COST’s 41st ANNUAL MEETING
October 19 – 22, 2010
Phoenix, Arizona
Preliminary Agenda – 8/13/2010
The COST Annual Meeting offers sessions for every state tax professional and government affairs professionals with tax responsibilities.
Attendees will include COST and non-COST industry member tax professionals, COST Practitioner Connection subscribers, and tax
policy and government affairs professionals.
Please note that all attendees are welcome to attend any session except for the Audit Sessions. These sessions, as always, are open to COST
industry member professionals only.
TUESDAY, OCTOBER 19th
3:00 – 5:00 p.m.
COST Board of Directors Meeting
6:00 – 8:00 p.m.
Registration
6:00 – 8:00 p.m.
Welcome Reception – Sponsored by Ernst & Young*
WEDNESDAY, OCTOBER 20th
7:30 – 5:00 p.m.
Registration
7:30 – 8:30 a.m.
Continental Breakfast & Networking
8:30 – 9:00 a.m.
Welcome & Opening Remarks – COST’s 41st Annual Meeting of the Membership: Election of New Directors
Douglas Lindholm, COST, President & Executive Director, Washington, DC
John Pydyszewski, COST Chair, Johnson & Johnson, New Brunswick, NJ
Charles Drury, COST, Director of Programs, Washington, DC
9:00 –10:00 a.m.
The Great Recession & State Tax Policy – A National Perspective on Recent Events & Prognostications on the Future
The recession is already historic in proportion … and it’s not over yet. The states are struggling to deal with their fiscal issues, and job growth
is anemic. Hear the views of a leading national fiscal expert on the state budget outlook and how the states are likely to deal with their revenue
issues in 2011.
10:00 – 10:15 a.m.
Refreshment Break & Networking
10:15 – 11:00 a.m.
Managing Tax Departments – Best Practices in a Challenging
Environment
The Economic Substance Doctrine & Reporting of Uncertain Tax
Positions – Exploring Unintended Impacts on State Taxation
Join these speakers for a discussion of best practices for managing a
multistate tax department based on real life experiences. The
session will cover information technology, meeting deadlines with
less staff, use of outside resources and working more effectively
with government affairs on all types of state taxes.
Congress recently codified the economic substance doctrine for federal
purposes. Many states are considering how the federal requirement
affects state tax filings. States have also expressed a desire to take full
advantage of IRS Announcement 2010-09, which requires taxpayers to
disclose information about uncertain tax positions. Panelists will discuss
these recent developments and what they mean to state corporate
taxpayers.
All Aspects of Managing the State Tax Provision and Financial
Reporting for SALT – including Updates on U.S. GAAP &
International Financial Reporting Standards (IFRS)
Resolving State Tax Issues Through Congress – What’s Cooking in
Washington?
11:05 – 11:50 a.m.
This panel will discuss recent developments in accounting for state
taxes, managing the state tax provision and provide an update on
the likely convergence of GAAP and IFRS.
11:50 – 1:15 p.m.
An unusually large amount of legislation is pending in Congress that
impacts state taxation of business. Get the latest developments and
insights from the panel on the Business Activity Tax Simplification Act,
the Main Street Fairness Act, the Digital Goods and Services Tax
Fairness Act, and the Mobile Workforce State Income Tax Fairness and
Simplification Act.
Lunch – Industry Tables/Networking
-
Announcement of COST Directors & Officers for 2010/2011
-
Special Report - Thoughts on the Current SALT Environment from the FTA & the MTC
Representatives from two leading state government organizations share their take on the significant SALT tax policy issues facing the Nation.
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1:15 – 2:10 p.m.
2:15 – 3:15 p.m.
Centralized Tax Management of Global Sub-National Taxes – Is It
Feasible?
Squeezing Blood from a Turnip: Getting Your Refund When the
States Just Say No!!
This panel, with tax experts from the US, UK and Belgium, will
discuss the need for a global strategy and centralized management to
minimize sub-national taxes. Property taxes will be used an example.
State fiscal crises are causing an increasing number of states to
refuse to pay refunds or to place unique roadblocks in order to delay
or curtail refunds. The panelists will explore the current landscape
and discuss alternatives to traditional refunds.
Report from the Front Lines: Southeast
State Chamber Roundtable Discussion on
Business Taxes – 2010 Recap & 2011
Predictions
Do Companies Have the Right to Elect
Use of the MTC Equally Weighted
Three-Factor Apportionment Formula in
California and Other States?
Tax policy professionals from key State
Chambers of Commerce will prognosticate
on significant tax policy issues in the
southeast states’ upcoming legislative
sessions, viewed through the prism of this
year’s accomplishments and setbacks.
These speakers will discuss the strategic
election to use an equally weighted threefactor apportionment formula under
UDITPA rather than California’s double
weighted sales factor formula. The question
of whether such an election is permitted in
other states such as Michigan and Texas
will also be discussed.
3:15 – 3:30 p.m.
Refreshment Break & Networking
3:30 – 4:10 p.m.
Audit Session: Southeast Region SALT
Developments & Audit Reports (COST
Industry Members Only)
The ever-popular COST industry- memberonly audit session during which participants
share recent audit and litigation experiences
involving all types of state and local taxes in
the states of Alabama, Arkansas, Florida,
Georgia, Mississippi, North Carolina, South
Carolina, Tennessee, Virginia & West
Virginia.
Is a National or State Level VAT in Our
Future? Can they Co-Exist?
These panelists will examine the growing
dialogue (both for and against) regarding the
adoption of a national value added tax to
address the federal deficit. The issues involved
in coordinating a national VAT with state and
local sales taxes will also be discussed.
Property Tax Task Force Meeting –
including Review of Property Tax
Scorecard/Benchmarking Report and
Property Tax Legislative Trends
Combined Federal/State Attack on
Companies’ Alleged Misclassification of
Workers as Independent Contractors
versus Employees
A detailed review of the COST Property
Tax Scorecard/Benchmarking Report will
be presented. With most state and local
governments facing budget challenges,
changes to property taxes are likely. The
meeting will also provide an up-to-date look
at notable legislative trends and property tax
issues confronting companies.
Misclassifying your employees as independent
contractors can create liability for unpaid
federal and state income taxes and other
payroll taxes, as well as unemployment and
workers compensation taxes/premiums. These
speakers will address the IRS’s new NRP audit
program and states’ increased activity in the
independent contractor versus employee
classification area.
4:15 – 5:00 p.m.
Around the SALT Policy World in 40
Minutes: 2010 in Review
2010 has been an active year for state tax
policy. COST staff will discuss state
legislative and judicial developments, with
particular attention on COST’s advocacy
activity, but will also cover the activities of the
FTA, MTC, NCSL and other major policy
players.
5:30 – 6:00 p.m.
First Time Attendee Reception
6:00 – 7:30 p.m.
Reception – Sponsored by Baker & McKenzie* and Ryan*
THURSDAY, OCTOBER 21st
7:00 – 5:00 p.m.
Registration
7:00 – 8:00 a.m.
Continental Breakfast & Networking
8:00 – 9:10 a.m.
Report from the Front Lines: California
and Western States Chamber Roundtable
Discussion on Business Taxes – 2010
Recap & 2011 Predictions
Tax policy professionals from key State
Chambers of Commerce will prognosticate
on significant tax policy issues in California
and the western states’ upcoming legislative
sessions, viewed through the prism of this
year’s accomplishments and setbacks.
Alternative Apportionment: Use It Or Be
Used By It
The use of alternative apportionment by
states seems to be on the rise. Speakers will
discuss the latest alternative apportionment
trends and explore how taxpayers may use
recent cases to their advantage.
Unfairly Changing the Rules: How Far Is
Too Far? The States Are Turning Back the
Hands of Time with Retroactive Tax
Imposition & Administration
The US Supreme Court refused to hear two
appeals this term on retroactive taxes.
Speakers will examine the current landscape
on retroactive taxes and discuss what
taxpayers should expect in the future.
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9:15 –10:00 a.m.
Non-Legislated Tax Legislation: How
Courts and Executive Branch Agencies
Are Increasingly Making New Law
This panel will examine the growing
instances of the courts and administrators
stepping beyond existing state tax statutes
to make new law.
Best Practices for Creating, Maintaining
& Protecting State Income Tax Audit
Files and Handling Opinion Letters After
Textron
Which documents must be turned over to
the state during audits or litigation? This
panel will discuss best practices postTextron that will protect the information in
your audit files.
Sales of Other Than Tangible Personal
Property: The Pros and Cons of the Shift to
Market-Based Sourcing
Several states have dropped their cost of
performance sourcing for sales of other than
TPP and replaced it with a market- state-based
approach. This panel will lead a multistate
discussion of this change with an emphasis on
California’s new statute, pending regulatory
projects, undefined terms in statutory
language, and who benefits/who doesn’t.
10:00 – 10:15 a.m.
Refreshment Break & Networking
10:15 – 11:05 a.m.
Audit Session: West Region SALT
Developments & Audit Reports (COST
Industry Members Only)
Abandoned & Unclaimed Property Task
Force Meeting – including Audit Reports
(COST Industry Members Only)
Applying Old Rules to New Technology An Update on Taxation of Digital Goods &
Services
The ever-popular COST industrymember-only audit session during which
participants share recent audit and
litigation experiences involving all types
of state and local taxes in the states of
Alaska, Arizona, California, Colorado,
Hawaii, Idaho, Kansas, Montana,
Nebraska, Nevada, New Mexico, North
Dakota, Oregon, South Dakota, Utah,
Washington & Wyoming.
The recent success and continuing efforts
for reform in Delaware’s A&UP process
will be reviewed. The panel will also
discuss current audit experiences in various
states.
This session focuses on what states have done,
and are likely to do in the future on taxing
digital goods and services.
Emerging Issues Associated with
Abandoned & Unclaimed Property: It’s
Not a Tax, But You Own the Audit
Adding Value Through SALT Credits &
Incentives – Key Ways Companies Can
Identify, Obtain & Use Them!!
Just when you thought dealing with a state
tax audit can be burdensome, wait until you
wrestle with an A&UP audit with no
statutes of limitations or uniform
procedures, limited protest rights and very
little guidance. This panel will review traps
and pitfalls for the unwary, share successful
approaches and bring you up to date on the
latest A&UP issues.
This panel will review the variety of SALT
incentives and credits available as states and
cities look to provide economic development
programs to increase investment and jobs.
11:10 – 11:55 a.m.
12:00 – 12:45 p.m.
Paul Frankel's Views on the SALT Environment
The Godfather of State Taxation will share his views on the significant state tax cases around the country – as only Paul can do it.
12:45 – 2:15 p.m.
Lunch – Industry Tables/Networking
– Presentation to Marilyn Wethekam, Horwood, Marcus & Berk*; of the second annual COST/ Paul Frankel Excellence in
State Taxation Award
2:15 – 3:15 p.m.
3:15 – 3:30 p.m.
Report from the Front Lines: Midwest
State Chamber Roundtable Discussion
of Business Taxes – 2010 Recap & 2011
Predictions
Affiliate Nexus Developments for State
Income & Sales Taxes – Reconciling
Bellas Hess and Quill with Scripto and
Tyler Pipe
Tax policy professionals from key State
Chambers of Commerce will
prognosticate on significant tax policy
issues in the mid-west states’ upcoming
legislative sessions, viewed through the
prism of this year’s accomplishments and
setbacks.
The panel will examine the states’
expanding jurisdiction to impose state
income and sales/use tax collection
responsibility. The erosion of Bellas Hess
and Quill standards and the states’ attempt
to impose use tax collection responsibility
via the adoption of “click through” statutes
will be discussed.
Refreshment Break & Networking
Advice from the Audit Front Lines – Best
Practices for Favorably Resolving Disputes
in A Timely Manner
State budget cuts and furloughs have led to
overworked and often inexperienced state
auditors. This shift in audit resources has
changed the dynamics of many audits. This
panel will discuss audit challenges and the best
practices for favorably resolving disputes in a
timely manner.
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3:30 – 4:10 p.m.
4:15 – 5:00 p.m.
5:30 – 7:30 p.m.
Audit Session: Central /Midwest Region
SALT Developments & Audit Reports
(COST Industry Members Only)
Update on Recent VAT Legislation &
Litigation in Key Countries Around the
World
The ever-popular COST industrymember-only audit session during which
participants share recent audit and
litigation experiences involving all types
of state and local taxes in the states of
Illinois, Indiana, Iowa, Kentucky,
Louisiana, Michigan, Minnesota,
Missouri, Ohio, Oklahoma, Texas &
Wisconsin.
Value added taxes are commonplace in most
of the world. Hear this comprehensive
analysis of recent VAT legislation and
litigation to understand the key VAT issues,
including Canada’s recent harmonization of
its GST and the provincial sales tax.
Lobbying Lessons for Tax and
Government Affairs Professionals
Does your company need to get more
involved with advocacy in the state tax
arena? Are you a government affairs
representative covering multiple states? Our
expert panelists will provide practical advice
for effectiveness in the policy realm.
Property Tax Developments and Litigation
Update
Ethical & Professional Challenges Facing
State Tax Professionals
The panel will address an in-depth review
and analysis of recent business property tax
developments and significant court cases
from around the country.
Through the use of real life examples, this
panel will review the ethical dilemmas and
professional challenges facing the tax
profession. Speakers will explore whether
certain taxpayer behavior during audits and
litigation is ethical as well as the implications
of recent developments in the areas of
professional responsibility.
Vendor Fair Reception
FRIDAY, OCTOBER 22nd
7:00 – 12:00 p.m.
Registration
7:00 – 8:00 a.m.
Continental Breakfast & Networking
8:00 – 9:00 a.m.
Report from the Front Lines: Northeast
State Chamber Roundtable Discussion
on Business Taxes-2010 & 2011
Predictions
Tax policy professionals from key State
Chambers of Commerce will
prognosticate on significant tax policy
issues in the northeast states’ upcoming
legislative sessions, viewed through the
prism of this year’s accomplishments and
setbacks.
9:05 – 9:45 a.m.
9:50 – 10:30 a.m.
10:30 – 11:00 a.m.
Audit Session: Northeast Region SALT
Developments & Audit Reports (COST
Industry Members Only)
The ever-popular COST industrymember-only audit session during which
participants share recent audit and
litigation experiences involving all types
of state and local taxes in the states of
Connecticut, Delaware, District of
Columbia, Maine, Maryland,
Massachusetts, New Hampshire, New
Jersey, New York, Pennsylvania, Rhode
Island & Vermont.
Refreshment Break and Hotel Check Out
Non-Traditional Constitutional Attacks on
State Tax Statutes
Recent Developments for Sales Taxes &
Update on Significant SSTP Issues
Although most state tax cases are brought
under the Commerce Clause and Due Process
Clause, a veritable arsenal of alternative
challenges may exist – running the gamut
from the First Amendment to the Foreign
Commerce Clause to the Tonnage Clause.
Although emphasizing recent First
Amendment challenges (Amazon in
Colorado; Bada Bing in Illinois), this panel
will open your eyes to the panorama of
constitutional challenges brought against
state tax statutes.
The panelists will review the current trends
in transactional taxes (including significant
court decisions and legislation) as well as the
recent developments with the Streamlined
Sales Tax Project. Is 2011 the year for
Federal legislation on the streamlined effort?
In Search of the One-Armed Economist: The Economic Effects of Mandatory Unitary
Combined Reporting
Some tax experts have come down firmly in support of mandatory unitary combined reporting
(MUCR). Unfortunately, their analyses generally ignore the economic implications of MUCR.
Two well known state public finance economists will discuss the economic effects of MUCR.
The States are After Business: What Can You Do? The Top State Department of
Revenue Attacks Leveled Against Multistate Businesses Today
This panel will discuss the top attacks now being leveled by states against multistate
businesses, the recent rulings/legislation on each, and the various defenses business can use to
counter them.
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11:00 – 12:00 p.m.
Contingent Fee and Contract Audits: Addressing a Troubling
Trend
Apocalypse Now? Taxageddon? Why Big Business will be in the
States’ Cross-Hairs for 2011
We are witnessing a growing and unsettling trend of states
contracting with outside parties – namely ACS and Chainbridge – to
provide “transfer pricing audit” services on a contingent fee basis
Likewise, many local governments are using contract auditors. The
resulting assessments can be in the millions of dollars and are very
burdensome to challenge. Get the latest update on this troubling
trend and ways to respond if you’re targeted in one of these audits.
2011 may turn out to be the worst budget year for states since World
War II. Tax collections are scarcely growing, federal “stimulus”
funds are drying up and states have used up all the budget gimmicks
available to them. “Big Business” is in the cross-hairs for 2011.
Speakers will discuss what business can do to respond.
Speakers:
12:00 p.m.
Annual Meeting Adjourns
* Denotes COST Practitioner Connection Subscriber
Speakers: