Multistate Taxation of Business Entities

Description

Focus on a discussion of the states doing business requirements, apportionment and filing tax returns in a multistate environment. Gain an in-depth understanding of the complexity and planning opportunities involved in applying California's new single sales factor apportionment formula, and learn how other states address the issue of apportionment. Explore the tax computation and reporting requirements for states that assess a tax on gross receipts; review the growing trend toward use of market-based sourcing in several states, including California; and learn what it means to be included in a unitary group and how to file a combined report.

Highlights

• Nexus standards in key states
• Apportionment formulas in all states
• States that have adopted combined reporting and their differing methodologies
• Unitary method: How it applies to corporations and other business entities
• Market-based sourcing

Objectives

• Identify how California and other states have expanded their definition of “doing business” and how these developments will affect your clients.
• Determine when, where and how to file income tax returns in other states.
• Identify which states tax corporations and how the tax is computed, including franchise taxes and capital stock taxes.
• Determine the unitary method and the impact to your client from being a member of the unitary group.
• Recognize apportionment formulas and unique concepts, such as throwout and throwback.

Designed For

CPAs, attorneys and other tax practitioners filing tax returns in multiple states, and those who provide tax advice regarding planning strategies for clients whose businesses expand outside of California.