State and Local Tax (SALT) attorney Jimmy Long was quoted in Tax Analysts regarding a Multistate Tax Compact refund claim pending at the Alabama Tax Tribunal. While taxpayers in the major litigation to date have sought to use the compact’s evenly weighted three-factor formula, Long indicated that some claims in Alabama are focusing on the compact’s original sourcing provisions.
“In our experience, factor weighting and cost of performance are the most common issues in the Alabama claims,” Long explained.
Long said Bradley has seen few instances in which the DOR has affirmatively denied a claim -- that is, a claim that has not been acted on is automatically denied by the DOR six months after the filing date. Also, he said taxpayers that are considering or have filed these protective claims in Alabama should be mindful of the six-month deemed denied provision under Alabama law, which then requires a taxpayer to file an appeal with either the tax tribunal or the circuit court within two years from the denial of the refund claim.
The complete article, “Multistate Tax Compact Refund Claims Pending in 4 New States,” first appeared in Tax Analysts on September 13, 2016. (login required)