Bill Backstrom and Alysse McLoughlin to Present at Hartman SALT Forum

Join Jones Walker SALT Team partners Bill Backstrom and Alysse McLoughlin at the 29th Annual Paul J. Hartman State & Local Tax Forum on October 19-21, 2022 in Nashville!

Bill will speak on the panel “The New Frontier in Mergers and Acquisitions”, which will cover unique issues on diligence, discuss how to navigate the role of representations and warranties insurance, and provide practical guidance to successfully close a transaction from both a buy-side and sell-side perspective.

Alysse will speak on the panel “Allocation: Double Taxation and Other Issues”, which will address these tricky allocation issues with a particular focus on the problems that arise with sourcing investment income.

Click here for more information on the conference or to register. 

John Fletcher Quoted in Law360 Articles Regarding Interstate Commerce and Business Input Software

Jones Walker SALT partner, John Fletcher, was quoted in the article “Calif. Pork Law Fight May Guide Post-Wayfair Tax Challenges,” published by Law360 on October 14, 2022. The article covers an ongoing US Supreme Court Case regarding interstate commerce, previous tax litigation, and whether California’s importation of pork from other states violates a voter-approved initiative regarding in-state meat sales. John discussed the case in relation to the US Supreme Court’s decision in South Dakota v. Wayfair, which allows states to tax purchases from out-of-state sellers. He addressed the possible burdens placed on amateur sellers to comply with additional state sales tax regimes and reviewed the Justices’ attitudes toward the costs and benefits of interstate commerce.

John was also quoted in the article “Miss. Shouldn’t Tax Software Used as Biz Input, Report Says,” published by Law360 on October 3, 2022. The article discussed the implications of Mississippi providing sales and use tax exemptions for business input software and cloud computing services, and John explained that the state would be prohibited from automatically imposing a tax on software with an administrative service that used to be tax-free.

Jones Walker SALT Team Speaks at IPT Symposium in Boston

Jones Walker SALT Team members Jay Adams, Jeff Birdsong, Cami Fergus, John Fletcher, Matt Mantle, and Alysse McLoughlin attended and spoke at the 2022 Institute for Professionals in Taxation (IPT) Sales Tax Symposium in Boston, MA. The Institute, founded in 1976, is a 501(c)(3) not-for-profit educational association serving more than 6,000 members representing approximately 1,200 corporations, firms, or taxpayers throughout the United States and Canada. It is the only professional organization that educates, certifies and establishes strict codes of conduct for state and local income, property, sales & use, and value added tax professionals and credits& incentives practitioners  who represent taxpayers (government officials or organizations do not qualify for membership).

Just Another Day at the Supreme Court

At the Supreme Court early with my great friend Pat Reynolds of COST. Following National Pork Producers case, will it be a sleeper SALT case? Will Pike balancing test be toast? Is the dormant Commerce Clause really a “dead letter”? Looking forward to watching my first oral arguments.

Thank You to our Jones Walker SALT Seminar Administrators!

We would like to thank Jennifer Burleson – Director, Tax Policy Division, Texas Comptroller of Public Accounts, Mary Martin Mitchell – Acting Director, Tax Policy and Governmental Affairs Division, Alabama Department of RevenueArthur Parham – Retired General Tax Advisor, Entergy, and Kevin Richard, Secretary, Louisiana Department of Revenue for being our luncheon speakers at our tax administrators roundtable during our annual State & Local Tax Seminar in Houston, TX.

Each panelist provided great insight into their respective state’s handling of recent legislation and how we can work together to create solutions between tax administrators and tax payers.

Andre Burvant Presents at COST Property Tax Workshop 2022

Partner Andre Burvant, a member of the firm’s state and local tax team, will serve as a panelist at the upcoming Council On State Taxation (COST) 2022 Tax Property Workshop on September 13 in Denver, Colorado. Andre will offer his perspective on the future of property tax litigation for the rest of 2022 and into 2023 during his presentation.

Bill Backstrom Presents at COST Property Tax Workshop 2022

Bill Backstrom, partner and leader of the firm’s Tax Practice Group, will present on a panel discussing state and local tax incentives and programs at the upcoming Council On State Taxation (COST) 2022 Tax Property Workshop on September 14 in Denver, Colorado.

Jay Adams Presents at COST Property Tax Workshop 2022

Jones Walker SALT Team leader Jay Adams will participate as a panelist for a presentation on current valuation issues in tax dispute resolution trials for the Council On State Taxation 2022 Property Tax Workshop on September 14 in Denver, Colorado.

 

Addendum – Estimated Tax Payments: Mississippi Follows the National Pass-Through Entity Tax Election Trend — Start Now to Make a 2022 Tax Election

Addendum – Estimated Tax Payments:  Just after our article went to press, we received some informal guidance from the DOR regarding estimated tax payments that presents a bit of a conundrum for those considering the PTE election.  As explained below, it may be necessary to make duplicate estimated payments at both the entity and partner/member level to avoid estimated tax penalties.

If an entity is contemplating making the election for the 2022 tax year (due no later than March 15, 2023 for most entities), the PTE needs to be making estimated payments now at the entity level to avoid estimated tax penalties.  At this time, however, many of those eligible companies have not decided whether to make the election, don’t have the benefit of the full year’s financial results to enable them to quantify any benefits, and almost certainly haven’t taken the necessary internal votes to qualify.

DOR indicated informally that they will likely waive any penalties that might apply for having failed to make entity-level Q1 and Q2 estimated payments due to the effective date of the legislation and the lack of an election mechanism at that time.  Penalties related to the failure to make entity-level estimates for Q3 and Q4, however, may be more difficult to abate.

The practical problem is that in the event a PTE election is not made, to avoid their own penalties the partners/members should be making their own estimated payments based on the possibility that the PTE income could be taxed at their level and included in their returns as in prior years.  It is very unlikely that DOR will “move” estimated payments from an individual account to an entity account to avoid double payment and/or penalties, which means refund claims will be likely at one level or the other once the final filing position is determined and liability is calculated.

Finally, while the election form is not yet available on the DOR’s site, they indicated that an online election can be made now via the company’s TAP account for those interested.

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