Mandatory Unitary Combined Reporting: Navigating Conflicting and Evolving State Rules

Latest Guidance on Regulatory and Enforcement Developments

Recording of a 110-minute CPE webinar with Q&A


Conducted on Thursday, July 15, 2021

Recorded event now available

or call 1-800-926-7926
Course Materials

This course will review the latest developments in combined reporting for state corporate income tax purposes for tax professionals and advisers. The panel will offer approaches to streamline compliance and address the challenges of sometimes contradictory and competing regulations requiring mandatory unitary combined reporting (MUCR) or discretionary combined reporting.

Description

Multistate companies often strategize to reduce or avoid paying state tax using intercompany transactions. The District of Columbia and over half U.S. states require unitary combined reporting. Florida, Maryland, Pennsylvania, and Virginia have proposed legislation on mandatory unitary combined reporting.

Multistate businesses face tough challenges in identifying entities to combine and in which states. Tax specialists must understand the intricacies of the various states' group formation rules and "unitary group" definitions and the amount of leeway that auditors may possess to add companies to a combined return.

Listen as our distinguished panel of expert state tax advisers briefspractitioners on important new developments, clarifies the often confusing state approaches, and outlines the key differences and commonalities among combined reporting systems.

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Outline

  1. Background issues, mandatory vs. elective combined reporting
  2. Recent state actions with combined reporting
    1. State laws
    2. Regulatory actions
    3. Court rulings
  3. Actions on forced, combined returns
  4. Enforcement policies on combinations and de-combinations in certain states
  5. Next states likely to act

Benefits

The panel will review the most challenging areas of combined reporting mandates, such as:

  • Keeping up with the latest state actions in legislatures, revenue agencies, and courts, as well as the outlook for future moves on combined reporting
  • Differentiating between states' definitions of the "unitary group" concept
  • Navigating ownership thresholds and the inclusion of special entities such as insurance subsidiaries and REITs
  • Addressing numerous states' regulations and compliance demands as a multistate company
  • Understanding "non-mandatory" or "discretionary" combination

Faculty

Abbott, Greg
Greg Abbott

Managing Director - State and Local Tax
BDO USA

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Girmscheid, Katie
Katie Girmscheid, CPA
Managing Director, State and Local Tax
BDO USA

Ms. Girmscheid is a Senior Manager in BDO Chicago’s State and Local Tax Practice with over 9 years in public...  |  Read More

Smith, Scott
Scott Smith

National Technical Practice Leader - State & Local Tax
BDO USA

Mr. Smith sets BDO's policies and positions on technical SALT issues, as well as thought leadership, brand...  |  Read More

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