Course ID: MSTB

Multi-State Taxation of Business

The economic turmoil during 2008 and 2009 in the US economy is starting to fade into our memories. But significant changes in how businesses operate and consumers shop has caused a desperate search for revenue by most states. Internet commerce defies taxation under traditional concepts of nexus and situs. Decisions by the US Supreme Court (as well as choosing not to decide certain cases) and various state courts are providing states to engage in more aggressive revenue initiatives. Recent trends in legislation and merging nexus standards for taxing sales and income are blurring the landscape for many businesses. This change in fundamentals from a “presence” based tax system to an “economic opportunity” based tax structure requires CPAs to understand state and local tax issues. Businesses need to consider restructuring themselves to minimize the multi-state tax burden. This program explains and illustrates how to avoid becoming subject to excessive state taxation. And who knows, Congress might even pass legislation that has been proposed for almost 30 years!


LEARNING OBJECTIVES
  • Understand key terms and concepts in multi-state tax planning and compliance
  • Recognize changes in nexus standards for sales and income taxes
  • Anticipate trends in changing tax standards in order to adjust business practices
  • Compute state income under a variety of taxing systems
  • Recognize the need for different planning approaches for different taxing systems
  • Properly apportion income when state tax systems are not the same: unitary versus single entity, “Commercial Nexus,” variants of three factor formula, and integrated business versus investment
  • Properly account for property, payroll, and sales
  • Restructure entities to reduce taxes
  • Comply with sales and use tax rules without overpaying tax
  • Work with states administrative rules, audit procedures, and statutes of limitation

MAJOR TOPICS

Nexus, situs, and internet commerce

  • Relationship to federal taxation
  • Tax treatment of mobile and remote employees
  • Common differences of federal versus state
  • Three factor formula, common variations, and emerging single factor apportionment COURSE ACRONYM MSTB PRESENTATION METHOD Group-live LEVEL OF KNOWLEDGE Intermediate PREREQUISITES None ADVANCE PREPARATION None FIELD OF STUDY Taxes State and Local Taxes RECOMMENDED CPE CREDIT 8 hours
  • Gross receipts and other unique but expanding tax systems
  • Tax issues involving intellectual property sales across state lines
  • Taxation of internet-based transactions
  • Sales and use taxes
  • Multistate Tax Commission initiatives
  • Filing rules and audit procedures
  • Current developments in multistate taxation

DESIGNED FOR
CPAs whose clients or employers do business or have employees in more than one state. The more states, the more this program will be beneficial. May also be suitable for public practice.

FIELD OF STUDY
Taxes

PREREQUISITES
None

COURSE PRODUCER
Loscalzo Associates

CPE CREDITS
8.0

LEVEL
Intermediate
 

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