What’s Wrong and What’s Right with MTC Audits

Overview


Diann Smith said Multistate Tax Commission audits have “not been efficient so far for taxpayers” who educate MTC auditors on their unique tax issues; “once the audit is turned over to the state, if the taxpayer disagrees with the MTC’s position, the taxpayer has to go through the education process again … with each specific state,” she continued. Stephen Kranz raised other questions about MTC audits: “Do they audit to the lowest common denominator of state law in each of the participating states, or is it the highest numerator, to coin a phrase? What is the law that the MTC will apply when they’re doing a multistate audit?”