States Reboot Effort Against Tax Loss from Intercompany Pricing

March 18, 2021, 8:46 AM

State revenue agencies are joining together anew to tackle the ongoing problem of companies that shift money across multiple states to avoid taxes.

The Multistate Tax Commission is relaunching its SITAS Committee after more than four years, signaling a new focus on recapturing billions of tax dollars that states view as missing from their tax bases when companies improperly value related-party transactions.

“It’s important, and practitioners and taxpayers should pay attention because it signifies the states’ commitment to stepping up transfer pricing audits and enforcement,” said David Brunori, senior director at the Washington national tax office of RSM LLP.

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