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tax advisory

Federal tax

Are you looking for tax experts who track and keep you abreast of legislative changes that impact your business, while highlighting the relevance and uniqueness of such changes?
 
KNAV has developed proficiency in specialized areas related to federal tax and international tax issues, which apply to businesses with a global presence.
 
Our services include the following:
 
  • Preparing and filing federal tax returns;

  • Tax accounting methods - We focus on uncovering areas that will decrease the amount of revenue exposed, or increase the available deductions for tax purposes, while ensuring that these accounting methods are appropriate enough to provide audit protection. Some examples of accounting policies that we analyze include depreciation, fixed asset (including the recently pronounced repair regulations), software development costs, meals and entertainment expense, inventory valuation under the UNICAP rules, etc;

  • Domestic production activities deduction ('DPAD') - This special tax deduction is available to manufacturing and production activities within the United States and can potentially reduce a company’s effective federal tax rate. By understanding your business, analyzing the revenue streams across your organization, and carefully reviewing allocation of expenses, we can help you maximize DPAD;

  • Research and development credit - The research tax credit was enacted by the IRS as a key component of a multi-faceted tax reduction package. The credit results in a dollar-for-dollar reduction of the business’ income tax liability in addition to providing a deduction for research and development related expenses. Our team can help your company tap this potential tax benefit;

  • Earnings and profits ('E&P') study - E&P represents a corporation's economic income (i.e. their 'economic ability' to pay dividends) without impairing its capital. An E&P analysis is necessary for US corporations to determine whether a distribution to shareholders will be treated as a dividend, return of capital, or capital gain. E&P may also significantly impact other corporate restructurings such as dispositions, spin-offs, and mergers and acquisitions. We can assist your company in maintaining the E&P for US and controlled foreign corporations ('CFCs'); &

  • FATCA study - The Congress has enacted several provisions to detect and deter the evasion of US tax by US persons and one such provision is FATCA, (Foreign Account Tax Compliance Act). We can help you comply with FATCA by assessing the requirements specific to your business, and developing an effective plan to address the same.
federal tax