You canÂ’t afford to ignore recent changes in state and local tax. Even tax-savvy businesses and their advisers often neglect to consider the consequences of state and local taxes. Multistate taxation has become more complex and demanding than ever before. In addition to having their own unique tax laws, states have been more focused on enforcement. Plan to attend this fast-paced class that covers developing topics in state taxation, ranging from individuals to pass-through entities to corporate taxpayers. This class will focus on issues confronting small and middle-market companies and offer practical guidance for minimizing tax liability and negotiating the treacherous waters of compliance.

Major Topics:

  • The domicile dilemma: Issues for individuals with homes in multiple states; Traveling employees; Where to withhold?
  • Emerging sales tax topics: Internet sellers and the Amazon rule; Attributional nexus; Taxation in the "cloud"
  • Unclaimed property – What is it, and should I be worried about it?
  • Navigating nexus: Economic nexus (taxation without physical presence); Attributional and agency nexus; Presence of intangible property; Is P.L. 86-272 still valid?
  • Income Tax Issues: Moving away from the federal income tax base; Combined filing: opportunities or problems?; Apportionment: (i) The prevalence of the single sales factor; (ii) Determining the type of property being sold; (iii) Sourcing of income from intangible property and services; (iv) Market-based sourcing (cost of benefit) vs. cost of performance sourcing
  • Pass-through problems: Nexus issues for interest owners; Withholding issues; Sourcing of income; Taxation at the entity level
  • Practical considerations in dealing with multistate taxation: Dealing with state nexus questionnaires; Responsibility of officers, members, partners, and shareholders; Planning ideas and opportunities; Updates on impending federal legislation relative to state tax

Learning Objectives:

  • Understand changes in state statutes, regulations and case law
  • Identify areas that may require additional attention for state tax planning purposes 
  • Identify areas that may be costly for employers or clients
  • Understand the “who, what, when, and where” of nexus for income and sales tax

Designed For: Accountants who want an update on current multistate tax issues to minimize clientsÂ’ potential state and local tax liability
Level of Knowledge: Update
Prerequisite: Experience in corporate taxation
Advanced Preparation: None
Credits: 8