Tax News

CCH (cch.taxgroup.com) reports:

  Facing significant opposition from large taxpayers and state legislators, the effort to revise the Uniform Division of Income for Tax Purposes Act (UDITPA) has been abandoned by the Uniform Law Commission (ULC). The ULC Scope and Program Committee and Executive Committee accepted the recent recommendations of the UDITPA study committee to end the latter's review of UDITPA without further action. (TAXDAY, 2009/07/01, S.1) Therefore, the study committee is discharged and the ULC will not establish a drafting committee on the topic of revising UDITPA.

  The ULC, formerly known as the National Conference of Commissioners on Uniform State Laws (NCCUSL), is the organization that drafted UDITPA over 50 years ago. As such, the Multistate Tax Commission (MTC) asked the ULC to undertake the effort of revising the Act when the MTC concluded that a revision was necessary. Initially, the ULC accepted the request and formed a drafting committee. When that encountered opposition, the ULC downgraded the effort to a study committee. However, this action did not assuage the effort's opponents, who successfully pressed for a complete end to the ULC review.

  The MTC is expected to continue its own project to revise portions of UDITPA.

Email, Uniform Law Commission, July 21, 2009