State & Local

    State and Local Advocacy 

    This page provides information on issues and AICPA comments made on proposed federal legislation, proposed uniformity initiatives of the Multistate Tax Commission and other organizations, with a primary focus on taxpayers in a multi-state environment.

    The State and Local Technical Resource Panel continues to monitor these advocacy issues.

    News and Developments

    Below are recent developments in this area:

    Key Advocacy Issues

    State Tax Tribunals

    An emerging issue in the states is th adoption of state tax tribunals as a means to resolve state tax appeal controversies prior to litigation in a forum outside the dominion and control of the state tax authority.

    Contingent Fee Auditors
    An emerging trend in several states is Departments of Revenue hiring contingent fee auditors to examine taxpayers.  AICPA is opposed to this and has developed an AICPA Position Paper on State and Local Tax Contingent Fee Auditors.

    Mobile Workforce Legislation

    AICPA supports the Congressional effort to provide a uniform national standard of more than 30 days before income tax withholding and reporting is required in a non-resident state.   See overview on this bill and issues involved.

    Sales and Use Tax Reporting

    An evolving issue is proposed statutes similar to the Colorado statue regarding sales and use tax notice and reporting requirements.  The AICPA has commented on the Multistate Tax Commission's proposed draft model statute on this.  AICPA also submitted comments to Congress on the proposed Marketplace Fairness Act of 2013. 

    State Sales Tax on Accounting Services

    Several states continue to be interested in expanding sales tax to services, including professional services, such as accounting.  The AICPA assists state societies with advocating against a state sales tax on accounting services.  

    Comprehensive List of Advocacy Issues

    AICPA comments on many issues regarding trust, estate, and gift tax, both legislative and regulatory. Available are all the current comments, as well as prior year comments.
    Resources

    For practice support resources in this area, visit the State and Local Resources page.

    It contains checklists, webinars, articles, tools and practice aids to assist members in tax practice.

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