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
State Tax Implications of an IRS Audit 2
Agenda Common IRS Audit / RAR Forms Due Dates / Final Determination Preparation and Planning Other / Hot Topics and Trends Q&A 3
Common IRS Audit / RAR Forms 4549 - Income Tax Examination Changes 4549-A 870 - Waiver of Restrictions on Assessment and Collection 870-AD Closing Agreement 4
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
Due Dates / Final Determination (continued) Reporting change versus claiming refund Partial settlements Federal Form 1120x = Federal Change Competent Authority Standardization initiative 6
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
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
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
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
Other Topics / Trends (continued) Penalties Refund denials Impact of Tax Reform 11
Q&A 12
Contact information Steven Spaletto Tax Managing Director Deloitte Tax LLP 317.656.2430, sspaletto@deloitte.com Logan Wilkowich Tax Senior Manager Deloitte Tax LLP 713.982.2569, jwilkowich@deloitte.com 13
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