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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Monday, February 26, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

$247.00
CPE
ALL

This webinar will prepare multistate tax practitioners and businesses for potential state apportionment audits. Our panel of state income tax veterans will review the latest developments in apportionment audits in particular states, explain differences in state sourcing methods, and discuss the application of throwback/throwout and the Joyce/Finnigan rules. They will offer concrete suggestions on selecting, documenting, and supporting apportionment allocations in anticipation of a state examination.

Faculty

Stacey L. Roberts
State and Local Tax Director
TaxOps

Ms. Roberts has been making state and local tax (SALT) less taxing for thousands of businesses over the last 25 years. As a director of the SALTovation team at TaxOps, she guides dynamic businesses through compliance and strategic planning focused on minimizing risk and strengthening tax positions. Ms. Roberts honed her specialty at Andersen Worldwide/Andersen LLP, KPMG and Deloitte before moving in-house with a Fortune 500 company to administer state and local tax. She has also led the national SALT practice at a regional firm. Ms. Roberts is a member of the Colorado Legislative Task Force Concerning Tax Policy and a frequent speaker, instructor and author on SALT issues for industry and professional organizations.

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Meredith Smith
Partner
TaxOps

Ms. Smith expertly weaves real-life examples into why business taxpayers, tax professionals, and tax providers should care about complex state and local tax (SALT) issues. This knowledge comes from expertly navigating the web of tax laws governing SALT issues for nearly 20 years. From working with clients inside their business, she knows the questions, issues and strategies for resolution that keep businesses on the tax compliance track. Ms. Smith combines technical knowledge and in-depth industry understanding in performing nexus studies, identifying areas of risk, and designing sustainable planning opportunities for achieving tax-specific business goals. Her practice covers state income tax, property tax, sales and use tax, and business incentives and credits. Prior to TaxOps, Ms. Smith was a member of the SALT practice at KPMG, serving large, multi-jurisdictional corporations and multi-tier partnerships across industries. She is a frequent speaker and the host of the SALTovation podcast, a podcast series featuring leading voices in states and local tax. Listen in on your favorite channel: https://saltovation.captivate.fm/listen. 

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Description

The number of state tax audits continues to escalate. California's Franchise Tax Board's website states that for assessments finalized during its 2022 fiscal year-end, "For corporation income and franchise taxes, the largest dollar amount in proposed assessments resulted from allocation and apportionment audits, which involves corporations doing business within and outside of California." The lucrative nature of these audits and the complexity and varying nature of state guidelines for apportionment dictate that the number of these examinations will continue to increase.

Apportionment is the act of attributing income by state for multistate entities. More and more states are adopting the sales factor as the only, or highest weighted factor, for assignment of income. Sales sourcing methods vary by state, with a majority favoring market-based sourcing while some use a cost of performance or another method. Some states have throwback rules insisting that sales not taxed by a state are allocated to the state where the sale originated. SALT practitioners and businesses must determine the most appropriate methodology for computing sales by state and be able to support and document this method in the event it is challenged by a state or state(s).

Listen as our panel of SALT experts explains best practices for calculating, documenting, and defending state apportionment methods.

Outline

  1. State Apportionment Audits – Introduction
  2. Apportionment methods
  3. Sourcing sales
    • Services
    • Tangible property
  4. Remote employees
  5. Reviewing income tax returns
  6. Apportionment workpapers
  7. Defending throwback and throwout allocations
  8. Joyce and Finigan rules
  9. Other considerations

Benefits

The panel will cover these and other critical issues:

  • The status of state apportionment examinations in certain states
  • Preparing apportionment workpapers with potential audits in mind
  • Reviewing prior income tax returns for apportionment issues
  • Defending throwback and throwout allocations

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identify common challenges to apportionment allocations by states
  • Determine the status of apportionment examinations in particular states
  • Decide how to support throwback allocations
  • Ascertain how properly prepared workpapers can mitigate audit repercussions

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.