To provide CPAs and other finance professionals with a practical understanding of multistate taxation principles and recent developments, enabling them to evaluate nexus, apportionment, compliance obligations, audit exposure, and planning opportunities affecting businesses operating across multiple jurisdictions.

• Nexus: constitutional foundations and post-Wayfair economic nexus
• Marketplace facilitator laws and economic nexus developments after Wayfair
• Sales and use taxes: economic nexus thresholds and marketplace facilitator laws
• Gross receipts taxes, including the Ohio CAT, Texas Margin Tax, Washington B&O Tax, and Oregon Corporate Activity Tax (CAT)
• Corporate income/franchise tax:
  ○    Unitary business doctrine
  ○    Business vs. non-business income
  ○    Allocation and apportionment
• P.L. 86-272: MTC revised statement and internet activity guidance
• Pass-Through Entity Tax (PTET) elections: post-OBBBA planning
• Financial reporting and state tax provision considerations
• Audit defense
• Planning opportunities
   

To equip CPAs and other tax professionals with a comprehensive overview of multistate tax issues. You’ll gain practical knowledge and planning strategies for dealing with issues involving nexus, consolidated and combined tax returns and all multistate taxes, including income, sales/use, gross receipts, franchise and employment taxes. You’ll examine unitary business and apportionment and allocation issues under state income laws. And you’ll be prepared to structure transactions and businesses to your best tax advantage.

DETAILED LEARNING OBJECTIVES

• Recognize the current status of states’ ability to tax multistate businesses 

• Recognize the factors upon which state nexus rules apply 

• Identify the limitations imposed upon a states’ ability to tax a business

• Identify the states’ relative use of a state sales/use tax

• Recognize the states’ relative use of state individual income taxes 

• Identify the states’ relative use of state corporate income/gross receipts taxes

• Identify the authority by which a state legislature can enact a state tax

• Recognize the court case requiring physical presence for nexus with a state under the due process clause

• Recognize the court case denying nexus to a state under the negative commerce clause

• Identify the court case establishing that the physical presence tests were applicable to sales and use taxes but not corporate income tax

• Recognize states’ position on economic nexus prior to Wayfair

• Identify the post-Wayfair role of physical presence in establishing sales/use tax nexus

• Identify the type of employment relationships that would generally create sales tax nexus for a company

• Recognize the court case that directly led to the enactment of Public Law 86-272

• Identify the types of taxes that Public Law 86-272 is applicable to

• Identify the court case that determined the type of in-state activity protected under Public Law 86-272

• Identify the extent to which the states’ administration of the sales and use tax is uniform

• Recognize the methodology used by most states to begin their calculation of state taxable income 

• Identify the court case giving validity to the unitary business principle in the context of state income taxation

• Recognize the way in which the unitary business principle was developed

• Recognize the factors behind the concept of a unitary business

• Identify the court case that determined that gain from an investment function was not an operational function subject to apportionment 

• Recognize the court case that determined that worldwide combined reporting was not in violation of the constitution

• Recognize the common ownership percentage used by states requiring combined returns for unitary businesses

• Identify the types of businesses that are most likely to be found to be inherently integrated and thus not combined with other business lines

• Identify the premises regarding business vs. nonbusiness income in the UDITPA

• Nexus rules and limitations on income, franchise and sales and use taxes
  – Evolving nexus standards, including South Dakota v. Wayfair and economic nexus, as well as federal, judicial and legislative efforts
• Sales tax: general application, exceptions by industry, transaction and customer
• Situsing and sourcing sales
• Cloud computing, digital goods and services
• Unitary business doctrine
• Combined and consolidated income reporting vs. separate reporting
• Business vs. nonbusiness income
  – Allocation and apportionment
  – Business activity tests
• Apportionment factors: sales, property and payroll, as well as “special” factors used by some states
• Handling multistate tax audits
• ASC 740-10 (formerly known as FIN 48) exposure
• Planning opportunities to reduce overall tax burden
• Strategies to prepare for, respond to and reduce the risks associated with state tax audits and notices
• Amnesty and voluntary disclosure programs