KPMG reports: California (apportionment); Illinois (200% interest penalty); Massachusetts (mediation); Massachusetts (combined reports); Pennsylvania (click-though nexus); Utah (taxable repairs) 

September 10: 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.

Today’s edition, for September 10, 2012, includes the following topics (listen to the podcasts; to read text, click on the links below).


  • California [PDF 25 KB]: An appeals court held that the California Franchise Tax Board can require a taxpayer that purchased and sold commodities futures, in order to hedge against price fluctuations of products used in its business, to use an alternative apportionment methodology.
  • Illinois [PDF 24 KB]: An Illinois appellate court held that when a taxpayer’s income was adjusted by the IRS, the taxpayer was subject to the post-amnesty 200% (double) interest penalty.
  • Massachusetts [PDF 23 KB]: The Department of Revenue issued a draft directive addressing the Commonwealth's new early mediation program, which provides an expedited process for resolving tax disputes.
  • Massachusetts [PDF 23 KB]: A seven-month extension is available for taxpayers filing Massachusetts combined reports.
  • Pennsylvania [PDF 22 KB]: In a letter ruling, the Pennsylvania Department of Revenue addressed whether certain relationships with in-state advertisers created a sales and use tax collection responsibility for remote retailers—i.e., click-through nexus.
  • Utah [PDF 24 KB]: The Utah Tax Commission explained that a determination of whether repair services to turbine generators are subject to Utah sales tax depends on whether the repair work is conducted onsite or offsite.



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