Multistate Tax Trends: SALT Litigator Jennifer Karpchuk on Market-Based Sourcing Frictions, Digital Ad Taxes and Multi-Jurisdictional Audit Risks
State and Local Tax attorney Jennifer Karpchuk was featured in a Thomson Reuters Q&A discussing developments shaping the multi-state and local tax (SALT) landscape. The conversation highlighted emerging issues such as market-based sourcing, Public Law 86-272 uncertainty, digital advertising taxes, Internal Revenue Code (IRC) challenges and multi-jurisdictional audit risks, particularly across the Mid-Atlantic region. Ms. Karpchuk described how businesses can navigate compliance, nexus exposure, apportionment complexities and data-driven audit scrutiny, emphasizing the importance of proactive planning, strong data infrastructure and ongoing monitoring of legislative and regulatory changes as states continue to adapt their tax frameworks to a digital economy.
"The biggest trap is assuming federal conformity where it no longer exists," she said. "Therefore, it's important for companies and practitioners to understand the various provisions that states are decoupling from and conforming to."