Weekly Round-Up: An In-Depth Look at State Tax Relief on Foreign Income


Figuring out how to prepare the federal tax returns for people whose fiscal lives cross international borders can be vexing and time consuming, Mary Beth Lougen, EA, the founder and president of American Expat Tax Services, writes in this week’s issue of the Bloomberg BNA Weekly State Tax Report.

But throwing an extra taxing jurisdiction into the mix creates another set of regulations to consider, Lougen writes. “What may have been the best outcome when considering only the implications at the federal level may no longer be the case,” according to Lougen.  For an international tax practitioner, a great client is one who lives in Texas, Washington or any of the seven states that do not impose income tax on their residents, she states.

In her article, which can be read in its entirety here, Lougen explores the tax strategies and tips to alleviate double taxation on foreign income at the state level, using tax relief provisions offered by the states to offset taxation by a foreign jurisdiction.

Some notable developments from the State Tax Developments Tracker – Bloomberg BNA’s new tool for monitoring important developments in all the states:

Louisiana Department of Revenue Announces Its One-Month Amnesty Program

Oklahoma Tax Commission Publishes Informational Guideline on Voluntary Disclosure Agreements

Wisconsin Department or Revenue Updates Publication on Reporting of Unclaimed Property

For more information about this and other state tax issues, sign up for a free trial of the Bloomberg BNA Premier State Tax Library. 

In other developments…

Texas Margin Tax rate reduction in 2015, by PwC

Access Denied: Pennsylvania Rules Company Not Entitled to Its Own Tax Records, by Sutherland

State & Local Tax Advisory: The MTC’s Transfer Pricing Audit Program Comes into Focus, by Alston & Bird

Compiled by Priya D. Nair

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