On July 10, 2017 and August 22, 2017, TEI Tax Counsel Pilar Mata, along with Fred Nicely of the Council on State Taxation (COST), presented at the Southeastern Association of Tax Administrators (SEATA) and Midwestern States Association of Tax Administrators (MSATA) meetings, which are annual regional meetings of the Federation of Administrators. Pilar and Fred discussed the need for states to update their statutes governing the reporting of federal income adjustments.A working group consisting of members of TEI, COST, the ABA’s State and Local Tax Committee, the AICPA, and Institute for Professionals in Taxation (Interested Parties) has been working on changes to the MTC’s 2003 model statute addressing the reporting of federal adjustments. The Interested Parties first presented a draft updating the 2003 MTC statute the MTC’s December 2016 meeting and revised the draft in June 2017 to address adjustments arising under the new federal centralized partnership audit regime, which will go into effect for tax years beginning after December 31, 2017. Pilar and Fred provided an overview of the Interested Parties’ proposal, outlined how various adjustments would be reported to states under the proposal, and answered questions from state revenue department officials at the SEATA and MSATA meetings. The Interested Parties are soliciting feedback on the draft model statute to ensure that such provisions are acceptable to states and taxpayers alike.