REPORTING TO STATE TAX AUTHORITIES OF FEDERAL TAX EXAMINATION
ADJUSTMENTS AND THEIR EFFECT ON STATE TAX LIABILITY
ISSUE
State and local reporting of federal income tax changes can impose a significant compliance burden
on multijurisdictional companies, their tax representatives, and the tax administrators in the states
in which they have nexus. There is no consistent method for reporting to state tax authorities
federal tax examination adjustments and their effect on state tax liability. The states have not
adopted a uniform notification period for reporting federal adjustments.
IMPORTANCE TO CPAs
CPAs interact with the state and local tax authorities on behalf of their clients. CPAs assist clients
with federal, state, and local tax compliance and planning, including reporting federal audit
changes to states. For example, CPAs analyze and address the potential impact of federal audit
adjustments, including state reporting requirements (i.e., filing amended returns), the impact of
audit adjustments across various states (i.e., calculation of state taxable income), and the potential
impact with tiered partnership structures as well. Failure to timely notify the state of the federal
adjustments can result in lost refund opportunities, tolling of the statute of limitations, and the
imposition of penalties and interest.
It is best to develop sound tax and administrative processes and policies, including the rules for
reporting federal audit changes to the states. The goal is to have fair, reasonable, and administrable
state audit and reporting rules that minimize the complexities and burdens for taxpayers, CPAs,
and the state tax authorities. CPAs are interested in working with the state tax authorities and state
legislatures as each state develops and modifies its audit rules and considers revising its rules
applicable to reporting federal audit changes. This issue is especially relevant due to the likelihood
that states will consider changes related to the reporting of federal audit adjustments to
accommodate the new federal partnership audit regime.
AICPA POSITION
The AICPA encourages state CPA societies to work with policymakers for fair, reasonable, and
administrable rules that minimize the complexities and burdens to taxpayers and state tax
authorities alike.
2
The AICPA supports the positions in the Tax Executives Institute (TEI) and Council On State
Taxation (COST) policy statements.
1
As COST states, fair and efficient state procedures for
reporting federal tax changes should include:
1. A clear definition of what constitutes a “final determination” that triggers a reporting
requirement;
2. A minimum period of at least 180 days (or six months) to report such changes to the state;
3. To prevent the imposition of interest, the ability to make advanced payments before there
is a “final determination” that triggers the filing responsibility for an amended return or
report; and
4. Limiting the issues open for adjustment to those items that are altered as a result of the
federal change (after the normal statute of limitations has expired).
The AICPA also joins TEI in supporting states’ adoption of uniform procedures to report federal
income tax changes. The burden of complying with the many different state rules to report the
same information in different formats to different states is inefficient and costly for all parties.
The AICPA recommends states adopt the following guidelines and procedures to provide
taxpayers with certainty and consistency:
1. States should allow taxpayers 180 days to report federal income tax changes to state tax
authorities (and to report state changes to municipal tax authorities).
2. This 180‐day period should commence upon the later of:
a. The taxpayer’s execution of federal Form 870, or its equivalent, agreeing to the final and
complete disposition of all deficiencies or overassessments. If the agreement is subject to
final approval by the IRS (or Joint Committee on Taxation or U.S. Department of Justice,
as appropriate), the state should deem the agreement final when the taxpayer receives a
copy of the agreement executed by the government. If the Form 870 does not resolve all
issues raised during the examination, the state should consider the Form 870 a “partial
Form 870” that does not trigger the 180‐day period.
b. The expiration of the statutory time period to petition the U.S. Tax Court for a
redetermination of the Notice of Deficiency.
c. The execution of a signed closing agreement between the taxpayer and the IRS pursuant to
section 7121 of the Internal Revenue Code (IRC)
2
, which results in a final determination
1
TEI issued a State and Local Tax Policy Statement on Reporting Federal Income Tax Changes, adopted November
17, 2015. COST adopted a position paper on state reporting requirements of federal tax changes.
2
All references herein to “section” or “§” are to the Internal Revenue Code of 1986 (Code), as amended, or the
Treasury Regulations promulgated thereunder.
3
of all items in a completed federal audit. (States should not trigger the 180‐day period for
closing agreements resolving only specific issues in an ongoing federal audit.)
d. A final, nonappealable decision of the U.S. Tax Court, U.S. District Court, U.S. Court of
Appeals, or U.S. Federal Claims; a decision of the Supreme Court of the United States; or
those courts’ approval of a stipulation disposing of the case.
e. Filing an amended federal income tax return that changes state taxable income or state tax
attributes.
3. States should adopt or accept a uniform form or forms similar to the form used for federal amended
tax returns (i.e., Form 1040X, Amended U.S. Individual Income Tax Return, Form 1120X,
Amended U.S. Corporation Income Tax Return, etc.) to report federal income tax changes to a
State Department of Revenue. A sample model return for reporting such changes is attached in
Appendix A. The model form would need state-specific components because state income tax
systems are different. However, having a common starting point for taxpayers to begin their
reporting of federal adjustments to the states would help ease the compliance burden that exists
due to the lack of any common standards among the states.
4. To help reduce the ambiguities in various state statutes and to alleviate the burden of evaluating
the various state requirements for reporting federal changes, the AICPA suggests that the states
also consider the following recommendations:
a. States should provide an automatic extension of the statute of limitations for a minimum one-
year period for assessments and filing refund claims, commencing on the date the federal
change is reported. States should base the date the federal change is reported on the postmark
date of the report of changes submitted to the state. States should limit the extension of the
statute of limitations to those changes arising directly from the federal adjustment.
b. As it relates to changes in tax liability, states should consider implementing a standard
minimum threshold before the filing of an amended return is required. This threshold would
eliminate the administrative burden and expense of filing an amended return for both the
taxpayer and the state in situations where the state adjustment is minimal.
c. In addition to considering a standard minimum threshold, where the only change to the federal
return relates to an increase or reduction in net operating loss (NOL), states should only require
the filing of an amended return in the tax year(s) in which there is a tax effect. Florida is an
example of a state that currently addresses this issue (Rule 12C-1.023 F.A.C.).
3
d. Further related to changes in tax liability, states should allow taxpayers the right to offset state
tax liability changes resulting from federal audit adjustments against other adjustments to state
3
See Florida Rule 12C-1.023 F.A.C. available at https://www.flrules.org/gateway/ruleno.asp?id=12C-1.023, items (3)
and (4) regarding when amended return filings are required if there is only a change to an NOL.
4
items unrelated to the federal audit (e.g., correcting the calculation of a state credit claimed or
where applicable, state NOL for the same year or years covered by the federal audit
necessitating the amended state filing).
e. States should allow taxpayers to file the simplified forms via a paper return without regard to
the means required for originally filed returns (i.e., states should not require mandatory
electronic filing for amended returns). The most efficient and accurate preparation of required
amended returns as a result of the issuance of an RAR is often accomplished by filing a paper
return or report with workpapers attached.
5. As an overarching recommendation, the AICPA supports and suggests that states adopt the draft
updated proposed Model Uniform (RAR) Statute for Reporting Adjustments to Federal Taxable
Income that was submitted by the multi-organization task force to the MTC at its December 14,
2016 meeting (See Appendix B).
BACKGROUND
An Internal Revenue Service (IRS) audit is often a lengthy and expensive process for the taxpayer
involved. After the IRS audit concludes and adjustments to the taxpayer’s federal return are agreed
to or determined, the taxpayer faces challenges in communicating these changes to the various
states.
As illustrated in the attached Appendix C, of those states requiring that taxpayers report federal
adjustments to the state, sixteen do not specify the form that the report should take, twelve require
the taxpayer to file an amended state return, and several others suggest (but do not require) using
an amended return as the reporting mechanism. Thus, for a taxpayer doing business in multiple
states, a single change to the taxpayer’s Federal return can require filing many different types of
amended state tax returns or forms with different state tax departments. Even if states used the
same form in all jurisdictions requiring a written notice, the taxpayer must comply with many
different due dates. Time periods for reporting the adjustments to the states range from thirty days
to two years. One state has no specific deadline but requires that the taxpayer report “immediately”
after the federal change.
Generally, the states have statutes providing that when a federal change is reported to the state tax
authorities, the state is automatically granted additional time to make adjustments to the taxpayer’s
state return. The time period used by these states varies from ninety days to five years. In some
states, the report of a federal change may not extend the time for a refund claim, even though it
extends the time for a state assessment, producing an inequitable result. The disparity among the
states in extending the statute of limitations for purposes of the federal change or a general
extension of time for assessment of all tax return items further compounds the problem.
Of particular concern are the differences among the states in determining what constitutes a
“federal change.” For example, one state requires a report when an IRS audit is started. In other
states, the signing of a federal Form 870 or similar form agreeing to Federal adjustments triggers
the reporting requirement. Under the laws of many states, it is not clear what period is used in
5
determining a federal change for purposes of tolling the period for reporting the change to the state.
For instance, states could use the issuance of the Revenue Agent’s Report (RAR), the completion
of the administrative appeals process, the expiration of the time for challenging a Notice of
Deficiency in the U.S. Tax Court, or the completion of the judicial appeals process as the event
that triggers required state filings.
A single change to a taxpayer’s federal tax return can trigger different reporting requirements and
deadlines among the states. Because states may extend the statute of limitations on assessments
for up to five years after the reported adjustment, states could subject taxpayers to several years of
uncertainty before the taxpayer’s state tax liability is finally settled. Also, since the taxes paid to
any one state can potentially impact the calculation of taxable income or credits in other states, the
ultimate effect of a single federal change may result in many state and Federal tax adjustments
covering a number of years. Uniform state laws for reporting federal changes would help mitigate
the uncertainty and administrative complexity of the current system for the benefit of taxpayers
and the states.
RECENT STATE ACTIVITY
In June 1995, the AICPA issued a Report of Corporate State Tax Administrative Uniformity.
4
In
2003, the Multistate Tax Commission (MTC) worked with the AICPA on this issue and developed
a Model RAR Statute that was adopted on August 1, 2003.
5
COST adopted a position paper on state reporting requirements of federal tax changes. On
February 6, 2017, COST discussed the need for updated RAR rules and an updated RAR Model
Statute in a recent paper, New Federal Partnership Audit Procedures – Issues to Consider and
When to Act, submitted and presented to the California Sacramento Delegation Project.
TEI also issued a State and Local Tax Policy Statement on Reporting Federal Income Tax Changes,
adopted November 17, 2015.
On December 14, 2016, the MTC Uniformity Committee considered the issue of uniformity of
state RAR rules and updating its proposed Model RAR Statute. At that meeting, members of a
joint multi-organization task force on state partnership audits, including the AICPA State
Partnership Audits Task Force, American Bar Association State and Local Tax Committee (ABA
SALT Committee), COST, and TEI, encouraged the MTC Uniformity Committee to pursue
updating the RAR rules and their Model RAR Statute. The MTC Uniformity Committee decided
at that meeting to further discuss updating the RAR rules and Model RAR Statute at its next
meeting in March 2017. The AICPA and the multi-organization task force plan to continue
discussions with the MTC on the partnership audits and RAR issue in 2017. (See Appendix B for
further details on the draft updated proposed Model RAR Statute.)
4
Available at http://www.aicpa.org/Advocacy/Tax/DownloadableDocuments/Final-June-1995-Purple-Book.pdf.
5
See the MTC Model Uniform Statute for Reporting Federal Tax Adjustments with Accompanying Model
Regulation, Adopted August 1, 2003.
6
See a chart of the current state rules in Appendix C regarding deadlines for reporting a federal
change or adjustment by a corporation and any required attachments. The chart is posted on the
MTC website for the current MTC project that the MTC has undertaken with respect to the state
implications of the new federal partnership audit provisions. Given that greater state uniformity
is a prime goal of this MTC project, it is important at this time to modify and make consistent the
rules for reporting federal audit changes to the states. Over the next year, many states are likely
to consider changing their partnership audit rules, and in this process, are likely to consider changes
to all of their audit reporting rules. The AICPA also has developed a position paper on state
conformity to the federal partnership audit rules.
AICPA STAFF CONTACTS
James Cox, Senior Manager – State Legislation, 202/434-9261, james.cox@aicpa-
cima.com
Julia Morriss, Coordinator – State Regulatory and Legislative Affairs, 202/434-9202,
Eileen Sherr, Senior Manager – Tax Policy & Advocacy, 202/434-9256,
7
Appendix A – Sample Federal RAR Reporting Form
Taxpayer name
Taxpayer address
Federal ID number
Type of return being amended:
1120
1120S 1040
1041
1060
990
Other _______________________________
For calendar year ________ or fiscal year ended ______________________________
The federal RAR covers this entity/person only
federal consolidated group
both spouses filing a joint tax return
other _______________________________
This form includes this entity/person only
all entities in the federal consolidated group
other combination of entities
both spouses filing a joint return
other _______________________________
Column A
As originally
reported or
adjusted
Column B
Net change
Column C
Corrected
amount
TAX COMPUTATION
1
Tax on net income (see Schedule A,
line 7)
2
Other taxes [if any]
3
Total tax before credits (line1+2) [or
greater of line 1 or 2]
4
Credits
5
Total tax after credits (line 3-4)
PAYMENTS
6
Overpayment from prior year
7
Estimated tax payments
8
8
Paid with extension
9
Tax paid with original return
10
Taxes paid after filing of original return
11
Total payments (total of lines 6 through
10)
12
Overpayment on original return (or as
last adjusted)
13
Net payments to date (line 11-12)
REFUND OR TAX DUE
14
Refund (If line 5<13, line 5-13)
15
Tax due (If line 5>13, line 13-5)
16
Interest
17
Balance (line 15+16)
Certification/declaration (I certify/declare that this form and any attachments are correct and
complete to the best of my knowledge.)
Signature of corporate officer if corporation (including title and date)
Signature of paid preparer (including title, PTIN, state tax preparer ID number, and date)
Firm’s name, address, telephone number
Make check payable to [insert payee]
Mail to [insert address]
SCHEDULE A – APPORTIONMENT COMPUTATION
Column A
As
originally
reported or
adjusted
Column B
Net change
Column C
Corrected
amount
1
Net apportionable income
2
Apportionment factor
3
State net apportioned income
(line 1 x 2)
4
Income specifically allocated to the
state
5
Other additions or subtractions
6
Income subject to tax (line 3+4+5)
7
Tax on net income
9
SCHEDULE B – OTHER TAXES [AS NEEDED]
Column A
As originally
reported or
adjusted
Column B
Net change
Column C
Corrected
amount
1
Other taxes [e.g., net-worth based taxes
that are included in the computation]
2
Apportionment factor
3
Apportioned tax
SCHEDULE C – OTHER COMPUTATIONS [AS NEEDED]
Column A
As originally
reported or
adjusted
Column B
Net change
Column C
Corrected
amount
SCHEDULE D -- EXPLANATION OF CHANGES
Show any computation in detail. Attach additional schedules if necessary.
Schedule/
Line #
Explanation
Federal RAR Reporting Form
Instructions
When to use this form
Use this form to report changes to income [franchise] states that are required as a result of an IRS
agent’s RAR (Revenue Agent’s Report).
When to file
The taxpayer must file this form within 180 days of the final determination by the IRS.
10
Attachments
The taxpayer must attach a copy of the federal final determination to this form.
Taxpayer information section
Enter the taxpayer name, address, federal ID number, type of return that is amended, and the
income years covered by this form in the spaces provided.
Check the appropriate box for type of return included in the federal RAR.
Check the appropriate box for the entities/persons included in this return.
Refer to the instructions for the state corporate income tax return and related schedules and forms
for the year you are amending for more information relating to the computation of apportionable
net income, apportionment methodology, taxable net income computation, tax credits, or other
state specific items. For additional information, please contact [taxpayer services and assistance
telephone number].
Signature
Either the president, vice-president, treasurer, assistant treasurer, chief accounting officer, or any
other duly authorized officer (if a corporation) must sign this form.
Anyone paid to prepare the form must sign. The practitioner must enter the practitioner’s federal
PTIN, state tax preparer number (if applicable), name, address, and telephone number in the spaces
provided.
Specific instructions
Lines 1-8, Column A Enter the amounts as shown on your original return or as adjusted by any
prior audit or amended return
Lines 1-8, Column B Enter the amount(s) of any change(s) and explain the change(s) on Schedule
D -- Explanation of Changes. The amounts entered in Column B should be
the net increase or net decrease for each line that has been changed.
Lines 1-8, Column C Add the increase reported in Column B to the amount in Column A; or
subtract the decrease reported in Column B from the amount in Column A.
Enter the results here. If Column B has no entries, enter the amount from
Column A in Column C.
Line 2 Other taxes [if any – enter state specific instructions here].
Line 9 Enter the amount of tax paid with the original return.
11
Line 10 Enter the amount of any tax paid after the filing of the original return.
Line 12 Enter the amount of any overpayment reported on the original return or as
last adjusted.
Line 16 Enter the amount of interest due. Interest is computed on the underpayment
of tax from the statutory due date to the date of payment. (Refer to “Interest
Rates” section of instructions.) Do not include the penalty with your
remittance. If a penalty is due, the [Department of Revenue] will calculate
the amount of penalty due and issue a bill to the corporation.
Schedule A – Apportionment Computation
Lines 1-7, Column A Enter the amounts as shown on your original return or as last adjusted.
Lines 1-7, Column B Enter the amount(s) of any change(s) and explain the change(s) on Schedule
D – Explanation of Changes. The amounts entered in Column B are the net
increase or net decrease for each line that has been changed.
Lines 1-7, Column C Add the increase reported in Column B to the amount in Column A; or
subtract the decrease reported in Column B from the amount in Column A.
Enter the results in Column C. If Column B has no entries, enter the amount
from Column A in Column C.
Line 1 The term “net apportionable income” includes all income that is
apportionable to the state as reported on [insert state specific instructions
for determining net apportionable income. This is adjusted to reflect state
terminology such as “business income.”].
Line 2 [Insert state specific instructions for apportionment factors, if any].
Line 4 The term “income specifically allocated to the state” includes income that
is not apportioned, but which is 100% taxable in the state. [Include state
specific instructions for allocated income. This term is adjusted to reflect
state terminology such as “nonbusiness income.”]
Line 5 [Insert state specific instructions. This may include net operating losses or
other post-apportionment addition or subtraction modifications.]
Line 7 Multiply taxable income by the appropriate tax rates. (See schedule below.)
Enter amount on this line and on Line 1 of the main part of this form.
Schedule B – Other Taxes [as needed]
Lines 1-3, Column A Enter the amounts as shown on your original return or as last adjusted.
12
Lines 1-3, Column B Enter the amount(s) of any change(s) and explain the change(s) on Schedule
D – Explanation of Changes. The amounts entered in Column B are the net
increase or net decrease for each line that has been changed.
Lines 1-3, Column C Add the increase reported in Column B to the amount in Column A; or
subtract the decrease reported in Column B from the amount in Column A.
Enter the results in Column C. If Column B has no entries, enter the amount
from Column A in Column C.
Schedule C [as needed]
[Insert state specific instructions here.]
Schedule D – Explanation of Changes
Explain in detail the nature of the adjustments and attach appropriate supporting forms and
schedules.
Tax Rates [Insert applicable state rates and information in the table below.]
Tax Years
Beginning on
or after
But before
Rate
Income Base
Other Base
[as needed]
Minimum
[as needed]
Interest
Interest rates on tax underpayments:
Period
Interest Rate
14
Appendix B
Joint Request from COST, TEI, the ABA SALT Committee, and the AICPAto Update the
MTC’s Model Uniform Statute for Reporting Adjustments to Federal Taxable Income
and
Draft Updated Proposed Model Uniform Statute for Reporting Adjustments to Federal
Taxable Income
Mr. Wood Miller
Chair, Uniformity Committee
Ms. Holly Coon
Vice-Chair, Uniformity Committee
Multistate Tax Commission Multistate Tax Commission
Via E-Mail
Submitted 12/12/16 to the MTC Uniformity Committee for Initial Consideration at its 12/14/2016
Meeting (with minor edits)
Re: Joint Request from COST, TEI, the ABA SALT Committee, and the AICPA to Update
the MTC’s Model Uniform Statute for Reporting Adjustments to Federal Taxable Income
Dear Mr. Miller and Ms. Coon:
On behalf of the Council On State Taxation (COST), Tax Executives Institute (TEI), the State and
Local Tax Committee of the American Bar Association’s Section of Taxation (ABA), and the
American Institute of Certified Public Accountants (AICPA) (the “Working Group”) **, we
submit a draft Model Uniform Statute for Reporting Adjustments to Federal Taxable Income for
discussion purposes.
Earlier this year (in 2016), the Working Group came together to consider the effects that changes
to the federal partnership audit procedures, enacted in November 2015 as part of the Bipartisan
Budget Act of 2015 (H.R. 1314), will have on state and local taxation. During our group’s
discussions, it became clear that state and local taxing jurisdictions will be required to substantially
amend their statutes for reporting federal audit adjustments when addressing the new federal
partnership audit rules.
Although the Multistate Tax Commission (MTC) adopted a model statute for reporting federal
audit adjustments in 2003, states and localities have not adopted that model widely, and state and
local reporting of federal income tax adjustment statutes continue to vary significantly. For
example, state and local reporting statutes do not provide a uniform time period, use consistent
triggers, or provide taxpayers with a streamlined method for reporting federal audit adjustments.
In addition, jurisdictions vary widely as to whether adjustments must be reported when each
15
federal change becomes final or when all federal changes for the tax year become final; as to
whether assessments and refunds are limited to effects arising directly from the federal changes;
and, as to whether a report of federal changes will be considered a claim for refund. These
variations make the reporting of federal audit changes to states cumbersome and often impractical
within the prescribed reporting periods, leading to non-compliance.
Our Working Group has participated in each of the MTC’s Partnership Work Group conference
calls and met with MTC officials to address how state and local taxing jurisdictions should
incorporate the changes to the federal partnership audit rules. We believe that the need to revise
state and local federal audit reporting statutes to incorporate the new federal partnership rules
provides a unique opportunity for the states to replace their current reporting of federal income tax
adjustments statutes with a uniform reporting statute. We request that the MTC Uniformity
Committee expand the scope of the Partnership Work Group to update the MTC’s Model Uniform
Statute for Reporting Adjustments to Federal Taxable Income to ensure that the MTC’s model
statute is workable for both taxpayers and states and localities. Our Working Group has
collaborated to incorporate several changes designed to meet this objective, and we respectfully
submit it to the MTC for discussion purposes.
The attached draft model statute retains the 180 day reporting period but proposes the following
changes to the current MTC model statute:
• Creates a separate section for definitions, some of which are state-specific, such as the reference
to the “Internal Revenue Code” as being in effect on a certain date rather than as in effect from
time to time;
• Revises the definition of “final determination” to result in a more comprehensive solution and to
incorporate concepts from the Internal Revenue Code and underlying regulations;
• Contemplates the MTC’s adoption of a model streamlined form to report federal audit
adjustments, in lieu of requiring taxpayers to file amended state returns for each year under audit;
• Clarifies that the filing of the report of federal audit changes will also constitute a claim for
refund, regardless of whether an amended state return is filed;
• Clarifies that any subsequent state assessment or refund must arise directly from the federal
changes, unless the state’s normal statute of limitations remains open;
• Adds an optional de mininis exception whereby taxpayers may notify the state of adjustments to
taxable income resulting in an assessment or refund of less than $250 in tax without requiring a
report of those changes (while providing states the option to request such a report);
• Adds a statute of limitations to address instances where the taxpayer failed to file a report of
federal changes;
• Adds an estimated tax provision that allows taxpayers to pay estimated state taxes and toll interest
prior to filing a report of federal adjustments in anticipation of a potential state tax liability and to
16
obtain a refund of any differential if the payments proved to be greater than the final state tax
liability; and
• Clarifies that the effective date of these statutory changes are prospective, and logically, based
on the date of the final determination.
The Working Group believes that the proposed changes are important for fair and efficient state
tax administration and that the adoption of these provisions would significantly benefit both
taxpayers as well as state and local taxing jurisdictions. We therefore encourage the MTC to
evaluate the Working Group’s proposed changes to the MTC’s model while awaiting technical
corrections to the federal partnership audit rule statutes and issuance of Treasury regulations. This
will enable the MTC to move forward quickly once the federal partnership audit rules become
effective.
In addition to the attached model statute, we have included the following for your review and
consideration:
• A proposed model report of federal audit changes developed by TEI’s State and Local Tax
Committee, which is similar to the report the South Carolina DOR circulated in its November 14,
2016 request for public comments;
• A copy of COST’s policy statement on reporting requirements for federal audit changes;
• A copy of TEI’s policy statement on reporting requirements for federal audit changes;
• Recent Bloomberg BNA survey of the states, illustrating the tremendous lack of uniformity of
current state reporting of federal income tax adjustment statutes.
We thank you for your time and consideration. Please let us know if you have any questions or
concerns.
***
Respectfully submitted,
Nikki Dobay Pilar Mata
West Coast Counsel Tax Counsel
Council On State Taxation Tax Executives Institute
cc: Ms. Helen Hecht/Mr. Bruce Fort cc: COST Board of Directors cc: Messrs. Bruce Ely and
William Thistle cc: Mr. Jonathan Horn/Ms. Eileen Sherr
** The attached Model Uniform Statute for Reporting Adjustments to Federal Taxable Income is
for discussion purposes only and has not yet been officially endorsed by COST, TEI, the ABA, or
AICPA. Any organization may propose changes of its own during the approval process, which is
now under way. In addition, (in February 2017), the AICPA has updated its 1995 policy statement.
17
Draft Updated Proposed Model Uniform Statute
for Reporting Adjustments to Federal Taxable Income
Draft Submitted to the MTC Uniformity Committee for Initial Consideration at its 12/14/2016 Meeting
*
SECTION A. Definitions
The following definitions shall apply for the purposes of [this subdivision of the State Code]:
(1) “Final determination” shall mean and be deemed to occur when the last of any of the following
events has occurred with respect to a taxpayer’s federal taxable year, except for entities filing unitary
or other types of combined or consolidated returns with the [State Agency], “final determination” shall
be based upon the occurrence of the last of such events for all members of the group:
(a) The taxpayer: (i) has final adjustments to its federal taxable income resulting from an examination
by the IRS pursuant to Section 7601 of the IRC, including any requisite review by the Joint Committee
on Taxation pursuant to Section 6405 of the IRC; and (ii) has not filed a petition for redetermination
with the United States Tax Court pursuant to Sections 6213 or 6226 of the IRC or a claim for refund
with a district court or the United States Court of Federal Claims pursuant to Sections 6226 or 7422 of
the IRC, and the time for the taxpayer to timely file such a petition for redetermination or such a claim
for refund has lapsed under the applicable statute;
(b) The taxpayer and the IRS have executed the forms necessary for the relevant tax period so as to
establish finality under Section 7121(b) the IRC;
(c) The time for the IRS to make an assessment for the relevant tax period has expired pursuant to
Section 6501 of the IRC; or
(d) A judgment from a United States court, or any other court of original jurisdiction to which the
United States has submitted to personal jurisdiction regarding a taxpayer’s tax issues, has become final
under Section 2412(d)(2)(G) of Title 28 of the United States Code.
(2) “Report of federal adjustments” shall mean (1) an amended [State] tax return, (2) the Multistate
Tax Commission’s model report of federal adjustments**, or (3) any other method authorized by the
[State Agency]. The report of federal adjustments shall contain information reasonably necessary to
provide the [State Agency] with an understanding of the adjustments to the taxpayer’s federal taxable
income and their impact on the taxpayer’s [State] tax liability. The report of federal adjustments shall
serve as the taxpayer’s means to report additional [State] tax due, report a claim for refund or credit of
[State] tax, and make other adjustments (including net operating losses) as a result of the taxpayer’s
federal taxable income.
18
1/4156121.1
(3) “Taxpayer” shall mean [insert State definition].
(4) “[State] tax” shall mean the [applicable State (or local) tax levied at XXX of the State Code].
(5) “IRC” shall mean the Internal Revenue Code of 1986, as codified at 26 United States Code (U.S.C.)
Section 1, et seq., [insert state’s current practice to incorporate IRC]
(6) “IRS” shall mean the Internal Revenue Service of the U.S. Department of the Treasury.
SECTION B. Reporting of IRS Adjustments to Federal Taxable Income
A taxpayer shall notify the [State Agency] of adjustments by the IRS to its federal taxable income as
follows:
(1) Except as provided in subsection (2), a taxpayer whose federal taxable income has been adjusted
shall file a report of federal adjustments with the [State Agency] within one hundred eighty (180) days
following the date of the final determination.
(2) In the event the adjustments to the taxpayer’s federal taxable income result in a [State] tax liability
of less than $250 (excluding penalties and interest) or a refund of less than $250 (excluding interest),
the taxpayer may, in lieu of filing a report of federal adjustments, notify the [State Agency] in writing
or on a form prescribed by the [State Agency] that the federal adjustments are de minimis. The taxpayer
shall provide the [State Agency] with such notice within one hundred eighty (180) days following the
date of the final determination. The taxpayer’s notice shall contain information reasonably necessary
to provide the [State Agency] with an understanding of the federal changes and their impact on the
taxpayer’s [State] tax liability.
(a) In the event the taxpayer provides the [State Agency] with notice that the adjustments are de minimis
pursuant to Section B(2), the [State Agency] may request, in writing, that the taxpayer file a report of
federal adjustments pursuant to Section B(1). The [State Agency] shall issue that request to the
taxpayer within the later of: (i) one hundred eighty (180) days following the date on which the taxpayer
provided such notice, or (ii) the expiration of the limitations period specified in [citation to State statute
setting forth normal limitations period].
(b) In the event the [State Agency] requests a report of federal adjustments within the time prescribed
in Section B(2)(a), the taxpayer shall have one hundred eighty (180) days from the date the [State
Agency’s] request is postmarked in which to file a report of federal adjustments.
(c) [[Option 1]] If the [State Agency] does not request that the taxpayer file a report of federal
adjustment within the time prescribed in Section B(2)(a), the taxpayer’s notice that the adjustments are
de minimis will be deemed accepted by the [State Agency]. [Option 2] If the [State Agency] does not
request that the taxpayer file a report of
19
1/4156121.1
federal adjustments within the time prescribed in Section B(2)(a), the taxpayer’s notice that the
adjustments are de minimis will be deemed accepted and the [State Agency] may assess and bill the
taxpayer the fixed sum of $250 if the taxpayer reported that it would have owed the State a de minimis
[State] tax liability.
(d) Absent fraud, the taxpayer shall not be subject to additional assessment nor allowed to file a claim
for refund or credit of [State] taxes pursuant to [citation to State statute setting forth claim for refund
requirements] based on adjustments to the taxpayer’s federal taxable income unless the statute of
limitations for issuing assessments of [State] tax, interest, and penalties has not expired.
SECTION C. Assessments of Additional [State] Tax, Interest, and Penalties Arising from
Adjustments to Federal Taxable Income.
The [State Agency] shall be required to issue any assessment of additional [State] tax, interest, and
penalties arising directly from IRS adjustments to a taxpayer’s federal taxable income as follows:
(1) If the taxpayer files a report of federal adjustments within the period specified in Section B, the
[State Agency] may assess any additional [State] tax, interest, and penalties arising directly from the
adjustments to the taxpayer’s federal taxable income and issue a notice of assessment to the taxpayer
within the later of:
(a) The expiration of the limitations period specified in [citation to State statute setting forth normal
limitations period]; or
(b) The expiration of the one (1) year period following the date of filing of the report of federal
adjustments.
(2) If the taxpayer fails to file the report of federal adjustments within the period specified in Section
B, the [State Agency] may assess any additional [State] tax, interest, and penalties arising directly from
the adjustments to federal taxable income and issue a notice of assessment to the taxpayer within the
later of:
(a) The expiration of the limitations period specified in [citation to State statute setting forth normal
limitations period];
(b) The expiration of the one (1) year period following the date of filing of the report of federal
adjustments;
(c) The expiration of the one (1) year period following the date on which the Internal Revenue Service,
another state, or an organization representing and/or conducting audits for the states’ tax agencies,
notifies the [State Agency], in writing or by electronic means, that a final determination has been made
with respect to the taxpayer’s federal taxable income for a specified tax year; or
(d) Absent fraud, the expiration of the six (6) year period following the date of the final determination.
20
1/4156121.1
SECTION D. Estimated [State] Tax Payments During Federal Audit.
A taxpayer may make estimated payments to the [State Agency] of the [State] tax that it determines
may ultimately be owed to [State] as a result of a pending IRS audit, prior to a final determination for
a tax year, without filing a report of federal adjustments with the [State Agency]. The estimated [State]
tax payments shall be credited against any tax liability ultimately found to be due to [State] (“final tax
liability”) and limit the accrual of further statutory interest on that amount. If the estimated [State] tax
payments exceed the final [State] tax liability and statutory interest ultimately determined to be due on
that amount, or the IRS ultimately does not make any adjustments to the taxpayer’s federal taxable
income, the taxpayer shall be entitled to a refund or credit for the excess, provided the taxpayer files a
report of federal adjustments or claim for refund or credit of [State] tax pursuant to [citation to State
statute setting forth claim for refund requirements] within one (1) year following the final
determination date.
SECTION E. Claims for Refund or Credits of [State] Tax Arising from Federal Adjustments.
A taxpayer may file a claim for refund or credit of [State] tax arising directly from federal adjustments
based on the later date of: (1) [citation to State statute setting forth claim for refund requirements],
including any extensions; or (2) one (1) year from the due date of report of federal adjustments
prescribed in Section B, including any extensions pursuant to Section F.
SECTION F. Scope of Adjustments and Extensions of Time.
(1) Unless otherwise agreed to by the taxpayer and the [State Agency], any adjustments by the [State
Agency] or by the taxpayer made after the expiration of the [State’s normal statute of limitations for
assessment and refund] shall be limited to changes to the taxpayer’s [State] tax liability arising directly
from adjustments to the taxpayer’s federal taxable income for that tax year.
(2) The time periods provided for in [this subdivision of the State Code] may be extended, in writing,
by agreement between the taxpayer and the [State Agency]. Any extension granted for filing the report
of federal adjustments shall extend the last day prescribed by law for assessing any additional [State]
tax arising directly from the adjustments to federal taxable income and the period for filing a claim for
refund or credit of [State] taxes pursuant to [citation to State statute setting forth claim for refund
requirements] arising directly from adjustments to the taxpayer’s federal taxable income.
SECTION G. Effective Date
The amendments to this [section/chapter] apply to final determinations made on and after X [date].
*Prepared by a working group consisting of representatives of the Council On State Taxation (COST),
Tax Executives Institute (TEI), the ABA Section of Taxation’s SALT Committee, and the AICPA. As of
this date, this draft has not been officially endorsed by these organizations.
**See attached cover letter to the Uniformity Committee explaining the background of this model
report.
21
Appendix C
State RAR Rules – (Posted on MTC website) State Tax Smart Charts
Business Income Tax > Amended or Audited Returns > Amended Returns > Deadline for
Reporting Federal Changes > C Corporations
The following chart indicates the deadline for reporting a federal change or adjustment by a C Corporation, as well as, any
attachments that the corporation must file. The information in this chart is as of August 8, 2016.
Jurisdiction
C Corporations
Comment
Citation
Alabama
No deadline specified.
Attach RAR or any other
itemized explanation of
federal changes furnished
by the IRS.
Ala. Admin. Code r.
810-3-40-.01(4)
Alaska
File amended return within 60 days after
final determination of federal adjustment.
Attach all documents
related to the change,
including RAR.
We recommend you
reference cited authority for
more information.
Alaska Stat.
§43.20.030(d), Form
6000 Instructions,
Corporation Net
Income Tax Return
Arizona
Within 90 days after final
determination of federal adjustment,
either:
• file amended return, or
• file copy of final federal
determination, concede accuracy or state
errors, and request recomputation of tax
by department.
Provide sufficient
information for the
department to recompute
Arizona taxable income
based on the RAR changes.
Ariz. Rev. Stat.
§43327, Form 120
Instructions,
Corporation Income
Tax Return
Arkansas
File amended return within 180 days
after receipt of notice and demand for
payment from IRS.
Attach copy of federal
amended return or IRS audit
report.
Prior to Oct. 1, 2015,
amended return had to be
filed within 90 days after
receipt of notice and
demand for payment from
IRS.
We recommend you
reference cited authority for
more information.
Ark. Code. Ann. §26-
18-306(b)(1), Form
AR1100CT
Instructions, C
Corporation Income
Tax Return
California
File amended return or send a letter with
copies of the federal changes within 6
months after final determination of
federal change or filing amended federal
return.
Attach copy of the final
federal determination and
all underlying data and
schedules that explain or
support the federal
adjustments.
Cal. Rev. & Tax
Code §18622, Form
100X Instructions,
Amended
Corporation
Franchise or Income
Tax Return
Colorado
File amended return within 30 days after
final determination of federal change or
filing amended federal return.
Do not attach RAR to
amended return.RAR
showing federal return
changes and state account
number will be accepted for
multistate
Colo. Rev. Stat. §3922-
601(6), Form 112
Instructions, C-
Corporation Income
Tax Return
22
corporations in lieu of an
amended return.
Connecticut
File amended return within 90 days after
final determination of federal change or
filing federal amended return.
Attach IRS notification of
changes or federal Form
1120X.
Conn. Gen. Stat.
§12-226, Form
CT1120X Instructions,
Amended
Corporation
Business Tax
Return
Delaware
File amended return within 90 days after
final determination of federal adjustment
or filing amended federal return.
Attach copy of federal
amended return.
Del. Code Ann. tit.
30, §514, Form 1100
Instructions,
Corporate Income
Tax Return
District of
Columbia
File amended return within 90 days after
final determination of federal change or
filing amended federal return.
Provide detailed statement
explaining the adjustments.
D.C. Code Ann.
§474301(f), Form D-20
Instructions,
Corporation
Franchise Tax
Return
Florida
File amended return within 60 days after
final determination of federal adjustment
or assessment, payment, or collection of
tax, whichever occurs first.
Attach copy of amended
federal return or other
adjustment (such as an
RAR).
Fla. Stat. ch. 220.23,
Rule 12C-1.023
Georgia
File amended return within 180 days
after final determination of federal
adjustment.
Attach copy of federal Form
1120X or federal audit
adjustments.
Ga. Code Ann. §487-
82(e)(1), Form 600
Instructions,
Corporation Tax
Return
Hawaii
File amended return within 90 days after
final determination of federal change or
filing amended federal return.
Attach copy of the
document issued by the
federal government
changing the federal taxable
income of the corporation.
Haw. Rev. Stat.
§235-101(b), Form
N-30 Instructions,
Corporation Income
Tax Return
Idaho
File amended return within 60 days after
final determination of federal adjustment.
Attach copies of all RARs
and any other documents
and schedules required to
clarify the adjustments to
taxable income.
Idaho Code §63-
3069(1), IDAPA
35.01.01.890, Form
41 Instructions,
Corporation Income
Tax Return
23
Illinois
File amended return within 120 days
after federal changes are agreed to or
finally determined (two years and 120
days if claiming a refund resulting from
the change).
Attach copy of federal
finalization or proof of
acceptance from IRS along
with copy of amended
federal form plus any other
related forms, schedules, or
attachments, if applicable.
Examples of federal
finalization include copy of:
• federal refund check;
• signed and dated audit
35 ILCS 5/506(b),
Form IL-1120-X
Instructions,
Amended
Corporation Income
and Replacement
Tax Return
report from the IRS,
including copies of
preliminary, revised,
corrected, and superseding
reports, if applicable; and/or
• federal transcript
verifying federal taxable
income.
Indiana
File amended return within 180 days
after the federal modification is made
(120 days for modifications made before
2011).
Attach copy of amended
federal return, RAR, audit
report, and/or applicable
federal waivers.
Ind. Code §6-3-4-6,
Ind. Admin. Code tit.
45, r. 3.1-1-94, Form
IT-20X Instructions,
Amended Corporate
Adjusted Gross
Income Tax Return
Iowa
File amended return within 60 days of
final disposition of federal audit.
Include amended federal
return and copy of federal
RAR, if applicable. Copy of
federal RAR and
notification of final federal
adjustments provided by
taxpayer will be acceptable
in lieu of an amended
return.
Iowa Admin. Code r.
701 52.3(422), Iowa
Code §421.27(2),
Form IA 1120X
Instructions,
Amended
Corporation Income
Tax Return
Kansas
File amended return within 180 days
after the federal adjustment is paid,
agreed to, or becomes final, whichever is
earlier.
Attach copy of amended
federal return, RAR, or
adjustment letter with full
explanation of changes
made.
Kan. Stat. Ann.
§793230(f), Form K-
120
Instructions,
Corporate Income
Tax Return
Kentucky
Department must be notified within 30
days of initiation of federal audit. File
amended return within 30 days after
conclusion of audit.
Submit copy of final federal
determination with
amended return.
Ky. Rev. Stat. Ann.
§141.210(4), Form
720 Instructions,
Corporation Income
Tax and LLET
Return
24
Louisiana
File amended return within 180 days of
the final determination of the federal
adjustments.
Attach detailed explanation
of changes and copy of
federal amended return, if
applicable.
La. Rev. Stat. Ann.
§47:287.614(C),
Form CIFT-620
Instructions,
Corporation Income
and Franchise Tax
Return
Maine
File amended return within 180 days
after final determination of the federal
change or correction or the filing of the
federal amended return.
Tax years before July 1, 2011: File
amended return within 90 days after
final determination of the federal
change or correction or the filing of the
federal amended return.
Attach copy of federal
amended return or RAR.
For returns reflecting
federal net operating losses,
attach copy of federal Form
1139.
Me. Rev. Stat. Ann. tit.
36, §5227-A(2),
Form 1120-ME
Instructions,
Corporate Income
Tax Return
Maryland
File amended return within 90 days after
final determination of federal
Attach copy of federal
amended return or final
Md. Code Ann.
§13409, Form 500
adjustment.
IRS adjustment report.
Instructions,
Corporation Income
Tax Return
Massachusetts
File amended return within three months
after final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
Mass. Gen. Laws ch.
62C, §30, Mass.
Regs. Code tit. 830,
§62C.30.1(3), Form
CA-6 Instructions,
Application for
Abatement/Amended
Return
Michigan
File amended return within 120 days after
final determination of federal adjustment.
Attach copy of federal
amended return or signed
and dated IRS audit
document.
Mich. Comp. Laws
§206.687(2), Mich.
Comp. Laws
§208.1507(2), Mich.
Comp. Laws
§208.75(2), Form
4567 Instructions,
MBT Annual Return,
Form 4891
Instructions,
Corporate Income
Tax Annual Return,
Form 4892
Instructions,
Corporate Income
Tax Amended
Return
25
Minnesota
File amended return, or mail letter to
Department of Revenue detailing how
the federal determination is incorrect or
does not change the Minnesota tax,
within 180 days after final determination
of federal change or filing of federal
amended return.
Attach copy of federal
amended return or IRS audit
report.
Minn. Stat.
§289A.38(7), Form
M4 Instructions,
Corporation
Franchise Tax
Return
Mississippi
File amended return within 30 days after
agreeing to the federal change.
Attach copy of federal
amended return or RAR. If
the taxpayer files
consolidated for federal
purposes, a proforma
amended federal return
should be filed as well as
the amended consolidated
federal return.
Miss. Code. Ann.
§27-7-51(4), Corporate
Income and Franchise
Tax
FAQs
Missouri
File amended return within 90 days after
final determination of federal change or
filing amended federal return.
Attach copy of federal
amended return, RAR,
closing agreement, and/or
applicable court decision.
If federal return was not
amended, explain why the
state return is being
amended.
Mo. Rev. Stat.
§143.601, Mo. Code.
Regs. Ann. tit. 12,
§10-2.105, Form
MO-1120
Instructions,
Corporation Income
Tax/Franchise Tax
Return
Montana
File amended return within 90 days after
notice of federal change or filing
Attach the applicable forms
and statements
Mont. Code Ann.
§15-31-506, Mont.
amended federal return.
explaining all adjustments
in detail.
Admin. R. 42.23.303,
Form CIT, Corporate
Income Tax Return
Nebraska
File amended return within 60 days after
a correction or change to the federal
return.
Attach copy of federal
amended return, IRS report,
or other document that
substantiates the
adjustments claimed.
Neb. Rev. Stat.
§772775, Reg. 24-046,
Form 1120N
Instructions,
Corporation Income
Tax Return
Nevada
N/A, because state does not tax general
business corporation income.
New
Hampshire
File amended return within 6 months
after final determination of federal
adjustment.
Attach copy of federal
amended return or IRS
adjustment report.
N.H. Rev. Stat. Ann.
§77A:10, N.H. Rev.
Stat. Ann §77-E:9,
Report of Change
General Instructions
26
New Jersey
File amended return within 90 days after
final determination of federal change or
filing amended federal return.
N.J. Stat. Ann.
§54:10A-13, Form
CBT-100
Instructions,
Corporation
Business Tax
Return
New Mexico
Tax years before July 1, 2013: File
amended return within 90 days after
final determination of federal
adjustment.
Tax years after July 1, 2013: File
amended return within 180 days after
final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
N.M. Stat. Ann. §7-
113, Form CIT-1
Instructions,
Corporate Income and
Franchise Tax
Return
New York
File amended return within 90 days after
final determination of federal change
(120 days for taxpayers making a
combined report) or filing amended
federal return.
Attach copy of federal
Form 4549, Income Tax
Examination Changes. If
the corporation filed as part
of a consolidated group for
federal tax purposes but on
a separate basis for state tax
purposes, submit a
statement indicating the
changes that would have
been made if the
corporation had filed on a
separate basis for state tax
purposes.
N.Y. Tax Law,
§211(3), N.Y. Comp.
Code R. & Regs. tit.
21, §6-1.3, N.Y.
Comp. Code R. &
Regs. tit. 21, §6-1.4,
Form CT-3, General
Business
Corporation
Franchise Tax
Return
North Carolina
File amended return within 6 months of
notification of correction or final federal
determination.
Include a complete
explanation of reasons for
filing an amended return,
including specific schedule
and line number references,
on
Schedule J of the return.
N.C. Gen. Stat.
§105-130.20, Form
CD-405 Instructions,
Corporation Tax
Return
27
North Dakota
File amended return within 90 days after
final determination of federal change or
filing amended federal return.
Attach copy of federal
amended return, Form
1139, or RAR. If
corporation is included in a
consolidated federal return,
attach copy of amended pro
forma separate company
federal return, pages 1-4 of
amended consolidated
federal return, and schedule
of gross income and
deductions by company that
supports the amended
consolidated taxable
income.
N.D. Cent. Code §57-
38-34.4, N.D.
Admin. Code §81-
03-01.1-09, Form
40X Instructions,
Amended
Corporation Income
Tax Return
Ohio
Commercial Activity Tax (CAT): No
deadline specified.
Corporate Franchise Tax: File
amended return within 1 year after
earliest of:
• final determination of federal
adjustment;
• payment of additional tax as a
result of federal adjustment; or
• receipt of refund as a result of
federal adjustment.
Commercial Activity Tax
(CAT):
Attach copy of federal
amended return or RAR if
refund requested.
Corporate Franchise Tax:
Attach copy of federal
amended return or RAR.
Ohio Rev. Code
Ann. §5733.031(C),
Form FT 1120
Instructions,
Corporation
Franchise Tax
Report, Unofficial
Department
Guidance
Oklahoma
File amended return within 1 year after
final determination of federal change.
Attach copy of federal
Form 1120X or 1139 and
proof of disposition by IRS
or copy of RAR, when
applicable.
Okla. Stat. tit. 68,
§2375, Okla. Admin.
Code §710:50-38(a),
Form 512
Instructions,
Corporation Income
Tax Return
Oregon
File amended return within 90 days after
federal change or filing amended federal
return.
Attach copy of federal
amended return or RAR.
Or. Rev. Stat.
§314.380(2), OAR
150-314.380(2)-(B),
Form 20 Instructions,
Corporation Excise
Tax Return, Form
20-I Instructions,
Corporation Income
Tax Return
Pennsylvania
File amended return within six months
after receipt of final federal change or
correction or filing amended federal
return.
Attach copy of federal
amended return, statement
of reasons for filing the
amended return, and
supporting forms or
schedules.
We recommend you
reference cited authority for
more information.
72 P.S. §7406(a),
Form CT-1 PA,
Corporation Tax
Booklet, Form RCT-
128C Instructions,
Report of Change in
Corporate Net
Income Tax
28
Rhode Island
File amended return within 60 days after
receipt of final determination of
Attach copy of federal
amended return or RAR.
R.I. Gen. Laws §4411-
19, Form RI-
federal change.
1120X Instructions,
Amended Business
Corporation Tax
Return
South Carolina
File amended return within 180 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
S.C. Code Ann. §1254-
85(D)(2), Form
SC 1120
Instructions,
Corporation Income
Tax Return,
Corporate Income
Tax FAQs
South Dakota
N/A, because state does not tax general
business corporation income.
Tennessee
No deadline specified.
Mail letter of explanation
(Franchise and Excise
Tax Federal Income
Revision Form preferred)
and supporting
documentation (such as
copies of federal amended
return, signed RAR, and/or
refund check) to
Department of Revenue. A
taxpayer that files a
consolidated federal return
should enclose a schedule
detailing the changes that
apply to the entity for
which the revisions are
being reported or a
consolidated schedule
reflecting all adjustments
by entity.
Important Notice,
Unofficial
Department
Guidance
Texas
File amended return within 120 days
after final determination of federal
adjustment or filing amended federal
return.
Attach cover letter of
explanation, with enclosures
necessary to support the
amendment.
Tex. Tax Code Ann.
§171.212, 34 Tex.
Admin. Code
§3.584(f)
Utah
File amended return within 90 days after
final determination of federal change or
filing amended federal return.
Attach copy of federal
amended return, IRS audit
or adjustment report, or
other explanation of
changes.
Utah Code Ann. §59-
7-519, Form TC-20
Instructions,
Corporation
Franchise or Income
Tax Return
29
Vermont
File amended return within 60 days after
notice of federal change or filing federal
amended return.
Attach copy of IRS report.
Vt. Stat. Ann. tit 32,
§5866(a), Form CO-
411 Instructions,
Corporation Income
Tax Return
Virginia
File amended return within 1 year after
final determination of federal change or
filing federal amended return.
Attach copy of federal
amended return, RAR,
adjustment letter, or other
form/statement showing the
nature of
Va. Code. Ann.
§58.1-311, Form 500
Instructions,
Corporation Income
Tax Return
any federal change and date
it became final.
Washington
N/A, because state does not tax general
business corporation income.
West Virginia
File amended return within 90 days after
final determination of federal change or
filing federal amended return.
Attach copy of RAR
detailing adjustments.
W. Va. Code §11-2420,
W. Va. Code St.
R. §110-24-20, Form
WV/CNF-120, West
Virginia Combined
Corporation Net
Income/Business
Franchise Tax
Return
Wisconsin
Mail report to department and/or file
amended return within 90 days after final
determination of federal change or filing
amended federal return.
Send copy of federal
amended return and/or final
federal audit report.
Wis. Stat. §71.76,
Wis. Admin. Code
§2.105, Form 4
Instructions,
Corporation
Franchise and
Income Tax Return
Wyoming
N/A, because state does not tax general
business corporation income.
Business Income Tax > Amended or Audited Returns > Amended Returns > Deadline for Reporting
Federal Changes > S Corporations
The following chart indicates the deadline for reporting a federal change or adjustment by an S Corporation, as well as, any
attachments that the S corporation must file. The information in this chart is as of August 8, 2016.
Jurisdiction
S Corporations
Comment
Citation
Alabama
No deadline specified.
Attach RAR or any other
itemized explanation of
federal changes furnished
by the IRS.
Ala. Admin. Code r. 810-
3-40-.01(4)
Alaska
File amended return within 60 days
after final determination of federal
adjustment.
Attach all documents
related to the change,
including RAR.
Alaska Stat.
§43.20.030(d), Form
6000 Instructions,
Corporation Net Income
Tax Return
30
Arizona
Within 90 days after final
determination of federal
adjustment, either: • file
amended return, or
• file copy of final federal
determination, concede accuracy or
state errors, and request recomputation
of tax by department.
Provide sufficient
information for the
department to recompute
Arizona taxable income
based on the RAR
changes.
Ariz. Rev. Stat. §43327,
Form 120S
Instructions, S
Corporation Income
Tax Return
Arkansas
File amended return within 90 days
after receipt of notice and demand for
payment from IRS.
Ark. Code. Ann. §26-
18-306(b)(1), Form
AR1100S Instructions,
Effective Oct. 1, 2015, file amended
return within 180 days after receipt of
notice and demand for payment from
IRS.
S Corporation Income Tax
Return
California
File amended return or send a letter
with copies of the federal changes
within 6 months after final
determination of federal change or
filing amended federal return.
Attach copy of the final
federal determination and
all underlying data and
schedules that explain or
support the federal
adjustments.
Cal. Rev. & Tax Code
§18622, Form 100X
Instructions, Amended
Corporation Franchise or
Income Tax Return
Colorado
File amended return within 30 days
after final determination of federal
change or filing amended federal return.
Include statement of
reasons for difference.
Colo. Rev. Stat. §3922-
601(6)
Connecticut
File amended return within 90 days
after final determination of federal
change or filing federal amended return.
Conn. Gen. Stat. §12727,
Form CT1065/CT-1120SI
Instructions, Composite
Income Tax Return
Delaware
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return.
Del. Code Ann. tit. 30,
§514, Form 1100S
Instructions, S
Corporation
Reconciliation And
Shareholders
Information Return
District of
Columbia
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Provide detailed statement
explaining the
adjustments.
D.C. Code Ann.
§474301(f), Form D-20
Instructions,
Corporation Franchise
Tax Return
31
Florida
File amended return within 60 days
after final determination of federal
adjustment or assessment, payment, or
collection of tax, whichever occurs first.
Attach copy of amended
federal return or other
adjustment (such as an
RAR).
Fla. Stat. ch.
220.23(2)(a), Rule
12C1.023
Georgia
File amended return within 180 days
after final determination of any federal
change or correction.
Attach copy of federal
Form 1120S or federal
audit adjustments.
Ga. Code Ann. §48-
782(e)(1), Form 600S
Instructions, S
Corporation Income
Tax Return
Hawaii
File amended return within 90 days
after federal change or filing amended
federal return.
Attach copy of the
document issued by the
federal government
changing the federal
taxable income of the
corporation.
Haw. Rev. Stat.
§235101(b)
Idaho
File amended return within 60 days
after final determination of federal
change.
Attach copies of all RARs
and any other documents
and schedules required to
clarify the adjustments to
taxable income.
Idaho Code §63-
3069(1), IDAPA
35.01.01.890, Form 41S
Instructions, S
Corporation Income
Tax Return
Illinois
File amended return within 120 days
after federal changes are agreed to or
finally determined (two years and 120
days if claiming a refund resulting from
the change).
Attach copy of federal
finalization or proof of
acceptance from the IRS
along with copy of
amended federal form, if
applicable. Examples of
federal finalization include
copy of:
• audit report from
the
IRS; and/or
• federal record of
account verifying ordinary
business income.
35 ILCS 5/506(b), Form
IL-1120-ST-X
Instructions, Amended
Small Business
Corporation
Replacement Tax Return
Indiana
File amended return within 180 days
after the federal modification is made
(120 days for modifications made
before 2011).
Attach copy of amended
federal return, RAR, audit
report, and/or applicable
federal waivers.
Ind. Code §6-3-4-6, Ind.
Admin. Code tit. 45, r.
3.1-1-94, Form IT-20S
Instructions, S
Corporation Income
Tax Return, Unofficial
Department Guidance
32
Iowa
File amended return within 60 days of
final disposition of federal audit.
Include amended federal
return and copy of federal
RAR, if applicable. Copy
of federal RAR and
notification of final
federal adjustments
provided by taxpayer will
be acceptable in lieu of an
amended return.
Iowa Admin. Code r.
701 52.3(422), Iowa
Code §421.27(2)
Kansas
File amended return within 180 days
after payment or final determination of
federal adjustment.
Attach copy of amended
federal return, RAR, or
adjustment letter with full
explanation of changes
made.
Kan. Stat. Ann.
§793230(f), Form K-120S
Instructions,
Partnership or S
Corporation Return
Kentucky
Department must be notified within 30
days of initiation of federal audit. File
amended return within 30 days after
conclusion of audit.
Submit copy of final
federal determination with
amended return.
Ky. Rev. Stat. Ann.
§141.210(4), Form
720S Instructions, S
Corporation Income
Tax and LLET Return
Louisiana
File amended return within 180 days of
the final determination of the federal
adjustments.
Attach detailed
explanation of changes
and copy of federal
amended return, if
applicable.
La. Rev. Stat. Ann.
§47:287.614(C), Form
CIFT-620 Instructions,
Corporation Income and
Franchise Tax
Return
Maine
N/A, because no return filing
requirement for tax years after 2011.
Tax years before 2012:
File amended return within:
• 180 days after federal change or
Attach copy of federal
amended return, if
applicable, and
explanation of reason for
the change or correction.
Me. Rev. Stat. Ann. tit.
36, §5245(1), Tax Alert,
Vol. 22, No. 3, Form
1065ME/1120S-ME,
Information Return for
Partnerships & S
Corporations
federal amended return is filed effective
on or after July 1, 2011; or
• 90 days after federal change or
federal amended return is filed effective
before July 1, 2011.
Maryland
File amended return within 90 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or final
IRS adjustment report.
Md. Regs. Code tit. 03,
§03.04.02.11(A), Form
510 Instructions,
Passthrough Entity Income
Tax Return
33
Massachusetts
File amended return within 3 months
after final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
Mass. Gen. Laws ch.
62C, §30, Mass. Regs.
Code tit. 830,
§62C.30.1(3), Form
CA-6 Instructions,
Application for
Abatement/Amended
Return
Michigan
File amended return within 120 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or signed
and dated IRS audit
document.
We recommend you
reference cited authority
for more information.
Mich. Comp. Laws
§206.687(2), Mich.
Comp. Laws
§208.1507(2), Mich.
Comp. Laws
§208.75(2), Form 4567
Instructions, MBT
Annual Return
Minnesota
File amended return, or mail letter to
Department of Revenue detailing how
the federal determination is incorrect or
does not change the Minnesota tax,
within 180 days after final
determination of federal change or
filing of federal amended return.
Attach copy of federal
amended return or IRS
audit report.
Minn. Stat.
§289A.38(7), Form M8
Instructions, S
Corporation Return
Mississippi
File amended return within 30 days
after agreeing to the federal change.
Attach copy of federal
amended return or RAR.
Miss. Code. Ann. §27-
7-51(4), Corporate
Income and Franchise
Tax FAQs
Missouri
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return, RAR,
closing agreement, and/or
applicable court decision.
Mo. Rev. Stat.
§143.601, Mo. Code.
Regs. Ann. tit. 12,
§102.105
Montana
File amended return within 90 days
after notice of federal change or filing
amended federal return.
Attach copy of federal
amended return or IRS
notice of corrections.
Mont. Code Ann. §1531-
506, Mont. Admin.
R. 42.23.303, Form
CLT-4S Instructions, S
Corporation Information
and Composite Tax
Return
Nebraska
File amended return within 60 days
after final determination of federal
change.
Attach copy of federal
amended return, IRS
report, or other document
that
Neb. Rev. Stat. §772775,
Reg. 24-046,
Form 1120-SN
Instructions, S
substantiates the
adjustments claimed.
Corporation Income Tax
Return
Nevada
N/A, because state does not tax
passthrough income.
34
New
Hampshire
File amended return within 6 months
after final determination of federal
adjustment.
Attach copy of federal
amended return or IRS
adjustment report.
N.H. Rev. Stat. Ann
§77-A:10, N.H. Rev.
Stat. Ann §77-E:9,
ROC General
Instructions
New Jersey
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
N.J. Stat. Ann.
§54:10A-13, Form
CBT-100S Instructions,
S Corporation Business
Tax Return
New Mexico
Tax years before July 1, 2013: File
amended return within 90 days after
final determination of federal
adjustment.
Tax years after July 1, 2013:
File amended return within 180 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
N.M. Stat. Ann. §7-
113(C), Form S-Corp
Instructions, Sub-
Chapter S Corporate
Income and Franchise
Tax Return
New York
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
Form 4549, Income Tax
Examination Changes.
N.Y. Tax Law §211(3),
N.Y. Comp. Code R. &
Regs. tit. 21, §6-1.3,
N.Y. Comp. Code R. &
Regs. tit. 21, §6-1.4,
Form CT-3-S
Instruction, S
Corporation Franchise
Tax Return
North Carolina
File amended return within 6 months of
notification of correction or final
federal determination.
Include a complete
explanation of reasons for
filing an amended return,
including specific
schedule and line number
references, on Schedule J
of the return.
N.C. Gen. Stat.
§105130.20, Form CD-
401S
Instructions, S
Corporation Tax
Return
North Dakota
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return or IRS
audit report.
N.D. Cent. Code §5738-
34.4, N.D. Admin.
Code §81-03-01.1-09,
Form 60 Instructions,
Small Business
Corporation Tax
Return
Ohio
Commercial Activity Tax (CAT): No
deadline specified.
Corporate Franchise Tax:
File amended return within 1 year after
final determination of federal
adjustment.
Commercial Activity Tax
(CAT):
Attach copy of federal
amended return or RAR if
refund requested.
Corporate Franchise
Tax:
Ohio Rev. Code Ann.
§5747.45, Form 1140,
Passthrough Entity and
Trust Withholding Tax
Return, Unofficial
Department Guidance
35
Attach copy of federal
amended return or RAR.
Oklahoma
File amended return within 1 year after
final determination of federal change.
Attach copy of federal
amended return or RAR.
Okla. Stat. tit. 68,
§2375(H)(2), Okla.
Admin. Code §710:50-
3-8(a), Form 512-S
Instructions, Small
Business Corporation
Income Tax Return
Oregon
File amended return within 90 days
after federal change or filing amended
federal return.
Attach copy of federal
amended return or RAR.
Or. Rev. Stat.
§314.380(2), OAR 150-
314.380(2)-(B), Form
20-S Instructions, S
Corporation Tax
Return
Pennsylvania
File amended return within 30 days
after determination of need to amend
return.
Attach copy of federal
amended return, statement
of reasons for filing the
amended return, and
supporting forms or
schedules.
Form PA20S/PA65
Instructions, S
Corporation/Partnership
Information Return
Rhode Island
File amended return within 60 days
after notice of final determination of
federal change.
Attach copy of federal
amended return or RAR.
R.I. Gen. Laws §44-1119,
Form RI-1120X
Instructions, Amended
Business Corporation
Tax Return
South Carolina
File amended return within 180 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
S.C. Code Ann. §1254-
85(D)(2), Form SC
1120S Instructions, S
Corporation Income
Tax Return
South Dakota
N/A, because state does not tax
passthrough income.
36
Tennessee
No deadline specified.
Mail letter of explanation
(Franchise and Excise Tax
Federal Income Revision
Form preferred) and
supporting
documentation (such as
copies of federal amended
return, signed RAR,
and/or refund check) to
Department of Revenue.
A taxpayer that files a
consolidated federal
return should enclose a
schedule detailing the
changes that apply to the
entity for which the
revisions are being
reported or a
consolidated schedule
reflecting all adjustments
by entity.
Important Notice,
Unofficial Department
Guidance
Texas
File amended return within 120 days
after final determination of federal
adjustment or filing amended federal
return.
Attach cover letter of
explanation, with
enclosures necessary to
support the amendment.
Tex. Tax Code Ann.
§171.212, 34 Tex.
Admin. Code §3.584(f)
Utah
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return, IRS audit
or adjustment report, or
other explanation of
changes.
Utah Code Ann. §59-7519,
Form TC-20S
Instructions, S
Corporation Franchise or
Income Tax Return
Vermont
File amended return within 60 days
after notice of federal change or filing
federal amended return.
Attach copy of IRS report.
Vt. Stat. Ann. tit 32,
§5866(a), Unofficial
Department Guidance
Virginia
File amended return within 1 year after
final determination of federal change or
filing federal amended return.
No requirement to attach
copy of amended federal
return or IRS final
determination letter.
Va. Code. Ann. §58.1-
311, Form 502
Instructions, Passthrough
Entity Return of Income,
Unofficial Department
Guidance
Washington
N/A, because state does not tax
passthrough income.
37
West Virginia
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return and RAR,
if applicable.
W. Va. Code §11-2420,
W. Va. Code St. R.
§110-24-20, Form
WV/SPF-100,
Income/Business
Franchise Tax Return for S
Corporation and
Partnership
Instructions
Wisconsin
Mail report to department and/or file
amended return within 90 days after
final determination of federal change or
filing amended federal return.
Send copy of federal
amended return and/or
final federal audit report.
Wis. Stat. §71.76, Wis.
Admin. Code §2.105,
Form 5S Instructions,
Tax-Option (S)
Corporation Franchise or
Income Tax Return
Wyoming
N/A, because state does not tax
passthrough income.
Business Income Tax > Amended or Audited Returns > Amended Returns > Deadline for Reporting
Federal Changes > Partnerships, LLPs, and LLCs
The following chart indicates the deadline for reporting a federal change or adjustment by a Partnership, LLP or LLC, as well as,
any attachments that must be filed. The information in this chart is as of August 8, 2016.
after final determination of federal
adjustment.
Tax years before 2012:
Federal change must be reflected on
corporate partner's amended return.
related to the change,
including RAR.
§43.20.030(d),
Unofficial Department
Guidance, Form 6900
Instructions,
Partnership Information
Return
Arizona
Within 90 days after final
determination of federal
adjustment, either: • file
amended return, or
• file copy of final federal
determination, concede accuracy or
state errors, and request recomputation
of tax by department.
Provide sufficient
information for the
department to recompute
Arizona taxable income
based on the RAR
changes.
Ariz. Rev. Stat. §43327,
Form 165
Instructions,
Partnership Income Tax
Return
Jurisdiction
Partnerships, LLPs, and LLCs
Comment
Citation
Alabama
No deadline specified.
Attach RAR or any other
itemized explanation of
federal changes furnished
by the IRS.
Ala. Admin. Code r. 810-
3-40-.01(4)
Alaska
File amended return within 60 days
Attach all documents
Alaska Stat.
38
Arkansas
File amended return within 90 days
after receipt of notice and demand for
payment from IRS.
Effective Oct. 1, 2015, file amended
return within 180 days after receipt of
notice and demand for payment from
IRS.
Ark. Code. Ann. §2618-
306(b)(1)
California
File amended return within 6 months
after final determination of federal
change or filing amended federal return.
Attach copy of federal
RAR or other notice of the
adjustments.
Cal. Rev. & Tax Code
§18622, Form 565
Instructions,
Partnership Return of
Income
Colorado
File amended return within 30 days
after final determination of federal
change or filing amended federal return.
Include statement of
reasons for difference.
Colo. Rev. Stat. §3922-
601(6)
Connecticut
File amended return within 90 days
after final determination of federal
change or filing federal amended return.
Conn. Gen. Stat. §12727,
Form CT1065/CT-1120SI
Instructions, Composite
Income Tax Return
Delaware
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return and/or
federal audit.
Del. Code Ann. tit. 30,
§514, Form 300 and
Instructions,
Partnership Return
District of
Columbia
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Provide detailed statement
explaining the
adjustments.
D.C. Code Ann.
§474301(f), Form D-65
Instructions,
Partnership Return of
Income
Florida
Federal change must be reflected on
corporate partner's amended return.
Unofficial Department
Guidance
Georgia
File amended return within 180 days
after final determination of any federal
change or correction.
Attach copy of amended
federal partnership return.
Detailed statement of
Ga. Code Ann. §48-
782(e)(1), Form 700
Instructions,
Partnership Income Tax
federal audit adjustments
must be mailed separately
to Department of Revenue.
Return
Hawaii
File amended return within 90 days
after federal change or filing amended
federal return.
Attach copy of the
document issued by the
federal government
changing the federal
taxable income of the
corporation.
Haw. Rev. Stat.
§235101(b)
39
Idaho
File amended return within 60 days
after final determination of federal
change.
Attach copies of all RARs
and any other documents
and schedules required to
clarify the adjustments to
taxable income.
Idaho Code §63-
3069(1), IDAPA
35.01.01.890, Form 65
Instructions,
Partnership Return of
Income
Illinois
File amended return within 120 days
after federal changes are agreed to or
finally determined (two years and 120
days if claiming a refund resulting from
the change).
Attach copy of federal
finalization or proof of
acceptance from the IRS
along with copy of
amended federal form, if
applicable. Examples of
federal finalization include
copy of:
• audit report from
the
IRS; and/or
• federal record of
account verifying ordinary
business income.
35 ILCS 5/506(b), Form
IL-1065-X Instructions,
Amended Partnership
Replacement Tax Return
Indiana
File amended return within 180 days
after the federal modification is made
(120 days for modifications made
before 2011).
Attach copy of amended
federal return, RAR, audit
report, and/or applicable
federal waivers.
Ind. Code §6-3-4-6, Ind.
Admin. Code tit. 45, r.
3.1-1-94, Form IT-65
Instructions,
Partnership Return,
Unofficial Department
Guidance
Iowa
File amended return within 60 days of
final disposition of federal audit.
Include amended
federal return, if
applicable. Copy of federal
RAR and
notification of final
federal adjustments
provided by taxpayer will
be acceptable in lieu of an
amended return.
Iowa Admin. Code r.
701 39.3(422), Iowa
Code §421.27(2)
Kansas
File amended return within 180 days
after payment or final determination of
federal adjustment.
Attach copy of amended
federal return, RAR, or
adjustment letter with full
explanation of changes
made.
Kan. Stat. Ann.
§793230(f), Form K-120S
Instructions,
Partnership or S
Corporation Return
Kentucky
Department must be notified within 30
days of initiation of federal audit.
Submit copy of final
federal determination
Ky. Rev. Stat. Ann.
§141.210(4), Form 765-
File amended return within 30 days
after conclusion of audit.
with amended return.
GP Instructions,
General Partnership
Income Return
40
Louisiana
File amended return within 60 days of
the taxpayer's receipt of the federal
adjustments.
Attach detailed
explanation of changes and
copy of federal amended
return, if applicable.
La. Rev. Stat. Ann.
§47:103(C), Unofficial
Department Guidance
Maine
N/A, because no return filing
requirement for tax years after 2011.
Tax years before 2012:
File amended return within:
• 180 days after federal change
or federal amended return is filed
effective on or after July 1, 2011; or
• 90 days after federal change
or federal amended return is filed
effective before July 1, 2011.
Attach copy of federal
amended return, if
applicable, and
explanation of reason for
the change or correction.
Me. Rev. Stat. Ann. tit.
36, §5245(1), Tax Alert,
Vol. 22, No. 3, Form
1065ME/1120S-ME,
Information Return for
Partnerships & S
Corporations
Maryland
File amended return within 90 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or final
IRS adjustment report.
Md. Regs. Code tit. 03,
§03.04.02.11(A), Form
510 Instructions,
Passthrough Entity Income
Tax Return
Massachusetts
File amended return within one year
after receipt of notice of final
determination of federal change.
Attach copy of federal
amended return or RAR.
Mass. Gen. Laws ch.
62C, §30, Mass. Regs.
Code tit. 830,
§62C.30.1(3),
Administrative
Procedure 619.2
Michigan
File amended return within 120 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or signed
and dated IRS audit
document.
We recommend you
reference cited authority
for more information.
Mich. Comp. Laws
§206.687(2), Mich.
Comp. Laws
§208.75(2), Mich.
Comp. Laws
§208.1507(2), Form
4567 Instructions, MBT
Annual Return
Minnesota
File amended return, or mail letter to
Department of Revenue detailing how
the federal determination is incorrect or
does not change the Minnesota tax,
within 180 days after final
determination of federal change or
filing of federal amended return.
Attach copy of federal
amended return or IRS
audit report.
Minn. Stat.
§289A.38(7), Form M3
Instructions,
Partnership Return
Mississippi
File amended return within 30 days
after agreeing to the federal change.
Attach copy of federal
amended return or RAR.
Miss. Code. Ann. §27-
7-51(4), Corporate
Income and Franchise
Tax FAQs
Missouri
File amended return within 90 days
after final determination of federal
change or filing amended federal
Attach copy of federal
amended return, RAR,
closing agreement,
Mo. Rev. Stat.
§143.601, Mo. Code.
Regs. Ann. tit. 12, §10-
41
return.
and/or applicable court
decision.
2.105
Montana
File amended return within 90 days
after notice of federal change or filing
federal amended return.
Attach copy of federal
amended return or IRS
notice of corrections.
Mont. Code Ann. §15-
30-2619, Form PR-1
Instructions,
Partnership Information
and Composite Tax
Return
Nebraska
File amended return within 60 days
after final determination of federal
change.
Attach copy of federal
return and all related
schedules or other
documentation explaining
changes.
Neb. Rev. Stat. §77-
2775, Form 1065N
Instructions, Return of
Partnership Income
Nevada
N/A, because state does not tax
passthrough income.
New
Hampshire
File amended return within 6 months
after final determination of federal
adjustment.
Attach copy of federal
amended return or IRS
adjustment report.
N.H. Rev. Stat. Ann
§77-A:10, N.H. Rev.
Stat. Ann §77-E:9,
ROC General
Instructions
New Jersey
File amended return within 30 days
after filing of federal amended return or
90 days after final determination of
federal change.
N.J. Stat. Ann. §54A:87,
Form NJ-1065
Instructions,
Partnership Return
New Mexico
Tax years before July 1, 2013: File
amended return within 90 days after
final determination of federal
adjustment.
Tax years after July 1, 2013:
File amended return within 180 days
after final determination of federal
adjustment.
Attach copy of federal
amended return or RAR.
N.M. Stat. Ann. §7-
113(C), Form PTE
Instructions,
Information Return for
Passthrough Entities
New York
File amended return within 90 days
after final determination of federal
change or filing amended federal
return.
Attach copy of federal
report of examination
changes and signed
statement indicating
whether the taxpayer
concedes the federal audit
changes and, if not, then
why.
N.Y. Tax Law §659,
Form IT-204
Instructions,
Partnership Return
North Carolina
File amended return within 6 months of
notification of correction or final
federal determination.
Attach a copy of federal
RAR or other notice of the
adjustments to the return.
N.C. Gen. Stat. §105159,
Unofficial
Department Guidance
North Dakota
File amended return within 90 days
after final determination of federal
change or filing amended federal
return.
Attach copy of federal
amended return or IRS
audit report.
N.D. Cent. Code §5738-
34.4, N.D. Admin.
Code §81-03-01.1-09,
Form 58 Instructions,
Partnership Return of
Income
42
Ohio
Commercial Activity Tax (CAT): No
deadline specified.
Commercial Activity Tax
(CAT):
Ohio Rev. Code Ann.
§5747.45, Form 1140,
Corporate Franchise Tax:
File amended return within 1 year after
final determination of federal
adjustment.
Attach copy of federal
amended return or RAR if
refund requested.
Corporate Franchise
Tax:
Attach copy of federal
amended return or RAR.
Passthrough Entity and
Trust Withholding Tax
Return, Unofficial
Department Guidance
Oklahoma
File amended return within 1 year after
final determination of federal change.
Attach copy of federal
amended return or RAR.
Okla. Stat. tit. 68,
§2375(H)(2), Okla.
Admin. Code §710:503-
8(a), Form 514
Instructions,
Partnership Income Tax
Return
Oregon
File amended return within 90 days
after federal change or filing amended
federal return.
Attach copy of federal
amended return or RAR.
Or. Rev. Stat.
§314.380(2), OAR
150314.380(2)-(B)
Pennsylvania
File amended return within 30 days
after determination of need to amend
return.
Attach copy of federal
amended return, statement
of reasons for filing the
amended return, and
supporting forms or
schedules.
Form PA20S/PA65
Instructions, S
Corporation/Partnership
Information Return
Rhode Island
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return and all
supporting documents.
R.I. Gen. Laws §44-3059
South Carolina
File amended return within 180 days
after final determination of federal
adjustment.
Attach copy of federal
amended return and all
supporting schedules.
S.C. Code Ann. §1254-
85(D)(2)
South Dakota
N/A, because state does not tax
passthrough income.
Tennessee
N/A
Unofficial Department
Guidance
Texas
File amended return within 120 days
after final determination of federal
adjustment or filing amended federal
return.
Attach cover letter of
explanation, with
enclosures necessary to
support the amendment.
Tex. Tax Code Ann.
§171.212, 34 Tex.
Admin. Code §3.584(f)
43
Utah
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return, IRS
audit or adjustment
report, or other
explanation of changes.
Utah Code Ann. §59-
10-536, Form TC-65
Instructions,
Partnership/Limited
Liability
Partnership/Limited
Liability Company
Return
Vermont
File amended return within 60 days
after notice of federal change or filing
federal amended return.
Attach copy of IRS report.
Vt. Stat. Ann. tit 32,
§5866(a), Unofficial
Department Guidance
Virginia
File amended return within 1 year after
final determination of federal change or
filing federal amended return.
No requirement to attach
copy of amended federal
return or IRS final
determination letter.
Va. Code. Ann. §58.1-
311, Form 502
Instructions, Passthrough
Entity Return of Income,
Unofficial Department
Guidance
Washington
N/A, because state does not tax
passthrough income.
West Virginia
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Attach copy of federal
amended return and RAR,
if applicable.
W. Va. Code §11-2159,
W. Va. Code St. R.
§110-21-59, Form
WV/SPF-100,
Income/Business
Franchise Tax Return for S
Corporation and
Partnership
Instructions
Wisconsin
File amended return within 90 days
after final determination of federal
change or filing amended federal return.
Send copy of federal
amended return and/or
final federal audit report.
Wis. Stat. §71.76, Wis.
Admin. Code §2.105,
Form 3 Instructions,
Partnership Return
Wyoming
N/A, because state does not tax
passthrough income.
Date Prepared: 8/8/2016 10:27:16 AM
©2016 CCH. All Rights Reserved. CCH Customer Service (800) 344-3734
Issued: February 28, 2017
