reglab/statecodes huggingface dataset:
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 1 - Hearing Procedures › 15 AAC 05.020 - Informal conferences

Current through May 31, 2024
(a) Upon receipt of a written request for
				appeal under
				15 AAC 05.010 requesting an
				informal conference, an appeals officer will promptly schedule the informal
				conference. If the appeal concerns a permanent fund dividend denial, the
				request must be accompanied by the $25 appeal fee required by
				AS
				43.23.015(g), except that
				the appeal fee is waived for an appeal brought by an agency of the state on
				behalf of an individual; an individual who meets the indigency waiver standard
				in AS
				43.23.015(i) may apply for a
				waiver of the appeal fee on a form prescribed and furnished by the department.
				The informal conference will be conducted in person, through correspondence, or
				by telephone, audio, or video teleconference, or other electronic means. The
				appeals officer shall make available to the person who filed the request for
				appeal the relevant portion of that person's file, and shall explain at the
				informal conference the action taken by the department. A person who wants to
				present facts and information in support of its position must bring all
				pertinent books, records, schedules, and other documents to the conference. The
				appeals officer may copy any of the books, records, schedules, and other
				documents brought to the conference or otherwise made available to the appeals
				officer. The person who filed the request shall supply additional information
				that the appeals officer considers necessary.
(b) After considering the facts, information,
				and arguments presented at the informal conference, the appeals officer shall
				promptly render a written decision. The decision must identify the issues in
				controversy for purposes of further appeal. If the appeals officer believes
				that modification of the department's action is appropriate, modification must
				be made and reflected in the written decision.
(c) The decision of the appeals officer is
				final for purposes of appeal to a formal hearing under
				15 AAC 05.030 but is not a final
				administrative determination for purposes of appeal to the superior
				court.
(d) This section does not
				apply to an administrative review conducted under 15 AAC 125.
Authority:
AS
					 25.27.020
AS 43.05.010
AS 43.05.080
AS 43.05.240
AS 43.23.015
AS 43.23.055
AS 43.55.110
AS
					 43.56.200
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 1 - Hearing Procedures › 15 AAC 05.025 - Administrative reviews

Current through May 31, 2024
In a child support matter under AS 25.25 or AS 25.27, an
				  administrative review will be conducted in accordance with the procedures set
				  out in 15 AAC 125. The review officer's decision issued under
				  15 AAC 125.118,
				  15 AAC 125.121,
				  15 AAC 125.125,
				  15 AAC 125.222,
				  15 AAC 125.226,
				  15 AAC 125.246,
				  15 AAC 125.252,
				  15 AAC 125.321,
				  15 AAC 125.331,
				  15 AAC 125.335,
				  15 AAC 125.505, or
				  15 AAC 125.860 is final for
				  purposes of appeal to a formal hearing under
				  15 AAC 05.030 but is not a final
				  administrative determination for purposes of appeal to the superior
				  court.
Authority:
AS
					 25.27.020
AS 25.27.150
AS 25.27.160
AS 25.27.165
AS 25.27.166
AS 25.27.170
AS 25.27.190
AS 25.27.195
AS
					 25.27.275
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 1 - Hearing Procedures › 15 AAC 05.030 - Formal hearings

Current through May 31, 2024
(a) The department
				will hold a formal hearing if a request for a formal hearing conforming to the
				requirements of
				15 AAC 05.010(a) is filed. If a request for
				a formal hearing follows an informal conference, it must be filed within 30
				days after the date the informal conference decision is issued, and must be
				filed in accordance with the appeal form provided by the department. If a
				request for a formal hearing follows an administrative review under
				15 AAC 125.118,
				15 AAC 125.216,
				15 AAC 125.222,
				15 AAC 125.226,
				15 AAC 125.242,
				15 AAC 125.246,
				15 AAC 125.252,
				15 AAC 125.321,
				15 AAC 125.331,
				15 AAC 125.335, or
				15 AAC 125.505, it must be filed within 30 days after the
				date the decision of the review officer is issued and must be filed with the
				child support services agency in accordance with the appeal form provided by
				the division.
(b) On receipt of a
				request for appeal requesting a formal hearing, the commissioner will appoint a
				hearing officer. The department will notify the person who filed the request of
				the appointment. Within 60 days after receipt of the request for formal
				hearing, the hearing officer will notify the applicant of the date of either a
				prehearing conference or the hearing, except in child support matters under
				AS
				25.27.170, in which a hearing must be
				scheduled within 30 days of the date of service of the request for hearing on
				the agency. For purposes of a request for a formal hearing in a child support
				matter, in computing the 30-day time period for scheduling the hearing, the
				department will exclude a period of delay resulting from pre-hearing motions
				filed by the parties and the granting of continuances requested by a parent.
				The hearing officer may
(1) administer oaths
				and affirmations;
(2) issue
				subpoenas;
(3) order discovery by
				the parties and issue protective orders;
(4) receive relevant evidence;
(5) regulate the course of the hearing,
				including granting and denying continuances;
(6) hold prehearing conferences;
(7) dispose of procedural requests or similar
				matters; and
(8) exercise all other
				powers necessary for the orderly and expeditious conduct of the
				hearing.
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 1 - Hearing Procedures › 15 AAC 05.035 - Motion for reconsideration

Current through May 31, 2024
(a) A party to a
				formal hearing may, within 10 days after the decision of the hearing officer is
				mailed to the party, file with the commissioner a written motion for
				reconsideration of that decision. The motion must state specific grounds for
				relief and, if mailed, be addressed: Commissioner's Office Appeals
				(Reconsideration), Alaska Department of Revenue, P.O. Box 110400, Juneau,
				Alaska 99811-0400.
(b) Within 20
				days after receipt of a motion for reconsideration, the commissioner will issue
				an order in writing either granting or denying the motion.
(c) If the commissioner grants a motion for
				reconsideration, the decision will be reconsidered and any modifications to it
				made as promptly as possible. If appropriate, the commissioner will authorize
				the submission of further briefs, order the hearing reopened to receive further
				evidence or provide for other suitable procedures for reconsideration of the
				decision. After a decision has been reconsidered, the commissioner will readopt
				the decision with any appropriate modifications. Upon readoption, the decision
				is the final administrative decision of the department for purposes of appeal
				to the superior court under
				15 AAC 05.040.
(d) If the commissioner denies a motion for
				reconsideration, the hearing officer's decision becomes the final
				administrative decision of the department for purposes of appeal to the
				superior court under
				15 AAC 05.040 as of the date of the commissioner's written
				order denying the motion.
As of Register 235, (October 2020), the Department of
					 Revenue changed the authority citation that follows 15 AAC 05.035. The text of
					 15 AAC 05.035 was unchanged, and the history not does not reflect the changes
					 to the authority citation.
Authority:
AS
					 25.27.020
AS
					 43.05.010
AS
					 43.05.080
AS
					 43.23.015
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 1 - Hearing Procedures › 15 AAC 05.040 - Appeal of final decision of department

Current through May 31, 2024
A person who disagrees with and wishes to appeal the final
				  administrative decision of the department must within 30 days after the date
				  the decision is mailed to the party, file an appeal with the superior court.
Authority:
AS
					 25.27.020
AS
					 43.05.010
AS
					 43.23.015
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 1 - Hearing Procedures › 15 AAC 05.050 - Taxpayer protest when department fails to take prompt action on a refund claim

Current through May 31, 2024
(a) If the
				department fails to act on a refund claim within six months from the date of
				filing the claim, the taxpayer may file a protest under
				15 AAC 05.010. A protest filed under this section must
				include the date the claim was filed and the fact that the taxpayer has not
				received a notice of disallowance of the claim for refund or credit.
(b) Repealed 9/19/2020.
(c) Repealed 9/19/2020.
Authority:
AS
					 43.05.080
AS
					 43.05.240
AS
					 43.10.210
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.200 - Reasonable cause for delay

Current through May 31, 2024
(a) The civil
				penalty under
				AS
				43.05.220 will not be imposed if the taxpayer
				shows reasonable cause for delay in filing the return or paying the
				tax.
(b) A taxpayer who wishes to
				avoid the penalty established by
				AS
				43.05.220 for failure to file a tax return or
				pay a tax must make an affirmative showing of all facts alleged as a reasonable
				cause for his or her failure to file the return or pay the tax on time in a
				written statement containing a declaration that it is made under penalty of
				perjury. The statement should be filed with the return or filed with the
				Department of Revenue as soon as possible thereafter. In determining whether
				the delinquency was due to reasonable cause and not to willful neglect, the
				department will apply the administrative and judicial interpretations of
				Internal Revenue Code § 6651 and the Treasury Regulation §
				301.6651-1(c).
(c) Circumstances
				which may constitute reasonable cause under
				AS
				43.05.220 include, but are not limited to,
				the following:
(1) war, riot, rebellion, act
				of God or other disaster which rendered it impossible to make the filing or
				payment or which made delay unavoidable in making the filing or payment;
				or
(2) acts or omissions by a third
				party which were beyond the control of the person making the filing or payment
				and which made delay unavoidable in making the filing or payment; or
(3) the person took in good faith all steps
				and precautions reasonably necessary to ensure the timeliness of the filing or
				payment.
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.220 - Additional penalty for negligence or intentional disregard

Current through May 31, 2024
(a) A
				negligence-or-intentional-disregard penalty will, in the department's
				discretion, be assessed in addition to a penalty for failure to file, failure
				to pay, or civil fraud.
(b) If it
				is determined by the department that a tax deficiency or part of a tax
				deficiency is due to negligence or intentional disregard of a law or a
				regulation without intent to defraud, then a penalty of five percent will be
				assessed and collected. The penalty is computed on the total amount of the tax
				deficiency, even if the determination relates to only a part of the
				deficiency.
(c) Negligence is the
				failure to do something which a prudent and reasonable person, guided by those
				considerations which ordinarily regulate the conduct of human affairs, would
				do; it is also doing something which a prudent and reasonable person would not
				do.
(d) Intentional disregard of a
				law or a regulation without intent to defraud is the failure to comply with
				governing laws and regulations when the taxpayer has knowledge of the pertinent
				laws and regulations and does not have specific intent to evade the payment of
				tax. An error or honest difference of opinion does not constitute intentional
				disregard.
(e) Negligence or
				intentional disregard may be demonstrated by any relevant evidence, including
				but not limited to the following:
(1) the
				taxpayer has substantially deviated from the statutes or regulations in
				reporting income or claiming deductions after being advised by the department
				of the proper methods of reporting;
(2) the taxpayer has failed to keep adequate
				records;
(3) the taxpayer has
				exaggerated deductions unsubstantiated by facts; or
(4) the taxpayer has not justified an
				understatement of income.
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.230 - Civil fraud

Current through May 31, 2024
(a) A civil fraud penalty may be assessed in
				addition to a penalty for failure to file, failure to pay, negligence, or
				intentional disregard.
(b) If it is
				determined by the department that a tax deficiency or part of a tax deficiency
				is due to fraud, then a penalty will be added to the tax. The penalty is 50
				percent of the deficiency due or $500, whichever is greater. The penalty is
				computed on the total amount of the deficiency due, even if the determination
				of fraud relates to only a part of the deficiency.
(c) Fraud is the intentional
				misrepresentation of a material fact with the intent to evade payment of tax
				which the taxpayer believed to be owing. The taxpayer must have had knowledge
				of its falsity and intended that it be acted upon or accepted as the
				truth.
(d) To establish civil
				fraud, the department must prove by clear and convincing evidence that
(1) the tax liability reported was
				understated; and
(2) the
				understatement was the result of an intent to evade tax.
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.240 - Acts of agents or employees

Current through May 31, 2024
The penalties provided in
				  15 AAC 05.210 -
				  15 AAC 05.230 will, in the
				  department's discretion, be imposed on the taxpayer even if the return or
				  report was prepared by an agent or employee of the taxpayer.
Authority:
AS
					 43.05.080
AS
					 43.05.220
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.250 - Use of confidential information in enforcement proceedings

Current through May 31, 2024
(a) Department representatives will, in their
				discretion, disclose confidential information obtained from a taxpayer in an
				audit or investigation of another taxpayer under AS 43.55, if the information
				is relevant to a sale, exchange, disposition, or netback valuation of oil or
				gas that relates to a period at least one year before the department's release
				of the information. The information will be disclosed only to the parties,
				counsel, experts, and consultants involved in the proceeding after notification
				to the taxpayer whose information is to be disclosed. The information will be
				disclosed only under an administrative protective order issued by an authorized
				representative of the department and only after the taxpayer whose information
				is to be disclosed has had an opportunity to appear and present objections to
				that representative.
(b) The notice
				and hearing requirements set out in (a) of this section do not apply if (1) the
				information to be used or disclosed, and both the taxpayer whose information is
				being disclosed and the taxpayer under audit or investigation, are subject to
				the protective order issued September 11, 1984 in
State v. Amerada
				Hess
, No. 1JU-77-847 Civil ("Amerada Hess") and, (2) the department
				issues an administrative protective order that protects the taxpayer whose
				information is being disclosed to the full extent as is provided in the
Amerada Hess
protective order.
Authority:
AS
					 40.25.100
AS 43.05.080
AS
					 43.05.230
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.255 - Disclosure of tax credit certificates purchased in 2016

Current through May 31, 2024
For tax credit certificates issued under
				  AS
				  43.55.023 or
				  43.55.025 purchased by the
				  department after December 31, 2015 and before January 1, 2017, the department
				  shall make public by April 30, 2017 the information authorized under
				  AS
				  43.05.230(
l
)
Authority:
AS
					 43.05.080
AS 43.05.230
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.300 - Assessment and collection

Current through May 31, 2024
(a) Except as
				otherwise provided in
				AS
				43.55.075, the amount of tax must be assessed
				within three years after the return is filed. The date of assessment is the
				date on which a written notice to the taxpayer is issued that specifies that
				this is a notice and demand for payment. The notice and demand for payment is
				issued to the taxpayer when it is personally delivered to the taxpayer or
				mailed to the taxpayer's last known address. The period for assessment may be
				extended by the taxpayer's filing a written consent agreeing to a time
				extension at any time before the expiration of the assessment period.
(b) There is no time limit within which the
				department must assess a tax liability against a person who files a false or
				fraudulent return intending to evade paying the tax he owes, or against a
				person who fails to file a return.
(c) If a person fails to file a return or
				files a false or fraudulent return intending to evade payment of the tax he
				owes, the department will prepare a return for him and assess the tax due from
				any information available to the department. Preparation of the return by the
				department does not limit the time in which the department must assess the tax
				due.
(d) If the department does not
				collect a tax liability or begin distraint or court proceedings to collect it
				within six years after it is assessed, the department will never collect it. A
				taxpayer may, however, extend the time in which the department must collect his
				tax liability by filing a waiver of restrictions on assessment and collection
				of a deficiency of tax with the department.
Authority:
AS
					 43.05.245
AS 43.05.260
AS 43.20.160
AS 43.20.200
AS
					 43.55.075
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.310 - Payment

Current through May 31, 2024
(a) A payment in an
				amount less than the amounts prescribed in (b)(1) and (2) of this section may
				be made by check in the manner prescribed in (c) of this section, by wire
				transfer or ACH credit transaction in the manner prescribed in (e) of this
				section, by an ACH debit transaction in the manner prescribed in (i) of this
				section, or by another method as approved by the commissioner.
(b) A payment in an amount equal to or
				greater than the following amounts shall be made by wire transfer or ACH credit
				transaction in the manner prescribed in (e) of this section, by an ACH debit
				transaction in the manner prescribed in (i) of this section, or by another
				method as approved by the commissioner:
(1)
				$100,000 if for a return or report required to be filed on a monthly or
				quarterly basis;
(2) $150,000 if
				for a return or report required to be filed on a yearly basis.
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.320 - Payment by credit card

Current through May 31, 2024
In addition to the methods of payment prescribed by
				  15 AAC 05.310, the department may
				  accept credit cards as a method of payment for license and permit fees, taxes,
				  interest, penalties, and for repayment of permanent fund dividends.
Authority:
AS
					 43.05.080
AS
					 43.05.250
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.330 - Interest

Current through May 31, 2024
(a) Except as otherwise provided in (e) of
				this section,
				AS
				43.55.020(g) and (h) and
				15 AAC 55.830, the quarterly
				interest rate applicable to a delinquent tax or overpayment of a tax under AS
				43 on or after January 1, 2014, and before January 1, 2018, is the interest
				rate under
				AS
				43.05.225(1)(8) as of the
				first day of each calendar quarter in a calendar year calculated on an
				annualized basis by
(1) adding three
				percentage points to the annual rate charged member banks for advances by the
				12th Federal Reserve District as of the first day of each calendar
				quarter;
(2) dividing the sum
				determined under (1) of this subsection by the total number of days in the
				calendar year; and
(3) multiplying
				the quotient determined under (2) of this subsection by the total number of
				days in the quarter in which there is a delinquent tax or overpayment of
				tax.
Alaska Administrative Code › Title 15 - Revenue › Chapter 05 - Administration of Revenue Laws › Article 2 - General Provisions › 15 AAC 05.340 - Retroactive application of regulations

Current through May 31, 2024
The following provisions apply retroactively to January 1,
				  2017:
(1)15 AAC 05.255;
(2)15 AAC 05.330(e),
				as the provisions of that subsection read on December 31, 2017.
Authority:
AS
					 43.05.080
Sec. 38, ch. 4 4SSLA 2016
Sec. 36, ch. 3 SSSLA 2017
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.011 - Business and nonbusiness income defined

Current through May 31, 2024
(a) In this chapter
(1) "business income" means income arising
				from transactions and activity in the regular course of the taxpayer's trade or
				business and includes income from tangible and intangible property if the
				acquisition, management, and disposition of the property constitute integral
				parts of the taxpayer's regular trade or business operations; in essence, all
				income which arises from the conduct of trade or business operations of a
				taxpayer is business income; the income of the taxpayer is business income
				unless clearly classifiable as nonbusiness income;
(2) "nonbusiness income" means all income
				other than business income.
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.021 - Two or more businesses of a single taxpayer

Current through May 31, 2024
(a) A taxpayer may
				have more than one "trade or business." In such cases, it is necessary to
				determine the business income attributable to each separate trade or business.
				The income of each business is then apportioned by an apportionment formula
				which takes into consideration the instate and outstate factors which relate to
				the trade or business the income of which is being apportioned. Accordingly,
				the amount of business income attributable to the taxpayer's trade or business
				activities in the state is determined by applying an appropriate apportionment
				formula to the business income of each business.
(b) The determination of whether the
				activities of the taxpayer constitute a single trade or business or more than
				one trade or business will turn on the facts in each case. In general, the
				activities of the taxpayer will be considered a single business if there is
				evidence to indicate that the segments under consideration are integrated with,
				dependent upon or contribute to each other and the operations of the taxpayer
				as a whole. The following factors are considered to be good indicia of a single
				trade or business, and the presence of any of these factors creates a strong
				presumption that the activities of the taxpayer constitute a single trade or
				business:
(1) Same Type of Business. A
				taxpayer is generally engaged in a single trade or business when all of its
				activities are in the same general line.
(2) Steps in a Vertical Process. A taxpayer
				is almost always engaged in a single trade or business when its various
				divisions or segments are engaged in different steps in a large, vertically
				structured enterprise.
(3) Strong
				Centralized Management. A taxpayer which might otherwise be considered as
				engaged in more than one trade or business is properly considered as engaged in
				one trade or business when there is a strong central management, coupled with
				the existence of centralized departments for such functions as financing,
				advertising, research, or purchasing. Thus, some conglomerates may properly be
				considered as engaged in only one trade or business when the central executive
				officers are normally involved in the operations of the various divisions and
				there are centralized offices which perform for the divisions the normal
				matters which a truly independent business would perform for itself, such as
				accounting, personnel, insurance, legal, purchasing, advertising, or
				financing.
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.031 - Business and nonbusiness income - application of definitions

Current through May 31, 2024
(a) The following
				subsections in this section are rules for determining whether particular income
				is business or nonbusiness income.
(b) Rents from Real and Tangible Personal
				Property. Rental income from real and tangible personal property is business
				income if the property with respect to which the rental income was received is
				used in the taxpayer's trade or business or is incidental to it and, therefore,
				is includable in the property factor under
				15 AAC 19.141 and
				15 AAC 19.151.
(c) Gains or Losses From Sales of Assets.
				Gains or losses from the sale, exchange, or other disposition of real or
				tangible or intangible personal property constitutes business income if the
				property while owned by the taxpayer was used in the taxpayer's trade or
				business. However, if that property was used for the production of nonbusiness
				income or otherwise was removed from the property factor before its sale,
				exchange or other disposition, the gain or loss will constitute nonbusiness
				income. See
				15 AAC 19.141 and
				15 AAC 19.151.
(d) Interest. Interest income is business
				income where the intangible with respect to which the interest was received
				arises out of or was created in the regular course of the taxpayer's trade or
				business operations or where the purpose for acquiring and holding the
				intangible is related to or incidental to those trade or business
				operations.
(e) Dividends.
				Dividends are business income where the stock with respect to which the
				dividends are received arises out of or was acquired in the regular course of
				the taxpayer's trade or business operations or where the purpose for acquiring
				and holding the stock is related to or incidental to those trade or business
				operations.
(f) Patent and
				Copyright Royalties. Patent and copyright royalties are business income where
				the patent or copyright with respect to which the royalties were received
				arises out of or was created in the regular course of the taxpayer's trade or
				business operations or where the purpose for acquiring and holding the patent
				or copyright is related to or incidental to those trade or business
				operations.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.041 - Proration of deductions

Current through May 31, 2024
(a) In most cases
				an allowable deduction of a taxpayer will be applicable only to the business
				income arising from a particular trade or business or to a particular item of
				nonbusiness income. In some cases, an allowable deduction may be applicable to
				the business incomes of more than one trade or business or to several items of
				nonbusiness income. In such cases, the deduction shall be prorated among those
				trades or businesses and those items of nonbusiness income in a manner which
				fairly distributes the deduction among the classes of income to which it is
				applicable.
(b) In filing returns
				with this state, if the taxpayer departs from or modifies the manner of
				prorating any such deduction used in returns for prior years, the taxpayer
				shall disclose in the return for the current year the nature and extent of the
				modification.
(c) If the returns or
				reports filed by a taxpayer with all states to which the taxpayer reports under
				Article IV of the Multistate Tax Compact or the Uniform Division of Income for
				Tax Purposes Act are not uniform in the application or proration of any
				deduction, the taxpayer shall disclose in its return to this state the nature
				and extent of the variance.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.061 - Apportionment

Current through May 31, 2024
If the business activity in respect to any trade or business
				  of a taxpayer occurs both within and outside of this state, and if by reason of
				  that business activity the taxpayer is taxable in another state, the portion of
				  the net income (or net loss) arising from that trade or business which is
				  derived from sources within this state shall be determined by apportionment in
				  accordance with
				  AS
				  43.19.010, Article IV.9 -
				  IV.17.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.071 - Combined report

Current through May 31, 2024
If a particular trade or business is carried on by a taxpayer
				  and one or more affiliated corporations, nothing in
				  AS
				  43.19.010, Article IV, or in these
				  regulations precludes the use of a "combined report" by which the entire
				  business income of that trade or business is apportioned in accordance with
				  AS
				  43.19.010, Article IV.9 -
				  IV.17.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.081 - Allocation

Current through May 31, 2024
Any taxpayer subject to the taxing jurisdiction of this state
				  shall allocate all of its nonbusiness income or loss within or outside of this
				  state in accordance with
				  AS
				  43.19.010, Article IV.4 -
				  IV.8.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 1 - Division of Income › 15 AAC 19.091 - Consistency and uniformity in reporting

Current through May 31, 2024
(a) In filing
				returns with this state, if the taxpayer departs from or modifies the manner in
				which income has been classified as business income or nonbusiness income in
				returns for prior years, the taxpayer shall disclose in the return for the
				current year the nature and extent of the modification.
(b) If the return or reports filed by a
				taxpayer for all states to which the taxpayer reports under Article IV of the
				Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act
				are not uniform in the classification of income as business or nonbusiness
				income, the taxpayer shall disclose in its return to this state the nature and
				extent of the variance.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 2 - Taxable in Another State › 15 AAC 19.101 - Taxable in another state; in general

Current through May 31, 2024
(a) A taxpayer is
				subject to the allocation and apportionment provisions of this chapter if it
				has income from business activity that is taxable both within and outside of
				this state. A taxpayer's income from business activity is taxable outside of
				this state if the taxpayer, by reason of that business activity (i.e., the
				transactions and activity occurring in the regular course of a particular trade
				or business), is taxable in another state within the meaning of
				AS
				43.19.010, Article IV.3. A taxpayer is
				taxable within another state if it meets either one of two tests
(1) if by reason of business activity in
				another state the taxpayer is subject to one of the types of taxes specified,
				namely: a net income tax, a franchise tax measured by net income, a franchise
				tax for the privilege of doing business, or a corporate stock tax; or
(2) if by reason of that business activity
				another state has jurisdiction to subject the taxpayer to a net income tax,
				regardless of whether the state imposes such a tax on the taxpayer.
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 2 - Taxable in Another State › 15 AAC 19.111 - When a taxpayer is "subject to" a tax

Current through May 31, 2024
(a) A taxpayer is
				"subject to" one of the taxes specified in
				15 AAC 19.101(a)
				if it carries on business activity in that state and that state imposes such a
				tax on that activity. Any taxpayer which asserts that it is subject to one of
				the taxes specified in
				15 AAC 19.101(a)
				in another state shall furnish to the commissioner of revenue of this state
				upon his request evidence to support the assertion. The commissioner of revenue
				may request that the evidence include proof that the taxpayer has filed the
				requisite tax return in the other state and has paid any taxes imposed under
				the law of that other state; the taxpayer's failure to produce that proof may
				be taken into account in determining whether the taxpayer in fact is subject to
				one of the taxes specified in
				AS
				43.19.010, Article IV.3.(1) and
				15 AAC 19.101(a)
				in the other state.
(b) If the
				taxpayer voluntarily files and pays one or more of those taxes when not
				required to do so by the laws of that state or pays a minimal fee for
				qualification, organization or for the privilege of doing business in that
				state, but (1) does not actually engage in business activity in that state, or
				(2) does actually engage in some business activity, not sufficient for nexus,
				and the minimum tax bears no relation to the taxpayer's business activity
				within such state, the taxpayer is not "subject to" one of the taxes specified
				in AS
				43.19.010, Article IV.3.(1) and
				15 AAC 19.101(a).
(c) The concept of taxability in another
				state is based on the premise that every state in which the taxpayer is engaged
				in business activity may impose an income tax even though every state does not
				do so. In states which do not, other types of taxes may be imposed as a
				substitute for an income tax. Therefore, only those taxes enumerated in
				AS
				43.19.010, Article IV.3.(1) and
				15 AAC 19.101(a)
				which may be considered as basically revenue-raising rather than regulatory
				measures shall be considered in determining whether the taxpayer is "subject
				to" one of the taxes specified in
				AS
				43.19.010, Article IV.3.(1) and
				15 AAC 19.101(a)
				in another state.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 2 - Taxable in Another State › 15 AAC 19.121 - When a state has jurisdiction to subject a taxpayer to a net income tax

Current through May 31, 2024
The second test, that of the state having jurisdiction to
				  subject the taxpayer to a net income tax regardless of whether, in fact, the
				  state does or does not, applies if the taxpayer's business activity is
				  sufficient to give the state jurisdiction to impose a net income tax by reason
				  of such business activity under the Constitution and statutes of the United
				  States. Jurisdiction to tax is not present where the state is prohibited from
				  imposing the tax by reason of the provisions of Public Law 86-272,  15 U.S.C.A. Section 381 - 385 . In the case of any "state" as defined in
				  AS
				  43.19.010, Article IV.1.(h), other than a
				  state of the United States or political subdivision of such a state, the
				  determination of whether that "state" has jurisdiction to subject the taxpayer
				  to a net income tax shall be made as though the jurisdictional standards
				  applicable to a state of the United States applied in that "state." If
				  jurisdiction is otherwise present, the "state" is not considered as without
				  jurisdiction by reason of the provisions of a treaty between the state and the
				  United States.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 3 - Apportionment Formula › 15 AAC 19.131 - Apportionment formula

Current through May 31, 2024
All business income of each trade or business of the taxpayer
				  shall be apportioned to this state by use of the apportionment formula set
				  forth in AS 43.19.010, Article IV.9. The
				  elements of the apportionment formula are the property factor (see
				  15 AAC 19.141 -
				  15 AAC 19.202), the payroll factor
				  (see 15 AAC 19.211 -
				  15 AAC 19.241), and the sales
				  factor (see
				  15 AAC 19.251 -
				  15 AAC 19.302), of the trade or
				  business of the taxpayer.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 4 - Property Factor › 15 AAC 19.141 - Property factor in general

Current through May 31, 2024
(a) The property
				factor of the apportionment formula for each trade or business of the taxpayer
				must include all real and tangible personal property owned or rented by the
				taxpayer and used during the tax period in the regular course of that trade or
				business. The term "real and tangible personal property" includes land,
				buildings, machinery, stocks of goods, equipment, and other real and tangible
				personal property but does not include coin or currency.
(b) Property used in connection with the
				production of nonbusiness income must be excluded from the property factor.
				Property used both in the regular course of taxpayer's trade or business and in
				the production of nonbusiness income must be included in the factor only to the
				extent the property is used in the regular course of taxpayer's trade or
				business. The method of determining that portion of the value to be included in
				the factor will depend upon the facts of each case.
(c) The property factor must include the
				average value of property includable in the factor. See
				15 AAC 19.201.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 4 - Property Factor › 15 AAC 19.151 - Property used for the production of business income

Current through May 31, 2024
(a) Property must
				be included in the property factor if it is actually used or is available for
				or capable of being used during the tax period in the regular course of the
				trade or business of the taxpayer. Property held as reserves or standby
				facilities or property held as a reserve source of materials must be included
				in the factor. For example, a plant temporarily idle and raw material reserves
				not currently being processed are includable in the factor.
(b) Property or equipment under construction
				during the tax period (except inventoriable goods in process) must be excluded
				from the factor until that property is actually used in the regular course of
				the trade or business of the taxpayer. If the property is partially used in the
				regular course of the trade or business of the taxpayer while under
				construction, the value of the property to the extent used must be included in
				the property factor.
(c) Property
				used in the regular course of the trade or business of the taxpayer must remain
				in the property factor until its permanent withdrawal is established by an
				identifiable event such as its conversion to the production of nonbusiness
				income, its sale, or the lapse of an extended period of time (normally, five
				years) during which the property is held for sale.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 4 - Property Factor › 15 AAC 19.161 - Consistency in reporting

Current through May 31, 2024
(a) In filing
				returns with this state, if the taxpayer departs from or modifies the manner of
				valuing property or of excluding or including property in the property factor
				used in returns for prior years, the taxpayer shall disclose in the return for
				the current year the nature and extent of the modification.
(b) If the returns or reports filed by the
				taxpayer with all states to which the taxpayer reports under Article IV of the
				Multistate Tax Compact or the Uniform Division of Income for Tax Purposes Act
				are not uniform in the valuation of property and in the exclusion or inclusion
				of property in the property factor, the taxpayer shall disclose in its return
				to this state the nature and extent of the variance.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 4 - Property Factor › 15 AAC 19.171 - Numerator

Current through May 31, 2024
(a) The numerator of the property factor must
				include the average value of the real and tangible personal property owned or
				rented by the taxpayer and used in this state during the tax period in the
				regular course of the trade or business of the taxpayer.
(b) Property in transit between locations of
				the taxpayer to which it belongs must be considered to be at the destination
				for purposes of the property factor. Property in transit between a buyer and
				seller which is included by a taxpayer in the denominator of its property
				factor in accordance with its regular accounting practices must be included in
				the numerator according to the state of destination.
(c) The value of mobile or movable property
				such as construction equipment, trucks or leased electronic equipment which is
				located within and outside of this state during the tax period must be
				determined for purposes of the numerator of the factor on the basis of total
				time within the state during the tax period.
(d) An automobile assigned to a traveling
				employee must be included in the numerator of the factor of the state to which
				the employee's compensation is assigned under the payroll factor or in the
				numerator of the state in which the automobile is licensed.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 4 - Property Factor › 15 AAC 19.181 - Valuation of owned property

Current through May 31, 2024
(a) Property owned
				by the taxpayer must be valued at its original cost. As a general rule,
				"original cost" is considered to be the basis of the property for federal
				income tax purposes (before any federal adjustments) at the time of acquisition
				by the taxpayer and adjusted by subsequent capital additions or improvements to
				it and partial disposition of it by reason of sale, exchange, abandonment,
				etc.
(b) If the original cost of
				property is unascertainable, the property must be included in the factor at its
				fair market value as of the date of acquisition by the taxpayer.
(c) Inventory of stock of goods must be
				included in the factor in accordance with the valuation method used for federal
				income tax purposes.
(d) Property
				acquired by gift or inheritance must be included in the factor at its basis for
				determining depreciation for federal income tax purposes.
Authority:
AS
					 43.05.080
AS
					 43.19.010
Alaska Administrative Code › Title 15 - Revenue › Chapter 19 - Multistate Tax Compact › Article 4 - Property Factor › 15 AAC 19.191 - Valuation of rented property

Current through May 31, 2024
(a) Property rented
				by the taxpayer must be valued at eight times its net annual rental rate. The
				net annual rental rate for any item of rented property is the annual rental
				rate paid by the taxpayer for that property, less the aggregate annual
				subrental rates paid by subtenants of the taxpayer. (See
				15 AAC 19.202 for special rules
				where the use of that net annual rental rate produces a negative or clearly
				inaccurate value or where property is used by the taxpayer at no charge or
				rented at a nominal rental rate.)
(b) Subrents are not deducted when the
				subrents constitute business income because the property which produces the
				subrents is used in the regular course of a trade or business of the taxpayer
				when it is producing that income. Accordingly, there is no reduction in its
				value.
(c) "Annual rental rate" is
				the amount paid as rental for property for a 12-month period (i.e., the amount
				of the annual rent). Where property is rented for less than a 12-month period,
				the rent paid for the actual period of rental constitutes the "annual rental
				rate" for the tax period. However, where a taxpayer has rented property for a
				term of 12 or more months and the current tax period covers a period of less
				than 12 months (due, for example, to a reorganization or change of accounting
				period), the rent paid for the short tax period must be annualized. If the
				rental term is for less than 12 months, the rent may not be annualized beyond
				its term. Rent may not be annualized because of the uncertain duration when the
				rental term is on a month-to-month basis.
(d) "Annual rent" is the actual sum of money
				or other consideration payable, directly or indirectly, by the taxpayer or for
				its benefit for use of the property and includes
(1) any amount payable for the use of real or
				tangible personal property, or any part of it, whether designated as a fixed
				sum of money or as a percentage of sales, profits, or otherwise;
(2) any amount payable as additional rent or
				in lieu of rents, such as interest, taxes, insurance, repairs or any other
				items which are required to be paid by the terms of the lease or other
				arrangement, not including amounts paid as service charges, such as utilities,
				janitor services, etc.; if a payment includes rent and other charges
				unsegregated, the amount of rent shall be determined by consideration of the
				relative values of the rent and the other items.