Accounting for Income Taxes

State and local tax issues are becoming increasingly complex as states expand their tax bases, reaching out-of-state and foreign businesses. Our SALT team is on the forefront of market-based sourcing, combined reporting, and state taxation of foreign income and has litigated high-profile cases shaping the subject. As states shift, we monitor how this applies to your business and clarify the steps you need to take related to nexus and apportionment.

The impact these tax issues can have on your company’s financial statements are also growing more uncertain. With stringent ACS 740 requirements, a comprehensive legal analysis of respective state tax laws is needed to support the existence of reserves. Our team leverages its broad income tax expertise and corporate in-house experience to bring you a business leader’s perspective. We provide a 50-state risk assessment and determine reserve needs, as well as counsel on the impact of foreign-sourced income. This includes providing the requisite written legal analysis while recognizing the need for privilege involved in the process.

Areas of Focus

• Nexus
• Apportionment
  • Market based sourcing
  • Income producing activity
  • Combined reporting
  • Sourcing