Source: https://www.schgroup.com/resource/blog-post/state-north-carolina-delinquent-property-taxes-texas-franchise-taxes/
Timestamp: 2018-01-23 13:56:50
Document Index: 314962890

Matched Legal Cases: ['§ 23', '§ 165', '§ 165', '§ 2667', '§ 2667', '§ 196', '§ 67', '§ 171', '§ 171', '§ 171', '§ 3', '§ 171', '§ 3', '§ 3']

State & Local Tax Updates: Arizona Causalty Loss Deduction; North Carolina Delinquent Property Taxes; and Texas Franchise Taxes | SC&H Group
State & Local Tax Updates: Arizona Causalty Loss Deduction; North Carolina Delinquent Property Taxes; and Texas Franchise Taxes
July 21, 2014 - By: SC&H Group
Arizona — Personal Income Tax — Proposed assessment upheld—substantiation and commuting expenses.
An Arizona Department of Revenue (ADOR) Hearing Officer has upheld the ADOR’s proposed assessment against the taxpayer for tax year 2008 because she did not substantiate her itemized deductions and was not entitled to deduct her commuting expenses. On her 2008 Arizona personal income tax return, the taxpayer, a police officer, claimed itemized deductions, including a deduction for her auto commuting expenses, which the ADOR disallowed. Taxpayers are required to keep records to verify deductions and should at the minimum keep records of expenses such as receipts, cancelled checks, financial account statements and other documentary evidence and proof of payment. The taxpayer has not submitted evidence substantiating itemized deductions in excess of the standard deduction allowed in the proposed assessment. The cost of travel between a taxpayer’s home and his regular place of employment is generally considered a nondeductible personal expense. The taxpayer’s argument that A.R.S. § 23-1021.01(A), which states that a peace officer traveling to or from work is considered in the course and scope of employment, supports an income tax deduction for her commuting expense is wrong because that section applies solely for the purposes of eligibility for workers’ compensation benefits. The federal income tax case the taxpayer relies on to support her commuting expenses deduction is distinguishable. In it, a deduction was allowed for travel expenses incurred by police captains while driving their personally owned, unmarked cars between home and headquarters. Also the employer required, by order, police captains to begin duty on departure from home and to continue duty until returning home at the end of the workday and that their vehicles be specially equipped with lights, sirens, and other police equipment. In the instant case, there was no order mandating that the taxpayer be on duty during her commute, that she had to perform work-related functions or that her vehicle was required to be equipped with police equipment. ( Arizona DOR Hearing Office Decision 201300240-I, 05/20/2014 .)
Arizona — Personal Income Tax — Proposed assessment upheld—casualty loss deduction disallowed.
An Arizona Department of Revenue (ADOR) Hearing Officer has upheld the ADOR’s proposed assessment against the taxpayers for tax year 2007 because the ADOR properly disallowed the casualty loss deduction they had claimed for the damage to the roof of their home caused by a storm. Arizona taxpayers may deduct itemized deductions allowed under the Internal Revenue Code. IRC § 165(a) allows a deduction for a non-compensated casualty loss, but under IRC § 165(h) a claim for casualty loss cannot be made for damage to insured property unless a timely insurance claim is filed. The taxpayers’ home was insured during 2007, but they did not file with their insurance company a claim with respect to their roof damage. Thus, the disallowance of their claimed casualty loss was proper. ( Arizona DOR Hearing Office Decision 201300188-I, 03/28/2014 (released July 2014).)
California — General Administrative Provisions — Small business tax seminar in Monterey.
The California State Board of Equalization (SBE) is co-sponsoring a free small business tax seminar in Monterey and is inviting to attend business owners, entrepreneurs, and individuals who would like to start a business so that they can learn how to expand and maintain their businesses. The seminar is intended for those looking for assistance with state and federal tax laws as well as those who want to expand their business knowledge. Presentations will be given by representatives from the SBE, the Employment Development Department, the Franchise Tax Board, the Governor’s Office of Business and Economic Development (GO-Biz), and the Small Business Development Center. The event will take place on Wednesday, July 23, 2014, from 9:00 a.m. to 2:30 p.m. (check-in begins at 8:30 a.m.) at Monterey Peninsula College, Lecture Forum Building, LF – 103, 980 Fremont St., Monterey, CA 93940. Parking is $2 (cash and exact change only). Registration is by phone at 1-888-847-9652 or online. ( California SBE News Release 104-14-Y, 07/16/2014 .)
Florida — Corporate Income Tax — Florida capital investment tax credit agreement.
The Florida Department of Revenue has issued a technical assistance advisement (TAA) concerning the method by which income generated by or arising out of the taxpayer’s qualified capital investment project will be determined for purposes of applying the capital investment tax credit. When filing its consolidated corporate income tax return, the taxpayer may use a pro-forma format to determine the project’s annual taxable income. The project’s financial and tax records will be compiled using a separate general ledger. The taxpayer will prepare a pro forma return for the project, which will include categories of income and expense that the taxpayer will incorporate into computing the annual taxable income generated by or arising out of the project. After the project’s taxable income is determined using the method described above, the Florida apportionment factor for the project will be applied to the project’s taxable income to determine Florida taxable income and the associated credit. ( Florida Technical Assistance Advisement 14C1-006, 06/19/2014 .)
Florida — Corporate Income Tax — Florida capital investment tax credit.
The Florida Department of Revenue has issued a technical assistance advisement (TAA) approving the methodology by which income generated by or arising out of the taxpayer’s qualified capital investment project will be determined for purposes of applying the capital investment tax credit. The taxpayer’s project consists of a newly constructed, state-of-the-art facility near its existing facility. The project will also include renovation of the existing facility. The taxpayer provided that the income of the project will consist of all activity that arises out of its new facility and the incremental growth of activity generated by the services that remain at the renovated facility. The value for those services will be determined using a reasonable allocation that is based on transfer pricing methodologies. ( Florida Technical Assistance Advisement 14C1-003, 03/28/2014 .)
Florida — Credits and Incentives — Capital investment tax credit agreement.
Florida — Credits and Incentives — Capital investment tax credit.
Florida — Real Property — Lease on military base.
The governmental leasehold intangible personal property tax could not be imposed on a ground lease entered into by a private lessee for land located within a military base because the federal government has not consented to be taxed. Under the Military Housing Privatization Initiative (MHPI), the United States will convey existing housing units and certain associated improvements located on military bases to the taxpayer who will plan, design, develop, renovate, demolish, construct, own, operate, maintain, and manage a rental housing development for military families. Rental payments are due from the lessee to the base pursuant to the lease agreement creating the leasehold estate, and the leased property will be used by the lessee for residential and/or commercial purposes. Federal statute, 10 USC § 2667(f) provides that the interest of a lessee of property leased on military bases may be taxed by state or local governments. However, the MHPI, unlike most other leases of military property, is not governed by 10 USC § 2667(f). Since there is no other provision consenting to state taxation, Congress has not consented to state taxation of a lease under the MHPI and, therefore, the taxpayer’s lease of land from the government within the military base is not subject to the governmental leasehold intangible personal property tax imposed by Fla. Stat. § 196.199(2)(b) . ( Florida Technical Assistance Advisement 13C2-004, 10/07/2013 .)
Florida — Stamp Tax — Transfer to LLC.
Minimal documentary stamp tax is due on proposed deeds transferring unencumbered real property from three individuals to a limited liability company (LLC), provided the three individuals hold the same percentage interest in the LLC after the transfers of the properties as each hold in the properties prior to the transfers of the properties to the LLC. ( Florida Technical Assistance Advisement 14B4-001, 02/11/2014 .)
Georgia — Sales And Use Tax — Delivery charges—regulations amended.
The Georgia Department of Revenue has amended Ga. Comp. R. & Regs. 560-12-2-.45 “Freight, Delivery and Transportation,” effective August 3, 2014, to conform the rule to recent statutory changes. The amended rule provides that charges made for the transportation of tangible personal property are not subject to sales tax when the transportation charges are not associated with a taxable sale of tangible personal property (TPP). Where TPP is sold at retail and the seller makes a delivery charge, the charge is taxable regardless if the charge is optional or separately stated. Where TPP is sold at retail and the seller acts as agent for the purchaser, the charge is not taxable so long as: (1) the seller maintains an escrow account on behalf of the purchaser for delivery charges; (2) the seller maintains separate invoicing for delivery charges, reflecting escrow deposits and withdrawals; (3) the seller maintains books and records with the deposits, withdrawals, and delivery escrow balance accounts for each customer; (4) the contract between seller and purchaser prohibits the seller from financing or marking up the delivery charges; (5) the contract requires the purchaser to deposit funds for delivery charges into the escrow account in advance of delivery; and (6) the contract states that the purchaser pays shipping cost and takes responsibility for the property when it leaves the seller’s premises.
Missouri — Corporate Income Tax — Exemption for out-of-state businesses facilitating rapid response to disasters in Missouri.
L. 2014, H1190, effective 08/28/2014, establishes the Facilitating Business Rapid Response to State Declared Disasters Act, which provides that an out-of-state business that is responding to a declared state disaster or emergency or any of its out-of-state employees are not subject to specified state or local employment, licensing, or registration requirements, including registration with the Secretary of State; withholding or income tax registration, filing, or remitting requirements; and use tax on equipment used or consumed if the equipment does not remain in Missouri after the disaster period unless the out-of-state business or employee remains in Missouri after the conclusion of the disaster period. The law provides further that the employees of an out-of-state business that are responding to a declared disaster in Missouri are not required to file and pay state or local income taxes, to be subject to tax withholdings, or to pay any state or local fee unless the employee remains in Missouri after the conclusion of the disaster period. The out-of-state business must provide assistance in repairing, renovating, installing, or building infrastructure related to the declared disaster or emergency and notify the Secretary of State within 10 days of entering the state who in turn must provide the information to the Department of Revenue within 30 days after receipt of the notification.
Missouri — General Administrative Provisions — Interest rate on refunds.
The Missouri Director of Revenue has announced that the interest rate on refunds for the fourth quarter of 2014 remains at 0.6%. The interest rate on refunds is calculated every calendar quarter by the Missouri State Treasurer. (Interest Rates on Refunds and Delinquencies, MO Director of Revenue, 07/17/2014.)
Missouri — Personal Income Tax — Exemption for out-of-state businesses facilitating rapid response to disasters in Missouri.
Missouri — Sales And Use Tax — Exemption for out-of-state businesses facilitating rapid response to disasters in Missouri.
North Carolina — Real Property — Delinquent property taxes.
L. 2014, H1114 (c. 69), effective 07/16/2014, authorizes Avery County to require the payment of delinquent municipal property taxes for the Town of Elk Park before recording deeds conveying property.
North Dakota — Sales Tax Rates — Local tax changes effective October 1, 2014.
The North Dakota State Tax Commissioner has issued a press release to all North Dakota sales, use and gross receipts tax permit holders regarding local tax changes that are effective October 1, 2014. Burleigh County has adopted a new county sales, use, and gross receipts tax of 0.5% starting October 1, 2014. Burleigh County will also have a Maximum Tax (Refund Cap) of $25 per transaction. The city of Leeds has adopted a new 2% city sales, use, and gross receipts tax, with no Maximum Tax (Refund Cap). Morton County has adopted a new one-half percent (.5%) county sales, use, and gross receipts tax with a Maximum Tax (Refund Cap) of $25 per transaction. Watford City will increase its city sales, use, and gross receipts tax from 1% to 1- 1/21%. The Maximum Tax (Refund Cap) will remain at $25 per sale. West Fargo will increase its city sales, use and gross receipts tax from 1% to 2% and will eliminate its Maximum Tax (Refund Cap). Williston will impose a 1% City Lodging and Restaurant tax, which will be in addition to the state and city sales taxes already in place there. The new 1% City Lodging and Restaurant tax will apply to gross receipts from leasing or renting of hotel, motel, or tourist court accommodations for a period of less than 30 consecutive calendar days or one month, gross receipts of restaurants or bars from sales of prepared food and non-alcoholic beverages, and on-sale alcoholic beverages. The city lodging tax is reported and remitted on a separate form called City Lodging and Restaurant Tax and/or City Lodging Tax (Form F10). (Local Changes Effective October 1, 2014, N.D. State Tax Commissioner, 07/31/2014.)
North Dakota — Sales Tax Rates — Local Option Taxes by Location Guideline updated.
The North Dakota Office of State Tax Commissioner has updated its Local Option Taxes by Location Guideline which contains information on local sales, use and gross receipts taxes, lodging taxes, lodging and restaurant taxes, and motor vehicle rental taxes imposed by cities and counties. Local option sales, use and gross receipts taxes are administered by the Office of State Tax Commissioner, and are reported on the same form as the state sales taxes. However, city lodging taxes, city lodging and restaurant taxes and city motor vehicle rental taxes are reported to the Office of State Tax Commissioner on separate forms. The guideline summarizes all the North Dakota cities and counties imposing local option taxes and reflects local option tax changes that became effective on July 1, 2014. The city of Michigan increased its city sales, use and gross receipts tax by 0.5% to 2%, but Maximum Tax (Refund Cap) remained at $25 per sale. The city of Minot continued to have a local city sales, use, and gross receipts tax of 2%, but new farm machinery, new farm irrigation equipment, and mobile homes are exempt from tax. The Maximum Tax (Refund Cap) and the permit holder compensation were eliminated. The city of Velva decreased its local city sales, use, and gross receipts tax by 1% to 1%, but new farm machinery and new farm irrigation equipment are exempt from tax. The Maximum Tax (Refund Cap) remained at $25. (Local Option Taxes by Location, N.D. Office of State Tax Commissioner, 07/01/2014.)
North Dakota — Sales And Use Tax — Local tax changes effective October 1, 2014.
The North Dakota State Tax Commissioner has issued a press release to all North Dakota sales, use and gross receipts tax permit holders regarding local tax changes that are effective October 1, 2014. Burleigh County has adopted a new county sales, use, and gross receipts tax of 0.5% starting October 1, 2014. Burleigh County will also have a Maximum Tax (Refund Cap) of $25 per transaction. The Maximum Tax (Refund Cap) is the amount of tax that could apply to a single transaction. The city of Leeds has adopted a new 2% city sales, use, and gross receipts tax, with no Maximum Tax (Refund Cap). Morton County has adopted a new 0.5% county sales, use, and gross receipts tax with a Maximum Tax (Refund Cap) of $25 per transaction. Watford City will increase its city sales, use, and gross receipts tax from 1% to 1- 1/2%. The Maximum Tax (Refund Cap) will remain at $25 per sale. West Fargo will increase its city sales, use and gross receipts tax from 1% to 2% and will eliminate its Maximum Tax (Refund Cap). Williston will impose a 1% City Lodging and Restaurant tax, which will be in addition to the state and city sales taxes already in place there. The new 1% City Lodging and Restaurant tax will apply to gross receipts from leasing or renting of hotel, motel, or tourist court accommodations for a period of less than 30 consecutive calendar days or one month, gross receipts of restaurants or bars from sales of prepared food and non-alcoholic beverages, and on-sale alcoholic beverages. The city lodging tax is reported and remitted on a separate form called City Lodging and Restaurant Tax and/or City Lodging Tax (Form F10). (Local Changes Effective October 1, 2014, N.D. State Tax Commissioner, 07/31/2014.)
North Dakota — Sales And Use Tax — Local Option Taxes by Location Guideline updated.
Nebraska — Cigarette, Alcohol & Miscellaneous Taxes — Marijuana and controlled substances tax.
The Nebraska Department of Revenue has updated its information guide on the marijuana and controlled substances tax. The guideline is intended to answer questions concerning the state’s marijuana and controlled substances tax (drug tax), and to enable law enforcement agencies to become more familiar with the law and its effect on persons illegally in possession of drugs. Specifically, the guideline discusses who owes the drug tax, when the drug tax is due, the amount of tax owed, and drug stamp requirements. A dealer, for purposes of the drug tax, is defined as anyone that illegally acquires or possesses six or more ounces of marijuana, seven or more grams of any controlled substance which is sold by weight, or 10 or more dosage units of any controlled substance which is not sold by weight. Dealers must purchase a Drug Tax Stamp from the Department of Revenue as evidence that the drug tax has been properly paid and must permanently place sufficient stamps on each container sold. The drug tax is $100 per ounce or portion of an ounce of marijuana. The drug tax is $150 per gram or portion of a gram for controlled substances, but the drug tax is $500 for each 50-dosage unit or portion of a unit if the controlled substances are not customarily sold by weight. The drug stamps may only be used once and expire after six months. Failure to affix the proper drug tax stamp to marijuana and or a controlled substance is a Class IV felony punishable by up to five years in prison and/or a $10,000 fine. ( Nebraska Information Guide 5-185-1991, 07/15/2014 .)
New York — Personal Income Tax — Guidance on property tax freeze credit issued.
The Department of Taxation and Finance has issued Publication 1030, which provides guidance on the new property tax freeze credit that was created by the 2015 state budget bill. The new credit will be available to eligible homeowners who live in a taxing jurisdiction that: (1) limits any increase in its tax levy to a property tax cap set by state law; and (2) develops and implements a government efficiency plan that the state Division of Budget determines to be compliant. The publication describes the credit scheme and discusses taxpayer eligibility, taxing jurisdiction compliance, government efficiency plan compliance, and the amount and payment of credit. ( New York Department of Taxation & Finance Publication 1030, 07/01/2014 .)
New York — Recordation Taxes, Realty — Three units bought for combination as single residence subject to residential tax rate.
The Division of Taxation and Finance has ruled that mortgage recording tax at the combined New York City and New York State residential rate of 2.175% will apply to the recording of a purchase money mortgage securing more than $500,000 of principal debt for the purchase of three separate by adjacent condominium units that the taxpayers intend to combine into a single apartment to use as their primary residence. The taxpayers do not have to pay tax at the higher commercial rate (2.8%) because the facts and circumstances showed that they had a clear intent, prior to the closing, to combine the three adjacent units into one primary residence. If the units are not merged, the taxpayers will have underpaid mortgage recording tax and additional tax would be owed. ( New York Advisory Opinion TSB-A-14(1)R, 07/02/2014 .)
Ohio — Sales And Use Tax — SST taxability matrix updated.
The Ohio Department of Taxation has updated its taxability matrix effective August 1, 2014. The updated matrix does not yet include the reference for meat or seafood products without eating utensils provided by the seller in an unheated state by weight or volume as a single item, and food sold without eating utensils provided by the seller that ordinarily requires cooking (as opposed to just reheating) by the consumer prior to consumption, both of which are not considered prepared food (see State & Local Taxes Weekly, Vol. 25 No. 27, 07/07/2014). The updated matrix includes best practices for credits and vouchers. (Ohio Taxability Matrix, Ohio Dept. Tax, effective 08/01/2014.)
Oklahoma — Franchise Tax — Reporting rule amended to reflect the expiration of the moratorium.
The Oklahoma Tax Commission has amended Oklahoma Administrative Code 710:40-1-6, effective September 12, 2014, concerning accounting and reporting of franchise tax to reflect the expiration of the moratorium on franchise tax (July 1, 2010, through July 1, 2013). On or before July 1, 2014, each corporation, regardless of its prior filing status, must file either a franchise tax return or an election to use the corporation’s income tax return due date as the due date for payment and filing of the corporation’s franchise tax return. For the latter, the franchise tax return is due the 15th day of the third month following the close of the corporation’s 2013 tax year; however, if the due date for the filing of the corporation’s 2013 income tax return is prior to July 1, 2014, the due date for the filing of its franchise tax return is July 1, 2014. For franchise tax returns due July 1, the return is delinquent if not filed and paid on or before the next September 1. For corporations that elected to file franchise tax returns on their corporate income tax due date, the return is delinquent if not filed and paid on or before the 15th day of the third month following the close of the corporate tax year; however, if the corporate income tax return has been extended, the franchise tax due date is also extended.
Oklahoma — Personal Income Tax — Amended return rule finalized.
The Oklahoma Tax Commission (OTC) has amended Oklahoma Administrative Code 710:5-3-6, effective September 12, 2014, to reflect that a resident taxpayer is required to use OTC Form 511 when filing an amended return beginning with tax year 2013 and subsequent tax years. Prior to tax year 2013, OTC Form 511X was required to be submitted when filing an amended return.
Oregon — Real Property — Taxpayer’s duty to keep county informed of correct address.
The Oregon Tax Court denied an income tax appeal regarding a waiver of interest or a 3% property tax discount for years 2002 to 2010 for failure to receive property tax statements, finding the taxpayer has an obligation to keep the tax collector of the county where such property is located informed of the true and correct address. Having received tax statements for eight other properties, the taxpayer should have known there might be a problem with the county’s records and taken it upon himself to ensure that the county had his true and correct address. (Amerson v. Yamhill County Assessor, Or. Tax Ct. Magis. Div., Dkt. No. TC-MD 140036C, 07/16/2014.)
Pennsylvania — Real Property — Abandoned property—(correction)
The report issued July 14, 2014 reported the effective date of H278 (L. 2014, H278, Act 126) as January 7, 2015. While this effective date applies to some provisions of the bill, amendments related to definitions and periods after which property is deemed to be abandoned or unclaimed are effective on July 10, 2014.
Tennessee — Real Property — Effective date of exemption application.
An Administrative Judge for the Tennessee State Board of Equalization (SBE) has ruled that a property tax exemption for a charitable organization became effective on the date that the application was filed and that the exemption cannot be retroactively applied to an earlier date. The organization had applied for the exemption on September 27, 2013. Under Tenn. Code Ann. § 67-5-212(b)(3) , if an application for exemption is made after May 20 and more than 30 days after the exempt use began, the exemption is effective as of the date of application. (Bijou Theater Center, Tenn. SBE, Dkt. No. 77793, 07/15/2014.)
Tennessee — Sales And Use Tax — Sales tax holiday approaches.
The Department of Revenue has issued a press release to remind Tennessee shoppers that the seventh annual sales tax holiday begins Friday, August 1, at 12:01 a.m., and runs through Sunday, August 3. During those three days, Tennessee shoppers in effect save nearly 10% by purchasing qualifying clothing, school and art supplies, and computers tax-free. State and local sales tax does not apply during that period to clothing with a price of $100 or less per item, to school and art supplies with a price of $100 or less per item, or to computers with a price of $1,500 or less. (Shop Tax-Free in Tennessee August 1-3, Tenn. Dept. of Rev., 07/15/2014.)
Texas — Franchise Tax — Construction and improvement of real property in Texas.
Subcontracting payments that qualify as flow-through funds under Tex. Tax Code Ann. § 171.1011(g) because they are mandated by contract to be distributed to other entities, and have a reasonable nexus to the actual or proposed design, construction, remodeling, or repair of improvements on real property or the location of boundaries of real property, may be excluded from revenue pursuant to Tex. Tax Code Ann. § 171.1011(g)(3) . A payment is mandated by contract to be distributed to other entities if the taxable entity has a contract with its customers providing that subcontractors may be used and payment to the subcontractors must be made from the funds paid to the taxable entity. The interpretation of what is considered to be furnishing labor or materials to a project for the construction, improvement, remodeling, repair, or industrial maintenance of real property under Tex. Tax Code Ann. § 171.1012(i) for purposes of the cost of goods sold (COGS) deduction is also expanded: an entity is no longer required to actually physically touch the property or make a change to the property to qualify for the COGS deduction, regardless of whether the entity is furnishing the labor or materials to a member of the entity’s combined group or if the entity is a single entity filer. Costs considered too far removed from the construction, improvement, remodeling, repair, or industrial maintenance of real property do not qualify for either an exclusion from revenue or a COGS deduction; entities providing services that are defined as “service costs” under Tex. Admin. Code 34 § 3.588(b)(9) are too far removed and do not qualify for either the exclusion or deduction. The revised policy does not change the treatment of taxable entities renting or leasing equipment to others for use in or during such projects. The revised policy has immediate effect, and a taxable entity may file an amended franchise tax report for years that are open within the statute of limitations. ( Texas Policy Letter Ruling 201406920L, 06/10/2014 .)
Texas — Franchise Tax — Cost of printing activities included in Texas COGS deduction.
Printers own and produce goods when they custom-manufacture and sell tangible personal property to their customers, and so printers may include the costs of their printing activities, as allowed under Tex. Tax Code Ann. § 171.1012 , in their cost of goods sold (COGS) deduction. Ancillary services provided to customers, such as inventory management and fulfillment, are still considered a service and the cost of performing the service is not includable in COGS. As a result of this classification change, the apportionment calculation also changes. A printer’s revenue from the sale of produced goods is apportioned, in general, according to its delivery destination under Tex. Admin. Code 34 § 3.591(e)(29) . Its revenue from the sale of ancillary services is apportioned to where the service is performed under Tex. Admin. Code 34 § 3.591(e)(26) . These changes apply to all open and future periods. This ruling supersedes Texas Policy Letter Ruling 200304862L, 04/24/2003 and Texas Policy Letter Ruling 9706859L, 06/25/1997 . ( Texas Policy Letter Ruling 201406921L, 06/18/2014 .)