More Uniformity Sought in State Income Tax Procedures

By Robinson, Robin | THE JOURNAL RECORD, June 16, 1990 | Go to article overview

More Uniformity Sought in State Income Tax Procedures


Robinson, Robin, THE JOURNAL RECORD


Imagine 50 parallel universes with different levels of gravity and types of atmospheres.

That's about what multi-state corporations deal with when they try to file state income taxes, according to an American Institute of Certified Public Accountants study.

Futurist Isaac Asimov gets to explore those uncharted nethermost regions from the comfort of his armchair when he wants to; corporate tax divisions explore those regions quarterly, and have found no two flight manuals are the same.

The gist of the institute's study was that a little more uniformity among states' income tax administrative procedures could go a long way toward reducing corporate taxpayers' frustrations.

"It's just a nightmare," said James Wallace, assistant secretary and director of corporate taxes for the Oklahoma City-based Fleming Companies Inc. "Everybody complains that the federal laws are complex, and they are, but just multiply those by 50 states."

The variety of state income tax administrative rules affects the planning process when companies do business in a state and look at expanding into other states, he said.

"The lack of uniformity can make a transaction favorable in one state and unfavorable in another state just because of their tax treatment," Wallace said.

Fleming has 11 employees that calculate and file state and federal income, franchise, property and net worth taxes for its divisions in 21 states that ship to retail stores in 36 states. Wallace had no estimate of the cost of tax compliance, but increased uniformity among the states could reduce costs, he said.

Uniformity among state income tax administrative rules would require less effort by corporate taxpayers to comply, said Leonard Francis, assistant general tax officer for Phillips Petroleum Co. of Bartlesville.

"It would be much easier to mechanize the system to meet the compliance standards," Francis said.

"It would just be easier in terms of costs, not so much manpower cost - you'd still have to file the same forms - but you're not figuring out the impact if you buy a plant in one state versus buying a plant in other states," Francis said. "It would make planning easier, by taking the state ramifications out of the choice of where to build a plant. You'd just base it on operating factors."

"The biggest problem is complexity. You're never sure of the rules until you research those rules for a given state."

Phillips Petroleum Co. operates in all 50 states and files tax returns in every state using eight full-time employees for dealing with state income taxes and administrative audits.

The institute surveyed:

- Interest rates on tax assessments corporations pay to states and the interest rates on refunds states pay to corporations.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

More Uniformity Sought in State Income Tax Procedures
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.