Maryland appeals income tax case to Supreme Court
Tax Law
The Daily Record reports the justices on Monday asked for the Obama administration's views on the constitutionality of barring state residents from deducting income taxes paid to other states from their local city or county taxes owed in Maryland.
Last year, the Maryland Court of Appeals found the state law unconstitutional, saying it violates the Commerce Clause. The court said the law discourages Maryland residents from earning money outside the state.
Maryland law allows residents to deduct income taxes paid to other states from their Maryland state tax. But the state says that provision does not apply to the "piggyback tax" the state collects for local governments.
In a brief to the Supreme Court, Maryland Attorney General Douglas Gansler said the state has broad authority to "tax all income of its residents, even income earned outside the taxing jurisdiction." He noted that the Court of Appeals' decision could cost local governments $45 million to $50 million annually. If the law is found unconstitutional, Maryland also might have to refund up to $120 million in taxes, Gansler noted in his petition.
The case arose after Brian and Karen Wynne challenged their Howard County tax bill. They had been blocked from deducting $84,550 from their county tax bill that they had paid in income taxes to other states. Brian Wynne's out-of-state income resulted from his ownership stake in a company that operates nationwide.
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Thai National Sentenced, Faces Deportation for Operating Immigration Fraud Scheme
Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps more than $518,000.
The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request, nor authorize, the applications.
“U.S. Citizenship and Immigration Services does not tolerate immigration fraud of any kind,” said Susan Raufer, director of the USCIS Newark Asylum Office. “We are proud of our role in uncovering this fraud scheme and bringing the perpetrator to justice.”
At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.