Alternative Apportionment: Who Bears the Burden Of Proof and What Standard of Proof Applies?

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

To deal with situations where application of the state's standard apportionment formula leads to unfair or unconstitutional taxation—for a certain industry segment or for a specific taxpayer—most states have adopted alternative apportionment formula mechanisms that the state tax authorities or taxpayers may elect to use. But, in addition to other controversies involving alternative apportionment, it is often unclear which party bears the burden of proof for showing that a departure from the standard apportionment formula is warranted. Also, the standard of proof to be employed in such cases is uncertain in many states.

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