Income, Franchise and Gross Receipts Tax

We gather facts by conducting interviews and having you complete our matrix of nexus-creating activities. Based on states’ statutes and rules, we determine where your business has nexus and a filing requirement.

We calculate the exposure for each state and provide a recommended course of action for compliance. This includes offering assistance with voluntary disclosure programs in states where tax returns should have been filed.

We understand the state tax laws and compliance issues that are important to your business. Our approach to preparing your annual state returns is designed to take full advantage of deductions, apportionment methods, filing options, and credits to reduce your state tax liabilities. 

We can also assist in preparing amended state tax returns to report federal audit adjustments.

We help you to extract the necessary data from your systems to calculate your apportionment factors. We review the apportionment options and sourcing rules in the states where your business has tax obligations to determine the correct and most advantageous apportionment percentages.  

The BDO State Apportionment Navigator is an automated solution designed to provide you with easier access to your state apportionment data and offer related insights into your apportionment position. 

Our approach with diagnostic assessments starts by determining your priorities, immediate needs, and long-term goals. Based on our discussions, we perform an assessment by conducting a comprehensive review of your state tax position, state tax returns, and structure to identify refunds, prospective filing opportunities, and structural enhancements. 

Our assessment phase is minimally intrusive and can be completed within a few weeks. 

We conduct a thorough review of your business operations and structure to fully understand your current state tax position. Based on this assessment, we design alternative structures that are state tax efficient and support your business objectives going forward.

Our services include assisting with the implementation and maintenance of the new structure. 

We advocate on your behalf on state controversy issues by offering valuable guidance, developing strategic and alternative solutions, and providing audit defense and appeals representation.   

We work with our network of state department of revenue contacts to reach favorable resolutions on your audit. 

We analyze the state tax implications of a spectrum of transaction types, including complex transactions such as stock or asset acquisitions and dispositions, and develop strategies to optimize the state tax consequences of the transaction.   

We perform buy-side and sell-side due diligence to identify state tax exposures and opportunities, increase state tax attributes, and design state tax efficient structures going forward.

We determine your business’ state tax accrual for financial reporting purposes and identify and analyze uncertain state tax positions. We examine your state tax reserves to identify remedial opportunities such as voluntary disclosures and restructuring from a state perspective. 

We adopt a collaborative approach to tax provision and ASC 740 services, working closely with our national ASC 740 practice to deliver seamless, strategic, and efficient service.