Tax Treatment of Intangible Assets
The IRS has specific regulations on the cost of intangible assets. We can guide you through the rules.
Multinational companies face mounting international tax planning and compliance challenges. When a company engages in cross-border intercompany transactions, those transactions can impact tax rates, shareholder wealth, corporate after-tax cash flow, and more. Transfer pricing, often used by multi-entity firms when the firms’ individual units are treated separately, can significantly impact shareholder wealth because of its influence on how taxable income gets distributed among countries with different tax rates.
In fact, transfer pricing is one of the top audit issues for the IRS, and multinational businesses could risk incurring steep penalties of 20-40 percent on transfer pricing adjustments if they are not in compliance. At the same time, the rules surrounding transfer pricing offer businesses the flexibility to set the conditions around their intercompany transactions. Having the ability to plan can enable your business to optimize the allocation of income within its larger corporate structure.
Transfer pricing is a highly specialized tax discipline.
As part of your international tax strategy, you’ll want to work with a CPA who can help ensure that you’re not only in compliance, but can help you avoid double taxation, interest on tax underpayment, and extended disputes with tax authorities. That includes litigation.
The Lumsden McCormick International Tax Team will work with you to identify transfer pricing risk areas and ensure compliance with complex regulations and documentation requirements. We proactively track all the latest developments in the global marketplace to adjust your strategy as needed. For more than 15 years we have used our internal resources and membership in the BDO Alliance USA to help manufacturers, construction firms, public companies, and other businesses maintain compliance and work through the many issues of conducting business globally
For more information about our transfer pricing services, contact Mark Janulewicz or complete the form below.