According to the U.S. Supreme Court, apportioning income among the states resembles “slicing a shadow.” That is because states employ a patchwork of sourcing rules and formulas to determine how much of a business’s income is subject to tax. Within the same state different rules may apply to different types of entities (for example businesses operating as partnerships, C corporations or S corporations). And different rules apply to different types of receipts, such as receipts from the sales of services versus receipts from sales of tangible personal property. This course, taught by Open Weaver Banks from Hodgson Russ LLP, will review different state approaches to apportioning income and recent developments in this constantly evolving area of tax law, including legislative developments and court decisions.
Publication Date: December 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 webinar.
Topics Covered
- What is Apportionment?
- Principles of Apportionment
- History of Apportionment Formulas
- Current Trends in Apportionment
- Case Studies
- Invoking Alternative Apportionment
- Pass-through Entities
- Nonbusiness Income
Learning Objectives
- Identify the basic rules of apportionment employed by states
- Recognize the unique rules that apply to different entities and types of income
- Recognize how to gain awareness of apportionment issues that may arise in audits and appeals
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructors
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.
Open Weaver Banks
Open focuses her practice on State and Local Taxation. Her extensive experience includes representation of taxpayers in administrative and court appeals in New Jersey, New York and Illinois on a variety of complex issues, including apportionment of business income, combined reporting, constitutional nexus, the Internet Tax Freedom Act, nonresident and resident personal income taxation, sales and use taxation, and the imposition of various industry specific taxes, including telecommunications, utilities, and amusement taxes.
Open has represented both public and private companies engaged in a wide range of activities, including manufacturing, retail, telecommunications, banking, transportation, construction, sports, television and radio production, publishing, and insurance. She has also represented individuals challenging residency determinations and assessments arising from adjustments to income and credits. In addition to a wealth of experience at conducting discovery, witness selection and preparation, motion practice, brief writing, trials and appeals, Open is experienced and adept at identifying efficient and practical pre-decision settlement strategies to resolve tax controversies.
Open is a frequent author of articles on tax topics in State Tax Notes, Bloomberg Tax and Law360, and has spoken on state and local tax issues before such groups as the Tax Executives Institute, the American Bar Association, the Council on State Taxation, and the Georgetown University Law Center Advanced State and Local Tax Institute.
Prior to joining Hodgson Russ Open was counsel with a multistate tax practice located in New York City.