National Federal Tax Services
One of the biggest challenges–and greatest areas of potential opportunity–for taxpayers is effectively managing local and foreign taxes in a way that aligns with overall business objectives and operations. Deloitte advises companies on the broad range of domestic and foreign tax matters, and business re-structuring and planning to address the impact of new and proposed tax regulations. Our globally-managed team advises and assists companies with their implementation of practical, business structures to better manage their tax obligations and thereby enhance cash flow so they can focus on growing their businesses.
- Partnership Solutions
- Transaction and Integration
- Strategic Tax Review
- R&D and Government Incentives
Partnerships formed under Subchapter K of the Internal Revenue Code have grown exponentially over the past number of years, mainly due to their unique passthrough tax structure. Meanwhile, the federal, state, and international rules regulating partnerships have also grown exponentially—these rules have an undeniable reputation as being some of the most complicated rules in tax. In addition, type, format and volume of data that are required to be reported to partners and the related state and federal e-filing requirements can be of particular concern. Our National Partnership Solutions practice has both the deep knowledge of the Subchapter K rules and the technology to help you address these complexities and manage compliance risk. Our effective technology—iPACS™ (Internet-based Process and Compliance System) and the related modules—combined with our efficient process, can help your organization enhance Schedule K-1s and other partner reporting and pursue time and cost savings.
Transaction and Integration Services
All transactions—whether mergers, acquisitions, joint ventures, equity investments, or divestitures—raise complex issues regarding potential tax risks and provide potential opportunities to implement practical strategies to improve tax efficiency. When those deals involve companies with global operations, wading through the additional range of considerations may be even more daunting. Deloitte can assist in effectively navigating the myriad of tax issues that arise in a transaction and help you strive to realize the anticipated post integration synergies. In addition, we have specialists in earnings and profits, basis, transaction cost deductibility, NOL planning, and legal entity simplification, that can be relevant in these transactions.
Strategic Tax Review
For leading companies, analyzing global tax burdens isn’t the end game. Creating competitive advantage by incorporating the tax perspective within business objectives and decisions is. The tax position of your organization may change rapidly as internal and external forces reshape the business. With business changes may come potential opportunities for additional current deductions, cash savings, tax refunds or strategies for lowering the global tax burden. Our strategic tax reviews focus on understanding your organization and business, as well as your current tax positions to help you develop and implement tax planning to generate value for your organization. Areas of focus within our Strategic Tax Reviews include:
- Capital Expenditure Review: A specific analysis of a company’s capitalization, and depreciation policies and procedures may result in potential tax savings. Our team assists in exploring over two dozen areas of possible opportunity classified into three categories: timing, capitalization, and classification. Our team is also focused on analyzing the potential impact of the Tangible Property Regulations and assisting clients in implementing the required changes to address compliance and seek cash tax savings opportunities.
- Accounting Periods and Methods Review: Many companies do not use tax-efficient accounting methods. So they may not be leveraging opportunities to enhance cash flow. Our team provides a specific review of a company’s U.S. tax accounting methods to pursue cash flow savings from long-term tax deferrals.
- Depreciation Expense Outsourcing: The calculation of depreciation is such a fundamental part of tax compliance that it is often overlooked in tax department process improvement efforts. Our team can help you in your efforts to plan for and compute tax depreciation deductions for federal, AMT, E&P, state, and bonus depreciation. We provide dedicated professionals with specialized tax knowledge, supported by diagnostic, analytical and reporting tools.
- Inventory Tax Services: Inventory is the largest item on the balance sheet for many companies. Yet many companies do not allocate, or simply do not have, adequate personnel and resources to accurately and efficiently account for their inventory for tax purposes. We provide a dedicated inventory tax team with specialized tax knowledge and tools to assist our clients with analyzing their tax inventory methods and implementing an approach focused on cash flow savings, tax compliance, and technological process improvements.
- Meals & Entertainment and Lobbying Review: Many companies are misclassifying exempted meals and entertainment and lobbying expenditures as deductions subject to tax limitations on deductibility. These misclassifications may result in an overpayment of federal and state income tax. Our Meals & Entertainment Tax Services team helps clients address this challenge through a 3-step process: preliminary analysis, calculation of tax limitations, and prospective enhancements.
Research and Development and Government Incentives
Many countries offer generous grants, credits, and incentives in areas such as the digital economy, energy efficiency, environment, globalization, innovation, sustainability, and training. R&D incentives provide significant tax benefits at the federal, state, and local level. These benefits are offered for research conducted in the United States, as well as research performed in over 30 other countries that offer research incentives. The R&D credit is one of the most significant of the remaining US domestic tax credits.
The Deloitte Research & Development and Government Incentives (R&DGI) tax team is a national team of specialists dedicated to providing broad-based tax incentive services, including research and development, the Domestic Production Activities Deduction, and Government Incentives.
Read more about Research and development and government incentives
Tax Analysis and Information Reporting for Debt Investments
Investments in debt and debt securities bring potential challenges and opportunities in today’s environment. Traditional tax accounting that employs spreadsheets may not be sufficient to access, track, and handle the large volumes and complexity of data and calculations associated with these investments on an instrument-level basis, let alone generate the very detailed reports that are needed for tax planning and compliance purposes. Deloitte’s TARDI (Tax Analysis and Information Reporting for Debt Investments) services and advanced tax database technology have been designed for the investors and owners of a wide range of debt investments to address their tax information, planning, and compliance needs, while maintaining flexibility to pursue different tax alternatives and elections.