With States on the Attack, Investment by Companies In State Tax Resources Can Have Positive Effect on Earnings

Daily Tax Report: State provides authoritative coverage of state and local tax developments across the 50 U.S. states and the District of Columbia, tracking legislative and regulatory updates,...

As states face increasing financial pressure and budget shortfalls, they are being compelled to pursue additional revenues. Also seeking to increase their bottom line, companies have responded quite differently—by cutting costs, including their state tax resources. This combination of circumstances can be quite dangerous given the large impact that state taxes can have on company earnings. In this article, Richard Genetelli and David Zigman discuss four cases of state overreaching to demonstrate the importance of taxpayers being able to properly evaluate and respond to state audit inquiries and assessments.