Tax in the City: March Key Takeaways

By on April 2, 2018

McDermott hosted the first Tax in the City® meeting of 2018 in its Chicago office on March 15, 2018. Tax in the City® is a discussion and networking group for women in tax aimed at fostering collaboration and mentorship, and facilitating in-person connections and roundtable events around the country.

The Chicago program was one of the best attended Tax in the City® events to date, featuring a CLE/CPE presentation about the State Tax Impacts of Tax Reform by Cate Battin, Alysse McLoughlin and Diann Smith, followed by a discussion of Employee Benefits Impacts of Tax Reform by Diane Morgenthaler. The roundtable portion of the event covered federal tax reform issues, such as effects on partnerships, the GILTI tax, the BEAT tax, followed by an update on South Dakota v. Wayfair, a United States Supreme Court case reexamining the physical presence requirements for state sales tax collection nexus.

Key State & Local Tax Takeaways from Tax in the City® Chicago

  1. Without legislation at the state level, any tax payment impact from the federal repatriation transition provisions will all be concentrated in one year for state tax purposes, as opposed to the federal level where the impact will be spread over eight years.
  1. A company may have a GILTI issue at the state level, even if not at the federal level, because the states don’t take foreign tax credits into account.
  1.  Conforming to GILTI may create unconstitutional discrimination against foreign commerce.
  1.  States and taxpayers need to consider upon which federal return lines the new provisions will appear and how special statements, such as the repatriation statement, will map to state calculations the return and what schedules are used.

The next Tax in the City® meeting will take place in Seattle, WA on May 22. Please reach out to Mia Dubinets at mdubinets@mwe.com if you’d like to be added to the Seattle Tax in the City® mailing list, and receive invitations for the May event.

We invite all tax professionals who identify as female to join Tax in the City® official LinkedIn group to continue the conversation and share tax developments in between events and meetings! Click here to join.

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