Gain a better understanding on the importance of proper revenue sourcing and the special apportionment rules for service-based businesses.
The sourcing rules adopted by the various states are far from uniform, and states have been challenged to keep pace with the exponential growth of service-oriented enterprises, especially in the technology sector. This topic will discuss the various sourcing rules currently adopted by states and practical application to several common industries, including personal and professional services, technology, including cloud-computing enterprises such as Software-as-a-Service, and how to source revenues from the licensing or use of intangibles. We will also address some unique situations and what types of contemporaneous documentation are helpful in an audit.
Learning Objectives
- You will be able to review how states apply the cost-of-performance or market-based sourcing rules.
- You will be able to recognize the data needed to substantiate sourcing positions for financial statement purposes, state tax audits, and state tax compliance.
- You will be able to discuss the state income tax nexus implications arising from the application of the various sourcing rules.
- You will be able to identify common state income tax compliance faux pas and potential apportionment planning opportunities.
Agenda
The Importance of Proper Revenue Sourcing
- Trends in State Legislation
- Correlation Between Market-Based Sourcing and Greater Weighted Sales Factor Apportionment Formulas
- Economic Nexus
Dichotomy of Sales Factor Sourcing
- Costs-Of-Performance (COP) vs. Market-Based Sourcing
- COP: Significance and Relevance
- Market-Based Sourcing
- Substantiation of Methodology
Special Apportionment Rules
- Special Industries - Financial, Transportation, Media and Entertainment, Advertising
- Transactions, Gain, and Income From PTEs
Speakers
Christian J. Burgos, Esq.,
BDO USA, LLP- State and Local Tax (SALT) Managing Director in BDO USA, LLP's Orange County office
- A State and Local Tax professional with over 13 years of experience advising business and individual clients in multistate tax matters, which include, but are not limited to, multistate income/franchise and sales and use tax compliance, nexus analyses, apportionment studies, state tax provisions, restructurings and mergers and acquisitions
- Has extensive experience representing business and individual clients before multistate taxing authorities in tax examinations and administrative appeals processes
- Has also advised clients on broad array of federal and state credit and incentives opportunities, with a primary focus on California state credits
- Presently sits as an adjunct faculty member with California State University, Fullerton, where he teaches state and local taxation as part of the University's Master of Science in Taxation (MST) program
- Written several articles on topics on state corporate income and franchise taxation for trade periodicals, such as the AICPA's The Tax Advisor
- Memberships include The State Bar of California (Lic. No. 250741); United States Tax Court (Lic. No. 0725); and member of the Institute of Professionals in Taxation (IPT)
- J.D. and LL.M. degrees in taxation, Loyola Law School, Los Angeles; B.A. degree in political science, University of California, Los Angeles
- Can be contacted at 714-668-7356 or cburgos@bdo.com
Who Should Attend
This live webinar is designed for accountants, CPAs, controllers, CFOs, tax managers, tax preparers, finance directors, presidents, vice presidents, accounts payable professionals, bookkeepers, and attorneys.
