Supreme Court Overturns Decades-Old Precedent; Allows States To Tax Retailers Doing Business In States Without Physical Presence
On June 21, 2018, in South Dakota v. Wayfair, the U.S. Supreme Court overruled the long standing “physical presence test” established under Quill Corp. v. North Dakota (“Quill”) to determine whether there is a sufficient nexus for a state to require an out-of-state retailer to collect and remit sales tax for conducting business within its borders. In doing so, the Court has paved the way for states to impose sales taxes on out-of-state online retailers, which could allow the states to claim an estimated $8 to $33 billion in additional revenue per year.
Kostelanetz & Fink is pleased to announce two additions to the DC Office.
Claude M. Millman Quoted in "Department Of Youth And Community Development Public Contract Hearings Lack Public Engagement," New York Nonprofit Media
All of the contract information could be made available online, said Claude Millman, a partner at Kostelanetz and Fink, who represents government contractors, including nonprofits, doing business with New York City and state, and a former director of the Mayor’s Office of Contract Services.
“If I decided I wanted to tell everyone about a proposed contract I could post it on Facebook, link to the contract, and allow online commenting I would read out at the hearing,” he said. “If you regularly make (the contracts) unavailable, you’re going to depress public interest in the hearings themselves.”
Caroline D. Ciraolo presented "Identifying And Addressing Conflicts Of Interest And Ethical Issues In Today's Tax Practices" at the 42nd Annual American Institute on Federal Taxation
The 2018 program included many of the best speakers in the country. It has been a tradition of the AIFT to provide the highest caliber tax program presenting and explaining the latest tax strategies, updates, legislative forecasts, and planning techniques.
Megan L. Brackney moderated the panel titled "The IRS Voluntary Disclosure Program: Past, Present, And Future" at the 10th Annual NYU Tax Controversy Forum
The Offshore Voluntary Disclosure Program, one of the IRS’s most successful tax compliance and enforcement programs ever, is scheduled to end on September 28, 2018. However, the IRS has had a general voluntary disclosure policy for decades. Many taxpayers are surprised to learn that they also can make a voluntary disclosure to correct domestic non-compliance as well as international non-compliance. How do domestic voluntary disclosures work and how will the general voluntary disclosure policy apply in cases of unreported foreign assets?
Caroline D. Ciraolo moderated the panel titled "May I Have My Money Back Now Please? The Legal Landscape Overseas And Strategies To Navigate International Asset Seizures" at the 10th Annual NYU Tax Controversy Forum
Governments around the world are paying more attention to the source and use of money that passes through their financial systems and enacting legislation, such as the UK Criminal Finances Act of 2017, to combat the facilitation of tax evasion. Drawing on their experience in government and private practice, this panel reviewed the UK approach, including how financial institutions react to suspicious transactions, outlining the procedures for restraining and seizing accounts and offering strategies you can use to assist clients when a financial institution suspends access to an account.
Caroline D. Ciraolo participated in the panel titled "Department Of Justice Update" at the 10th Annual NYU Tax Controversy Forum
Voluntary compliance and enforcement of the tax law are at the heart of our tax system. Over the past several years, the IRS and DOJ have been challenged to come up with new and more efficient ways to ensure that all taxpayers pay the correct amount of tax. This panel provided an update on new developments and priorities across the IRS and DOJ.
Kostelanetz & Fink and the NYU School of Professional Studies were pleased to present the 10th Annual Tax Controversy Forum. The Tax Controversy Forum brought together representatives from the government and expert private practitioners to compare perspectives on a variety of topics involving federal tax audits, appeals, and litigation.
Michael Sardar participated in the panel titled "International Tax Enforcement Update" at the Hackensack Performing Arts Center
This year's update reviewed the life-cycle of an international tax controversy, including the most common errors on returns required to be filed by US Persons reporting foreign assets and income and the procedures used by the IRS to determine a liability based on foreign income, deductions, and assets.
The number of accuracy-related penalties assessed against individual taxpayers increased from 58,366 in 2005 to 499,190 in 2016. That is nearly a 900% increase over the past decade! Are there more bad taxpayers? Or, is the IRS just getting more aggressive about asserting penalties?