Olga Goldberg Quoted in Law360: COST Pans Maine’s Receipt Sourcing Change for Companies

Maine Revenue Services (MRS) recently announced a plan to amend Rule 801, which currently states that “receipts from services are sourced where services are received.” The amendment, however, would add language that means “where the services are acquired or experienced.” MRS also said that they would apply this sourcing methodology and “apply it retroactively to January 1, 2010.”

Pierce Atwood tax partner Olga J. Goldberg told Law360 that “while she appreciates the Maine Revenue Services’ effort to provide guidance on its apportionment rules, the proposal would drastically increase the compliance burden for many taxpayers. MRS proposes to substantively change the law by sourcing services to the state where they are ‘acquired or experienced’ — without any legislative oversight, public hearing, or fiscal analysis.”

Olga added, “it is also unclear whether taxpayers would be expected to amend their returns to source services to the location where they are acquired or experienced. A 15-year retroactivity period is egregious and unfair to taxpayers who relied on existing Maine law and regulations, and who received no notice of Maine Revenue’s clarification.”

The complete article by Michael Nunes can be found on Law360.

Olga J. Goldberg advises clients in complex state and local tax matters. She represents clients on tax controversies from the administrative level through litigation and appeal or settlement. She also counsels businesses of all sizes on multistate transaction planning and tax compliance.

COST, Council on State Taxation, is a nonprofit trade association consisting of over 500 multistate corporations engaged in interstate and international business.  COST's objective is to preserve and promote equitable and nondiscriminatory state and local taxation of multijurisdictional business entities.