Tax News

CCH (cch.taxgroup.com) reports:

  The North Carolina General Assembly's conference committee has presented a proposed budget to the full General Assembly for approval that contains provisions that would enact a new personal and corporate income tax surcharge; partially conform North Carolina income tax provisions to federal provisions enacted in 2008 and 2009; increase the sales and use tax rate; adopt an Amazon provision with a $10,000 threshold; expand the sales tax base on digital property; and increase the alcohol excise and tobacco products tax rates.

  Notably absent from the latest budget deal is the unitary group reporting requirement, which was a hybrid of a combined reporting and a consolidated return approach; expansion of the corporate franchise tax to limited liability companies; and the corporate income tax throwback rule that were proposed in the House's version of the budget bill (see TAXDAY, 2009/06/17, S.3) The conference committee's budget bill passed the first vote of the General Assembly on August 4, 2009, and will be presented for a second vote on August 5, 2009, before being sent to the Governor for her signature.

CCH (cch.taxgroup.com) reports:

  An income tax refund that was traceable to pension, unemployment compensation and Social Security benefits that were exempt under state (Ohio) law was also exempt. The state exemption provisions were clearly designated to protect funds intended primarily for maintenance and support of debtors' families. Therefore, because it was traceable to funds exempt under state and federal statutes, the refund was also exempt.

In re J.W. Sparks, BC-DC Ohio, 2009-2 USTC ¶50,531

Other References:

 
Code Sec. 6402

  CCH Reference - 2009FED ¶38,519.145

 
Code Sec. 6871

  CCH Reference - 2009FED ¶40,630.12

  Tax Research Consultant

  CCH Reference - TRC IRS: 57,060

CCH (cch.taxgroup.com) reports:

  A corporation's claims for damages stemming from the IRS's alleged unauthorized disclosure of return information to the Japanese National Tax Administration were remanded to determine whether any such disclosures were not barred by the statute of limitations. For subject matter to exist under Code Sec. 7431(d), the corporation must have filed its action within two years of the date that the alleged disclosures were discovered, not the date that the corporation realized the disclosures were unauthorized. This two-year limitations period is jurisdictional and was intended to be absolute. Because the district court made no findings of fact determining the dates that the corporation discovered the disclosures, the matter was remanded to determine whether the corporation discovered any disclosures within the two-year statutory period.

  Vacating and remanding a DC Ariz. decision, 2007-1 USTC ¶50,325.

Aloe Vera of America, Inc., CA-9, 2009-2 USTC ¶50,530

Other References:

 
Code Sec. 6103

  CCH Reference - 2009FED ¶36,894.65

  CCH Reference - 2009FED ¶36,894.75

 
Code Sec. 7431

  CCH Reference - 2009FED ¶41,758.10

  Tax Research Consultant

  CCH Reference - TRC IRS: 9,052.10
CCH Reference -
TRC IRS: 9,352
CCH Reference -
TRC IRS: 9,358
 

CCH (cch.taxgroup.com) reports:

  Senate Finance Committee Chairman Max Baucus, D-Mont., said he is confident a health care reform bill will reach the president's desk in 2009 "if we all work together...." Emerging with other Senate leaders from a White House luncheon meeting on August 4, Baucus said he wants a final bill to reform the health insurance industry, cut health care costs and garner 60 votes. When asked by a reporter, he did not say whether a final package must include a specific mechanism, such as a public option or non-profit co-op, to increase coverage for the uninsured.

  Baucus has been working diligently for months with other key senators in an effort to move forward a bipartisan bill that does not lose the support of Democratic members. Sen. Christopher Dodd, D-Conn., stressed that Democrats and GOP members of Congress must come back from the August recess with a "new sense of purpose" to get the bill done.

  By Paula Cruickshank, CCH News Staff

Tax Analysts report: