Episode 68

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Published on:

25th Jul 2023

Tax Litigation Trends and Challenges with Masha Yevzelman: Part 2

In this episode of SALTovation, Meredith Smith and Judy Vorndran continue their conversation with Masha Yevzelman, Litigator at Fredrikson & Byron, P.A. They discuss the challenges of litigating tax cases and the lack of consistency in state tax laws. They highlight the need for factor presence thresholds and small business exemptions. Masha shares examples of significant cases, including a property tax exemption dispute between government entities and a residency case involving conflicting state interpretations. Masha, Judy, and Meredith emphasize the importance of understanding the impact of tax decisions on individuals and businesses.

Topics discussed in this episode:

  • Factor presence threshold standards for income tax
  • Challenges faced by large businesses in tax litigation
  • Impact of state tax rates on controversy
  • Tax consequences of residency decisions
  • Shift in remote work and its impact on tax considerations



Quotables:


  • "When you look at a visual of which states have factor presence for income tax purposes, it's pretty clear that it's a very small number of states. But what's interesting about the MTC position is the MTC said if you're going to adopt this website position state, you should have factor presence.” -Masha Yevzelman [01:27]



  • "That's why the litigation is a challenge. You've got to have the big taxpayers doing it, not the little guys unless there's a giant class action that takes time, effort and bandwidth to support. So you just don't see the advocacy unless you're a large multinational business.” -Judy Vorndran [03:01]


  • “Some cases really aren't suitable for settlement. Like I said, it's kind of an all or nothing proposition. It's an ongoing issue. Clients need certainty, too. And so even like settling a few years in an unprincipled way doesn't fix it because then what about all the later years where the facts are the same and the law is the same and what are we going to do then?” -Masha Yevzelman [04:50]


  • "We're seeing more aggressive state positions. If you know that that's the position of the Department of Revenue and the auditor is applying it and the appeals officer is going to apply it, then really the only way to challenge it is through litigation.” -Masha Yevzelman [06:01]



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Mentioned in this episode:

Advanced Sales and Use Tax Workshop

Take your sales tax to the next level at Advanced Sales and Use Tax Workshop, February 19-21 in Nashville. Diane Yetter and the Sales Tax Institute’s industry-leading faculty provide individualized training, valuable resources, and practical solutions. Expand your network and earn 23 CPE credits. Visit the link in the show notes and use the code SALTOV10 for 10% off. Save your spot now!" https://keap.page/xp141/saltovation-podcast.htm

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About the Podcast

SALTovation: Making Sense of State and Local Tax
Welcome to SALTovation. The SALTovation show is a podcast series featuring the leading voices in state and local tax (SALT). Here we talk about issues, strategies, and planning tools to help you make sense of SALT. Because, in SALT, there is no “one and done.” SALT is a puzzle of ever-changing pieces. Solving that puzzle is our business at SALTovation. Tens of thousands of listeners know they won't get tax talk as usual with the SALTovation team. Our team is known for straight-talk with a flair for fun, providing clarity and opinions that move businesses forward with confidence.

Attorney, CPA, speaker, and writer Judy Vorndran leads the SALTovation team as they go inside business to help deal with the daily operations and long-term strategies of making SALT less “taxing.” Judy has spent more than 25 years advocating for businesses with innovative strategies, renowned knowledge and experience. She has helped guide thousands of taxpayers across the nation and globally through the morass of SALT, freeing them to concentrate on growth. Joining Judy are the wickedly smart members of the SALTovation team, who have seen, worked with and tamed some of the most prickly issues in SALT. They enjoy sharing their stories and knowledge with listeners.

Solving the SALT puzzle doesn’t happen in a vacuum; it takes a community. So, we invite leaders in business and state and local tax to share their stories, challenges and successes on this show. Drop us a line at SALTovation.com if you'd like to join the conversation and tune into our regular series at TaxOps.com.