ABA-IPT Advanced State Income Tax Seminar | State Transfer Pricing: Challenges, Issues and Opportunities for Multistate Taxpayers

Many states, especially those that do not use combined reporting, are increasingly turning to transfer pricing adjustments to combat what they consider to be impermissible or at least questionable profit shifting between related entities. Many states challenge the pricing of intercompany transactions through statues and regulations that are similar to or that adopt Internal Revenue Code section 482. Some states have hired third party consultants to assist with their efforts and the Multistate Tax Commission is also providing transfer assistance and resources to the states. This session will explore the state transfer pricing issues faced by multistate taxpayers including audit approaches taken by Departments of Revenue and potential taxpayer defenses.
 

Learning Objectives:

After attending the session, the participant will be able to:
 

• Explain how state Departments of Revenue utilize their transfer pricing authority
• Describe how taxpayers can defend themselves against transfer pricing adjustments
• Identify the common issues that arise in a state transfer pricing audit
• Discuss the role that the Multistate Commission plays in State transfer pricing developments

Moderator:

 

• David A. Hughes, Esq., Partner, HMB Legal Counsel, Chicago, IL

Speakers:

 

• Bruce J. Fort, Esq., Senior Counsel, Multistate Tax Commission, Santa Fe, NM
• Kate Pascuzzi, JD, MBA, Managing Director, Tax Controversy & Procedure, BDO USA, LLP, Tulsa, OK
• Mark Richards, Esq., Partner, Ice Miller, Indianapolis, IN