Most of the buzz of 2017 focused on state attempts to "Kill Quill" and a "will they or won't they" debate of whether the U.S. Supreme Court would accept cert to review the long-standing "physical presence" standard for remote sales tax collection established under Quill Corporation v. North Dakota. The decision to accept the case could result in a major change in the authority of states to tax internet sales and is rightfully deserving of all the attention that it has garnered. With that being said, there have been some interesting and noteworthy income tax decisions that have come down this year as well and will be the focus of this article. While the physical-presence standard may be all of the rage on the sales tax side, issues of nexus, addback, and alternative apportionment were a few of the issues that dominated the income tax scene in 2017.
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