compliance, risk mitigation and how to implement unclaimed property best practices.

Samantha K. Breslow and David A. Hughes join the Chicago Tax Club for a webinar focused on recent sales tax developments in cloud computing.

Don’t get caught in a tax trap in this fast-moving SALT landscape. Join Chris and David as they discuss cloud computing, digital products and services, sourcing and compliance insights.

North Carolina’s Supreme Court recently upheld a sales tax assessment on Wisconsin-based Quad Graphics’ sales into the state, finding that U.S. Supreme Court precedent would have required use tax to be levied instead was no longer valid. HMB's Jordan M. Goodman discusses the ruling with Law360 and said, “the state’s justices had all the leverage they needed to reverse the lower court.”

HMB Legal Counsel is pleased to announce three new partners across HMB’s State and Local Tax, Real Estate and Business and Finance Groups, effective January 1, 2023. Samantha K. Breslow has been elevated from Associate and Jamie L. Ross and Lisa A. Rothstein, having previously been Of Counsel at HMB, have joined the firm as Partners.

Don’t miss Jordan M. Goodman at Deloitte’s 19th Annual Multistate Tax Symposium on February 8-10!

HMB’s litigation team, led by David S. Ruskin, and State and Local Tax attorney, David A. Hughes, began their representation of PACCAR in late 2019 when RN Acquisition, LLC filed a complaint alleging breach of contract and seeking a declaratory judgment arising from PACCAR’s alleged failure to pay the Chicago Lease Transaction Tax.

Jordan M. Goodman will provide a joint National SALT Update and Ethics presentation for the Chicago Tax Club's Winter Meeting.

HMB is excited to sponsor and present at NYU School of Professional Studies’ 41st Institute on State and Local Taxation. On December 13th, David A. Hughes will present, “What’s Happening Everywhere Today? Including Local Taxes” at the conference. Using a Today Show style interview format, David, his co-hosts and their guests will provide a rundown of what you need to know about the most important SALT developments affecting taxpayers across the country today, including issues with local taxes.

Remote working legal issues are not new, just exacerbated by COVID-19. During this session, Jordan will address state and local tax issues employers and employees face today.

David A. Hughes presents, “Mitigating Risk,” at the Illinois Manufacturers’ Association’s 9th Annual Tax Conference: Helping You Succeed with Key Tax Strategies.

Jordan M. Goodman presents, "SALT Issues for Remote Workers" and "Pass-through Entity Taxation" at the CPAmerica 2022 Tax Conference.

David A. Hughes presents, “Tax Policy Implications of State and Local Taxes” at the Chicago Tax Club’s Fall Seminar.

Join Jordan M. Goodman and David A. Hughes for the Council on State Taxation’s 53rd Annual Meeting in Orlando, Florida.

David A. Hughes presents, “What’s Happening in the State Tax World of Leasing: Updates, Trends, Audits” at the VERTEX Exchange: Ahead of the Curve Conference in Las Vegas, Nevada.

A Maryland Circuit Court judge recently struck down the state’s tax on digital advertising services. David A. Hughes told Tax Notes, “The judge, to her credit, took a more holistic view and said advertising is advertising, and if Maryland chooses not to tax traditional advertising, then the Internet Tax Freedom Act bars digital advertising.”

Marilyn A. Wethekam’s “Pushing the Scope of Wayfair,” was recently published in Tax Notes State's article, “Post-Wayfair: Burden or Favor.” In her section, she reflects on the Wayfair decision and the impact it has had on the state tax landscape four years later.

Unethical conduct by lawyers of all varieties – private, government, in house, judicial - continues to make headlines. Violations affect not just the offending attorney, but families, colleagues, employers, clients and the legal profession at large.

You won’t want to miss Goodman v. Pomp live at the Paul J. Hartman SALT Forum on October 21st! Join Jordan M. Goodman and Professor Richard D. Pomp for a wide-ranging debate to determine who’s the heavyweight champion of all things SALT.

Don’t miss HMB’s SALT team at the 2022 IPT Sales Tax Symposium! Samantha K. Breslow will be presenting various topics related to current state and local tax trends.

David A. Hughes presents, “Successful Pursuit of Transactional Tax Refunds” at the Association of Consumer Vehicle Lessors (ACVL) Annual Conference.

Jordan and his co-speakers will cover the basics of identifying your unclaimed property. They will also discuss how to report unclaimed property to the states and trends across the state in rewriting rules and adopting new ones.

The Pennsylvania Department of Revenue cannot pursue back taxes from certain third-party sellers that had inventory stored in the state as part of the fulfillment by Amazon program. Jordan M. Goodman discusses this recent decision with Law360 and says the ruling appears to be a significant decision “on the ‘new’ nexus standard measured and limited by the due process.”

The Michigan Tax Tribunal recently ruled that a holding company does not owe city income tax because it does not have substantial nexus with Detroit. Christopher T. Lutz was happy to see the tribunal take the approach he has been advocating for post-Wayfair.

HMB’s State and Local Tax group held a seminar at one of Chicago’s favorite social clubs, SPIN. Our team was delighted to see everyone in person again to discuss all things SALT! View a recoding of the seminar and request a copy of a presentation here.

During this webinar, Jordan M. Goodman will address ethics in a post-pandemic environment.

After years of legal back-and-forth, Apple has settled its challenge against Chicago’s amusement tax. David A. Hughes discusses Apple’s settlement with Law360 and says businesses that had hoped this case would shed light on how the tax might apply to their services will be left with open questions.

In “Top 5 State & Local Tax Policies Of 2022” by Law360, Jordan M. Goodman shares his thoughts on the Multistate Tax Commission’s interpretation of P.L. 86-272. Jordan says, “I'm not an engineer, but it just seems to me that there's no difference between what was accepted with what you could do by phone call and what you can do by being online.”

When it comes to managing unclaimed property, there are many nuances you need to be aware of. On July 14th, join David Hughes, Mark Heroux and Zeinat Zughayer for a webinar where they will discuss the basic principles of unclaimed property and address current updates with regard to managing it.

Christopher T. Lutz discusses the latest decision in Ooma Inc. v. Oregon Department of Revenue with Tax Notes. According to Chris, Ooma raised a fair question in its cert petition.

Jordan M. Goodman discusses cookie nexus and the retroactive effect with Tax Notes.

On June 27th, Samantha K. Breslow will provide a refresher on the basics of state and local income taxation at the 2022 IPTAnnual Conference. During her presentation, she will also give an overview of how cities, countries and other local jurisdictions tax employees and employers based on their worksite or residence.

David A. Hughes and Jordan M. Goodman provided an update on recent development in the world of State and Local Tax.

On June 8th, Jordan M. Goodman will present a National Survey of the SALT Landscape at the FICPA MEGA Conference. You won’t want to miss this lively discussion about the latest state tax developments across the country!

Jordan M. Goodman is presenting, “Fundamentals of Formulary Apportionment” and “Ethics” at the IPT 2022 State Income Tax School. See below for details about his upcoming presentations. Georgia Tech Hotel & Conference Center, Atlanta, GA Fundamentals of Formulary Apportionment 1:45 – 6:00 PM | July 19, 2022 Jordan will discuss the basic rules of formulary apportionment for state income taxes.…

Join Jordan M. Goodman, David Brunori, Richard Pomp, Christopher DeZinno and Maria Koklanaris for an upcoming webinar with Law360 Tax Authority on June 1st. You won’t want to miss this exciting discussion of hot topics in state and local tax!

David A. Hughes and Jordan M. Goodman will provide a National SALT Update at the AGN North America Regional Meeting. They will cover recent and noteworthy SALT developments including nexus, remote workers, sourcing, digital goods, SAAS, cloud computing and more.

HMB’s Jordan M. Goodman has been named to Law360’s 2022 State and Local Tax Editorial Board. The editorial advisory board provides feedback on Tax Authority’s coverage and expert insight on how best to shape future coverage. Congrats, Jordan!

Join Jordan M. Goodman for COST's 2022 Intermediate/Advanced Sales & Use Tax School. On May 16th, they will present, “Situs: Who Can Tax the Transaction” and examine the consistent and inconsistent ways states are trying to tax transactions while attempting to bolster sagging revenues.

On May 16th, Christopher T. Lutz will present, “Jurisdictions to Tax” at COST’s 2022 SALT Basics School. Chris will review the various restrictions on a state’s ability to impose taxes such as constitutional restrictions, federal legislation and judicial pronouncements.

The Illinois Supreme Court recently ruled Cook County may not spend its transportation tax revenue on non-transportation-related purposes. David A. Hughes told Tax Notes the decision underscores that a home rule jurisdiction’s spending authority is not unlimited.

Marilyn A. Wethekam’s “Tin Cans and Sheep,” was recently published in Tax Notes State's article, “Justice Stephen Breyer: A Model of Clarity.” In her section, she reflects on Justice Stephen Breyer’s role in interpreting and shaping state tax law and discusses what his retirement will mean for the state and local tax community.

The state tax agency recently proposed a rule where businesses that are exempt from a foreign country’s tax due to treaties would no longer need to account for their receipts into those jurisdictions when determining their Illinois income tax liability. Christopher T. Lutz discusses the proposed rule with Law360 and says it would better align Illinois’ tax regime with its market-based sourcing approach and single-sales-factor apportionment formula.

HMB is proud to be a sponsor of the Council on State Taxation (“COST”) and the Chicago Tax Club (“CTC”) 2022 Mid-West Regional State Tax Seminar. Join David A. Hughes for his presentation on P.L. 86-272.

One of the most relevant and complex issues in state tax today is how states should tax partnerships. In Law360’s “3 Things To Know About State Taxation Of Partnerships Now,” David A. Hughes discusses recent cases that are causing controversy in state tax partnership law.

How states obtain revenue has come under more intense scrutiny due to the COVID-19 pandemic. On April 26th, David A. Hughes will discuss the merits of different revenue sources, give state examples that have succeeded and failed and share the latest state policy proposals at the Sales Tax Institute's Advanced Sales and Use Tax Workshop.

Sam will dig into the tax implications for an array of technologies including software, SaaS, digital goods, streaming content, cloud computing, digital advertising and cryptocurrency.

The U.S. Supreme Court recently denied a petition from a multistate business that claimed New Jersey’s partnership filing fee was unconstitutional. According to David A. Hughes, there was little question that New Jersey’s fee fails the internal consistency test.

In “Texas Decision Stymies Tax Agency Attempt At Policy Change by Law360, Jordan M. Goodman discusses the Texas Supreme Court's decision to reverse a lower appellate court’s ruling. Jordan says, “The Texas Supreme Court, in overturning the lower court, simply conducted a plain reading of the statute as it was drafted.”

Christopher T. Lutz will present, “Alternative and Non-Traditional Challenges to Income Taxes” at the Council on State Taxation’s 2022 Income Tax Conference & Spring Audit Session.

Jordan M. Goodman will provide an All State Update for the Tax Executives Institute (“TEI”) Tax School.

David A. Hughes found the court’s ruling surprising, as Apple had previously amended its complaint and tax matters are rarely dismissed for failure to sufficiently state a claim.

On March 30, Jordan M. Goodman will participate in a Mock Trial at the Annual Unclaimed Property Professional Organization.

Jordan M. Goodman is presenting, “Sales Tax in a Post Wayfair Environment” for YPO’s Southern 7 Chapter.

David A. Hughes and Samantha K. Breslow will provide a state and local tax update at the Illinois CPA Society Corporate Finance Conference.

Samantha K. Breslow will provide a Chicago tax update for the Chicago Bar Association’s State and Local Tax Committee.

Jordan M. Goodman discusses trending SALT issues and policies with Professor Richard D. Pomp during the Annual “Big Easy Brawl” at the ABA/IPT Virtual 2022 Advanced Tax Seminars.

David A. Hughes moderates, “State Transfer Pricing: Challenges, Issues and Opportunities for Multistate Taxpayer” at the ABA/IPT Virtual 2022 Advanced Tax Seminars.

Jordan M. Goodman Discusses Priority Rules for Unclaimed Property Disputes with Law360.

Jordan M. Goodman is presenting, “Successful Pursuit of Transactional Tax Refunds – From Audit Through Appeals” at the 2022 COST Sales Tax Conference and Audit Session.

In his article, David A. Hughes discusses how to approach unclaimed property self-audits and provides a brief history and overview of Illinois’s Unclaimed Property Act.

David A. Hughes and David Blum, Deputy Chair, Tax Practice Group at Akerman LLP, will discuss important sales, use and excise tax cases filed in 2021 that impact your business in this upcoming webinar.

Jordan M. Goodman presents, “Possibilities and Paths Forward in Multistate Taxation: Welcome Back,” at the 2022 National Multistate Tax Symposium on 2/10/22.

In this installment of Board Briefs, Tax Notes State advisory board members, including HMB’s Marilyn A. Wethekam, welcome the 2022 new year. Read the entire Board Briefs here. Download Marilyn’s article here. 2022: The New Normal By Marilyn A. Wethekam 2020 could be characterized as the year one learned to manage the shock of COVID. 2021 could be characterized as…

In the second episode of SALTovation’s two-part series, Jordan M. Goodman continues his conversation with Rich Pomp.

Jordan M. Goodman Discusses SALT Issues on the SALTovation Podcast.

David W. Machemer Presents, “Practical Ways to Avoid Qui Tam/Whistleblower Lawsuits” at NYU’s 40th Annual Institute on State and Local Taxation.

Jordan Goodman presents, "Notes from the Courtroom: An Update on State Corporate Income Tax Litigation Across the Country."

Jordan M. Goodman Interviewed by Law360: “7 Things Tax Pros Are Grateful For This Thanksgiving Season”.

David A. Hughes and Samantha K. Breslow Discuss Chicago’s Cloud Tax and Audits with Bloomberg Law.

Christopher T. Lutz Discusses Localities Outsourcing Tax Services with Law360.

Upcoming Webinar: Chris T. Lutz Presents, “State Taxation of Digital Goods, Services and Software in 2021” with Duff and Phelps.

David A. Hughes Moderated, the SALT Roundtable at the ABA Virtual Fall Tax Meeting.

David A. Hughes Moderated, “Income Tax Nexus: Implications of Wayfair” at the ABA Virtual Fall Tax Meeting.

David A. Hughes Presented, “State and Local Tax Issues for a Mobile Workforce” at the Association of Consumer Vehicle Lessors.

David A. Hughes Presents, “State and Local Tax Issues in Corporate M&A” at the Practising Law Institute in Chicago.

David A. Hughes and Jordan M Goodman present at the AGN Annual Conference in Miami.

Jordan M. Goodman presents at the CPAmerica 2021 Tax Conference.

Jordan M. Goodman presents at the MICPA Michigan Tax Conference.

David A. Hughes will be moderating, and Samantha K. Breslow will be presenting a session at the Chicago Tax Club’s 67th Annual Fall Seminar.

Fred O. Marcus discusses the cannabis industry and how it continues to establish itself in California.

Samantha K. Breslow present at the Annual National Association of State Bar Tax Sections (“NASBTS”) Conference.

Jordan M. Goodman will discuss Illinois and national ethics standards for both attorneys and accountants and how they come into play in the state and local tax world for the Taxpayer’s Federation of Illinois.

Jordan M. Goodman presents, "Goodman v. Pomp" at the Hartman SALT Forum.

Chris Lutz shared his insight into online merchants' requirement to pay income tax in additional states with Bloomberg Law as states consider how to implement some or all of a statement on Public Law 86-272, recently revised by the Multistate Tax Commission.

Effective January 1, 2021 Kentucky eliminated its Bank Franchise Tax ("BFT")and instead subjected financial institutions and financial organizations to the state's existing Corporate Income Tax ("CIT") and Limited Liability Entity Tax ("LLET").

In this series by Sales Tax Institute, Three Years of South Dakota v. Wayfair: is discusses how the South Dakota v. Wayfair decision has changed the landscape for businesses over the past three years. The second wave of sales tax nexus legislation following the 2018 Wayfair decision was marketplace nexus or marketplace facilitator collection legislation. In simple terms, this type…

In this series by Sales Tax Institute, Three Years of South Dakota v. Wayfair discusses how the South Dakota v. Wayfair decision has changed the landscape for businesses over the past three years. On June 21, 2018, the U.S. Supreme Court released its fateful decision in South Dakota v. Wayfair. The Wayfair decision upended decades of the physical presence standard for…

David Hughes via the Sales Tax Institute, presented classes "Construction Industry Update" and "Breaking Down Local Taxes: Compliance & Audit Challenges" as an instructor. David presented "Construction Industry Update" on 4/20/21 and "Breaking Down Local Taxes: Compliance & Audit Challenges" on 5/5/21. In "Construction Industry Update", David discusses legislative updates, administrative process and audit issues and more. In "Breaking Down…

David Hughes was named Vice Chair of the American Bar Association's State and Local Tax Committee. Founded in 1878, the ABA is committed to advancing the rule of law across the United States and beyond by providing practical resources for legal professionals, law school accreditation, model ethics codes and more. David advises Fortune 500 companies, privately-held companies, middle-market businesses and…

6/1/21 During this webinar for AGN, David Hughes and Jordan M. Goodman provide an update on recent developments in the world of State and Local Tax. The mission of AGN is to enable its members to globally support businesses and individuals with high standards, straight forward & practical business advice and local commercial know-how, wherever the need arises. AGN member’s…

5/10/21 Join David Hughes as he moderates the SALT Roundtable at the ABA Tax Conference. The SALT Committee will be discussing related issues in a virtual version of its traditional “Saturday Morning Roundtable.”  …

In the Sales Tax Institute's series, Women to Watch in Sales Tax, hosted by Diane Yetter, Samantha K. Breslow discusses tips for women navigating their careers in tax. Throughout this challenging last year, Sam has thrown herself into developing industry specific expertise in SaaS and cloud based computing. She recommends each individual professional learn how to get creative and market…

In Part IV of the Three Years of South Dakota v. Wayfair series by Sales Tax Institute, Jordan M. Goodman, with Diane Yetter for Sales Tax Institute takes a look at local tax issues following the Wayfair decision. Tune in to learn why local taxes have become such a huge headache, what could be improved and how states are trying…

In this second part of the series by Sales Tax Institute, Jordan M. Goodman, with other presenters, discusses how the South Dakota v. Wayfair decision has changed the landscape for businesses over the past three years. Part II takes a look at the cost of compliance on businesses following the decision with an emphasis on how it has impacted technology…

7/29/21 4:15PM The pandemic has been a driver of many changes to the world as we know it. The concept of the workplace has drastically changed and the global economy has been transformed. As state governments experienced substantial revenue shortfalls because of COVID-19, they scrambled to adapt to these transformations. In this session, Samantha K. Breslow will address state income…

7/27/2021 Join Jordan M. Goodman for this program that will take a look at the nexus standards in the three years from when Wayfair was decided by the U.S. Supreme Court. Jordan will examine the current nexus laws for not only sales tax, but income tax, occupation taxes and other taxes imposed by state and local governments. He will also…

Read the full article by Law360 here (subscription required). In a year when states focused on shaking off the effects of the coronavirus crisis, some changed business tax regimes to build their coffers while others, flush with federal pandemic relief cash, advanced significant tax cuts. An Illinois budget bill signed into law by Gov. J.B. Pritzker pauses the phaseout of…

7/28/21 Austin, TX Join Jordan M. Goodman for this session that will lay the groundwork for all that happened while you were socially distancing during the pandemic. It will examine the most relevant happenings in sales tax, property tax, income tax and credit/incentives disciplines that the SALT community has not been able to discuss in a public forum. IPT is…

In an article by Law360, Samantha K. Breslow discusses Illinois Lawmakers approving the budget with GILTI addback. Read the full article by Law360 here. Illinois would require an addback for certain global intangible low-taxed income deductions, halt a phaseout of its franchise tax and temporarily cap net operating loss deductions under a $42.3 billion fiscal year 2022 budget that lawmakers…

6/9/21 11:30AM - 12:45PM CT In this presentation for the Chicago Tax Club, David A. Hughes, with Korwin Roskos and Jacob Seitz from Andersen and Illinois Chamber Tax Institute Executive Director Keith Staats, will discuss the tax-related legislation passed – or not passed - by the Illinois General Assembly during the spring legislative session. This presentation qualifies for CPE and…

5/18/21 1:00PM - 2:00PM ET Employers and employees are facing a conundrum: work from home (WFH) or return to the office. Factoring in the lack of a commute, more family time and increased flexibility, many employees have requested the WFH arrangement become permanent. Many employers are seeking to comply to remain competitive for the best talent. However, once employees are…

Read the full article by State Tax Notes written by Doug Sheppard here. In one of the most famous scenes from The Blues Brothers, Sister Mary Stigmata doles out rapid-fire corporal punishment with a ruler on Jake and Elwood Blues, then breaks it on Elwood's head before Jake crashes down an adjacent flight of stairs in the ensuing chaos. “Get out! And don’t come back until you’ve redeemed yourselves,”…

6/9/21 10:05AM - 10:55AM, 11:00AM - 11:50AM This 2-part presentation presented by Jordan M. Goodman, will get the audience up to date on recent state and local tax cases and statutory changes that will affect their client's business. Examine when a state can impose its taxing jurisdiction on an out-of-state business and what taxpayers can do to protect themselves; Learn…

In "PepsiCo Unitary Group Includes Member, Illinois Tribunal Says" Chris T. Lutz discusses the ruling with State Tax Notes. Read the full article by State Tax Notes here. The Illinois Tax Tribunal ruled that a member of PepsiCo’s business group is a company conducting business within the United States, and its income is included in the unitary group’s income. The…

4/21/21 1:45PM The TEI Dallas Chapter have asked Jordan M. Goodman and Chris T. Lutz to  take a tour of the countries’ state tax decisions and explain their impact on multi-state business. They will also identify trends around the country in the SALT area and offer advice on how to address state audit positions.…

5/4/21 1:00PM CT In this webinar for the Chicago Tax Club, Jordan M. Goodman and Dakota S. Newton review the state-level approaches to the NOL and PPP provisions of the CARES Act, discuss issues related to remote employees and provide an update on how these are affecting income and sales tax nexus. This webinar qualifies for CPE credit. Register for…

In State Tax Notes' Board Briefs, Marilyn A. Wethekam discusses "State and Local Tax Policy in a COVID-19 World". Download the full Board Briefs by State Tax Notes here. 2020 began on an optimistic note. The economy, in several sectors, was thriving. States over the last couple of years had seen continued revenue growth and even in some cases were…

4/28/21 2:05PM - 3:10PM CT Navigating the nuances of state tax audits and challenging assessments has a new added hurdle – doing it all remotely. David W. Machemer, with other panelists, will help navigate remote audits and controversies, from strategies on communication, documentation (issues related to submitting and submitted workpapers), delayed timelines, audit plans, to statute of limitations strategies. This…

In this article by State Tax Notes, Chris T. Lutz discusses P.L. 86-272's role in the modern economy. Download the full article here. During a March 17, 2021 panel of the American Bar Association/Institute for Professionals in Taxation virtual seminar on income tax, Chris wondered about the timing of the work group starting a few months after the 2018 South…

In this article by State Tax Notes, Jordan M. Goodman discusses Chicago's guidance and economic nexus safe harbor. Download the full article here. Speaking during the Virtual 2021 American Bar Association/Institute for Professionals in Taxation Advanced Sales and Use Tax Seminar on March 15, Jordan applauded the city for issuing the guidance. The city “actually did something that I have…

3/30/21 9:15AM - 10:15AM Jordan M. Goodman will present a mock trial with the UPPO Conference. This mock experience will utilize recent unclaimed property cases as the backdrop. Register for the event here. Request a copy of the presentation here.…

3/15/21 11:15AM - 12:45PM ET The Annual “Big Easy Brawl” is back! A test of ideas and perspectives on current and trending SALT issues and policies - and a bit of controversy - with Jordan M. Goodman and Professor Rick Pomp of the UCONN School of Law. The two SALT Sages bring years of experience to share insights and discuss…

HMB congratulates David A. Hughes on being elected to the Chicago Tax Club Board of Directors. David is a partner in HMB’s State and Local Tax (SALT) Group and is a member of HMB's Board of Directors. He helps clients limit their state and local tax exposure through sensible planning and, when necessary, vigorous litigation strategies. David advises Fortune 500…

3/17/21 Chris T. Lutz and David A. Hughes will be presenting and moderating at the ABA-IPT conference for webinar titled, “What to do with Public Law 86-272?” Public Law 86-272 is now 60 years old. While P.L. 86-272 made sense in the pre-internet, manufacturing oriented economy of 1959, many commentators have called into question the law’s continuing relevance in a…

In this article by Law360, Jordan M. Goodman discusses the Tax Injunction Act and state tax issues being filed into federal court. Read the full article by Law360 here. The complaint by the U.S. Chamber of Commerce, Internet Association, NetChoice and Computer & Communications Industry Association, filed Feb. 18, had been widely expected, but it contained a procedural twist. It…

In this article by Law360, David A. Hughes discusses Illinois Gov. J.B. Pritzker's budget plan that would reverse several tax laws that the governor signed just two years ago, including a phaseout of the state's franchise tax. Read the full article by Law360 here (subscription required). Illinois' governor proposed temporarily capping net operating losses, reducing state deductions for global intangible…

4/19 - 5/18 Join David A. Hughes and Jordan M. Goodman for ten virtual sessions at the Sales Tax Institute’s 2021 Advanced Sales and Use Tax Workshop. They’ll be discussing many niches of sales tax from the impact of remote employees and local taxes to healthcare and construction. The ten sessions will start at 11:00AM and end at 1:15PM ET…

3/11/21 12:00PM - 1:00PM CT In this presentation, HMB’s Chris Lutz and Jordan Goodman will square off in the Zoom arena to determine who is the heavy-weight champion of all things SALT! Join us for a wide-ranging debate covering all corners of the state and local tax landscape including: Nexus for all taxes; Taxability of software; Developments in apportionment; and…

2/25/21 12:10-1:15PM In this webinar hosted by COST, join Jordan M. Goodman as he discusses how tax issues are not isolated to state tax administration. This session will cover states with local sales tax administration such as Alabama, Alaska, Colorado and Louisiana. In addition, other troublesome local taxes such as those in Chicago and other cities will be addressed. Register…

In this article by Bloomberg Law Tax, David A. Hughes discusses Chicago's "Netflix Tax". Read the full article here. Chicago will inject an economic presence standard and a safe harbor for smaller streaming and cloud services into its administration of the city’s “Netflix tax,” beginning July 1. Chicago’s Department of Finance issued a bulletin late Thursday outlining its enforcement of the amusement…

2/11/21 12:15PM - 1:30PM CT CPE credit (pending) Are you familiar with the concept of unclaimed property? Are you on a state’s audit radar? Has the Delaware Secretary of State issued you  a notice related to their voluntary disclosure program? Did you receive an audit notice from a third-party audit firm? Or, are you tasked with determining whether there is…

1/21/21 This webinar addresses the SALT issues faced by businesses whose employees have chosen to work in a different (out-of-state) location. David A. Hughes will discuss topics including nexus, withholding, sourcing, unemployment insurance and reciprocal agreements.…

1/20/21 David A. Hughes will explore income tax issues faced by individual taxpayers with a primary focus on residency. Other issues will include credits for tax paid to other states, taxation of nonresident individuals, and determining domicile for businesses.…

Illinois legislation impacting sourcing rules for marketplace facilitators, sellers, and remote sellers- the “Leveling the Playing Field for Illinois Retail Act”- is now in effect for 2021 and Illinois Retailers’ Occupation Tax (the “ROT”) returns will be due soon.  The Illinois Department of Revenue has made a resource page available for affected retailers and marketplaces. As we discussed in June…

2/2/21 12:45PM - 1:45PM & 2:00PM - 3:00PM ET With various sectors being impacted by the downturn, multistate tax professionals must recognize and proactively address state tax issues and execute state tax planning arising from mergers, acquisitions, and reorganizations. This session will focus on tax attribute planning, including the interaction between state versus federal rules and utilizing net operating loss…

1/12/21 David A. Hughes and Jordan M. Goodman presented a webinar on current SALT developments with an emphasis on income tax apportionment, CARES Act related issues, and the impact of COVID on multistate businesses.…

12/18/20 Samantha K. Breslow will discuss the Internet Tax Freedom Act for the Chicago Bar Association YLS Business Law Transactions Committee. The intent of the Internet Tax Freedom Act was to protect electronic commerce from the taxman, but has it succeeded? This webinar will focus on recent pending cases (Labell v. City of Chicago and Apple, Inc. v. City of…

12/8/20 10:00AM - 11:30AM CT David W. Machemer and Samantha K. Breslow will present a City of Chicago and Cook County update for the Illinois Chamber of Commerce Tax Institute. Chicagoland revenue departments have become increasingly more aggressive with respect to the enforcement and collection of local taxes. This presentation will explore recent developments to local taxes that have seen…

12/2/20 2:45PM - 3:55PM ET David W. Machemer will present to the NYU 35th Institute on State and Local Taxation. Social distancing, staff reductions and the dearth of state call centers have made resolving tax audits and other controversies more challenging than ever. State revenue demands, restrictive corporate budgets and ever-changing tax regimes make SALT audit management increasingly complicated and…

Local jurisdictions should clarify the nexus standards for their taxes, Jordan M. Goodman said, noting that the Wayfair decision has raised questions of how nexus at the state level applies to local nexus considerations. For local taxes that have a state equivalent, states and localities should "link up" and inform taxpayers of whether nexus with the state means a taxpayer…

11/19/20 4:00PM - 5:00PM Join Jordan M. Goodman and Professor Richard Pomp and Jordan Goodman as they recap the nation’s top state tax cases, state and local legislation, policy developments and controversies over the last year with an informative and hopefully engaging presentation designed to keep practitioners current on non-New England developments. This year’s presentation is sure to include the…

David A. Hughes participated in the Simply Tax Podcast hosted by BKD’s Damien Martin to discuss the Illinois Fair Tax amendment and potential residency ramifications. David discussed what all the fuss is about over the Fair Tax amendment and what Illinois taxpayers need to consider if they want to change their state of residency if the amendment passes. The episode…

11/4/20 4:15PM - 5:10PM ET The economic impact of COVID-19 is already beginning to take shape with the most obvious impact being the rising number of distressed businesses. This presentation will determine the factors of consideration for buying and selling a distressed business, tax liabilities of all kinds, equity, COVID-19-related SALT issues and cancellation of debt income among others. Jordan…

In this excerpt in Board Briefs from Tax Notes State, Marilyn honors the late Supreme Court Justice Ruth Bader Ginsburg. Download the full article by Tax Notes State here. On September 18, 2020, this nation lost not only an exceptionally accomplished jurist but a powerful voice for gender equality and those who have been made to feel they don’t belong.…

Join Jordan M. Goodman at his various webinars for CPAmerica. The topics will range from State legislative agendas around the country, Wayfair and current SALT cases and issues. Register for the event(s) here (membership required).  11/10/20 Update in the SALT World - Do We Need a Hug? - 1:05PM - 1:55PM CT This presentation will cover the recent trends in…

10/22/20 12:00PM CT The COVID pandemic has dominated the 2020 headlines. Congress responded to the pandemic by adopting the CARES Act, a federal law that also has significant SALT ramifications. States responded by modifying their nexus and withholding rules for employees working from home. Join David A. Hughes and Samantha K. Breslow for this session where they will explore those…

10/30/20 12:30PM - 1:45PM CT The Chicago Tax Club’s Fall Learning Series continues with a 75 minute webinar on Outrageous Cases, an in depth and entertaining discussion of recent state and local tax cases that defy logic and make you scratch your head.  Join David A. Hughes with Ted Bots and Drew Hemmings from Baker McKenzie and Keith Staats from…

11/4/20 4:10 PM CT The economic impact of COVID-19 is already beginning to take shape with the most obvious impact being the rising number of distressed businesses. Join Jordan for this webinar where he will determine the factors of consideration for buying and selling a distressed business, tax liabilities of all kinds, equity, COVID-19-related SALT issues and cancellation of debt…

10/8/20 1:05PM - 1:45PM ET David A. Hughes will be leading a discussion regarding lease tax law updates and trends in 2020 on 10/8/20. Learn more about Vertex Exchange here. …

11/19/20 2:00PM - 3:00PM CT Join Jordan M. Goodman with Professor Richard Pomp for their discussion about national SALT updates. CLE/CPE credits will be made available for attendees via the New England State and Local Tax Forum. Register for the event here.…

Chicago, IL September 10, 2020 HMB Legal Counsel, a preeminent provider of legal services announced Chris T. Lutz as the Practice Chair for the State and Local Tax Group. As a practice group leader, Chris will oversee coaching, planning, economic oversight, positioning and recruitment for his group. Practice group leadership transitions are part of HMB's planning and leadership strategy, designed…

9/22/20 Join Fred O. Marcus and Doug Lindholm of COST for a nationwide state and local tax update at the Taxpayers' Federation of Illinois Fall Webinar Conference Series. Learn more about the TFI's events here. Request a copy of the webinar here.…

In the Illinois Practitioner Series, HMB's SALT team discusses various topics covering Illinois Procedures, Corporate Income Tax, Retailers' Occupation Tax (Sales Tax) and Use Tax and Local Taxes. Questions? Reach out to the state and local tax team here.  …

In this article from Law360 by Maria Koklanaris, Chris T. Lutz tackles questions regarding Wisconsin's state court of appeals to overturn a circuit court ruling that Deere & Co. is entitled to a dividends-received deduction from a Luxembourg affiliate that elected to be treated as a corporation for federal tax purposes. Read the full article by Law360 here. Wisconsin has argued…

10/7/20 IPT will hold its 2020 Sales Tax Symposium, virtually, through a series of Webinars over a three-week period beginning the week of September 21, 2020. Jordan M. Goodman will present his webinar on October 7, 2020. This webinar series has been designed as a complete package offering attendees an opportunity to take advantage of a discounted fee of $495…

9/22/20 12:30PM - 1:30PM CT Illinois CLE and CPE Pending In this webinar for Chicago Tax Club, Jordan M. Goodman, along with Maggie Young of Crowe and moderator Joe Carr of BDO will examine the case law that has shaped the unclaimed property industry. They will look at prior cases and how these of past decisions have driven the world…

8/26/2020 Residency and Other State Income Tax Issues for Individuals - David A. Hughes and Dakota S. Newton 10:50AM - 11:40AM CT With the increase in flow-through entities, individual income tax issues are becoming more complex to navigate. Explore critical issues including credits for tax paid to other states, taxation of nonresident individuals, and income tax on the sale of…

8/26/20 Join Jordan M. Goodman for a look around the country on the relevant cases that affect taxpayers in the income tax, sales tax and franchise tax arenas. This webinar will be held for the Dallas TEI community. Learn more about the Dallas Chapter of Tax Executives Institute here.…

8/25/20 3:00PM - 5:15PM ET CPE/CLE Credit Join Jordan M. Goodman for a discussion about TCJA hosted by COST. This webinar is open to industry tax professionals from COST member companies and industry tax professionals from non-COST member companies. Practitioners are not eligible to attend this seminar (except for those sponsoring or speaking). This webinar will be hosted on Zoom.…

We know most of our clients and friends have seen significant changes to their daily lives. HMB's SALT team has been working around the clock to provide excellent service to our clients and we're really excited to offer a new series of "Work From Home" webinars. Please join us every Wednesday at 12:30PM Central Time. Below is a list of…

7/15/2020 12:30PM - 1:30PM CT CPE And CLE Credit Chicagoland revenue departments have become increasingly more aggressive with respect to the enforcement and collection of local taxes. This presentation will explore local taxes that have recently seen increased audit activity, including the Lease Transaction, Amusement, Tobacco and Motor Fuel taxes. They will discuss audit best practices and provide an overview…

7/22/20 12:30PM-1:30PM CT CPE and CLE Credit Jordan and Dakota examine Wayfair’s continuing impact on direct and indirect tax nexus standards and analyze the inconsistent patchwork of marketplace facilitator rules around the country. They also discuss emerging income tax issues related to eroding P.L. 86-272 protections and the throwback and throwout rules. This webinar will be presented via Zoom. Register…

In "Top State & Local Tax Cases of 2020: Midyear Report" by Law360, Chris T. Lutz discusses Honigman Miller Schwartz & Cohn LLP v. City of Detroit. The closely watched case went to issues currently at the heart of state taxation, the definition of a service and where the income from that service should be sourced. While falling short of…

In her excerpt from the first installment of Board Briefs in 2020 from Tax Notes State, Marilyn addresses tax issues related to the digital economy. Download the full article by Tax Notes State here. In the words of that great philosopher Snoopy, “When you can’t control what’s happening around you, challenge yourself to control the way in which you respond.”…

In an article by Daniel Tay and published by Law360, David A. Hughes discusses how Illinois nonresident employees have received a 30-day safe harbor against state income tax to carry out a 2019 law intended to prevent double taxation. Illinois' 30-day threshold is longer than the periods seen in other states David told Law360. He also noted that the Illinois…

6/22/20 10:00AM - 3:30PM Basics of Sales and Use Tax is an interactive live online training course designed for individuals working in financial or accounting corporate and consulting environments. This course is best for those who currently handle (or will soon handle) sales and use tax for their company, themselves or their clients. Basics helps you learn all the sales…

5/27/20 David and Jordan will present a webinar to AGN North America to discuss recent SALT developments relating to Pass-through Entities. The webinar will cover: Nexus and doing business Credit for tax paid in other jurisdictions SALT Cap Deduction workarounds California issues New Partnership Audit rules…

6/24/20 David W. Machemer will present a webinar to the Equipment Leasing and Finance Association with other sales tax professionals. This webinar will highlight sales tax best practices with three key areas: Immediate concerns with lease re-writes; Strategic planning with marketplace facilitator laws; and Audit resolution best practices (keep your cash)! Register for the event here.…

In this second of a three-part series, Breslow discusses the Internet Tax Freedom Act and whether the digital world has really been protected from the tax man. Adoption and Intent of the ITFA Initially adopted in 1998 under the Clinton administration with the mantra “no new internet taxes,” the Internet Tax Freedom Act (ITFA) was made permanent on February 24,…

6/2/20 David will be speaking on two panels for the International Cannabis Bar Association. Register here for the day-long virtual event.  Ethics Rule 1.2: Complying With the Novel "Also Advise" Clause Since the permitted scope of legal representation begins with this threshold requirement, hear from the panel about what "also advise" means in practice, including what federal laws are considered…

6/24/20 12:30PM - 1:30PM CT CPE Credit Join Fred O. Marcus, David A. Hughes and Samantha K. Breslow for a webinar discussing how determining the applicability of state taxes to PTEs (and their partners or members) can often be unnecessarily complex. They will bring clarity by exploring recent developments relating to nexus/“doing business”, credits for taxes paid in other jurisdictions,…

6/10/20 1:00PM - 2:30PM ET The COVID-19 pandemic is affecting businesses in many different ways: furloughs and job losses, variant priorities, and virtual working environments. These disruptions can make monitoring policies and accounting practices more difficult, making the maintenance of proper escheat reporting and records of utmost importance. As states move to close budget gaps due to lost tax dollars…

6/10/10 12:30PM - 1:30PM CT CPE Available As economic growth slows, companies will often look to their tax departments to ensure they are on top of all cost saving measures available. Chris and Jordan will discuss state income tax net operating loss carrybacks, credits, and other available tax assets that can often be complicated or uncommon. They will also discuss…

An article published by Bloomberg Law Tax discusses the possible reemergence of Gross Receipts Taxes in states due to the COVID-19 pandemic. Gross receipts taxes are becoming attractive because they rely on calculations of total commercial activity rather than profitability, said Jordan M. Goodman. Jordan continued to say that, "During the COVID-19 recession you are going to see a lot…

In her excerpt from the first installment of Board Briefs in 2020 from Tax Notes State, Marilyn addresses tax issues related to the digital economy. Download the full article from Tax Notes State here. Generally, you cannot put a square peg in a round hole. However, that is precisely what may be occurring as a result of the meteoric growth…

Congratulations goes to Fred for his nomination for the Northwestern Pritzker School of Law's Adjunct Professor of the Year Award. Northwestern University is a member of the Top 14, a group of law schools that have received national recognition. Read more about Fred here. …

5/20/20 12:30PM CST CPE Pending Recent state cases like Ex Parte Russell County Community Hospital and Citrix Systems are just the tip of the iceberg as states audit taxpayers in a digital economy. Chris and Samantha will provide an update on recent cases and legislation in this area and, more importantly, will describe their experiences with taxpayers as they attempt…

5/6/2020 12:30PM CST CPE Pending Despite the closing of state courts around the country, SALT keeps moving forward. This presentation will get you caught up with what is happening in state courts from coast to coast. Jordan will present this webinar via Zoom. Register for the event here. We know most of our clients and friends have seen significant changes…

4/29/2020 12:30PM CST CPE Pending The intent of the Internet Tax Freedom Act was to protect electronic commerce from the taxman, but has it succeeded? This webinar will focus on recent pending cases (Labell v. City of Chicago and Apple, Inc. v. City of Chicago) involving ITFA claims and proposed legislation (Digital Advertising Gross Revenues Tax) that potentially implicates ITFA.…

***THIS WEBINAR IS REPLACING THE EVENT ORIGINALLY SCHEDULED FOR TUESDAY, MARCH 10*** 4/7/20 12:15PM Eastern Standard Time In this webinar, Chris will discuss Maryland's perennial attempts to adopt mandatory unitary combined reporting ("MUCR") as well as other proposed state legislation such as Pennsylvania's MUCR proposal and New Hampshire's proposed worldwide combined reporting bill. Chris will also address the nuances of…

An article published by State Tax Notes discusses the Illinois Supreme Court's refusal to review an appellate court decision that Chicago's amusement tax as applied to online streaming services does not violate the state constitution or the Internet Tax Freedom Act (ITFA). The court denied the petition for leave to appeal in Labell v. City of Chicago, letting stand the…

On March 19, 2020, Chicago Mayor Lightfoot announced that the City of Chicago will extend the due date for “small businesses” to pay the following Chicago taxes to April 30, 2020: Bottled Water Tax, Checkout Bag Tax, Amusement Tax, Hotel Accommodations Tax, Restaurant Tax, and the Parking Tax. The City requires that taxpayers pay these taxes on or before the…

****Due to the COVID-19 virus, this event has been cancelled. HMB will update this page once a new date, location, or other important piece of information has been shared by the event organizers.**** 3/31/20 JW Marriott Starr Pass Tuscon, AZ Jordan will participate in a mock trail as the attorney for a business that is being audited in an unclaimed…

3/17/20 Royal Sonesta New Orleans New Orleans, LA The Annual "Big Easy Brawl" is back! Jordan, with Professor Rick Pomp, will bring years of experience to share insights and discuss divergent positions to complicated SALT controversies. This session will be a test of ideas and perspectives on current and trending SALT issues and policies. Read more about Jordan here.…

Jordan was invited to speak on The Unique CPA podcast at Twin Flames Studios. During the podcast, Jordan discusses various topics including: What it is like practicing international tax yet all statutes are in English Wonderful opportunities for lawyers to argue about constitutional issues The ability to help clients on a national basis Listen to the podcast here.  Read more…

****Due to the COVID-19 virus, this event has been cancelled. HMB will update this page once a new date, location, or other important piece of information has been shared by the event organizers.**** Fred O. Marcus and David A. Hughes will present various topics at two upcoming TEI Regional Conferences. 3/18/2020 Buffalo, NY Fred and David will present an update…

3/16/20 New Orleans, LA Public Law 86-272 is now 60 years old. While P.L. 86-272 made sense in the pre-internet, manufacturing oriented economy of 1958, many commentators have called into question the law's continuing relevance in a digital and services based world. David and Chris will explore what P.L. 86-272 means in 2020 and how states, taxpayers and Congress will…

2/25/20 Chicago, IL David A. Hughes moderated "Staying Close to Home: An Update on Recent Illinois, Chicago and Cook County Developments". 2019 was a busy year at both the state and local level in Illinois. During this session, the presenters will review several pieces of significant new legislation including new rules for sales and use tax collection by remote sellers…

Waldorf Astoria Las Vegas, NV 2/26/20 Jordan presents "Top 30 Issues/Cases in 2020". In this session, Jordan will discuss the major issues that will be evolving in the coming year. Click here to register for the event.…

2/25/2020 Hyatt Regency Houston Houston, TX Jordan will discuss recent SALT developments and trends at the TEI-Houston Tax School Session. Attendees will learn about topics including: U.S. Supreme Court Jurisdictions to Tax Combined Reporting Tax Base Issues Apportionment Issues Procedural Traps Click here for a copy of the presentation. Contact Jordan here.…

Read the full article on State Tax Notes here (subscription required). In this installment of his column, Internally Consistent, Chris discusses the impact of recent U.S. Supreme Court decisions affecting state sovereignty, including Hyatt and Dawson v.Steager. This was the year of remote seller nexus, marketplace facilitators, state taxation of foreign income, and market-based sourcing becoming the majority rule for…

1/31/20 Disney's Grand Floridian Resort & Spa Lake Buena Vista, FL Jordan Goodman will explore "classic" ongoing multistate tax issues at the 2020 National Multistate Tax Symposium. Attendees will learn how their business may cope and prepare to defend state audits or assessments arising from this mixed bag of multistate tax issues. Topics covered in this session include: Tax issues…

1/16/20 David presented "Unusual and Challenging SALT Issues Faced by Taxpayers" at the Illinois CPA Society's Annual SALT Conference. Founded in 1903, the Illinois CPA Society is one of the largest state CPA societies in the nation with more than 23,200 members. It provides convenient and customized education, timely and relevant information, influential advocacy, and countless opportunities to make powerful…

Illinois seeks to establish a 30-day safe harbor against state income tax for nonresident employees under a recently proposed regulation that specifies how workers should calculate their number of days worked in the state. In an article by Law360, David Hughes explains how different this proposed rule is when compared to previous regulations, noting that previous regulations on taxing nonresident…

Chicago, IL December 12, 2019 HMB Legal Counsel, a preeminent provider of legal services in Business and Finance, State and Local Tax, Trusts and Estates, Bankruptcy, Reorganization and Creditors' Rights, Real Estate and Litigation announced that three associate attorneys were elevated to partner. David W. Machemer David is a member of the firm's State and Local Tax (SALT) Group.  He…

Chicago's previously hidden tax ruling exempted Moxie Software Inc. from tax collection duties under the "Cloud Tax". In an article by Bloomberg Tax, Samantha Breslow explains the discrepancy between the Cloud Tax and Chicago's stance on nexus. Because the city didn't address the question of nexus in 2015 when modifications to its Personal Property Lease Transaction Tax were made, the…

In an article published by Bloomberg Tax, Samantha Breslow delves into the challenges presented to taxpayers after Chicago's previously hidden Private Letter Rulings ("PLRs") come to light. "Historically, it has been very difficult to gain access to Chicago GILS ["General Information Letters"] or PLRs, which results in a lack of transparency for taxpayers trying to comply with city ordinances," said…

Read the full article on Tax Notes here (subscription required). Samantha Breslow discusses how the sluggishness of legislation does not often adjust itself to the speed and terminology of technology. However, there are a few states that are adapting to overcome the discrepancies. Download a PDF of the full article here. Debugging the (State Tax) Code: Outdated Sales Tax Terminology…

12/06/19 Clayton State University Morrow, Georgia Jordan will answer the question: Are all businesses subject to all taxes in all states after Wayfair? This presentation at Clayton State University will review the various jurisdictional standards and what is left to protect businesses in 2020 and beyond.…

12/16/19-12/17/19 New York City, NY Jordan will advise practitioners and in-house employees on what they can ethically do with respect to SALT work at the NYU School of Professional Studies. Jordan will discuss tax returns to negotiation or settlement, and everything else in between. Click here to register for the event. Click here to request a copy of the presentation…

Read the full article on Tax Notes here (subscription required). Marilyn Wethekam discusses how federal tax reforms do not always coincide with state tax policies. Download the full article here. The 2017 enactment of the Tax Cuts and Jobs Act made significant changes to the federal tax system. One of the drivers for the reform was to make the United States…

From Houston to Memphis and Minneapolis to Chicago, HMB's SALT Group gave insightful tax presentations throughout the year as a part of the 2019 Brewery Series. Hosted in breweries instead of boardrooms, the 2019 series was a refreshing way for businesses to stay in the know about state and local tax. Pictured above: (L-R) Chris Lutz and David Machemer The…

11/7/19 Stephens Convention Center Rosemont, IL While there has been much discussion about a possible graduated income tax in Illinois, the General Assembly has also been busy on the sales and use tax side. From new rules for marketplace sellers and facilitators to sales sourcing for remote vendors to an expanded manufacturing exemption, the General Assembly recently passed several significant…

11/11/19 Austin, TX In "Post-Wayfair World - Now What?", Jordan Goodman will discuss how remote sellers were affected by the USSC overruling of Quill in June 2018.  This presentation will try to clarify when a business is subject to any of a state's taxes. In "Sea to Shining Sea - What is Happening in the SALT World", Jordan will highlight…

11/07/19 Suburban Collection Showplace Novi, MI In this presentation for MICPA, Jordan Goodman will cover the recent happenings in state and local tax with a focus on the Midwest states. It will highlight the GOOD things that happened for Taxpayers both judicially and legislatively and will inform attendees on the BAD issues that they and their clients should try to…

10/20/19-10/22/19 Grand Hyatt Atlanta in Buckhead Atlanta, GA While the US Supreme Court’s decision in Wayfair has dominated recent headlines, there is a lot more happening in the SALT world that you and your clients need to know about.  In this session for AGN International, David and Jordan will explore current SALT developments and trends with an emphasis on recent…

Chris Lutz spoke about the Virginia Albemarle County Circuit Court's decision in Crutchfield Corp. v. Harding, in an article by Tax Notes. Chris explained that Virginia courts did not have personal jurisdiction over a Massachusetts official claiming Crutchfield had sales tax nexus with the state. The Massachusetts regulation considers the use of in-state software and cookies as constituting a physical…

10/23/19 Chicago, IL David A. Hughes will present "Unclaimed Property Enforcement in Illinois and Multistate Audits" with BDO. Two reporting cycles have passed since Illinois adopted its unclaimed property law changes, including elimination of the Illinois business-to-business exemption for vendor payments and customer credits. This webinar will focus on Illinois efforts to enforce its new unclaimed property regime, including a…

Read the full article on State Tax Notes here (subscription required). In his new column on State Tax Notes, Chris discusses how states and Congress should address challenges presented by Public Law 86-272 and criticizes state efforts to interpret the law out of existence. In the past 15 years, the state corporate income tax landscape has undergone significant change. Although…

Auditors in Chicago have been aggressively asserting that businesses have tax duties under the "cloud computing tax" because of their economic presence, or the volume of business they conduct within the city. In an article by Bloomberg Law News titled "State of Wayfair: Economic Thresholds Sneak Into Chicago Audits" by Michael J. Bologna, Samantha Breslow explains that the problem is…

At the beginning of 2016, Chicago implemented a unique method to tax businesses for their use of remote computing services, also known as the cloud. The Personal Property Lease Transaction Tax program collected $13.9 million during its first six months and rose to $42.2 million through 6/30/18. In an article by Bloomberg Law News, Samantha Breslow explained that Chicago is…

09/23/19 Orlando, FL See below for more information about Jordan's presentation at the IPT Sales Tax Symposium. If you would like to attend or have questions about a presentation, click here to contact Jordan. Jordan Goodman presents "How to Effectively Manage Indirect Tax Liabilities with Big Data and Tax Analytics" In this session, attendees will learn to: Harness large volumes…

After serving as Vice Chair of the Chicago Bar Association's SALT committee last year, Samantha Breslow has been appointed as the 2019-2020 Chair. Learn more about Chicago Bar Association here.…

Starting October 1st, 2019, two new Amnesty programs will arrive in Illinois. One will cover all taxes administered by the Department of Revenue. The other program will cover franchise taxes. Before these programs come into play, members of the HMB State and Local Tax practice provide insight into what these changes will look like. Taxes Administered by Department of Revenue…

10/24/19 JW Marriott Washington, DC Fred will co-present with fellow Paul Frankel Award recipients at COST's 50th annual meeting. Over his long career, Paul Frankel, the "Godfather of COST", spearheaded a number of issues that evolved over the years. In this session, presenters will discuss those issues, their evolution and Paul's impact on them. If you want to attend or…

12/17/19 Grand Hyatt New York on 42nd Street New York City, NY Fred Marcus will present "Today in Taxes" at New York University's 37th Institute on State and Local Taxation on December 17th, 2019. The most important SALT developments will be discussed throughout the event by a team of industry leaders. The 37th Institute will include a "Hardball" segment that…

11/15/19 Tax Strategies 2019 Hotel Allegro Chicago, IL David Hughes will present "State and Local Tax Issues in Corporate M&A Transactions" for Practising Law Institute at Tax Strategies 2019 on November 15th, 2019. The presentation will address state and local tax issues that arise in corporate transactions with a particular emphasis on Section 338(h)(10) sales and tax-free reorganizations and spin-offs.…

Disclosing tax return information has always been a dicey topic. Under the guise of transparency, there have been several proposals by tax advocates over the years to disclose tax information. The focus of these proposals has generally been on the taxes paid by corporate America and the use of tax planning strategies. As a general principle, this type of limited…

Illinois’ tax treatment of leases is an anomaly when compared to most other jurisdictions.[1] The general rule in most jurisdictions is to impose sales tax on the receipts collected from the lessee, the actual user of the equipment. However, Illinois differs, at least in the context of a long-term lease (i.e., more than one year), by treating the lessor of…

2019 State and Local Tax Workshop for Technology Companies Foster City, California Beware of the Locals—They Might Take You by Surprise With Jordan Goodman San Francisco, Mountain View, Portland, Seattle—what are these cities thinking? Each has aggressively targeted businesses (and, in many situations, exclusively tech businesses) for new revenue. This panel will provide an overview of several of these new…

6/27/19 Saddle & Cycle Club Chicago, IL David Hughes presents "Indirect and Operational Tax" at the Chicago Tax Club's Summer Seminar on June 27th. The presentation reviews recent state cases that defy logic and would cause any tax professional to think twice about whether the positions they take are on solid ground. Click here to learn more about the seminar.…

As you may be aware, the Illinois legislature recently completed its 2019 legislative session. This session was particularly productive from a tax legislation perspective and we would like to update you on the key state and local tax changes that may affect you or your business. Please do not hesitate to contact any member of the HMB SALT team if…

Spring 2019 Start-Up Conference Start-Up: State Tax Roundtable for Utilities & Power New York, New York Chris Lutz Present "Combined Reporting and the Unitary Business Principle, with a focus on Regulated and Unregulated Groups" at Spring 2019 Start-Up Conference…

5/15/19 Georgetown University Law Center Washington, DC Chris will discuss income tax and cryptocurrency at the 42nd Annual Advanced State and Local Tax Institute. Georgetown Law will host the event, and offers two full days of SALT sessions for attendees. If you have questions about the presentation, click here to contact Chris.…

5/15/19 - 5/16/19 42nd Advanced State and Local Tax Institute Georgetown University Law Center Washington, D.C. Chris Lutz, "Cryptocurrency and Taxation of the New Economy" - 5/15/19, 3:00pm-4:00pm Gather updates on state sales and corporate taxation and sourcing of digital products Discuss the implications of the exponential growth of the sharing economy and crypto-currency on state taxation Analyze the ramifications…

5/7/19 Salvatore’s Italian Garden Buffalo, NY David Hughes presents "Multi-State Taxation" at the 60th Annual TEI Upstate New York Tax Conference. The all-day event hosts speakers from across the United States who will discuss tax and tax-related topics. Click here to learn more about the conference. Click here to contact David with questions.…

5/1/19 Chicago, IL David Hughes is a faculty member for Sales Tax Institute's Advanced Sales and Use Tax Advanced Workshop. David discusses taxation services, the construction industry and gross receipts taxes. Click here to learn more about Advanced Sales Use Tax Workshops. Click here to contact David with questions.…

4/24/19 Dallas Chapter of Tax Executives Institute Dallas, TX Jordan Goodman will lead a detailed discussion of the key SALT cases.…

3/12/19 Ritz-Carlton new Orleans New Orleans, LA David Hughes presents "Market Based Sourcing" at the ABA/IPT Advanced State Income, Sales/Use & Property Tax Seminar in March. The seminar is designed with attorneys, accountants, tax directors state and local tax managers, government tax officials, appraisers, property tax managers, commercial and industrial property managers and others interested in state and local income,…

Live Webinar At the end of this Webinar, participants will: Appreciate the numerous ways states are trying to tax out-of-state sellers Be aware of the "single state" attack on Quill and potential ramifications associated with its demise Understand the constitutional hurdles that a state must overcome to reverse Quill…

Council On State Taxation (COST) Sales Tax Conference & Audit Session San Antonio, TX - 3/1/17 Early Morning Ethics Coffee Talk: Ethics and Professional Responsibilities for Transaction Tax Professionals It's never too early to learn about ethics.  Come to this early morning session and be entertained by these speakers as they cover new and breaking ethical issues related to transactional…

Join us for our 15th Annual HMB Summer Camp!  A full-day conference presented exclusively to HMB's valued clients and invited guests.  Discover the latest issues, evaluate important updates and gain valuable insight from our seasoned professionals. Click here to request a PDF of the presentation. Agenda 8:00 - 8:30am - Registration & Continental Breakfast 8:30 - 8:45am - Welcome and…

An Illinois court September 3 dismissed a suit against out-of-state wine sellers and held that a state liquor law did not require the sellers to collect local sales and use taxes. In Stephen B. Diamond PC v. 1-800-Flowers.com, an Illinois attorney filed a qui tam complaint in the Circuit Court of Cook County on behalf of the state alleging that a group…