Qualities of a Leader
How often have you heard the comment, He or she is a born leader? There are certain characteristics found in some people that seem to naturally put them in a position where theyre looked up to as a leader.Read More
By Steven Singer, CPA
On May 21, 2007, The U.S. Supreme Court agreed to review the Kentucky Court of Appeals decision in Davis (Davis v. Department of Revenue, No. 2004CA-00194-MR (Ky. App. Ct. January 6, 2006), cert. granted, Department of Revenue v. Davis, DK. No. 06-666 U.S. Sup. Ct. May 21, 2007).
If the US Supreme Court upholds the appellate court ruling, taxpayers may be entitled to claim refunds for any state income tax that they paid on out-of-state bonds. In most states, interest income on bonds issued by the state are state tax free. However, bonds issued by other states are state taxable. Bonds issued by states are federally tax free.
Taxpayers who have mutual funds which hold state bonds may also be entitled to state refunds.
Taxpayers in states (including California) that paid state income tax on interest received on out-of-state public bonds should consider filing protective refund claims for taxes previously paid where the statute of limitations is still open. In California, you may be able to file claims for the year 2002 and thereafter.
The Supreme Court will probably rule on the matter sometime in Winter 2007 or Spring 2008.