State Tax Group Lawyer: Moore Case Could ‘Disrupt’ State Revenue

The US Supreme Court’s response to a constitutional challenge to the federal transition tax could “disrupt” not only federal tax law, but state tax structures and revenue streams as well, a senior attorney with the Multistate Tax Commission said Tuesday.

Helen Hecht, the commission’s uniformity counsel, said states need to pay close attention to the upcoming oral arguments and ultimate ruling in Moore v. United States. The case focuses on whether the Sixteenth Amendment authorizes the federal government to tax undistributed earnings under the transition tax, the 2017 tax law provision also known as the mandatory repatriation ...