COST Publishes Best & Worst of State Tax Administration Scorecard

The Council on State Taxation (COST) recently published their fifth annual scorecard on the Best & Worst of State Tax Administration.  Maine and Ohio take top honors as “A” rated states. California and Louisiana come in last with D minuses, and Pennsylvania showed the most improvement in 2013, moving from a D to an A minus.

The key factors COST reviewed included:

Appeals Process
•    Fair appeals forums which include true independence 
•    No requirement to pay or post bond prior to hearing 
•    Record for appeals to be established before independent body 
•    Arbiter of hearing who is well-versed in state tax laws and concepts

Procedural Elements
•    Fair statute of limitations for refunds and assessments
•    Equalized interest rates on refunds and assessments
•    Due dates at least 30 days past the federal due date with an automatic extension of state due date based on the federal extension
•    Adequate time to file protests before an independent dispute forum
•    Reasonable and clear procedures for amended returns following adjustments to federal corporate tax liability
•    Transparency via the publishing of rulings and administrative or tax tribunal decisions
•    Presence or absence of other items such as the unfair practice of contingent fee audits, retroactive penalties and interest, etc.

These factors and why they are important to your business will be examined in more detail in subsequent postings.  

How Can We Help? 
Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of multi-state and local tax compliance and consulting for large US and global corporations.  We use that experience to your advantage.  Contact us and we can provide a customized cost-effective solution to meet your company’s needs.  For further information on Allyn Tax services, please contact: tax@allynintl.com.