TAX NEWS - 2010

Oklahoma Income / Franchise Tax: New law decouples from IRC §108(i)

S.B. 1396, signed by gov. 6/9/10. Applicable for taxable years beginning on or after January 1, 2010, new law requires Oklahoma corporate and personal income taxpayers to add to their Oklahoma taxable income an amount equal to the amount of deferred income not included in such taxable income pursuant to Internal Revenue Code (IRC) Sec. 108(i)(1), as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009 (P.L. No. 111-5).

The new law correspondingly requires a subtraction from Oklahoma taxable income for the amount of deferred income included in their taxable income pursuant to IRC Sec. 108(i)(1), as amended by Section 1231 of the American Recovery and Reinvestment Act of 2009 (P.L. No. 111-5).