It’s been well over a year since the Tax Cuts and Jobs Act was signed into law and there are still a lot of unknowns for state taxpayers. Most states have updated their conformity to the Code post-tax reform, certain states have not, and others are reconsidering their conformity (or lack thereof) to certain provisions. Each day more issues and questions arise over how the federal changes apply in the various states that have advanced their conformity to the Code. Complications arise, for example, when the state and federal filing methodologies differ thus requiring a state specific computation of items such as the IRC section 163(j) limitation on the deductibility of business interest. To date, many states have not yet issued comprehensive guidance on the federal tax reform changes and how they interact with state law. In the states that have not updated their conformity to the Code post-tax reform, the complete lack of conformity also creates complexities for state taxpayers.
Please join professionals from KPMG’s State and Local Tax Practice as they discuss the current state of the states as it applies to state conformity to federal tax reform and delve into certain of the issues that need to be considered before 2018 state corporate income tax return filing season commences.