Throughout the week, we highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons. Read the recent alerts below or visit the archive.
California provides guidance on tax basis capital accounts reporting requirements On March 8, 2022, California’s Franchise Tax Board (FTB) released FTB Notice 2022-01 to clarify the reporting requirements for the “Analysis of partner’s tax basis capital account” on Schedule K-1 for tax year 2021 and subsequent years. As per the guidance provided, taxpayers filing form 565/568 may use federal tax basis for the 2021 tax year; however, for the 2022 tax year and beyond, tax basis must be calculated under California law.
This Multistate Tax Alert summarizes some of the relevant provisions of FTB Notice 2022-01. [Issued: March 17, 2022] More
Idaho adopts single sales factor and market sourcing apportionment On March 16, 2022, Idaho Governor Brad Little signed into law House Bill 563 (H.B. 563), which enacts a single sales factor apportionment formula with market-based sourcing for sales other than sales of tangible personal property. The legislation also makes various other changes to Idaho Code § 63-3027, which provides the rules for calculating the taxable income of multistate corporations. The law takes effect for tax years beginning on or after January 1, 2022.
This Multistate Tax Alert summarizes some of the relevant provisions of H.B. 563. [Issued: March 21, 2022] More
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