Equifax Inc. v. Mississippi Dep’t of Revenue, No. 2010-CT-01857-SCT (Miss. 2013), raises several questions when choosing an apportionment method. In fact, a recent State Tax Notes article suggested that Equifax ‘‘should be interpreted as an invitation for corporate taxpayers to apply allocation and apportionment rules that fit their business operations regardless of specific state law provisions.’’ After reading the article, I understand the basis for that statement and point of view. I may even agree; however, for those companies that aren’t willing to be, shall I say, ‘‘aggressive,’’ what standards should they follow? If a state can disregard its own statutes and use its discretion to make an assessment, what can companies do to protect themselves? Should companies be just as aggressive or should they seek a reasonable approach?
This article reexamines Equifax and discusses other precedent to clarify how a company should choose its (fair) apportionment method.
To read more, check out my article in Tax Analysts State Tax Notes on September 30, 2013. (the link to the article is in my LinkedIn profile)