Global Compliance News
June 9, 2021 4 Mins Read Share
In brief
The Multistate Tax Commission (MTC) is set to revamp its transfer pricing collaboration and enforcement initiatives following the first public meeting of its State Intercompany Transactions Advisory Service (SITAS) Committee in over four years. At the end of last year, the SITAS Committee appointed its new Chair- Krystal Bolton, who is also an assistant director at the Louisiana Department of Revenue’s field audit income tax division. On 23 March, Ms. Bolton hosted representatives from state revenue agencies, practitioners, taxpayers, and other members of the public in a virtual conference to overview the history of the SITAS Committee and to present the results of a multistate survey regarding intercompany transactions and transfer pricing.
Where individual, corporate, and passthrough entity taxation meet
By Mo Bell-Jacobs, J.D.; Bridget McCann, CPA; and Steve Wlodychak, J.D., LL.M. Related
Editor: Bridget McCann, CPA
By now, most practitioners are well aware of the annual limitation enacted by the law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, in 2017 that limits the amount of state and local taxes individuals can deduct for federal income tax purposes to not more than $10,000 ($5,000 in the case of a married individual filing a separate return) (the SALT cap).
1 No doubt most are also aware of the ensuing legislation at the state level to offer taxpayers a workaround to the SALT cap by enacting passthrough-entity-level taxes, which arguably impose the tax liability for owners of passthrough entities (PTEs) (such as partnerships, LLCs treated as partnerships, and S corporations) instead directly on the PTE.
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In April 2021, the Multistate Tax Commission s Uniformity Committee met to discuss two new projects: a broad exploration of uniformity in state taxation of partnerships and state taxation of digital goods and services. Matt Hunsaker breaks down these nascent developments.
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On April 27-28, the Multistate Tax Commission’s Uniformity Committee (UC) held its spring meeting virtually. In addition to voting to adopt a UC Charter, the following uniformity projects were advanced:
Partnership Project The UC approved a recommendation by the Standing Subcommittee to develop a model or uniform state law on partnership taxation. Specifically, the working group will consider issues related to multijurisdictional partnerships operating income (including nexus and sourcing issues), issues related to the sale of a partnership interest, certain administrative and informational reporting issues, and partnership level taxes generally.