Kentucky Tax Conference - Agenda

Tuesday, November 12, 2019

8 a.m.
Registration and Continental Breakfast with Sponsors and Exhibitors

8:30 a.m.
Welcome and Overview

8:35 a.m.
Getting to Know the Kentucky Department of Revenue

Dan Bork, Commissioner, Kentucky Department of Revenue

9 a.m.     
Income Tax Accounting: Why State and Local Income Taxes Matter More Now Than Ever Before

Eric D. Scott, CPA, Senior Manager, Ernst & Young

This session will discuss aspects of financial statement accounting for state and local income taxes, including their impact on effective tax rates, deferred tax assets and liabilities, and tax reserves.

10:15 a.m.     
The Tax Cuts and Jobs Act of 2017: Section 199A Deduction    
            
Melissa Hicks, CPA, Director of Tax Services, Dean Dorton

For businesses that do not operate as C corporations, the Section 199A deduction was enacted to compensate for the sharply decreased tax rate benefiting C corporations. The application of the new Section 199A deduction has many nuances and complexities which may require planning and restructuring by businesses in order to fully benefit from the deduction. The session will cover the basics of this deduction and discuss common issues businesses face in claiming the deduction.

11:15 a.m.
Wayfair and Marketplace Facilitators – What Are They and What Do They Have to Do with Me?

Maddie Schueler, JD, LLM, Senior Tax Consultant, Dean Dorton

It has been a little over two years since the United States Supreme Court decided the case of South Dakota v. Wayfair. Nearly every state in the country has reacted, resulting in many businesses without a physical presence in the state having to collect and remit sales tax in these states. Also, states are rapidly enacting laws requiring businesses that “facilitate” sales, that is, marketplace facilitators or sellers, to collect and remit sales tax for their state. While it is true the statutes target the Amazon.com’s of the world, at least one state’s law includes antique malls as a target! What do these developments have to do with you? This session will answer that question.

12:15 p.m.
Lunch with Sponsors and Exhibitors

1:15 p.m.
Rulings and Transparency – Everyone Wants to Read What the Tax Authorities Think!

Mark Sommer, Member, Frost Brown Todd LLC

This session will go over the basics on rulings practice – what is a ruling, why significant, and how to go about receiving one? But transparency also needs to be considered from both sides of the equation even though it’s a pretty simple concept — advise the public what is appropriate and necessary to enhance compliance and tax administration in our voluntary compliance tax system, while protecting taxpayer confidentiality. We will arm you with what you need to know!

2:30 p.m.
Kentucky Opportunity Zones

Jim Seiffert, Member, Stites & Harbison, PLLC

For the past year and a half, The Commonwealth of Kentucky is working hard to get the word out about generating equity investments across the state through the use of federally supported Opportunity Zones. The introduction of the Kentucky Opportunity Zones has created a catalyst for additional public-private partnerships to generate new businesses and jobs. Opportunity Zones were created by the U.S. Congress to encourage long-term investments in low income urban and rural communities nationwide and provide significant income tax benefits (deferral, reduction and exclusion of taxes) for private investors while spurring investment, growth and community development in economically distressed areas in the 144 sites designated as Opportunity Zones in 84 counties around the state.

3:30 p.m.
The Biggest Kentucky Tax Change for 2019: Combined or Unitary Filing with an Option to Consolidate

Erica Horn, CPA, JD, Associate Director of Tax Services, Dean Dorton

“Combined or Unitary Filing with an Option to Consolidate” – what does that even mean? When the General Assembly made changes to Kentucky’s tax law in 2018, some would have argued this was one of the biggest changes. However, with a delayed effective date of January 1, 2019 and the significant changes to sales tax, little attention was given to the subject matter. This session will provide a general overview of what it means to file on a “combined” or “unitary” basis and how that differs from filing a consolidated income tax return.

4:30 p.m.
Day One Adjourns


Wednesday, November 13, 2019

8 a.m.
Registration and Continental Breakfast with Sponsors and Exhibitors

8:30 a.m.
Welcome and Legislative Update

Jacqueline Pitts, Communications Director, Kentucky Chamber of Commerce

8:45 a.m.
Regional Update: TN, IN, OH & WV

Angie Monahan, JD, Senior Manager, Crowe LLP
Lucas Hankins, CPA, Senior Manager, Crowe LLP

We will review income and sales tax updates in the regional states. We will also give an update as to new state legislation around conformity to TCJA.

10 a.m.
Kentucky’s Sales Tax Manufacturing Exemption for Modern Manufacturers

Dan Bork, Commissioner, Kentucky Department of Revenue
Richard Dobson, Executive Director, Office of Sales and Excise Tax, Kentucky Department of Revenue
Mark A. Loyd, Partner, Bingham Greenebaum Doll, LLP

Manufacturing methods have evolved markedly since the sales tax was enacted. Kentucky sales tax law provides for exemptions for new and expanded industry (manufacturing machinery), materials, supplies and industrial tools as well as other exemptions that apply to manufacturers. How do Kentucky’s sales tax exemptions apply to modern manufacturing methods? In this presentation, we’ll compare and contrast the perspective of the Department of Revenue with that of tax practitioners, highlighting the similarities and differences.

11 a.m.
Tax Incentives – What Does Kentucky Have to Offer, and How Do I Get and Use Them?

Daniel Mudd, Member, Frost Brown Todd
Katie Smith, Commissioner, Financial Services Department, Kentucky Cabinet for Economic Development

Like many states, one-way Kentucky encourages economic development through the use of tax incentives. Tax incentives can include anything from income tax credits to sales and use tax refunds to wage assessments to property tax abatements, just to name a few. And while some incentives are available only to new or expanding businesses, those of us who are already here can benefit from tax credits and incentives, too. This session will provide information about the various tax incentive programs in Kentucky, how to obtain them, and once you do so, how to actually use them to benefit your business.

12 p.m.
Lunch with Sponsors and Exhibitors

1 p.m.
You Got an IRS Audit Letter – Now What?

Mark A. Loyd, Partner, Bingham Greenebaum Doll, LLP

This session will cover the various options during an IRS audit or litigation. Topics covered include important steps during the tax year and filing of the return, the IRS letter announcing the audit, the kinds of IRS audit, who represents the taxpayer, where the audit occurs, how long it should take, responding to the IRS requests for documents and an interview, resolution of agreed issues, the role of the statute of limitations, and the options if the IRS and taxpayer cannot agree at the audit level. The presentation will also cover the role and process involved with appealing one’s audit to the IRS Appeals Office, as well as the various court options to litigate a case. The presentation will also address "the cost of being wrong": the additional tax, penalty and interest.

2 p.m.
Tax Reform and the Uncertainty Ahead for Business

Amy Sandlin, CPA, Tax Manager, Blue & Co., LLC
Miranda Aavatsmark, CPA, Tax Manager, Blue & Co., LLC

The first year after tax reform was dedicated to understanding its complexities and how it was going to impact individual companies. The one truism was that tax reform affected everyone a little bit differently. Now it’s time to plan for the future. Just like the initial tax reform effects, planning will be a little different for everyone, so we’re going to cover some of the big issues to be thinking about to lower your tax bill. We’re also going to discuss the uncertainty of future tax law and how best to account for this when planning.

3 p.m.
Inaugural Kentucky Tax Conference Adjourns


Optional Post-Conference Ethics Workshop

3 p.m.
Ethics and Professionalism for State Tax Professionals – For Your Eyes Only:  Understanding Privileges/Protections in State Tax Practice

Chris Coffman, Member, Frost Brown Todd LLC

Topics covered include:

  • Practical insights into relevant privileges and protections in state tax practice and tax controversy setting.
  • Attorney-client privilege and dual-purpose communications that contain both legal and general business advice.
  • Work product doctrine and the “anticipation of litigation” standard and application to internal tax workpapers.
  • Derivative privilege under a Kovel arrangement and limited federal tax practitioner-client and state accountant-client statutory privileges.
  • Waiver of privilege and protections.
  • Best practices for preserving and asserting privileges and protections.
  • Potential attacks to claims of privilege and protection.

 

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