Reaching Across the Delaware on Cross-State Tax Matters

The PICPA State Taxation Steering Committee and their colleagues at the New Jersey Society of Certified Public Accountants (NJCPA) came together to tighten their connections and agree to work collaboratively to resolve potential cross-state tax issues.

Twenty-nine tax practitioners – 13 from the PICPA and 16 from NJCPA – joined a virtual meeting on July 22, 2021. Some of those on the call included Jason Rosenberg, vice leader of the NJCPA State Tax Interest Group; Jeff Kaszerman, NJCPA vice president of government relations; Don Meyer, NJCPA chief marketing officer; Kenn Stoops, immediate past chair of the PICPA State Taxation Steering Committee; Howard Sklaroff, current chair of the PICPA State Taxation Steering Committee; and Peter Calcara, PICPA vice president of government relations.

Topics addressed included the New Jersey pass-through business alternative income tax, apportionment, and remote workforce/COVID transition challenges. The discussion was robust. “With the continuing expansion of interstate business transactions, electronic commerce, and remote employment, our recently established cross-state collaboration is intended to bring together some of the most experienced tax practitioners in both Pennsylvania and New Jersey,” Stoops said. “The interactions allow for sharing of experiences and discussion of common issues, as well as enhanced communication with state tax agencies. Having been a long-time member of both states’ tax interest groups, I appreciate the knowledge that each contributes.”

As a next step, a forum where NJCPA and PICPA members can share ideas will be established and hosted by the NJCPA. This new online community is just getting off the ground, but our hope is that it will encourage real-time discussion on important cross-state tax matters.

Lastly, periodic check-in meetings will be conducted throughout the year, and the state societies agreed to bring concerns to their respective administrative counterparts when appropriate.

Looking toward 2022, the group expects to hold more frequent meetings and use this interstate communication model as an example of how other state societies can communicate on state tax issues. During a recent PICPA State Taxation Steering Committee meeting, Stoops commented on the group: “I can envision inviting a couple of the NJCPA folks to participate in quarterly meetings with us as a next step so we can engage the committee in its entirety and grow the relationship from there. This could be a pilot program for a multistate communication network.”

On the direction of the collaboration, Rosenberg said, “I envision that this group will provide an open forum for the respective memberships to share information about the latest administrative and tax policy developments in the respective states, and ultimately allow us to work together on common challenges. This relationship will enable us to be the eyes and ears for each society, allowing both to leverage our long-standing relationships.”

We at the PICPA are excited for the prospects of this newfound partnership in 2022 and beyond.

Alexandra C. Fabian is manager, government relations, for the PICPA. She can be reached at afabian@picpa.org.