Test your state tax IQ - 2000.

• Author: Liss, Jonathan A.

All professionals enjoy testing themselves every once in a while, especially in their area of expertise. Even if you are not current with the latest trends in state and local taxation, you may learn something (and have a little fun!) by taking this short quiz.

The state and local tax area is extremely challenging these days. Significant opportunities for reducing an organization's income, franchise, property, and sales and use taxes arise on an almost daily basis. The focus of "Test Your State Tax IQ-2000" is on some of the latest and greatest developments in the state and local tax arena. More than likely, these issues will continue to be in the forefront as we move into the 21st century.

Answer the 15 questions below, then turn the page for the correct answers, along with a grading scale. Note: All questions relate to taxes paid by corporations.

1. In the event the owner's address is unknown, abandoned and unclaimed property should be reported to:

   (a) the company's state of largest physical presence (b) equally among all the states in which the company is doing business (c) the company's state of corporate domicile (d) the federal government

   (Note: Although this is not a "tax," state tax specialists are increasingly becoming involved in unclaimed property audits.)

2. Which of the following states have adopted the federal "Check-the-Box" regulations under section 7701 of the Internal Revenue Code?

   (a) Massachusetts (b) Illinois (c) New York (d) Ohio (e) all of the above

3. Which of these states does not recognize combined or consolidated reporting for income tax purposes?

   (a) Kentucky (b) Pennsylvania (c) Illinois (d) Iowa (e) Arizona

4. Factor representation was not addressed in this state tax case:

   (a) Tambrands, Inc. v. State Tax Assessor (b) American Tel & Tel. Co. v. Wisconsin Department of Revenue (c) Gillette Co. v. Massachusetts Commissioner of Revenue (d) R. J. Reynolds v. City of New York

5. Recently, there has been much discussion regarding the state taxation of electronic commerce. Examples of "electronic commerce" include:

   (a) Lexis-Nexis, and other research databases (b) online catalogs (c) photographs transferred digitally (d) computer software transferred electronically (e) all of the above

6. True or False? -- Geoffrey v. South Carolina was decided by the U.S. Supreme Court in 1993.

7. In the area of state taxation, contract auditors are commonly referred to as:

   (a) bandits (b) bounty hunters (c) free agents (d) bountiful

8. ...