Winning Strategies: How to Approach SALT Litigation with Sam Breslow Part 2
In this episode of the SALTovation podcast, we continue our conversation with Sam Breslow on the complexities of state and local tax regulations, highlighting the challenges of accessing historical tax information, the implications of different source and destination tax laws, and the intricacies of Colorado's local tax system. Through real-world case discussions like Ohio's VBF case and Illinois's leveling the playing field regulations, Sam provides valuable insights for businesses navigating the labyrinth of tax compliance. Listen this week to get expert tips on managing voluntary disclosure agreements and learn about the ongoing efforts to simplify tax!
Key Takeaways:
- Historical FYIs and FOIA Requests: The sanitization of FYIs led to significant challenges for practitioners who used these documents for tax comfort, highlighting the critical role of FOIA in accessing pivotal information.
- VBF Case Insights: The Ohio VBF case emphasized the necessity for taxpayers to maintain extensive records that demonstrate the final destination of goods to ensure proper sourcing for gross receipts taxes.
- Colorado Local Tax Complexities: Remote sellers face an arduous task navigating Colorado's diverse local tax requirements, especially given the inconsistencies in the adoption of model ordinances and participation in the SUTS system.
- Leveling the Playing Field in Illinois: Illinois' complex tax system, including the differentiation between remote and in-state sellers, presents numerous challenges, with pending legislation aiming to simplify the existing labyrinthine structure.
- Strategic Tax Planning: Both Judy and Sam stress the importance of strategic planning and staying informed about statutory changes to effectively manage state and local tax obligations and avoid inadvertent compliance issues.
Quotables
- "If a state needs a flowchart to decipher its law, that’s probably a sign that maybe it violates due process because it's so cumbersome to use.” -Sam Breslow
- "I advise my clients to pay very close attention to when they adopted the model ordinance, which for those of you that maybe aren't as familiar, that means that you're pretty much saying if you're subject to tax at the state level, if you give over 100,000 sales at the state level, you're subject to tax localities, which is unconstitutional.” -Sam Breslow
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