Thursday, August 1, 2013
8:30-9:00 am Registration & Continental Breakfast
9:00-9:15 am Welcome & Overview
Lawrence J. Center, Philip M. Tatarowicz
9:15-10:15 am Current Developments: Income and New Worth-based Taxes
Employing a topical format informed by legislative, judicial, and administrative tax developments, this session will provide an overview of current corporate income and net worth tax issues demanding the attention of taxpayers and taxing authorities. With a multistate focus, our speakers will share an analysis of select state and local tax issues and emerging trends. You will explore nexus, sourcing, deductions, exemptions, statutory and negotiated incentives, and state and federal law guidelines that limit the powers of the taxing jurisdictions and protect taxpayers. There will be ample time for you to obtain answers to your most pressing questions, so bring them with you to this opening session.
Speakers: Kendall Houghton, Stephanie Anne Lipinski Galland
10:15-10:30 am Networking Break
10:30-11:15 am Concurrent Sessions:
A. The Nuts and Bolts of a State Residency Audit
State residency audits are becoming more commonplace throughout the country. It is critical that you appreciate the elements of these audits and how to respond to them. Our expert panelists will explore the practical aspects of a state residency audit and address these important questions: Is there a place of abode? How many days has the taxpayer been in the jurisdiction? What are the documentation requirements? Has the taxpayer established domicile outside the jurisdiction?
Moderator: James P. Sweeney
Panelists: John J. Coniglio, Ken Zemsky
B. Income Tax Accounting for State and Local Taxes
During this session, you will examine strategic considerations in the critical SALT area of income tax accounting. You will assess key aspects of purchase accounting, business combinations, and accounting for equity investments vs. consolidated entities. You will explore tax indemnifications, adjustments to deferred taxes due to changes in statutory rates, and apportionment factors. You will gain a greater understanding of policy elections regarding state incentives (when can they be reported above-the-line in operating income), rate reconciliation matters, and valuation analysis for tax attributes.
Speakers: Ken Cotty, Robert C. Ozmun
11:20 am-12:20 pm The Presumptive Correctness of Tax Assessments
The presumptive correctness of tax assessments has been debated for many years between state tax officials and corporate taxpayers. It is a subject that is rarely addressed in detail at national conferences. Our presenters will delve into this topic to provide you with background and advice. The panel will discuss the deference provided to tax agency determinations, the burden on taxpayers to rebut the presumption (including the varying standards employed by the states), and exceptions from deference. Lastly, the panel will review the most frequent suggestions for reform.
Moderator: Todd A. Lard
Panelists: Sheldon Laskin, Mark Sommer
12:20-1:30 pm Lunch (on your own)
1:30-2:15 pm Alternative Apportionment: Who Has the Burden of Proof?
Apportionment is critically important for multistate companies, multinational businesses, and state tax administrators. As the states move from the use of the standard three-factor formula, there is a developing need for alternative apportionment methods. However, the use of an alternative apportionment method raises the issue of which party bears the burden of showing that method is reasonable. You will explore the myriad issues surrounding burden of proof and the determination of what constitutes a reasonable alternative apportionment method.
Speakers: Helen Hecht, Marilyn A. Wethekam
2:15-3:15 pm Defending Against Penalties: Best Practices
Defending against penalties is a skill that all corporate taxpayers must master. Often harsh, retroactive amnesty provisions force taxpayers to choose between applying for amnesty and facing substantial penalties. During this session you will review the most significant issues that frequently arise in litigation and learn how to avoid the most common traps for the unwary SALT professional.
Speakers: Brett Carter, Craig B. Fields
3:15-3:45 pm Networking Break
3:45-4:30 pm Concurrent Sessions:
A. Using Sales and Use Tax Disclosures in Financial Statements: Knowing the Rules and Making Best Use of Them
It is important to appreciate the growing importance of sales and use tax disclosures. In this session you will review provisions in ASC 450, including booking a liability and the specific disclosure requirements. You will analyze the practical applications of ASC 450, such as establishing sales and use tax reserves, identifying up-front planning considerations, reducing risk areas, considering different methodologies, and adjusting sales and use tax reserves. Finally, you will study the FASB proposed changes to disclosure of certain loss contingencies. We will examine disclosure principles and thresholds, qualitative disclosure, quantitative disclosure, timing of exposure draft, and the IFRS impact.
Speakers: James Bartek, Matt Pellows
B. The Best Strategies for Accomplishing a State Tax Policy Objective
This session will explore the full process for affecting state tax policy. You will learn how to identify an offensive or defensive tax policy opportunity by having your objective realized through regulation, legislation, or agency action. Our experts will review strategies for developing supporting data, engaging with tax administrators and legislators, working with government relations, and recognizing the potential values that may be garnered by bringing other interested parties into the plan.
Speakers: Deborah Bierbaum, Art Rosen
4:30-6:00 pm Networking Cocktail Reception
Sponsored by BNA Tax Management
Friday, August 2, 2013
7:30-8:00 am Continental Breakfast
8:00-9:00 am Ethics of State and Local Tax Practice
This opening session will help you recognize and understand how the various codes of ethics apply to guide and protect you, your employers, and the SALT profession. During this presentation, you will review the ABA Model Rules relating to tax return preparation and tax practice and the AICPA Statement on Standards for Tax Services. It is critical that you understand the role of the Ethical Standards of the Internal Revenue Service contained in Circular 230 and become familiar with specific ABA Model Rules, AICPA Statements on Standards for Tax Services, and Circular 230 in the context of specific examples of permitted and prohibited conduct. This ethics hour will allow you to satisfy those objectives!
Speaker: Glenn C. McCoy Jr.
9:00-10:00 am Current Developments: Sales, Use, and Gross Receipts Tax
Sales and use tax trends are important to all SALT practitioners. Each year changes occur that impact daily decisions. This session will help you analyze recent federal and state constitutional, legislative, judicial, and administrative sales and use tax revisions. Developments giving rise to planning and refund opportunities will be highlighted.
Speaker: Susan Haffield
10:00-10:15 am Networking Break
10:15-11:15 am Delivering Goods and Services in Nontraditional Ways
As new business models continue to evolve, taxpayers struggle to comply with decades-old tax laws that do not address their current operations. Issues such as cloud computing, digital equivalents, and hybrid transactions, along with new outsourced or shared-services operational models, have created additional strains on internal compliance systems and indirect tax staff. This session will review recent sales and use tax developments as they relate to current and emerging economies and best practices for dealing with sales and use tax compliance for nontraditional transactions, and provide insight into how state and federal legislation may deal with the main issues related to these transactions.
Speaker: Faranak Naghavi
11:20 am-12:05 pm Concurrent Sessions:
A. Transparency and Tax Policy: How Do You Address the Toughest Issues?
A number of states (CA, IL, and many East Coast states) and the city of Chicago are attempting to pass statutes or ordinances that require the disclosure of corporate tax liabilities. Moreover, there are state legislatures (NY and GA) that are expanding Qui Tam actions to include taxes. From a tax policy standpoint, is this desirable? From an in-house corporate perspective, how do you deal with these statutes? As a tax advisor, what should you tell your client?
Moderator: Doug Lindholm
Panelists: Louis Bucari, Cara Griffith
B. Untapped Constitutional Law Challenges in State Tax Matters
The Commerce and Equal Protection clauses of the U.S. Constitution are routinely raised in state tax controversies. However, several other constitutional clauses, such as Privileges & Immunities, Supremacy, Contracts, and others may be used forcefully to support or defend against a state tax position. During this session, you will explore those clauses, analyze the history of their use in state tax matters, and consider whether additional opportunities exist for their productive use.
Speaker: Richard Capino
12:05-12:30 pm Lunch Distribution
12:30-1:15 pm SALT Implications of Federal Tax Reform
Federal tax reform is on the front page of every major newspaper and certainly highlighted in the trade press. Years of experience have taught us that federal tax reform and SALT policies are inextricably linked. During this session, our nationally recognized speakers will analyze the SALT implications of each of the major elements of potential federal tax reform. You will learn about the SALT consequences of a shift to a territorial tax system, mandatory or optional repatriation of foreign earnings, interest disallowance, and other important elements of potential federal tax reform.
Speakers: Valerie Dickerson, Joe Huddleston
1:15-2:00 pm MTC Compact Litigation and Refund Opportunities
The MTC Compact litigation and related refund opportunities are being discussed in many states and corporate offices across the country. During this penultimate session, you will examine the major national cases, such as Gillette and IBM, and potential implications for the Multistate Tax Commission. You will also explore refund opportunities related to apportionment formulas and other statutory departures from the Compact's provision.
Speakers: Eric J. Coffill, Shirley Sicilian
2:00-2:15 pm Networking Break
2:15-3:00 pm Current Audit Issues Outside the Sales and Use Tax Area
In this entertaining and fast-paced debate, the speakers will review the key cases from the past year, looking at issues presented across the country. They will examine cases addressing over-taxation, taxation without nexus, discrimination, and due process.
Speakers: Prof. Richard D. Pomp, Marilyn A. Wethekam
3:00 pm Adjournment