State Apportionment Insight

State apportionment made simple

State Apportionment Insight is Deloitte’s web-based technology solution to help taxpayers take control of their state apportionment. This offering is scalable depending on a tax department’s particular needs and circumstances with the ability to leverage Deloitte specialists and also for more independent tax department use of the technology.

Back to top

Taxpayer challenges

As businesses continue to expand in complexity and geographic footprint, the process of gathering, calculating, reporting, and analyzing apportionment data for state and local tax compliance has proven increasingly challenging for many corporate tax departments.

Departments are often challenged by a manual, spreadsheet-based process that involves a large volume of data and is time consuming. Given the state-by-state complexity, lack of uniform rules, and frequent changes in law, taxpayers often struggle with the proper application of state rules related to apportionment. Couple that with a tax department that may have limited resources and competing department priorities, and the ability to add value through a deeper analysis of state apportionment is frequently challenging.

Taxpayers need a user-friendly, robust database solution driven by state-specific rulesets. They need versatile reporting and analytics capabilities to take control of their current apportionment process and start adding value through state apportionment.

Deloitte has developed a multistate tax technology solution that can help.

Back to top

Deloitte’s State Apportionment Insight

State Apportionment Insight is an intuitive, multiuser, web-interfaced, and database-powered solution to calculate state apportionment and potential tax impacts for compliance, provision, and planning purposes.

It uses a computational engine driven by state-specific rulesets to offer visibility into the impact of state apportionment factors and underlying sourcing methodologies related to a taxpayer’s state tax posture.

State tax rules and computations are updated on a periodic basis. Deloitte maintains the rule sets; however, users have the flexibility to establish and apply custom rules.

The integrated calculation engine is available to estimate potential state tax impacts as the user computes and compares apportionment results under a variety of apportionment methodologies, changes in law, or fluctuations in income projections.

Robust reporting, data analytics, and visualization technology provide an interactive view into the drivers of their state apportionment and associated tax impacts, and the ability to review state apportionment for potential irregularities and areas of tax exposure.

The ability to easily modify filing group composition, taxable income estimates, applicable rule sets, and other relevant data points to power “What if” functionality, helps those in need of multistate tax services to perform scenario planning and gain deeper insight into and value from their state apportionment.

Back to top

An overview of its features

State Apportionment Insight:

• Is designed by Deloitte’s Multistate Tax practitioners, with many years of state apportionment experience
• Utilizes an effective SQL database platform that provides a scalable alternative to the maintenance of multiple workbooks to house apportionment data
• Enables secure, remote, and multiuser access through a user-friendly web interface
• Features both system and data stability and can easily scale as a taxpayer’s business evolves and the number of corporate entities and state filings increase
• Provides a highly flexible, user-friendly interface with rules and logic that govern calculations and computations

Back to top

Signs your business is ready

Businesses that might benefit from State Apportionment Insights:

• Are filing in multiple jurisdictions (10 or more)
• Have significant state tax liability in three or more states
• Deal with complexity surrounding sourcing unique revenue streams that require the application of market or cost of performance sourcing or the application of throwback, throw out, ultimate destination, or other nuances
• Engage in mergers, acquisitions, and/or dispositions and have need to model, analyze, and compare various apportionment scenarios
• Are challenged by current processes that are highly manual, spreadsheet-based, or time consuming
• Are interested in leveraging tax technology to automate or improve accuracy and transparency

Back to top

Taxpayer benefits

Potential benefits provided to taxpayers include:

• Visibility into the impact of state apportionment factors and underlying sourcing methodologies/nuances on state tax posture
• An integrated state tax calculation engine to estimate potential tax impacts
• The ability to compute and compare apportionment results under variety of apportionment methodologies, as well as changes in law, income projections, or underlying apportionment factors
• State tax rules and computations updated on a periodic basis and available for the user to leverage/customize
• Easy-to-use analytics and reporting

Back to top