January 12, 2016
New Thomson Reuters Content Provides Tax Professionals with Guidance on the Significance of UDITPA amid Recent Developments
NEW YORK – The latest topic added to Thomson Reuters Checkpoint Catalyst highlights the Uniform Division of Income for Tax Purposes Act (UDITPA) and its impact on state allocation and apportionment of income. Checkpoint Catalyst provides detailed information and multi-jurisdictional analysis on a wide variety of tax topics.
Most states adopted UDITPA or the Multistate Tax Compact (MTC) in the past, but are increasingly moving away from the UDITPA model in favor of weighted sales factor formulas and market-based sourcing. The MTC was overhauled in 2014 and 2015 to incorporate these and other changes.
Checkpoint Catalyst’s coverage of this topic comes at a crucial time. On December 31, 2015, in The Gillette Company et al. v. Franchise Tax Board, the California Supreme Court held that taxpayers could not elect to apportion income under the MTC, even though the California Legislature had not repealed the MTC for the tax years at issue. This key ruling comes on the heels of similar cases in Oregon, Michigan, Minnesota, and Texas, and will likely be appealed to the U.S. Supreme Court. The Gillette decision -- its reasoning and its impact -- are thoroughly covered in the new Checkpoint Catalyst content.
“Apportionment is inherently a multistate issue. Practitioners need to understand the implications of each state’s policies in order to devise planning opportunities and identify risks,” said Melissa Oaks, an editor and author with the Tax & Accounting business of Thomson Reuters. “This new Checkpoint Catalyst content can help them do that.”
Checkpoint Catalyst provides in-depth analysis of each state’s conformity to UDITPA and the MTC, including discussion of the recent Compact overhaul, ongoing litigation, and more.
Checkpoint Catalyst is a collection of topics that provides multijurisdictional analysis into specific tax issues and business transactions from a practical, workflow perspective, covering implications at the federal, state, and US international levels. Other topics recently added to the Checkpoint Catalyst library include:
- Sales & Use Tax: Professional Services
- Transfers of Partnership Interests
- Partner Death or Retirement
Checkpoint Catalyst provides unparalleled insights from expert tax professionals. Our contributing authors provide practical, actionable interpretation of complex tax topics based on a wide range of professional tax experience. For more information about Checkpoint Catalyst, visit checkpointcatalyst.com.
Thomson Reuters Checkpoint provides integrated research, editorial insight, productivity tools, online learning and news updates along with intelligent links to related content and software. It is relied on by thousands of tax and accounting professionals, 97 of the Top 100 U.S. law firms, 99 of the Fortune 100 companies, and all of the top 100 U.S. CPA firms.
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