Combined Reporting: Amid All the Fuss There Are No Clear Winners

more+
less-

Welcome to a new year, new state legislative sessions, and more combined reporting proposals. The list of states adopting combined reporting continues to grow — Michigan, Massachusetts, New York, Vermont, West Virginia, and Wisconsin1 are among the most recent adopters (or expanders) of combined reporting. While state legislators are implored to adopt combined reporting as the cure-all to ‘‘fix’’ the corporate income tax, there is evidence that adoption of combined reporting may not, in fact, be an antidote to make a meaningful difference to increase corporate income tax revenue. The recently released ‘‘Fox report’’ commissioned by the Tennessee comptroller of the treasury found that combined reporting does not (all things considered) produce more tax revenue. Thus, we encourage legislators to look before leaping into the combined reporting pool.

In this Pinch of SALT, we will provide a brief overview of combined reporting followed by a discussion of its perceived benefits along with the results of recent studies on combined reporting which highlight its unpredictable results. Finally, we will discuss why combined reporting is not the remedy to cure the illness plaguing the states.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Written by:

more+
less-

Sutherland Asbill & Brennan LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
×
Loading...
×
×