Unitary Taxation Diagnostic

A flurry of legislative activity is turning historically separate-filing states (where related legal entities are taxed separately) into unitary states (where related entities are grouped for tax purposes). The Gagnon Group analyzes your current tax footprint, together with your predicted business trends, to provide your company with a customized report of the effect of this new legislation.

 If your company has business activity in Massachusetts, Michigan, New York, Texas, Utah, Vermont or West Virginia, you are already affected. Maryland is requiring a unitary informational report, with significant penalties for non-compliance, which must be filed in addition to normal separate entity returns. Iowa, New Mexico, North Carolina, Pennsylvania and Wisconsin have signaled possible forthcoming unitary legislation.

 The move toward unitary taxation in even a single state can have a profound impact on tax liability. One of our clients calculated a $1 million-plus increase in tax in Massachusetts alone as a result of the legislative change. Fortunately, we were able to identify an allowable position that enabled the client to reduce Massachusetts cash tax liability to near-zero.

 The Gagnon Group can help you accurately evaluate the effect of state tax law changes on your organization. At the same time we can efficiently review company filing positions in all states, and we often identify and realize significant savings opportunities. For more information, contact Carl Roscoe at 617.451.0303 x104.