MULTISTATE TAX EXPERT

As a former program Specialist for the State of California Franchise Tax Board I have knowledge in all area concerning Multistate Income and Franchise Tax.  My 30 years experience dealing with the most sensitive and Large Taxpayers in Los Angeles, place me among the top experts in the area of State taxation for both individual and Corporate taxes in the country.

I have knowledge of the areas that are concentrated on for audit. I understand the area of collections and have insider information of policies and the meaning of policies as they have changed over the years.

Do you understand recent changes in the regulations dealing with apportionment and allocation of income between states. Each state has a different concept.

Do you realize that you have filing requirements in all of the states. These requirements could cost you a pretty penny if you are not aware of them.

Each type of business has different formulas by which they are taxed in indidvual states. for instance if you do business in the motion picture or television area you may not be aware that by simply doing alimited amount of work in a state you may be taxable in a state. The states have programs to identify you and charge you tax. Tax that you are not even aware of.  You need someone on your side to determine the correct amount of tax to be paid, if any.

Did you know that you may be eligible for credits that can save you hundreds to millions of taxes by simply knowing and understanding that they exist.

I have knowledge in all areas of State taxation. I have been recognized in the past as having some the greatest expertise in the Entertainment field. I have also a great amount of knowledge in the Financial and investment industries.

Are you or your company prepared for the significant audit issues that have occurred in the area of  California Franchise Tax Policies and that of other states in the past several years?

The State of California and other states around the country have doubled and redoubled their effort to look at State Tax returns in order to determine if there are:

• Tax Credits- Tax Credits such as R & D Credit and EZ Credits are being looked at rigorously by taxing authorities.  Despite elaborate studies that have significant amount of paper and are wrapped up in fancy binders, many of these credits have been thrown out either by the IRS or the California Franchise Tax Board. The analysis contained in these binders is often superficial and is sold to taxpayers by large respectable entities. Clients of large multinational CPA firms have been assured that they are somewhat safe from Audit due to the apparent elaborate analysis contained in these studies. Many companies rely on these studies to insure that the tax risk is limited. This is reflected in their risk analysis.  In many cases much more than a "hair cut" has resulted. The internal costs of these audits can be astronomical.

• Apportionment Factors, Allocation of Business vs Non Business entities and Unity: Despite the decrease in focus in these areas in recent years, the probability is high that they will be pursued with new vigor in the upcoming years.  Because of the State budget crunch and  the retirement of many of the more experienced "baby boomers" agents,  a training effort will be made in the area of Apportionment and Allocation of income.  The more recent hirees will be focusing on these areas for training purposes. Because of this,  many more small to medium sized companies will be examined.  In many cases the auditor will lack adequate experience and may make na�ve, time consuming, adjustments.  Without adequate knowledge in these areas adjustments that should not have made will go unchallenged.

• Collection efforts have increased due to the new sophisticated systems that are available.  Some of these systems tie into other State and Local data bases and  information is shared regularly on a "need to know" basis. Need to know may as little as the expeditious use of numbers on returns from one entity being transmitted to another for collection purposes. Information is shared on an arms length basis with Federal Agencies such as the IRS but is still more available than ever before. Increased technology has increase the probability that your company will be touched by one or another taxing agency within the next few years.

These are just a few of the problems that may occur due to the increase enforcement in this very specialized area. The economic exposure to companies is often overlooked by large to medium accounting firms. Even when the economic exposure is limited often the time taken in dealing with these examinations strain the limited resources of many (if not most companies)  In most cases even the Largest Accounting Firms with Enormous State and Local Tax Departments (SALT) do not have even the generalized expertise to keep up with all of the changes in this areas.  They do have some experts in specific areas but they are scattered and not necessarily up to date with current practices.