Bruce Ely and James Long Quoted in State Tax Notes Regarding Pre-Clearance Requirement for Alternative Apportionment

State Tax Notes

Media Mention

State and Local Tax (SALT) attorneys Bruce Ely and James Long were quoted in State Tax Notes regarding their objection to the pre-clearance requirement for alternative apportionment. At a public hearing held February 11, Ely and Long urged the Alabama Department of Revenue to remove the requirement from a proposed rule reflecting the state’s adopted version of the Multistate Tax Compact. The provision in the rule would require taxpayers to submit a request for alternative apportionment at least six months before the due date of their return.

“As a result, taxpayers will not be able to study and assess the need for alternative apportionment if a return has already been filed or if it is within the six-month window prior to the date of the return,” Ely and Long said.

Ely and Long also urged the department to delete a provision in the rule that would give the commissioner of revenue discretionary authority to adjust a company’s payroll factor to prevent distortion from payments for intercompany services.