Income, Franchise and
Gross Receipts Tax

Addressing the constant state and local tax challenges.

Pressure continues to grow for tax departments. State income and franchise tax authorities are becoming more aggressive, increasing the number of audits and their scale. Laws are continually updated to raise additional revenues and eliminate perceived tax loopholes.
 
BDO’s dedicated tax professionals have deep experience with all components of income and franchise tax compliance. Drawing on resources across the country, we help minimize overall tax burden while ensuring compliance with applicable state and local regulations.

• Nexus Studies and Voluntary Disclosures

  Review of operations to determine the states where you may have nexus and should be filing tax returns. Assist with voluntary disclosure programs to bring your business into compliance in states where you should have been filing returns and to minimize tax exposure and penalties for previous periods.

• Diagnostic Assessments and Return Reviews

  Conduct a comprehensive review of your state tax position, state tax returns and structure to identify refunds and prospective filing opportunities. Analyze whether your business is properly taking all available deductions and apportioning its income under evolving apportionment rules and alert you to saving opportunities.

• Restructuring and Minimization Techniques

  Assess, design, implement and maintain alternative structures that meet your business objectives, while minimizing prospective state income, franchise and gross receipts taxes.

• Multistate Tax Controversy and Audit Defense

  Provide guidance through the audit process; negotiate with auditors; develop solutions to your income, franchise and gross receipts tax controversies; and represent your business before administrative tax tribunals.

• Compliance

  Prepare your annual returns to take advantage of deductions, credits and filing methodologies to reduce your state income and franchise tax liabilities. Assist with preparing amended state tax returns to report federal audit adjustments (Revenue Agent’s Report [RAR]), which, if prepared internally can be a significant drain on your resources.

• M&A/Transactional Analysis and Due Diligence

  Analyze the consequences of a spectrum of transaction types, such as a stock or asset acquisition or disposition, an IPO or a recapitalization. Develop disposition and acquisition strategies to provide state tax efficient structures, as well as perform buyer-side and seller-side due diligence to identify exposures and maximize state tax attributes.

• Provision and ASC 740 Analysis

  Determine your business’s state tax accrual for financial reporting purposes, identify and analyze state uncertain tax positions (UTPs), perform computation and measurement analysis, and develop reasonable approaches to addressing UTPs – all within the framework of your materiality thresholds.