Sullivan
Microsoft has discontinued support for Internet Explorer. To access the Sullivan website, please install a modern browser like Microsoft Edge or Google Chrome.

Richard Jones, leader of Sullivan's Tax Group, was quoted in the article "State And Local Tax Cases To Watch In 2025," published by Law360 Tax Authority [sub.req'd] on January 1, 2025. The article highlights the Welch v. Commissioner of Massachusetts decision, where the Massachusetts Appellate Tax Board (ATB) ruled that a nonresident owed state income tax on gains from the sale of stock in a Massachusetts-based corporation he founded. The Welch case has been appealed to the Massachusetts Appeals Court.

Rich commented on the ongoing case, questioning whether Welch's active participation in the business matters in a corporate stock stale. "If this were a pass-through entity, then he would absolutely be taxable because of his active participation," said Rich. "But the rules are different when you are selling C corp stock. I think his active engagement in the business all along is completely irrelevant."