The SALT Shaker - November 2016

November 1, 2016

By Keith Habel

Partner, SALT Practice Leader


New General Letter Rulings Issued: The Illinois Department of Revenue issued general information letter rulings discussing sales taxability on the value of discount coupons redeemed by customers and the taxability of computer software licenses and cloud-based delivery. ST 16-0030-GILST 16-0033-GIL

Private Letter Ruling Discussing Freezer Machinery and Equipment Exemption: The Illinois Department of Revenue issued a private letter ruling addressing an exemption for the purchase of freezer machinery and equipment for preserving manufactured food items for wholesale or retail sale. ST 16-0004-PLR


Change in Domicile Rulings: The Indiana Department of Revenue issued various Letters of Findings on change of domicile case rulings: Letter of Findings No. 01-20150108Letter of Findings No. 01-20150571Letter of Findings No. 01-20160035Letter of Findings No. 01-20140649Letter of Findings No. 01-20150533


W-2 and 1099 Forms Electronic Filing Regulations Adopted: Effective for tax year 2017, Iowa requires W-2 and 1099 forms to be filed electronically on an annual basis. W-2 forms are required to be filed for tax year 2016 for withholding agents with at least 50 employees, and 1099 forms are required to be filed for tax year 2016 for withholding agents with at least 50 1099 forms. The state is conforming to the federal practice of mandatory electronic filing of these forms to protect against tax fraud. Rule 701—46.3 (422)


Apportionment of Gain on Sale of Closely-Held Business: Considering the decision in Corrigan v. Testa, 2016-Ohio-2805, the Ohio Department of Taxation issued guidance on apportioning capital gains on sales of closely-held businesses to individuals. IT 2016-01


Sales and Use Tax Economic Presence Rule Enacted Creating Nexus: The Tennessee Department of Revenue issued an administrative rule that renders substantial nexus for state sales and use tax purposes on out-of-state dealers that meet the following criteria: regularly soliciting customers through any means and making sales that exceed $500,000 to consumers in Tennessee during the previous 12-month period. These out-of-state dealers must register with the department for sales and use tax purposes by March 1, 2017. Amended Administrative Rule 1320-05-01-.63; New Administrative Rule 1320-05-01-.129

For more information or assistance on state and local tax (SALT), call 888-556-0123, email

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