State Tax Considerations of Financial Institutions: Determining Nexus, Unique Taxes, Filing Requirements
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Corporate Tax
- event Date
Thursday, August 3, 2023
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
110 minutes
-
BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
This webinar will take an in-depth look at state guidelines for taxing financial institutions. Our panel of state and local tax professionals will analyze how states define, tax, and determine nexus for businesses handling cash, credit, and similar assets. They will point out differences in specific state treatment of these institutions and advise tax preparers of the tax nuances to be wary of for this industry.
Mr. Lipin provides clients with state tax advice in the area of multistate income taxes, sales and use taxes, tax controversy, compliance, and various SALT aspects that arise from M&A transactions.
Mr. Minty is a managing director and the Financial Services Practice Leader for State and Local Tax Services for BDO USA LLP. He advises clients in the banking, capital markets, real estate, insurance, and the investment management industry including private equity and credit funds. Mr. Minty enjoys solving issues and consulting with his clients on a broad range of state tax issues, including income and franchise taxes, sales and use taxes, real property transfer taxes, gross receipt taxes and business credits and incentives. He also advises clients in tax planning, tax operations, tax compliance, and controversy matters. Further, Mr. Minty is heavily involved in thought leadership development and enjoys presenting on new legislation and rules that are relevant to his clients.
Mr. Damin is a Managing Director whose primary focus is in state and local income/franchise tax. His state tax experience, spanning more than a decade, includes tax planning, tax compliance, controversy, state tax provision review, and sales and use tax.
How a financial institution is defined varies by state. Its reach is far and often extends to mortgage lenders, accounts receivable factoring companies, and credit card processors. The definition is critical because businesses that handle liquid assets are regulated and subject to unique nexus standards, apportionment methods, and filing requirements. Financial institutions are often subject to additional taxes, and this designation can dictate whether a separate, combined, or consolidated return is filed.
In lieu of a corporate income tax, financial institutions could be subject to a state specific taxing regime (for instance, corporate shares tax in Pennsylvania, or an equity capital tax in Ohio, among others). California has separate tax rates for financial institutions, which are higher than those imposed on other corporations. How nexus is determined and income apportioned for financial institutions varies by state. An institution may not have a physical location within a state but may have deposits, loans, or credit card balances that could create a presence there. Tax advisers working with financial institutions and similar businesses need to grasp the current state of state taxation of this industry.
Listen are our panel of SALT experts reviews current state practices for taxing financial institutions, mortgage lenders, savings and loans, and similar organizations.
- State tax considerations of financial institutions: introduction
- Definition
- State taxation of financial institutions
- Taxes assessed
- Rates
- Filing requirements
- Nexus
- Examples
The panel will cover these and other critical issues:
- How nexus is determined for financial institutions
- Review of specialized apportionment rules
- The impact of being classified as a financial institution on state-specific filing requirements
- Avoiding potential SALT tax traps
Learning Objectives
After completing this course, you will be able to:
- Identify specific filing requirements for financial institutions in certain states
- Determine how California defines a financial institution
- Decide when a separate return is required in certain states for financial institutions
- Ascertain differences in taxation of financial institutions by state
- 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.
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