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Richard Jones was quoted in the article "Mass. Wrongly Taxed Biz Founder On $4.7M Gain, Court Told," published by Law360 Tax Authority [sub.req'd] on January 14, 2025.

The article discusses an ongoing legal dispute involving Craig Welch, a local entrepreneur contesting a Massachusetts Appellate Tax Board (ATB) ruling that classified a $4.7 million capital gain from the sale of stock as taxable compensation. The Massachusetts Appeals Court recently heard arguments disputing the ATB's 2023 decision that the gain was tied to Welch's employment and subject to state tax.

Discussing the case, Rich noted that the court "expressed several concerns about the ATB decision, pressing the department on whether the assessment was unusual."

"The justices appeared to consider the 'crux' of the case to be the ATB's determination that the stock was compensatory in nature," said Rich. "On that point, they struggled to understand how the stock could be regarded as compensation when it was obtained on formation of the company and was not provided in exchange for services."