The Changing Landscape of Income Apportionment for Multistate Taxation

The Changing Landscape of Income Apportionment for Multistate Taxation

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Author: Adam Heinlein, CPA | Tax Supervisor

There was once a time when businesses primarily provided tangible goods for local customers or services for customers in the same state.  With the advancement of the internet and an increased reliance upon technology, this is no longer the case.  As the business world continues to evolve, state taxing authorities are struggling to keep up with this changing environment in a cohesive manner.  There have been changes in sales taxes as well as income taxes – specifically for income taxes, states are trying to capture as much income in their state as possible.  One method that is gaining momentum is moving from a cost-of-performance apportionment methodology to a market-based one. Read more.

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The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


About the Author

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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