Legal Introduction Flashcards
What are the 4 level of hierarchy of US law?
- US Constitution
- Federal Law
- State Constitution
- State Law
What are the four prongs of Complete Auto?
- Substantial Nexus
- Fair Apportionment (internal and external)
- No discrimination against interstate commerce
- Fairly related to the services being provided by the state
Explain the difference between the two sides of fair apportionment - Internal and External consistency
- Internal: If the tax was applied by every jurisdiction, there would be no multiple taxation of the same “transaction”
- External: If the state taxes only the portion of the revenues from the interstate activity which reasonably reflects the in-state component of the activity being taxed
True or False: In any state where nexus exists, but the entity with nexus has not been collecting tax or filing returns, no statute of limitations applies.
True
Most sales and use tax disputes begin with a(n)…..
audit
In many cases, the auditor will ask the taxpayer to sign a….. before the audit begins.
waiver of statute of limitations
Ture or False: Once a statute of limitations has expired, it can still be waived.
False
What are 6 governmental levels a taxpayer will go through to resolve a dispute of assessment??
- File an appeal
- Informal conference
3a. Specialized Board of Tax Appeals or Administrative Law Judge
3b. State Trial Court (If the state doesn’t offer 3a) - State Court of Appeals
- State Supreme Court
- US Supreme Court
The U.S. Supreme Court will only hear an appeal case of a taxpayer if it involves an interpretation of…..
the U.S. Constitution or federal law
True or False: The U.S. Supreme Court will hear an appeal case of a taxpayer if it involves an interpretation of state law.
False. They’ll only hear it if it’s involves interpretation of federal law/US Constitution
True or False: State supreme courts and the US Supreme Court are not obligated to hear any appeal cases from any taxpayers, only ones they choose to do so.
True
