KPMG report: Combined federal state filing program

Purpose of the combined federal state filing program, how to participate, and common misconceptions

Purpose of the combined federal state filing program, how to participate, and common misco

As taxpayers work to become compliant with state information reporting requirements, many businesses increasingly rely on the combined federal state filing program (CFSFP).

However, many taxpayers are quickly becoming aware that their filings do not satisfy state reporting requirements due to a number of reasons, including updated state filing requirements that disallow use of the CFSFP or even state reporting nuances that taxpayers may be unaware of. Despite their best efforts to comply via the CFSFP, many taxpayers are receiving state notices, an issue that will only escalate as state agencies shift focus to issues such as unreported gig economy income.

Read an October 2022 report [PDF 218 KB] prepared by KPMG LLP that discusses the purpose of the CFSFP, how to participate, and common misconceptions experienced by taxpayers.

 

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