Accounting 656
California and Multistate Taxation
Kathryn M. Jaques
Fall 2015
Date
08/24
08/31
09/07
09/14
09/21
09/28
10/05
Topic
Introduction, administrative matters
Review of text & source materials
Overview of State Tax Systems
Introduction to Multistate Income Taxation
STATE TAXATION OF MULTISTATE CORPORATIONS
States' jurisdiction to tax: Constitutional limitations
 Due process
 Interstate commerce
 Foreign commerce
 Nexus issues
 Retroactivity
LABOR DAY HOLIDAY - no class meeting
States' jurisdiction to tax: Statutory limitations
 State statutes
 Public Law 86-272
 Other federal statutes
The unitary business concept
 Significance of unitary concept
 Historical development
 Current issues
 Worldwide combined reporting
 Water's edge election
Allocation of nonbusiness income
 Identifying nonbusiness income
 Allocation of nonbusiness income
 Interest offset, contributions adjustment
MID-TERM EXAM: Take-home, due 10/05
Apportionment of business income
 Property factor
 Payroll factor
 Sales factor
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Accounting 656
California and Multistate Taxation
Kathryn M. Jaques
Fall 2015
10/12
10/19
10/26
11/02
11/09
INTRODUCTION TO CALIFORNIA TAX LAW
Structure of California tax statutes; legislative process
California state tax administrative structure
Steps in controversy with Franchise Tax Board
CALIFORNIA CORPORATION TAX LAW
Administrative provisions: filing requirements, penalties, statute of limitations
Franchise tax vs. corporate income tax
Taxation of financial corporations
Commencing and dissolving California corporations
California tax base
Tax benefits in incentive areas
Corporate AMT
NOLs
Credits for corporations
California S corporations
MULTISTATE CORPORATE INCOME TAX COMPLIANCE
State tax filing options for affiliated groups
The California combined report
Apportionment by relative factors (intrastate apportionment)
 Effect of nonbusiness income/loss
 NOLs and AMTs
 Combining corporations on different fiscal years
Factor representation
Combining partnerships
Special industry formulas, Sec. 25137
Tax planning for multistate corporations
MID-TERM EXAM, take-home, due 11/09
CALIFORNIA PERSONAL INCOME TAX LAW
Overview of California statutes
Administrative provisions
California-federal differences for individuals
Tax credits for individuals
California taxation of nonresidents and part-year residents
 Significance of residence
 Domicile and residence
 Who is a resident
 Special rules for military personnel
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Accounting 656
California and Multistate Taxation
Kathryn M. Jaques
Fall 2015
11/16
11/23
11/30
12/07
12/14
 California source income
 Determination of income on change of residence
 Mechanics of Form 540NR
 Credits for nonresidents
 AMT for nonresidents
Flowthrough entities: partnerships, S corporations, LLCs
 Entity level taxation
 Taxation of resident and nonresident partners/stockholders/members
Estates & trusts
 Taxability at entity level
 Taxation of resident and nonresident beneficiaries
 Surviving spouse basis
SALES & USE TAX LAW
Introduction to sales & use taxes
Administration
Steps in controversy with SBE
Obtaining a seller's permit
Transactions subject to sales & use taxes
 Sales tax vs. use tax
 Leases of tangible personal property
Transactions exempt from sales & use taxes
 Sales for resale
 Sales in interstate or foreign commerce
 Sales to exempt purchasers
 Sales of exempt property
 Occasional sales
Giving and accepting resale certificates
What to expect in a sales & use tax audit
Reverse audits
FINAL EXAM, take-home, due 12/14
Turn in final exam, review
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