Navigating the Apportionment Landscape After Maryland v. Wynne: Maximizing Tax Credit Opportunities

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The May 18, 2015, Supreme Court decision in Comptroller of the Treasury of Maryland v. Wynne was a major victory for taxpayers. Already, in reaction to the Court’s holding, other states’ taxpayers are challenging apportionment formulas that they claim violate the Commerce Clause under similar reasoning to that used by the Court in deciding Wynne.

Tax advisers serving multistate businesses and individual taxpayers may be significantly, and positively, impacted by the Court’s ruling. Beyond the local implications, the Wynne decision impacts other states that do not offer exact credits to residents for all income taxes paid. Tax advisers should be vigilant in examining whether valid refund claims or challenges exist in the wake of the Court’s decision.

Tax professionals should examine the apportionment landscape in the aftermath of the Wynne holding and keep up with various states’ nonresident tax credit practices. Commentators are already expecting changes to apportionment practices in several states, including Tennessee, Massachusetts and New York, as well as other local jurisdictions that impose local income tax.

Listen as our experienced panel discusses the impact of the Wynne decision on multistate tax advisers and practitioners, and provides concrete guidance on how to react to the likely changes in the apportionment landscape in the aftermath of the decision.