KPMG reports - Michigan (unitary group filings); New Jersey (throw out rule); North Carolina (refund claims); Ohio (nonresident workers); Rhode Island (telecommunications) 

January 20: KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments and features a series of short podcasts presented by KPMG tax professionals. Text of the podcasts is also available.

This week’s edition includes the following topics (listen to the podcasts; to read text, click on the links below).

  • Michigan - New laws (1) provide an “affiliate group” election by allowing an affiliate group to elect to file as a unitary business group for Michigan corporate income tax purposes; and (2) address the treatment of pass-through entities that are members of unitary groups that have elected to continue to pay Michigan Business Tax (MBT) until certificated credits are fully used.

  • New Jersey - The New Jersey Tax Court, in an unpublished opinion, concluded that the economic nexus standard applies to determine whether receipts must be “thrown out” under a now-repealed rule.

  • North Carolina - The state’s protective refund claim policy is repealed (effective January 2014); instead, a new statutory exception to the statute of limitations for refunds relating to contingent events is now effective.

  • Ohio - The Department of Taxation revised the standard used to determine whether a nonresident is subject to Ohio’s individual income tax and modified the safe harbor provisions for nonresident workers (effective 2014).

  • Rhode Island - The Division of Taxation issued a ruling that a taxpayer (whose business was installing pay telephones) ought to have filed as a public service corporation and was to have paid the gross earnings tax imposed on providers of telecommunications services.

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