In conducting multistate tax planning, the taxpayer should:

Question

Quizplus · Accepted Answer

All three options are important considerations in conducting multistate tax planning. The taxpayer should review tax opportunities in light of their effect on the overall business to ensure that the tax plan aligns with the company's strategic goals. Exploiting inconsistencies among the taxing statutes and formulas of the states can help to minimize overall tax liability. However, the taxpayer should also consider the potential compliance and administrative costs associated with the plan to ensure that the tax savings outweigh the burdens of implementing and maintaining the plan. Therefore, all three options are true and should be taken into account when conducting multistate tax planning.

In Conducting Multistate Tax Planning, the Taxpayer Should