Game of “Throwback” Sales: Pharmaceutical Company had nexus in states where it conducted clinical trials, so Company’s sales to customers in those states could not be “thrown back” to Indiana in calculating its sales factor for income tax apportionment purposes.

In Letter of Findings No. 02-20110552 (posted July 25, 2012), see http://1.usa.gov/PqikJy, the Taxpayer (herein, "PharmCo") manufactured and marketed various pharmaceutical products and services. PharmCo also was involved in the research and development, production, and marketing of the pharmaceuticals. PharmCo … [Read more...]

Taxable Flower Power: Department of Revenue finds that Florist “constructively possessed” flowers delivered by clearinghouse members, so “relay or service charges” were subject to Indiana sales tax

An Indiana company (for purposes of this post, “Blossom”) simply had too much “flower power.”  Blossom belonged to a florist telegraphic delivery ("FTD") association – a clearinghouse – and offered delivery of flowers within and outside of Indiana.  Blossom operated … [Read more...]

Alabama personal income tax – There’s no business like Horse business! Department of Revenue allows deductions for expenses relating to horse farms

Two Final Orders from the Alabama Department of Revenue, Administrative Law Division, in June addressed the propriety of deductions for horse farm expenses for income tax purposes. In both cases, the taxpayers prevailed and were permitted the deductions for "ordinary and necessary expenses incurred in a trade or … [Read more...]

“Same” is in the eye of the Indiana Board of Tax Review: Update on the 5% burden-shifting rule for property tax appeals

When is real property the “same” from year-to-year?  As I have discussed before, in 2011 the Indiana General Assembly passed legislation that shifts the burden of proof on appeal to the assessor, when the "same" property's assessment increased by more than 5% over the prior year’s … [Read more...]

Indiana Department of Revenue issues Notice of Intent to Adopt a Rule: Department seeks to repeal obsolete rules for various taxes

The Indiana Department of Revenue has published its intent to repeal numerous regulations from a variety of tax types.  See http://1.usa.gov/PmeeXc.  The Department states, "The proposed rule repeals non-operative provisions from the administrative code and represents technical amendments … [Read more...]

Indiana Department of Revenue Announces New Director of Tax Policy

The Indiana Department of Revenue issued the following press release yesterday, see http://www.in.gov/dor/4682.htm: (INDIANAPOLIS – July 17, 2012) – The Indiana Department of Revenue announced Shane Corbin as the new deputy director of tax policy. Corbin has been with the Department since 2008. Corbin … [Read more...]