New York's highest court ruled Thursday the state can collect sales tax from out-of-state retailers, rejecting claims by Amazon.com and Overstock.com that the tax law violates the U.S. Constitution's Commerce Clause.

The Court of Appeals said in a 4-1 ruling that the 2008 amendment meets the U.S. Supreme Court test that the sellers have "a substantial nexus" with the taxing state. Taxes apply when the online retailers generate at least $10,000 in annual sales to New Yorkers from in-state websites that earn commissions by bringing in potential customers through links to the big retailers.

Amazon.com, with corporate offices in Washington state, has an "Associates Program" where others put such links on their websites. Overstock.com, based in Utah, suspended its similar "Affiliates" program in New York after the state statute was enacted.

New York's sales tax is 4 percent and all its counties and New York City add an additional tax ranging from 3 percent to near 5 percent. Both apply to applicable Internet sales, according to the state Department of Taxation and Finance.

Stephen Baldwin will avoid jail and will have up to five years to pay $350,000 in back taxes and penalties, his lawyer said Monday.

Attorney Russell Yankwitt said he and prosecutors tentatively agreed that Baldwin, youngest of the four acting Baldwin brothers, will admit in court this month that he repeatedly failed to file his New York state income tax returns.

Baldwin, who starred in 1995's "The Usual Suspects" and is currently on television in "All-Star Celebrity Apprentice," is accused of skipping his 2008, 2009 and 2010 returns. When he was arrested in December, the district attorney said Baldwin could face up to four years in prison if convicted.

But at Monday's closed-door conference at the Rockland County Courthouse, "The district attorney's office and the judge made it very clear that Mr. Baldwin will not be going to prison," Yankwitt said. "If Mr. Baldwin can't work, he can't pay back his back taxes."

Baldwin, 46, of Upper Grandview, was not at the conference.

Prosecutor Anthony Dellicarri confirmed that a tentative agreement had been reached on a plea deal but would not detail the specifics. The district attorney's office said only that a possible resolution of the case was discussed.

Yankwitt said that if Baldwin pays back the money within a year, the case will be discharged on the condition he stay out of trouble. If Baldwin doesn't meet the one-year deadline, he will be sentenced to probation and given five years to pay back the money.

An eastern Iowa woman has pleaded guilty to filing false tax returns.

Authorities say 60-year-old Regina Jimenez faces up to three years in federal prison. She entered her pleas on Friday in U.S. District Court in Davenport.

Federal prosecutors say Jimenez used her Clinton business from 2007 through 2011 to steal more than $200,000 from a client who believed that Jimenez would use the money to pay the client's taxes. Prosecutors say Jimenez instead used the money for her own expenditures and did not report the stolen funds on her tax returns.

Past its own New Year's deadline, a weary Congress sent President Barack Obama legislation to avoid a national "fiscal cliff" of middle class tax increases and spending cuts late Tuesday night in the culmination of a struggle that strained America's divided government to the limit.

The bill's passage on a bipartisan 257-167 vote in the House sealed a hard-won political triumph for the president less than two months after he secured re-election while calling for higher taxes on the wealthy.

Moments later, Obama strode into the White House briefing room and declared, "Thanks to the votes of Republicans and Democrats in Congress I will sign a law that raises taxes on the wealthiest 2 percent of Americans while preventing tax hikes that could have sent the economy back into recession."

He spoke with Vice President Joe Biden at his side, a recognition of the former senator's role as the lead Democratic negotiator in final compromise talks with Senate Republican Leader Mitch McConnell of Kentucky.

In addition to neutralizing middle class tax increases and spending cuts taking effect with the new year, the legislation will raise tax rates on incomes over $400,000 for individuals and $450,000 for couples. That was higher than the thresholds of $200,000 and $250,000 that Obama campaigned for. But remarkably, in a party that swore off tax increases two decades ago, dozens of Republicans supported the bill at both ends of the Capitol.

For the past three years, the Internal Revenue Service hasn't been investigating complaints of partisan political activity by churches, leaving religious groups who make direct or thinly veiled endorsements of political candidates unchallenged.

The IRS monitors religious and other nonprofits on everything from salaries to spending, and that oversight continues. However, Russell Renwicks, a manager in the IRS Mid-Atlantic region, recently said the agency had suspended audits of churches suspected of breaching federal restrictions on political activity. A 2009 federal court ruling required the IRS to clarify which high-ranking official could authorize audits over the tax code's political rules. The IRS has yet to do so.

Dean Patterson, an IRS spokesman in Washington, said Renwicks, who examines large tax-exempt groups, "misspoke." Patterson would not provide any specifics beyond saying that "the IRS continues to run a balanced program that follows up on potential noncompliance."

However, attorneys who specialize in tax law for religious groups, as well as advocacy groups who monitor the cases, say they know of no IRS inquiries in the past three years into claims of partisanship by houses of worship. IRS church audits are confidential, but usually become public as the targeted religious groups fight to maintain their nonprofit status.

A Florida Indian tribe wants a federal appeals court to stop the Internal Revenue Service from obtaining financial records as part of a tax investigation into gambling profits.

The Miccosukee tribe seeks an order blocking IRS subpoenas from the 11th U.S. Circuit Court of Appeals. A three-judge panel of the court was hearing oral arguments Thursday in Miami.

The tribe is appealing a federal judge's 2011 order permitting the IRS to obtain the tribe's records from entities such as Morgan Stanley and Citibank. The tribe is claiming that as a sovereign nation the records are protected from scrutiny.

The IRS is investigating whether the 600-member tribe failed to report income and withhold taxes on millions of dollars in casino gambling profits distributed to tribal members.

The Supreme Court has turned down homeowners in Indianapolis who sought tax refunds when the city changed its plan for paying for a new sewer line.

In a 6-3 ruling Monday, the court upheld the city's decision to refuse to refund taxes that some homeowners paid up front while it forgave the remaining taxes for people who paid on an installment plan.

Those who paid in full complained that the disparate treatment violated the Constitution's Equal Protection Clause.

But Justice Stephen Breyer said in his majority opinion that Indianapolis acted properly in changing the payment system because it wanted to reduce the administrative headaches of debt collection.

In dissent, Chief Justice John Roberts said the court was wrong to endorse such a gross disparity in tax treatment.