The Tax Exchange - April 2017
Facing the uncertainty of federal tax reform, and in addition to widespread budget deficits and lackluster economic growth, several states are considering new (or bringing back old) methods of revenue generation.
…and nobody knows what is on third. The Abbot and Costello skit was made well before e-commerce arrived, but its focus on confusion is an apt parallel to the current state of sales tax nexus in this country.
The U.S. Tax Court ruled against the IRS and concluded that Amazon properly priced the value of certain pre-existing intangibles to be used in Amazon’s European business. This was yet another blow to the IRS and could end up costing the IRS billions in other cases if the ruling persuades other companies to continue to fight on similar issues.