In a noteworthy development for the business and legal communities, Philadelphia has become a member of the Multistate Tax Commission (MTC)’s Joint Audit Program. As the 2023 Fall Committee Meetings get underway, this inclusion of Philadelphia within the program affirms its commitment to improving the fairness and efficiency of the tax system. The only non-state members of the Program are now the District of Columbia and Philadelphia, according to information released by Eversheds Sutherland (US) LLP.
The MTC’s Joint Audit Program is instrumental in ensuring that taxable corporate income is appropriately divided among the states. Additionally, the Program enhances cooperation among states to conduct joint audits of multistate corporations.
Effectively, the inclusion of Philadelphia signifies an expanded footprint for the Program. This could potentially mean greater scrutiny for corporations operating across multiple jurisdictions, including Philadelphia and the District of Columbia.
Overall, while it is too soon to determine the specific implications of Philadelphia’s inclusion to the program, it is safe to say it would likely lead to tighter tax compliance, and potentially more complex jurisdictional considerations for multinational corporations.