State Income Tax Apportionment Rules – Market-Based Sourcing and Other Developments (Completed)

Date: Friday, September 22, 2017
Instructor: Michael Bannasch
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs

Understand the and Manage the Rules in the Changing World of State Income Tax Apportionment
The movement by states from traditional three-factor apportionment (payroll, property, and sales) to single sales factor apportionment, coupled with the changes in market-based sourcing of services, is the biggest issue confronting businesses that file income tax returns in multiple states. This helpful webinar will inform and prepare you to tackle this most difficult and complex of state income tax issues.

In this two-hour CPE webinar, Michael R. Bannasch, CPA, MST will guide you through not only the basic issues and current developments regarding state income tax apportionment, but also explain how specific states interpret and apply market-based sourcing. Using concrete examples, you will gain an understanding of both the theory behind the changes in apportionment, and how these changes specifically impact your clients or your company. During the program, you will be briefed on the latest developments and given the opportunity to ask questions directly to Mr. Bannasch.

As our “thank you for attending” gift, firms registered for this seminar will receive a complimentary issue of Wolters Kluwer’s Journal of State Taxation in electronic format.

Who Should Attend
Accountants, attorneys, or tax preparers in both public practice and industry who work on multistate tax returns or issues

Topics Covered

  • Apportionment basics and mechanics beginning with traditional three-factor apportionment
  • The continuing movement toward single sales factor apportionment
  • The need to understand your clients' or your company's revenue streams to ensure proper sourcing
  • The differences between cost-of-performance and market-based sourcing for sales of services
  • Market-based sourcing and how different states apply it in different ways

Learning Objectives

  • Discuss the current apportionment environment for multistate taxpayers
  • Clarify the confusing differences in how states apply the cost-of-performance and market-based sourcing rules
  • Explain both the opportunities and the risks of market-based sourcing
  • Identify and manage complex apportionment issues
  • Recognize opportunities that can arise as a result of intentionally creating nexus


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of state income taxation concepts

Advance Preparation

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