Bloomberg Tax
Aug. 13, 2020, 8:45 AM

States Target Missed Tax Collections From Intercompany Transfers

Michael J. Bologna
Michael J. Bologna
Staff Correspondent

A dozen states are moving more aggressively against corporate tax avoidance schemes, with strategies to recapture billions of dollars into their tax bases lost through intercompany transfers.

The states, primarily in the Southeast, are meeting monthly to share information and discuss audit strategies aimed at transfer pricing—an accounting method for valuing related-company transactions. Several states are working with consultants to train their audit teams, select audit targets, and build analytical frameworks for reviewing corporate tax returns.

The new strategies could double or triple tax collections from large multistate corporate taxpayers, one economist working with the states believes.

Two states are ...

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