Journal of State Taxation articles from January 2007

Journal of State Taxation archives from January 2007

2006 year in review.
January 1, 2007... Introduction 2006 was another banner year for nexus developments as states continue to test the limits of permissible authority to tax. As one might expect, many of these developments involve the "usual suspects"--employee visits,...

Payroll factor-leased employees.
January 1, 2007... Overview Under Uniform Division of Income for Tax Purposes Act (UDITPA) [section]1 3, the payroll factor is a fraction, the numerator of which is the total amount of compensation paid in the state by the taxpayer, and the denominator of...

The renewal of the software wars.
January 1, 2007... Overview The great state of Wisconsin has given us "cheeseheads," Brett Favre, "Fighting Bob" LaFollette, Joe McCarthy, the Republican party (born in Ripon, Wis. on March 20, 1854), and the first state income tax (1911). Recognizing that...

FIN 48 - uncertain tax positions in the State Arena.
January 1, 2007... Introduction FASB Interpretation No. 48 (FIN 48)is an interpretation of FASB Statement No. 109 (SFAS 109), Accounting for Income Taxes generally applicable to years beginning after December 15, 2006. (1) FIN 48 addresses the accounting for...

Trust and personal responsibility: Hoosier values are Indiana tax law. (responsible officer liability laws, how Department of Revenue imposes liability for sales, use and withholding taxes)
January 1, 2007... Introduction When Hoosiers pay sales tax, or when withholding taxes are deducted from their paychecks, they trust that the money will be deposited in the state's treasury. When dishonest retail merchants or employees pocket the taxes, they...

Sales tax on Internet service providers: Eric Rothenburg discusses the arguments for and against the taxation of Internet service providers.
January 1, 2007... Introduction In the 21st century, states have an option with regard to collecting taxes for the benefit of the state. I call this the "taxation mix." The mix consists of taxing income, wealth or consumption. Each state in the United States...

An examination of tax audit productivity: Praveen Sinha examines the effectiveness of using tax deficiency per audit hour as a tool for audit selection and to measure audit productivity.
January 1, 2007... Abstract This study questions the use of tax deficiency per hour of audit effort as an appropriate metric for measuring tax audit productivity. The primary concern with the usage of this metric is the assumption that the marginal returns...

Frequently asked multistate tax questions.
January 1, 2007... How Are Sales and Use Taxes Applied to Construction Contractors? Properly understanding the application of sales and use tax to construction contractors requires some historical background, an appreciation of the theoretical underpinnings...