I provided a link to this site (govtech.com) yesterday in the LEVERAGE SALT LinkedIn group and got feedback that it was an interesting site. To help ensure you didn't miss it, I thought I would post a link via this blog as well.
State Tax Haven Legislation Got you Down? Read COST Report.
The State Tax Research Institute (STRI), a foundation affiliated with the Council On State Taxation (COST) released a study on state “tax haven” legislation. The report, “State Tax Haven Legislation: A Misguided Approach to a Global Issue,” provides an in-depth analysis of the problems, fallacies, and risks associated with adopting tax haven legislation.
States have been attempting to reach income that they perceive is escaping taxation through sophisticated tax planning for the past 20+ years. To that end, states have enacted economic nexus, addback rules for related party transactions, worldwide combined reporting and scrutinized transfer pricing studies. Over the past couple of years, tax haven legislation has gained some traction as a new tool to combat unintended consequences created by state tax policy.
If tax haven legislation is impacting or could impact your company, read the COST report for a detailed analysis. It may help you defend your company or lobby against such legislation.
WE ARE WHAT WE ALLOW
"We are what we allow" - if you watch Grey's Anatomy, then you may know I got this quote from last week's show. When Dr. Grey made the comment, I was like 'yes,' we are what we allow. If we allow others to treat us small, then we will be small. If we allow others to define who we are and what we do, then we will become that version of ourselves.
We have a choice. We have a daily decision. Are we going to be what we want to be? Or will we allow others to decide who we will be and how they treat us?
In regards to working in the state tax profession, whether you work in a corporate tax department, the Big 4 or a small regional firm, people in your department or partners will try to define who you are. They will treat you a certain way. You need to decide if you are okay with how they are treating you. Are you who you want to be? Is how they are treating you interfering with who you want to become? Just say no. Stop it today. Decide for yourself.
In regards to state taxation, corporations can get ran over by auditors, by unconstitutional laws, by unreasonable compliance deadlines and notices. Will you sit by and let it go on? Or will you stand up? Will you fight? Will you take action? Will your company defend itself? Will your company lobby for better policy? Will you take your audit issues to appeals?
We are what we allow.
Peace.
Rhode Island Adopts Final Combined Reporting Regulations
Hopefully you extended your 2015 Rhode Island corporate return that was due on March 15, 2016, because Rhode Island recently adopted final combined reporting regulations with an effective date of March 30, 2016 applying to tax returns filed for tax years beginning on or after January 1, 2015.
You can compare the final regulations to the proposed regulations which I described in a previous post.
Rhode Island has also published a FAQ page on its website which should be helpful in beginning the analysis and application of the regulations.
THE GREATEST SALT CONSULTANT: MEASURING EFFORT
The Greatest SALT Consultant (GSC) does not use timesheets to manage staff. The GSC measures staff by results (and intangibles), not effort.
Timesheets are a “crutch,” or replacement for poor project management and poor people management. There are other, more useful tools to manage projects and people (their called managers). Other tools could be a “SCORECARD” and “Project Management Report.”
Example “SCORECARD:”
- Pull your weight (complexity of work / volume of work / meeting deadlines for assigned work)
- Willingness to help others near deadlines (shifting of work / unassigned work)
- Identify tax process improvement ideas
- Identify tax savings ideas
- Work product requires less review time
- Positive attitude
What do you think?
If you are a client, are you paying for effort or results?
If you are a tax professional, are you measuring and managing effort or results?
This is Part 3 of a Part 7 series. (Go here to read Part 1 and Part 2.)
WEBINAR: STATE NOL MANAGEMENT CHALLENGES AND PRACTICAL STRATEGIES
Managing NOLs using spreadsheets with thousands of complex formulas to forecast state NOLs manually can lead to lost cash tax opportunities. This is why we need to learn more about this area and identify new tools to predict the impact that state NOLs will have on cash, minimize effective tax rate (ETR), and improve corporate earnings per share.
By attending a free Bloomberg BNA webinar on March 22, 2016 at 2 pm EST, which I have the privilege of co-presenting, you can become the hero of your tax department by learning more about major hurdles of NOL management and practical strategies you can apply to effectively and efficiently track state NOLs. You’ll discover how to better manage NOL assets, including accurately predicting the burn-down of NOL assets as your company comes into profitable tax years.
This webinar will introduce BNA State Tax Analyzer with NOL Manager as a great tool that automatically computes the generation and utilization (carrybacks and carryforwards) of state NOLs across multiple years and multiple scenarios.
I hope you will join us.