massachusetts

On October 13, 2015, the U.S. Supreme Court issued an order following TEI's recommendation to issue a "GVR order" in First Marblehead v. Massachusetts Commissioner of Revenue. First Marblehead involves the proper apportionment of financial institution's income under Massachusetts' financial institutions excise tax under the dormant Commerce Clause.

On July 16, 2015, TEI submitted a letter to Massachusetts Governor Charlie Baker urging his veto of the Legislature's proposed repeal of Massachusetts' FAS 109 deduction as part of the Commonwealth's fiscal 2016 budget. The FAS 109 deduction was adopted as part of Massachusetts combined reporting regime in 2008 and was designed to mitigate the financial reporting impact for publicly-traded companies whose net deferred tax liabilities increased as a result of the shift to combined reporting. 

On April 28, 2009, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayer in Geoffrey, Inc. v. Massachusetts Department of Revenue. In Geoffrey, the Massachusetts Supreme Judicial Court concluded substantial nexus could be established where a taxpayer's only business in the state was licensing intangible property that generates income for the taxpayer. TEI maintains the Massachusetts court erred by concluding the bright-line, physical presence test embraced by the U.S.

On April 28, 2009, TEI filed an amicus brief with the U.S. Supreme Court in support of the taxpayer in Capital One Bank v. Commissioner of Revenue. In Capital One, the Massachusetts Supreme Judicial Court held the imposition of the Massachusetts Financial Institution Excise Tax on out-of-state taxpayers having no physical presence within Massachusetts did not violate the Commerce Clause of the United States Constitution. TEI maintains the Massachusetts court erred by concluding the bright-line, physical presence test embraced by the U.S.