Multistate Income Tax

Andrew Johnson, CPA, has worked for the IRS in Long Beach, CA and Spokane, WA. He has worked in public accounting firms as well as in private companies in various accounting roles. His career has exposed him to many industries and business organizations furthering his understanding of accounting and tax.  He has a bachelors degree in accounting and business administration and a Masters of Science in Taxation from Golden Gate University.

Overview Overview-1


Why a national multistate income tax course? Overview-3


Tax formula for multistate corporate taxpayers Overview-5


Irregular corporate tax structures Overview-8


Chapter 1 1-1


Interstate Activity and Nexus 1-1


Nexus defined 1-3


What we know and where to go from here 1-30


Chapter 2 2-1


Calculation of State Taxable Income: Modifications 2-1


Additions 2-3


Subtractions 2-12


Chapter 3 3-1


Filing Methods for Multistate Taxpayers 3-1


Separate, consolidated, or combined filing 3-2


The landmark cases 3-8


Multistate Tax Commission 3-23


Chapter 4 4-1


Apportionment and Allocation 4-1


Current rules 4-2


The Hercules cases 4-20


The Supreme Court: Once again 4-23


Chapter 5 5-1


Apportionment Formulas and Factors 5-1


Payroll, property, and sales factors 5-2


The payroll factor 5-7


The property factor 5-11


The sales factor 5-17


How much distortion is enough? 5-32


The treatment of factors in partnerships 5-33


Appendix A A-1


Basic Ideas of Multistate Income Tax Planning A-1


Identifying goals and methodologies A-4


Appendix B B-1


Audit Defense Strategies B-1


Audit selection B-4


The pre-audit B-6


Initial meeting and audit work B-8


Closing conference B-10


Glossary Glossary 1


Index Index 1


Solutions Solutions 1


Chapter 1 Solutions 1


Chapter 2 Solutions 3


Chapter 3 Solutions 4


Chapter 4 Solutions 6


Chapter 5 Solutions 7