State Taxation of Service Providers discusses income tax issues that have arisen as the United States' economic base has shifted from manufacturing to services. The discussion focuses on two major issues: (1) the problems of apportioning the income of multistate service providers, and (2) the nexus issues that taxpayers must confront. The Portfolio discusses both of these topics generally, paying particular attention to the applicable pronouncements of the U.S. Supreme Court.
The authors, Timothy H. Gillis, Esq., with KPMG LLP, and W. Scott Wright, Esq., with Sutherland, begin with an overview and introduction detailing the UDITPA provisions applicable to service providers. They then examine in detail the major state income tax issues faced by service providers, including:
•Choice of entity,
•Nexus issues, particularly those regarding the Due Process Clause, the Commerce Clause, and Public Law 86–272, and
•Allocation and apportionment of income, including formulary apportionment, other apportionment schemes, and other approaches used by North Carolina, New Jersey, and New York.
State Taxation of Service Providers also details the general rules for personal services as well as the rules for specific professional services, including professional athletes; lawyers and law firms; architectural, engineering, and design services; and entertainers.
The discussion covers nexus and apportionment as applied on an industry-specific basis.
Among this Portfolio’s worksheets, readers will find an annotated version of the Uniform Division of Income for Tax Purposes Act as well as excerpts from the Multistate Tax Commission Regulations.
State Taxation of Service Providers allows you to benefit from:
•Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area.
•Invaluable practice documents including tables, charts and lists.
•Plain-English guidance from world-class experts.
•Real-world and in-depth analysis that lets you explore various options.
•Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more.
•Alternative approaches to both common and unique tax scenarios.
This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.