Tax Executives Institute, Inc. / State Direct Tax

Transcription

1 Tax Executives Institute, Inc. / State Direct Tax Steven Spaletto, Tax Managing Director, Deloitte Tax LLP Logan Wilkowich, Tax Senior Manager, Deloitte Tax LLP May 11, 2018

2 State Tax Implications of an IRS Audit 2

3 Agenda Common IRS Audit / RAR Forms Due Dates / Final Determination Preparation and Planning Other / Hot Topics and Trends Q&A 3

4 Common IRS Audit / RAR Forms Income Tax Examination Changes 4549-A Waiver of Restrictions on Assessment and Collection 870-AD Closing Agreement 4

5 Due Dates / Final Determination Time period for reporting What starts the clock Joint Committee on Taxation Beware of nuances / matrices / smart charts Separate vs. combined (NYS) Refund vs. tax due (IL, IA, MD) Pennsylvania Recent Kentucky legislation Local returns (e.g., Portland, Ohio, Kentucky, St. Louis) 5

6 Due Dates / Final Determination (continued) Reporting change versus claiming refund Partial settlements Federal Form 1120x = Federal Change Competent Authority Standardization initiative 6

7 Preparation and Planning Get involved / be aware of IRS negotiations Don t wait Gather starting point documents Original and previously amended returns Audits and notices Net operating losses Current year software considerations Affirmative adjustments and items unrelated to the IRS audit 7

8 Preparation and Planning (continued) Interest / netting underpayments and overpayments Amnesty Attachments / support Federal impact (Line 28 vs. Line 30) Starting point / history of prior filings / audit trail Impact on items other than federal taxable income Watch out for nuances (i.e., Michigan) 8

9 Other Topics / Trends Spreadsheet vs States Form(s) State scanning technology (bar codes on forms) Details / completeness Examples IL unitary combined: ENTIRE amended Schedule UB required AL and PA: All apportionment details required 9

10 Other Topics / Trends (continued) Potential E-Filing Requirement Examples: Alaska (waiver exists) California (exemptions exist) Georgia (if original return e-filed) Maryland (500CR) Massachusetts (exceptions exist) Michigan New York (if software allows) Wisconsin (waiver exists) 10

11 Other Topics / Trends (continued) Penalties Refund denials Impact of Tax Reform 11

12 Q&A 12

13 Contact information Steven Spaletto Tax Managing Director Deloitte Tax LLP , Logan Wilkowich Tax Senior Manager Deloitte Tax LLP , 13

14 About this presentation This presentation contains general information only and the respective speakers and their firms are not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. The respective speakers and their firms shall not be responsible for any loss sustained by any person who relies on this presentation. 14

15 As used in this document, Deloitte means Deloitte Tax LLP a subsidiary of Deloitte LLP. Please see for a detailed description of the legal structure of Deloitte USA LLP, Deloitte LLP and their respective subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the Deloitte name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see to learn more about our global network of member firms.