HOW TO MINIMIZE STATE TAXATION OF MULTISTATE …

1 HOW TO MINIMIZESTATE TAXATION OFMULTISTATE BUSINESSSPRING 2018 SEMINARSA dvanced Interstate.. p. 2 Advanced Sales & Use.. p. 3 Sales & Use Tax Planning.. p. 4 Interstate Tax Planning.. p. 5 Program Details.. p.. p. 6 Travel Information.. p. 7 Registration.. p. 8 SPONSORED BY INTERSTATE TAX CORPORATION83 East Avenue, Suite 110, Norwalk, CT 06851 Tel: (203) 854-0704; Fax: (203) 8-9 Doubletree Ocean Point Resort & SpaNorth Miami Beach, FLJune 4-5 Embassy Suites BuckheadAtlanta, GAJune 18-19 Courtyard Upper East SideNew York, NYJune 25-26 Holiday Inn Fisherman s WharfSan Francisco, CAMay 10-11 Doubletree Ocean Point Resort & SpaNorth Miami Beach, FLJune 6-8 Embassy Suites BuckheadAtlanta, GAJune 20-22 Courtyard Upper East SideNew York, NYJune 27-29 Holiday Inn Fisherman s WharfSan Francisco, CA 2 REGISTRATIONThe registration fee is $885 for the two-day conference and includes continental breakfast, refreshments, specially-prepared seminar materials,and a cocktail reception the first evening of the program.

2 A $30 discount is available if payment accompanies the registration form and is receivedby Interstate Tax Corporation no later than April 10, 2018. See pages 6-7 for participating speakers, hotel/airfare/car rental discounts and otherdetails, page 8 to register, or call (203) 854-0704 for further and NexusThe latest interpretations by the states and the MultistateTax Commission of Wrigley and tax treatmentof passive investment companies, financial institutions, ser-vice companies, credit card and Internet activities. Effectof having sales reps working at home, officers residing in- STATE , deliveries in company and third-party trucks, leasedor mobile property, in- STATE affiliates, and other in-stateactivities. Impact of voluntarily registering to do businessin a STATE . The growing use of economic nexus standardsand their application in the income tax arena.

3 Potential effectof the Wayfaircase. Planning ideas for minimizing stateincome Unitary ConceptAn analysis of current cases interpreting the extent of a STATE s authority to apply the unitary concept in its manyforms, ,domestic, worldwide, water s edge statutory and regulatory definitions. The MTCapproach. Legislative developments. Structuring business tobest take advantage of unitary reporting. Application of theunitary concept to non-income and Nonbusiness IncomeRecent interpretations of the business/nonbusiness dis-tinction by UDITPA and non-UDITPA states before and afterMeadWestvaco. Determining operational significance. Using the functional, transactional, and unitary tests to min-imize STATE TAXATION of short and long-term investmentincome, dividends, capital gains, rents, royalties, 338(h)(10)income, and other intangibles.

4 Effect of operating under cen-tralized cash management, through divisions, partnerships,S corporations and LLCs on a business/nonbusiness deter-mination. Treatment of complete and partial developments; update on MTC efforts to recon-sider the UDITPA definition of business SessionPractical application of the concepts of Performance Versus Market Sourcingand Other Apportionment IssuesCharacterizing business activities for purposes of appor-tionment. Does the company sell tangibles, intangibles, ser-vices, mixed products, or a combination? Discussion of sourc-ing issues and methods, including cost of performance andmarket sourcing. Treatment of installment, intercompany, dropshipment and dock sales; investment activities, service providersand specialized industries. Recent challenges to throwback andthrowout rules. The increasing adoption of single factor salesformulas and what it means to MULTISTATE taxpayers.

5 Provingdistortion to obtain Section 18 alternative Base & Conformity Issues, Including STATE TaxConsequences of Federal Tax ReformEffect of The Tax Cuts and Jobs Act,including generalconformity considerations, application by states of federaltransition tax, anti-deferral rules, anti-base erosion provisions,interest expense limitation, immediate expensing, qualifiedbusiness income deduction, and more. Planning opportuni-ties, and developments in, STATE tax treatment of bonus depre-ciation, federal and STATE taxes, dividends, foreign sourceincome, federal and municipal obligations, net operatinglosses, and related party Entities and Their OwnersNexus, unitary, apportionment, tax base, conformity issuesas applied to flow-through entities and their owners. Hot top-ics in this area such as how to handle non-resident ownerwithholding and coping with the various STATE tax reformsdesigned to reach the income of flow-through and Procedural IssuesEthical and strategic dilemmas involved in conducting stateincome tax audits and running the STATE tax department, includ-ing application of ethical standards set by the AICPA, ABA,local STATE CPA societies and bar associations.

6 Determining theavailability of refunds and the associated procedural require-ments, such as payment under protest and pay to play. nState and local tax practitioners will obtain in-depth analyses of current developments on STATE income TAXATION of MULTISTATE business, explore the plan-ning opportunities arising therefrom, and learn practical approaches to the major issues in STATE and local TAXATION today. Course Level: Advanced;Delivery Method: Group-Live. No advance preparation required; however, prior attendance at Interstate Tax Planning, this course, or two years expe-rience in the field are suggested as prerequisites. NASBA Recommended Fields of Study: Taxes, Regulatory Ethics. Estimated continuing educationcredit: 16 based on a 50 minute hour, including 1 hour for ethics; based on a 60 minute hour, including 1 hour for INTERSTATEMay 8-9 Doubletree Ocean Point Resort & SpaNorth Miami Beach, FL 3 ADVANCED SALES & USEMay 10-11 Doubletree Ocean Point Resort & SpaNorth Miami Beach, FLREGISTRATIONThe registration fee is $885 for the two-day conference and includes continental breakfast, refreshments, specially-prepared seminar materials, anda cocktail reception the first evening of the program.

7 A $30 discount is available if payment accompanies the registration form and is receivedbyInterstate Tax Corporation no later than April 12, 2018. An additional discount of $60 may be taken only by those practitioners who attend bothAdvanced Interstate andAdvanced Sales & Use (all four days). See pages 6-7 for participating speakers, hotel/airfare/car rental discounts and otherdetails, page 8 to register, or call (203) 854-0704 for further and NexusAdvanced issues in determining substantial nexus forsales and use tax purposes after Quilland the potential effectof the Wayfair case. What current business practices causenexus: drop shipments, advertising, delivery in company-owned trucks, use of independent contractors, unpaid rep-resentatives, maintenance of inventory, occasional visits byemployees?

8 Affiliate and economic nexus. Consequences ofusing the Internet to conduct business, voluntarily register-ing to collect sales taxes and establishing temporary nexus. Current status of click-through nexus statutes in the statesthat have enacted them. Using voluntary disclosure agree-ments and amnesty programs to best ExemptionsDetermining whether a manufacturing exemption is avail-able in a particular STATE and how far it extends to man-ufacturing, processing, fabricating, packaging, R&D, testing,pollution control; to machinery, materials, chemicals, electric-ity, natural gas, computers, transportation equipment; to theproduction of intangibles; to retail or service industries. Mustthe final product be sold? Proving substantial Streamlined Sales Tax ProjectDetailed update and discussion on the current status of,and issues surrounding, the SSTP.

9 Why the Streamlined SalesTax Project has been important. Substantive STATE tax changesalready made. Which states are participating and at whatlevel? Related federal legislation. Prospects for the and Procedural IssuesSufficiency of evidence and ethical issues on audit main-taining exemption certificates and other records, includingthose kept electronically, defining good faith, using statisticalsampling. The effect of Sarbanes-Oxley on recordkeeping forsales and use taxes; how to put internal controls in place toensure that the sales and use tax department is run withethics and Software and Other Mixed TransactionsSales and use tax treatment of computer software underthe latest theories used by the states . Determining what iscritical to its taxability: delivery method, content, licensing,technology transfer, or another distinguishing consequences of other mixed transactions involving bothexempt and taxable elements, including use of the true objecttest to determine whether a particular transaction is entirelytaxable or not taxable at all.

10 Structuring the transaction toproduce the best Computing, Information Services, Internet Services and Related Sourcing IssuesIdentifying the type of service involved in a particular trans-action SaaS, ASP, information, communication, automateddata processing, Internet, personal or individual, canned ver-sus custom, or some other variation and then determiningwhether that service is subject to sales or use tax. Sourcingissues for services, especially for those offered electronicallyor through cloud computing, including how to deal with mul-tiple or roaming users of the same service and more than onejurisdiction claiming the right to tax the same service trans-action. Practical approaches to sourcing service transactionsto MINIMIZE the possibility of double for Undisclosed Sales and Use Tax LiabilitiesDiscussion of obligations under FASB Statement No.