Income Taxes: Principles of Formulary Apportionment (Portfolio 1150)
At a glance
1110.01. Introduction
1110.02. Overview of Rules Defining a Unitary Business
1110.03. Constitutional Limitations On the Unitary Business Concept
1110.04. Ambiguities Created by Container
1110.05. Allied Signal Confirms the Unitary Principle
1110.06. State Standards in Defining a Unitary Business
1110.07. Combined Reports and Other Matters Related to Corporate 2 States
1110.08. Final Comment
1110.09. State-By-State Analysis Of The Unitary Principle
Abstract
Tax Management Portfolio, Income Taxes: Principles of Formulary Apportionment, discusses the apportionment of income for state tax purposes and provides insight into the history and issues of relevant methods. To forestall unwanted congressional action, the states have attempted to demonstrate that they can ameliorate the uniformity problem themselves. Specifically, the National Conference of Commissioners on Uniform State Laws adopted the Uniform Division of Income for Tax Purposes Act (UDITPA) in 1957. To date, most states have either adopted UDITPA as the exclusive or optional method, or have adopted it with some changes.
The Portfolio zeroes in on the three–factor formula contained in UDITPA and analyzes important variations from (and distortions of) this formula.