FEDERAL TAX

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:

 

  • Tax compliances – Preparing and filing federal tax returns (Including complex returns with international tax aspects)

  • 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 expense accruals, depreciation, software development costs, meals and entertainment expense, inventory valuation under the UNICAP rules, etc.

  • 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’) analysis – 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’)

  • Tax reform impact analysis – The US tax law may possibly see major changes under the current Biden administration. The proposals released from time to time suggest an impact for almost every multinational corporation. We regularly monitor these changes and help companies model the impact of these new tax provisions from current and deferred tax perspective.

  • Special Purpose Acquisition Company (SPAC) – Gaining access to the public market has become a crucial milestone in the lifecycle of every large corporation and SPACs has made gaining such access easier. We help corporations to understand and evaluate all the available alternatives from a tax perspective at every step of the SPAC life cycle to ensure that they make informed decision to maximize their tax benefit.

  • Funds-  We help offshore investment funds (example – India AIFs, feeder funds) to evaluate the tax implications for the fund and its existing/ potential US investors and also support them with necessary compliances such as 8832 filing, PFIC testing, issuing K-1s to the US investors, etc.

  • Reorganizations– The US corporations often undergo reorganizations such as mergers or spinoffs. We assist such corporations plan these reorganizations in tax efficient manner and support with necessary documentation for the same.

  • Representation before IRS auditors in case of IRS audits