In conjunction with the AICPA State Regulatory and Legislative Affairs group, the AICPA State and Local Tax (SALT) Technical Resource Panel (SALT TRP) and the AICPA SALT Deduction Passthrough Entity Tax Task Force (SD PTET TF) continue to assist state CPA societies and members with many resources as various states consider, enact, implement, provide guidance, or modify their passthrough entity tax (PTET).
As you may recall, with the TCJA creation of the SALT cap, there also was a creation of an IRS-approved “work-around” to the SALT cap — the PTET, which is a state (or other jurisdiction’s) elective (or mandatory) entity-level income tax on partnerships and S corporations. A PTET now has been enacted in 39 states and 1 locality.
The AICPA SALT TRP and SD PTET TF has developed several new resources:
- AICPA chart of states’ PTET credits refundability
- FAQ on the Federal Taxation of State Income Tax Refunds for PTET Payments (available to AICPA Tax Section members)
- TTA article — Recent developments in states’ PTETs (September 1, 2024) (link to be available 9/1/24)
- TTA article — PTETs: Orchestrating ASC 740 compliance (March 1, 2024)
- AICPA Tax Section Odyssey Podcast — PTET refund roadmap — Expert insights with Dave Kirk (August 1, 2024)
The above AICPA new resources are in addition to the many other AICPA PTET resources, such as:
- Map of states with enacted or proposed passthrough entity (PTE) level tax and effective years
- Summary information on states’ elective passthrough entity (PTE) tax and tax authorities' information and guidance
- AICPA list of taxpayer and practitioner considerations for whether to elect into a state passthrough entity (PTE) tax
- AICPA list of states with partnership filing requirement if a partner is resident in the state
- AICPA Tax Section’s SALT Roadmap and Resource Center information on each state and their PTET.
- AICPA Tax Section Odyssey Podcast — When to call an audible on the passthrough entity tax (January 25, 2023)
- AICPA Tax Section Odyssey Podcast — State implications with the PTE tax (March 23, 2022)
- AICPA comments to IRS and Department of Treasury on an S corporation’s inability to specially allocate items and the single class of stock requirement (October 26, 2021)
- AICPA comments to IRS and Treasury regarding the PTE tax rules pertaining to accrual basis taxpayers (October 4, 2022)
- AICPA comments to IRS and Treasury on needed guidance on IRS Notice 2020-75 and sections 469 and 163 on nonpassive versus passive income and interest expense tracing (March 6, 2023)
The AICPA will continue to update these resources as changes occur.
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