The Multistate Tax Commission (MTC) is proposing to significantly change how the sales factor is calculated for apportioning corporate income. Currently, most states define “sales” includable in the sales factor as “all gross receipts of the taxpayer” (except those receipts related to nonbusiness income). MTC members are considering a proposal to limit the definition of “sales” to

Sutherland’s SALT Poll, “The Impact of State Budget Deficits,” revealed that the majority of those surveyed believe that state budget deficits have led to a difficult state tax audit environment. The poll results are consistent with Sutherland’s recent experience with state tax auditors—an overwhelming 80% of respondents believe that state auditors generally are less flexible in negotiating difficult issues. Further, 60% of the respondents experienced state tax auditors creating more substantial assessments during this time of state budget shortfalls.

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There is much discussion about how state budget deficits are leading to a difficult state tax environment. For example, some folks believe that the challenging fiscal conditions faced by states are leading to aggressive auditor practices. 

Sutherland’s first poll of state and local tax issues provided a mix of expected and surprising results. The poll surveyed respondents’ views about granting a waiver of the statute of limitations to provide a state auditor more time to complete an audit. Following is our analysis and the results of the poll.

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On Monday, Sutherland SALT Partner Jeff Friedman participated in a panel discussion titled “Waive or Walk: Considerations for Extending the Statute of Limitations,” at the Tax Executives Institute (TEI) 61st Annual Midyear Conference. The panel was moderated by Tov Haueisen from General Electric Company and Henry Orphys from Intel Corporation, and included Steven Rainey