The Tax Court held that state nonresident income taxes paid by a lawyer on his law firm’s income sourced in four states were deductible as itemized deductions, not on Form 1040 as unreimbursed partnership expenses. The firm had offices in these states, but taxpayer did not perform services or work for clients in any of them. The taxpayer argued that the taxes were entity level taxes imposed directly on the firm, not him, and that he lacked a sufficient nexus to those states to be taxed by any of them. The Tax Court disagreed stating that (1) the state income taxes were imposed on the net income of the partner, not the firm; and (2) the taxpayer had nexus in the states because as a principal in the firm he had the authority to manage the firm’s business in those states. Matthew L. Cutler, TC Memo 2015-73 (Tax Court).