The United States Supreme Court issued an opinion on June 21, 2018, that overturned two seminal cases in the area of state tax nexus—Quill Corp. v. North Dakota and National Bellas Hess, Inc. v. Department of Rev. of Ill. These two cases provided the basic tax nexus principle that a state could not require a [...]
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The Texas Comptroller has launched Project Fresh Start, an amnesty program for taxpayers that have failed to register for one or more taxes or that have past-due tax reports. The deadline to apply for the program is August 17. More information can be found on the Comptroller's website (http://www.freshstart.texas.gov), or you can contact David Sewell [...]
The case of TracFone Wireless, Inc. and Virgin Mobil USA, L.P. v. Commission on State Emergency Communications (No. 11-0473) is set for oral argument in the Texas Supreme Court on October 17, 2012. The attorneys of Stahl, Bernal & Davies represented TracFone Wireless, Inc. in the administrative hearing on the matter currently pending before the [...]
A taxpayer’s prior audit history can be a favorable factor in settling a taxpayer’s assessment in a separate audit. Recently, the attorneys of Stahl, Bernal & Davies were able to favorably settle a case with the Comptroller based primarily on the fact that the taxpayer’s most recent audit was a zero tax due audit. This [...]
A June 2012 policy statement issued by the Comptroller notified taxpayers of a change in policy regarding amending franchise tax reports to select a different deduction. Under prior law and policy, a taxpayer that filed a franchise tax report electing the cost of goods sold deduction could not amend the report to take the compensation [...]
House Bill 2403, as passed by the Texas Legislature, would have amended the Texas Tax Code to provide that a company has nexus with Texas for sales tax purposes if it (1) sells property owned by another person in Texas, (2) owns a "substantial ownership interest" in or in which a "substantial ownership interest" is [...]
Senate Bill 1811 was killed by a late filibuster at the end of the 2011 legislative session. Among other things, this bill would have extended the $1 million small business franchise tax exemption. Since the exemption was not extended, a sunset provision in the exemption (originally enacted during the 2009 legislative session) causes the exemption [...]
The Third Court of Appeals in Austin recently issued an opinion involving the automatic title transfer provisions in the federal FAR regulations that affect companies that do business with the federal government. The FAR regulations dictate that title to property purchased by a vendor to the federal government immediately passes to the government. Texas courts [...]
Under current Comptroller policy, once an entity has qualified as an exempt passive entity under franchise tax law and has filed a franchise tax report indicating that it is a passive entity, that same entity is not required to file any subsequent franchise tax reports so long as it continues to qualify as passive. This [...]
In Combs v. Home & Garden Party, Ltd., the taxpayer manufactured certain goods but also resold goods in the same form in which they were purchased. The taxpayer sought a refund under the manufacturing exemption for its purchases of packaging supplies that it used to package both the goods it manufactured and the goods that [...]