Industry: Food Ingredients, Manufacturing/Distribution
Revenue: $110 Million
Challenge: A company, doing business entirely within one state, was filing its tax return correctly. However, it was discovered that if the company was subject to allocation and apportionment the majority of its sales would be allocated outside its home state.
Solution: The tax experts at Brown Smith Wallace advised the company to consider a change in its multi-state activities that would not interfere with normal operations, or reacquire any additional administrative burdens. Based on our recommendations, the company authorized an existing salesperson outside of the home state to perform specific activities that would establish nexus in another state. They were about to apportion income that resulted in an annual tax savings of $150,000.