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Mandatory Combined Reporting |
Within the past few years, a number of states have enacted or considered legislation affecting the way businesses will be taxed. Including recent state enactments of “combined reporting,” there are currently 23 states that have some form of “combined” or “unitary” filing requirements. These changes may impact any company doing business in a multi-state environment and effectively minimize many of the historic state tax planning opportunities. A number of factors determine the impact a change from separate company filing to mandatory combined filing will have on a company. The provisions vary from state to state regarding ownership (whether 50 percent or 80 percent), use of combined net operating losses and state credit computations. Legislation is pending in the states of Connecticut, Florida, Louisiana, Missouri, Rhode Island and Tennessee.
For further information, use the link below to read the Committee on State Taxation’s policy statement in opposition to mandatory unitary combined reporting.
http://www.cost.org/uploadedFiles/About_COST/Policy_Statement/Mandatory%20Unitary%20Combined%20Reporting.pdf |