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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Corporate Tax

Date & Time
  • event Date

    Thursday, October 31, 2024

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    110 minutes

Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

$247.00
CPE
ALL

This webinar will cover critical state tax developments in California for tax advisers working with companies that may be liable for California income/franchise, sales and use, and/or other state and local taxes. Our presenters will explore the following topics: California's current response to the Multistate Tax Commission's (MTC) most recent revision to its Statement of Information on P.L. 86-272 and how it impacts taxpayers; the California Pass-Through Entity Tax (CA PTET) election and key issues to consider; California's new tax basis capital account reporting requirement; recent case law involving the California tax implications of the sale of a partnership and/or S-corporation interest; and other current issues. These topics should be of interest to tax advisers with clients that do business in California.

Faculty

Michael J. Cataldo
Shareholder
Cataldo Tax Law, PC

Mr. Cataldo represents corporate and individual clients in state and local tax controversies across the country during audits, administrative appeals, litigation and settlement. He also provides state and local tax planning and transactional advice. His practice focuses primarily on state and local corporate income and franchise tax, sales and use tax, real property transfer tax, personal income tax and gross receipts tax imposed by jurisdictions throughout the country. He regularly represents and advises clients from a broad range of industries on issues such as nexus, apportionment, business/non-business income, unitary combined reporting, and the taxability and sourcing of transactions for sales and use taxes. 

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Rebecca Stidham
CPA, Partner – Tax Services
Withum Smith + Brown, PC

Ms. Stidham is a Partner with over 17 years of corporate and pass-through tax compliance experience as a state and local tax practitioner in public accounting. She specializes in State and Local Tax (SALT), Professional Services, Law Firm Services and Digital Health Services. Ms. Stidham has her CPA license in the state of California. In 2022, she was a 2022 CalCPA Women to Watch – Experience Leader Nominee, and in 2019 was a 2019 CalCPA Women to Watch – Emerging Leader Nominee.

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Description

Not only are state taxes in California high, but the state's tax system and enforcement are among the most complicated and aggressive in the nation, respectively. California's personal income tax rate tops out at 13.3 percent, inclusive of the 1 percent millionaires' tax, and its corporate income tax rate is 8.84 percent except for financial institutions which are taxed at 10.84 percent. California's combined state and local sales tax rates are over 10 percent in most parts of the state. These extreme tax rates make tax planning and risk mitigation critical for clients who engage in business in California.

In February 2022, California responded to the MTC's revision of its Statement of Information on P.L. 86-272 by adopting its narrower interpretation of P.L. 86-272. The MTC's revision focuses primarily on P.L. 86-272's application to internet activities and provides a list of protected and unprotected activities that businesses operating a website may perform via the internet. In July 2021, California enacted a CA PTET election. Even after amending the CA PTET law twice following its enactment, there are still a number of issues to consider and potential traps for the unwary. California's new tax basis capital reporting requirement starts for the 2022 tax year. Lastly, California has several cases, some quite recent, discussing the proper tax treatment of the gain recognized on the sale of an interest in a partnership or S corporation. Yet despite these cases, the law on this issue is far from clear, creating uncertainty for taxpayers and tax advisers alike.

Listen as our panel of state and local tax experts reviews current developments in the state of California. Tax advisers working with businesses or individuals with a taxable presence in California will want to understand these latest developments.

Outline

  1. California SALT: introduction
  2. Nexus developments
  3. The pass-through entity election
  4. Tax impact of TCJA sunset
  5. California's interpretation of P.L. 86-272
  6. Market based sourcing regulations
  7. Other issues

Benefits

The panel will cover these and other critical issues:

  • California's narrow interpretation of P.L. 86-272
  • Eligibility for the PTE election
  • Specific activities that create nexus in California for income and sales and use tax
  • Latest nexus challenges in California

NASBA Details

Learning Objectives

After completing this course, you will be able to:

  • Identity steps businesses can take to mitigate California SALT
  • Determine eligibility for California's PTE election
  • Decide when specific companies could benefit from a PTE election in California
  • Ascertain when internet activities constitute nexus in California

  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.