Florida $4.5 Million Corporate Income Tax Refund

4M-florida-tax-refundThis taxpayer sold a significant business and reported an apportioned share of the gain to Florida. Advice from a “Big 4” firm was that “Florida doesn’t have non-business income” and therefore the client was advised to report an apportioned share of the gain. We told the client that while Florida has a statute that typically requires apportionment this is certainly not always the case. The law actually requires all income to be apportioned unless allocation would be required under the due process clause of the U.S. Constitution. We had awareness that Florida, like all states, must afford taxpayers protection as required under the law of the land.

As a result, we carefully analyzed the facts in this case. As we suspected, the business sold was totally unrelated to the business selling it. In essence, the gain in this case was non-business and properly allocated away from Florida. We were successful in obtaining a $4.5 million refund in this case.

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In Summary, Barnwell Consulting, LLC can:

  • Find state income/franchise tax refunds and have collected millions of dollars in cash refunds
  • Assist with altering corporate structure when good business purpose exists, to help lower state income tax liabilities
  • Assist with FIN 48 accruals, but more importantly with strategies to resolve FIN 48 uncertainty projects that help companies lower the state effective tax rate.
  • Handle complex income and sales/use tax audits and have been successful in eliminating or reducing material assessments
  • Assist clients with SALT issues in acquisitions and divestitures
  • Identify credits and incentives, which fall into two broad categories, statutory and negotiated. With respect to the former, we see our job less as identifying statutory credits – and more focused on whether our client has fully recognized the credit, and obtained the maximum possible benefit.