Economic nexus now impacts both sales and use and income tax filing obligations around the country. As a result, many businesses have found themselves with unexpected past due liabilities as a result of surpassing economic nexus thresholds in unfamiliar jurisdictions. Thankfully, almost every state offers eligible taxpayers the option to address their liabilities through voluntary disclosure programs, which offer valuable benefits, such as limited lookbacks and automatic penalty abatement. Navigating a multistate voluntary disclosure process, however, requires significant planning and understanding of the rules in various jurisdictions.
During this two-hour CPE course, K. Craig Reilly, Esq., a highly regarded tax attorney from Hodgson Russ LLP, will outline the issues to consider before taking advantage of the benefits of a voluntary disclosure program. Mr. Reilly will offer practical solutions and help answer important voluntary disclosure-related questions. Are registered taxpayers eligible for voluntary disclosure? Should all applications be submitted anonymously? Which states participate in the Multistate Tax Commission (MTC) voluntary disclosure program? What is the standard lookback period? Is penalty abatement available when sales and use taxes have been collected but not remitted?
A working knowledge of how voluntary disclosure programs operate and how to manage the process is absolutely critical for tax practitioners, business owners, executives, and other professionals that deal with either general tax compliance or who are involved in transactional due diligence.
Publication Date: July 2022
Designed For
All CPAs, enrolled agents, tax return preparers, tax attorneys, corporate attorneys, and other practitioners who review or are responsible for preparing multistate tax returns for clients or advise on multistate tax issues will benefit from this insightful course.
Topics Covered
- Overview of economic nexus rules
- Voluntary Disclosure Programs
- What is a voluntary disclosure?
- Benefits
- Eligibility
- Multistate Tax Commission (MTC) Disclosure Program
Practical ConsiderationsWhere to apply?When to apply?Timelines
Learning Objectives
- Describe economic nexus rules
- Identify how to manage a multistate voluntary disclosure process
- Identify how to effectively weigh the costs and benefits of voluntary disclosure programs
- Identify the number of states that are moving to an "economic nexus" approach
- Recognize which states the case Telebright Corp., Inc. v. Director, Div. of Taxation find that one employee working from home in the state on a full-time basis was sufficient to subject an out-of-state corporation to CBT
- Differentiate Public Laws passed to minimize the potential income tax burden of operating in numerous states
- Identify the timeline periods you would practically disclose your identity and ensure data is available
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
K. Craig Reilly
Craig is a partner in the firm’s State & Local Tax Practice. Craig counsels businesses and individuals in a range of state and local tax issues, with a focus on New York State, New York City, New Jersey, and multistate tax issues.
Prior to joining Hodgson Russ, Craig was a judicial intern for the Honorable Jane A. Resanti of the U.S. Court of International Trade and an investigative analyst at the New York County District Attorney's Office.
Craig advises clients on all aspects of state and local tax from planning and compliance to controversy and litigation. He represents clients in disputes with the New York State Department of Taxation and Finance, New York City Department of Finance, and New Jersey Division of Taxation and is experienced in handling sales tax, corporate franchise tax, personal income tax, and residency audits.
Craig works closely with remote retailers and cloud-based software vendors on a variety of multistate tax compliance issues, including filing requirements, sales and use tax collection obligations, income allocation and apportionment, tax registrations, and applications for voluntary disclosure and other amnesty programs.
Hodgson Russ LLP
Hodgson Russ has approximately 200 attorneys in offices in Albany, Buffalo, New York City, Rochester and Saratoga Springs, New York; Hackensack, New Jersey; Palm Beach, Florida, and Toronto, Canada.
We serve a wide range of clients, from multinational and privately held corporations to nonprofit organizations, governmental entities, and individuals. Our attorneys practice in every major area of law and use multidisciplinary work teams to serve the specific, often complex, needs of our clients.