MultiTax Commission

An intergovernmental state tax agency whose mission is to promote uniform and consistent tax policy and administration among the states, assist taxpayers in achieving compliance with existing tax laws, and advocate for state and local sovereignty in the development of tax policy.

Model Option for Combined Filing Under Finnigan Approach

At the Uniformity Committee’s April, 2018 meeting, a member of the public asked the Committee to consider adding a “Finnigan” option in the Commission’s Model Statute for Combined Reporting, which currently uses the “Joyce” approach. At its July, 2018 meeting, the Uniformity Committee voted to create a working group to draft a “Finnigan” alternative in addition to the “Joyce” approach already in the model.

The question at the center of the Joyce/Finnigan debate is: Are states limited in their ability to tax an apportioned share of the income of a unitary business conducted by multiple legal entities if some portion of that income might be attributed to an entity over which the state lacks taxing jurisdiction? Or, are states permitted to include the sales of P.L. 86-272-protected entities in the sales factor numerator of the group without violating the federal statute?

Model Option for Combined Filing Under Finnigan Approach Reference Information

The model proposed as a result of this project was adopted by the Multistate Tax Commission on August 4, 2021.

See that model, here Model Statute for Combined Filing – Finnigan Approach (Final)


Background Materials

Agendas, working documents, and other project-related information from previous meetings