Multistate Flow-Through Entity Income Taxation

Description

This course provides a summary of the state flow-through entity taxation, including partnerships and S corporations, of multistate corporations.

Highlights

LINK AND INSTRUCTION TO COME FROM AES TAX ONCE DAY PRIOR TO SESSION

Objectives

After completing this course the participant will be able to:

• Recognize key U.S. constitutional limits to state taxation and relate them to historical developments and present-day state tax policies.
• Apply nexus rules and Public Law 86-272 and relate these rules to leading-edge business models, states that require business/nonbusiness income determination at partner vs. partnership level, and determination of partnership income on an engagement basis vs. entity basis.
• Compute apportionment, including interpreting and applying apportionment under the aggregate approach, reconciling different states unitary factor analysis, sales throwback rules with respect to the sale of tangible personal property, and market-sourcing rules for service revenue.
• Explain common state income tax issues with pass-through entities.
• Describe state tax implications of recent federal tax reform, including: for pass-thgough entity tax states, state withholding and composite tax returns, and credit for taxes paid in resident state; and for partnership audits, states that do not recognize typical pass-through entity taxation, and recordkeeping, documentation, and workpapers.