Saturday, May 26, 2012
Thomson Reuters Legal, Heard in More States: See You in Tax Court!:
Six states have established or considered establishing independent tax tribunals in the last two years, a trend supported by the business community, but one which also is stirring debate about the need for these new tribunals.
Eighteen other states have well-established tax courts, and another nine states and the District of Columbia offer independent tax courts or forums that do not have to be staffed by tax experts. Twenty-one states, including Alabama, do not have independent tax courts at all, among them are three of the largest states -- California, Texas and Florida.
Some critics say independent tax tribunals layer costs and complexity onto systems that already are slow and cumbersome, helping tax lawyers perhaps more than their clients. States set them up nonetheless, in part because the systems make them appear friendlier to business at a time of high unemployment and interstate rivalry for jobs.
(Hat Tip: Francine Lipman.)