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  • videocam On-Demand Webinar
  • signal_cellular_alt Intermediate
  • card_travel Corporate Tax
  • schedule 110 minutes

Handling State Apportionment Audits: Defending Methods and Throwback/Throwout Distributions

$247.00

This course is $0 with these passes:

CPE
ALL
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About the Course

Introduction

This webinar will prepare multistate tax practitioners and businesses for potential state apportionment audits. Our panel of state income tax veterans will review the latest developments in apportionment audits in particular states, explain differences in state sourcing methods, and discuss the application of throwback/throwout and the Joyce/Finnigan rules. They will offer concrete suggestions on selecting, documenting, and supporting apportionment allocations in anticipation of a state examination.

Description

The number of state tax audits continues to escalate. California's Franchise Tax Board's website states that for assessments finalized during its 2022 fiscal year-end, "For corporation income and franchise taxes, the largest dollar amount in proposed assessments resulted from allocation and apportionment audits, which involves corporations doing business within and outside of California." The lucrative nature of these audits and the complexity and varying nature of state guidelines for apportionment dictate that the number of these examinations will continue to increase.

Apportionment is the act of attributing income by state for multistate entities. More and more states are adopting the sales factor as the only, or highest weighted factor, for assignment of income. Sales sourcing methods vary by state, with a majority favoring market-based sourcing while some use a cost of performance or another method. Some states have throwback rules insisting that sales not taxed by a state are allocated to the state where the sale originated. SALT practitioners and businesses must determine the most appropriate methodology for computing sales by state and be able to support and document this method in the event it is challenged by a state or state(s).

Listen as our panel of SALT experts explains best practices for calculating, documenting, and defending state apportionment methods.

Presented By

Stacey Chamberlain, CPA
Principal
Aprio, LLP

Ms. Chamberlain is a State and Local Tax (SALT) professional with more than 25 years of experience in public and private sector accounting. Her specialties include state income and franchise tax, sales and use tax, and strategic tax planning for flow-through entities and C corporations across diverse industries. Ms. Chamberlain is passionate about designing solutions that improve business tax outcomes and mitigate risk, while identifying opportunities for savings and efficiency.

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Meredith Smith
Principal
Aprio, LLP

Ms. Smith combines technical knowledge with an in-depth industry understanding of state and local tax (SALT) issues to help clients navigate the complexities of tax laws governing SALT issues. Her practice covers state income tax, sales and use tax, and state payroll tax. With more than 20 years of experience in SALT, Ms. Smith works with clients to design sustainable planning strategies that align with tax-specific business goals, while identifying risk areas and compliance requirements.

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Credit Information

  • BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.

Date + Time

  • event

    Monday, February 26, 2024

  • schedule

    1:00 p.m. ET./10:00 a.m. PT

  1. State Apportionment Audits – Introduction
  2. Apportionment methods
  3. Sourcing sales
    1. Services
    2. Tangible property
  4. Remote employees
  5. Reviewing income tax returns
  6. Apportionment workpapers
  7. Defending throwback and throwout allocations
  8. Joyce and Finigan rules
  9. Other considerations

The panel will cover these and other critical issues:

  • The status of state apportionment examinations in certain states
  • Preparing apportionment workpapers with potential audits in mind
  • Reviewing prior income tax returns for apportionment issues
  • Defending throwback and throwout allocations

Learning Objectives

After completing this course, you will be able to:

  • Identify common challenges to apportionment allocations by states
  • Determine the status of apportionment examinations in particular states
  • Decide how to support throwback allocations
  • Ascertain how properly prepared workpapers can mitigate audit repercussions
  • Field of Study: Taxes
  • Level of Knowledge: Intermediate
  • Advance Preparation: None
  • Teaching Method: Seminar/Lecture
  • Delivery Method: Group-Internet (via computer)
  • Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
  • Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of SALT taxation, nexus and apportionment as it applies to multi-state businesses.

BARBRI, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

BARBRI CE webinars-powered by Barbri-are backed by our 100% unconditional money-back guarantee: If you are not satisfied with any of our products, simply let us know and get a full refund. Contact us at 1-800-926-7926 .