Download This PaperCould the Tax Cuts and Jobs Act Mean More State Income Tax Audits?
The CPA Journal, May 2019 Edition
2 Pages Posted: 8 May 2020
Date Written: May 1, 2019
Abstract
The Tax Cuts and Jobs Act (TCJA), signed into law on December 22, 2018, delivered sweeping changes to the federal tax code. These changes brought with them ambiguity and uncertainty, which will likely lead to federal tax audits and disputes on how such provisions should be applied and interpreted. One of the TCJA’s changes, however, is expected to trigger state tax collateral consequences that may lead to an increase in state and local income tax audits and disputes, specifically audits by states and localities to determine if a taxpayer is a resident and thus subject to tax on all income. These are often called residency audits.
Keywords: Tax Cuts and Jobs Act, State Income Tax Audits
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