KPMG reports: Colorado, Illinois, Louisiana

Recent state and local tax developments

Recent state and local tax developments

KPMG’s This Week in State Tax—produced weekly by KPMG’s State and Local Tax practice—focuses on recent state and local tax developments.

  • Colorado: The state tax authority announced that it will accept cryptocurrency as payment for several types of taxes through the PayPal cryptocurrencies hub, where taxpayers will be able to select their desired cryptocurrency to use for payment. The tax authority also issued “frequently asked questions” (FAQs) with additional information. The guidance confirms that while taxpayers can pay their tax obligation using cryptocurrency, tax refunds will not be issued in cryptocurrency.
  • Illinois: The Illinois Tax Tribunal held that a taxpayer was not entitled to an abatement of late payment penalties on the basis that it acted in good faith and exercised ordinary business care and prudence when it determined that an affiliate was an 80/20 company excluded a from the Illinois unitary group because the taxpayer failed to provide any documentation or analysis to support that determination. In the tribunal’s view, the anticipated tax savings meant the taxpayer needed to scrutinize the structure at length.
  • Louisiana: The Board of Tax Appeals held that a taxpayer was entitled to use the formula applicable to manufacturing entities to allocate its taxable capital to Louisiana. The taxpayer developed software that customers accessed over the internet. The board concluded that the taxpayer’s software was tangible personal property that the taxpayer transformed from raw materials into a finished product. As such, the taxpayer was a manufacturer entitled to use the manufacturing allocation formula.

Read a September 2022 report prepared by KPMG LLP


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.