1. The IRS has issued Chief Counsel Advice (CCA) 200504029 indicating that nonresident aliens and foreign corporations selling US real estate are permitted to claim deductions for amounts paid during the year of sale for real estate taxes, interest, insurance, maintenance, and repairs, to the extent they would otherwise be deductible.
   
   
2. A Kentucky court has decided that an individual that owns a single member LLC is personally liable for the company's failure to pay withholding tax and social security tax for the company's employees.
   
   
3. Federal legislation has been introduced to prohibit individual States from imposing a net income tax unless there is a physical presence in the State.
   
   At the same time a Delaware corporation has asked the US Supreme Court to decide if the physical presence standard applies to all State taxes or only to sales and use taxes.
   
   
4. The above proposed federal legislation also extends the "commerce clause" exemption from State income tax to all State business activity taxes, and to all sales and transactions that are approved and fulfilled outside the State.
   
   Meanwhile, however, the "implementing States" believe their Streamlined Sales and Use Tax (SST) Agreement is scheduled to go into effect October 1, 2005 as planned.