Kaplan University School of Professional and Continuing Education Kaplan University School of Professional and Continuing Education

Multi-State Taxation of Businesses (MSTB)

8-Hour Program

WHY ATTEND THIS COURSE?

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. States have been expanding their view of nexus, especially for sales taxes, with the US Supreme Court agreeing to hear South Dakota’s appeal that is looking to upend the physical presence requirement of Quill. 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!

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.

OBJECTIVE

Participants will be able to:

  • 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 SUBJECTS

  • 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
  • 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, including an update on changes in sales tax nexus
  • Information reporting requirements for out of state sales that have obtained court approval
  • Multistate Tax Commission initiatives
  • Filing rules and audit procedures
  • Current developments in multistate taxation

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


CPE Sponsor icon

SmartPros®, A Kaplan Company and Loscalzo Institute, A Kaplan Company are 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 credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.