Andersen advisors have the sophistication and depth to support the tax needs of global companies, startups, and their globally mobile workforce. We understand the complexities of relocating employees and offer a variety of solutions that cover:

 

Remote Work

Employees are increasingly working outside of the traditional workplace, creating new risks and opportunities for employers. Andersen professionals can ensure compliance protocols are well-defined and flexible enough to work for both the employee and the company. 

Business Travel

Business travel comes in many different forms. Regardless of type or cadence, all travel by your employees, if not managed proactively, can result in added tax cost and compliance. Andersen has the experience balancing employer needs with those of the employee to ensure policies and practicality align.

Temporary Assignments

Temporary work assignments, both long and short-term, require management of many moving parts. Andersen’s experience in everything from developing policies to tracking and reporting creates a simplicity that accommodates your evolving workforce.

One-Way Moves

The trend of one-way relocations is rising. While administration costs may be low, providing an employee with information to help make an informed decision creates transparency and predictability in the process. Andersen can help source the data points necessary to safeguard against potential future frustration.

Global Equity

Employees crossing borders while holding equity awards add a layer of complexity to global tax compliance – for both employer and employee. Andersen’s hands-on approach can give you comfort knowing you won’t be caught by surprise.

Tax Education

We provide tailored education sessions on tax policy basics, tax equalization process, payroll support, and more for your team and internal stakeholders.

We enable businesses and global workforces to thrive.

For businesses, today’s global mobility programs must strategically align with both the company’s and the individual’s goals for successful adoption, traction and results. 

Our comprehensive services covering the global mobility needs of your organization include:

Cost Projections

Have you factored all the tax into your company’s decisions surrounding business travel? Our contacts at international tax firms help companies make informed and goal-oriented decisions regarding the tax implications of business travel.

Employee Tax Consultations

We provide a broad overview of U.S. and international tax systems relating to your employees’ upcoming or recent relocation(s) in order to simplify the relocation process and keep your team focused.

Equity Team Support

We work together with your equity team to simplify equity-based compensation for global employees by reviewing your unique situation, estimating future costs, and providing equity sourcing solutions.

Net Take-Home Pay Calculations

We can prepare a full calculation of after-tax income (with and without bonus and other non-regular pay) so that employees have the information necessary to plan for relocation.

Payroll Support

We support your payroll team to ensure you are compliant with international filing and reporting requirements.

Tax Policy Creation, Implementation & Administration

We work with companies to review their tax policy and/or implement a new tax policy that aligns with business objectives and company values. We then assist with implementation and administration to ensure the new tax policy works for both the company and employees.

Tax Education

We provide tailored education sessions on tax policy basics, tax equalization process, payroll support, and more for your team and internal stakeholders.

Tax Equalization Settlements

We assist companies through tax return reconciliation so that employees on assignment in another country are maintaining tax efficiency throughout their deployment.

Tax Compliance

Our tax professionals can help you and your employees navigate the complexity of domestic and international tax regulations to stay compliant through tax preparation, filing, and administration.

Tax Planning

We help our clients plan for the future using our U.S. and international tax knowledge and experience. Tax planning with our professionals ensures you make informed decisions regarding your personal income, equity, and investments.

Tracking and Reporting

Our geolocation tool provides full support for the international tax compliance of remote, relocated and traveling employees.

In today’s complex environment, when conflicts arise, our highly experienced team works hand in hand with clients and their advisors to assist with discovery, objective analysis and interpretation of relevant data to render independent, professional opinions. Our knowledge and experience enable us to then explain the relevant accounting, business, and financial issues in a manner that is concise and understandable, while providing innovative strategies to protect our clients’ financial interests. Our services may also require extensive effort to determine the value of ownership interests for the purposes of gift and estate planning, business succession, mergers and acquisitions, or marital dissolution.

We can provide answers in business, divorce and estate matters, including:

• Prove (or disprove) separate property and reimbursement claims
• Analyze proposed property divisions, including tax planning
• Examine ownership interests in closely held business entities
• Analyze estate and gift related financial transactions
• Forensic investigation related to assertions of breach of contract, breach of fiduciary duty or other types of fraudulent conduct

In today’s complex environment, when conflicts arise, our highly experienced team works hand in hand with clients and their advisors to assist with discovery, objective analysis and interpretation of relevant data to render independent, professional opinions. Our knowledge and experience enable us to then explain the relevant accounting, business, and financial issues in a manner that is concise and understandable, while providing innovative strategies to protect our clients’ financial interests. Our services may also require extensive effort to determine the value of ownership interests for the purposes of gift and estate planning, business succession, mergers and acquisitions, or marital dissolution.

We can provide answers in business, divorce and estate matters, including:

• Prove (or disprove) separate property and reimbursement claims
• Analyze proposed property divisions, including tax planning
• Examine ownership interests in closely held business entities
• Analyze estate and gift related financial transactions
• Forensic investigation related to assertions of breach of contract, breach of fiduciary duty or other types of fraudulent conduct

In today’s complex environment, when conflicts arise, our highly experienced team works hand in hand with clients and their advisors to assist with discovery, objective analysis and interpretation of relevant data to render independent, professional opinions. Our knowledge and experience enable us to then explain the relevant accounting, business, and financial issues in a manner that is concise and understandable, while providing innovative strategies to protect our clients’ financial interests. Our services may also require extensive effort to determine the value of ownership interests for the purposes of gift and estate planning, business succession, mergers and acquisitions, or marital dissolution.

We can provide answers in business, divorce and estate matters, including:

• Prove (or disprove) separate property and reimbursement claims
• Analyze proposed property divisions, including tax planning
• Examine ownership interests in closely held business entities
• Analyze estate and gift related financial transactions
• Forensic investigation related to assertions of breach of contract, breach of fiduciary duty or other types of fraudulent conduct

In today’s complex environment, when conflicts arise, our highly experienced team works hand in hand with clients and their advisors to assist with discovery, objective analysis and interpretation of relevant data to render independent, professional opinions. Our knowledge and experience enable us to then explain the relevant accounting, business, and financial issues in a manner that is concise and understandable, while providing innovative strategies to protect our clients’ financial interests. Our services may also require extensive effort to determine the value of ownership interests for the purposes of gift and estate planning, business succession, mergers and acquisitions, or marital dissolution.

We can provide answers in business, divorce and estate matters, including:

• Prove (or disprove) separate property and reimbursement claims
• Analyze proposed property divisions, including tax planning
• Examine ownership interests in closely held business entities
• Analyze estate and gift related financial transactions
• Forensic investigation related to assertions of breach of contract, breach of fiduciary duty or other types of fraudulent conduct

In today’s complex environment, when conflicts arise, our highly experienced team works hand in hand with clients and their advisors to assist with discovery, objective analysis and interpretation of relevant data to render independent, professional opinions. Our knowledge and experience enable us to then explain the relevant accounting, business, and financial issues in a manner that is concise and understandable, while providing innovative strategies to protect our clients’ financial interests. Our services may also require extensive effort to determine the value of ownership interests for the purposes of gift and estate planning, business succession, mergers and acquisitions, or marital dissolution.

We can provide answers in business, divorce and estate matters, including:

• Prove (or disprove) separate property and reimbursement claims
• Analyze proposed property divisions, including tax planning
• Examine ownership interests in closely held business entities
• Analyze estate and gift related financial transactions
• Forensic investigation related to assertions of breach of contract, breach of fiduciary duty or other types of fraudulent conduct

Andersen specializes in independent, objective, and practical planning advice for venture capital funds general partners, and portfolio companies. Venture capital firms face unique opportunities from a tax perspective. Whether the fund focuses on seed investments or later stage investing, domestically or abroad, the complexity created by the ever-changing and increasingly complex tax laws provides venture fund managers with opportunities to invest in start-ups in a highly tax-efficient manner.

Our professionals have extensive experience assisting venture capital funds and their partners and are fluent in multiple aspects of venture investing. Our comprehensive, practical approach focuses on the funds, their investments, and investors, as well as their general partners, assisting them in planning for and making decisions that will help them achieve their goals on a tax-efficient basis. 

Our experience with advising venture fund managers and general partners allows us to consider the consequences of the fund, general partner vehicle, management company vehicle, and advise on the overall tax consequences.

Andersen advises venture capital funds of all sizes and ages, whether you’re launching fund I or fund XV.  While not exclusive, the following represents some of the expertise we bring to our venture capital clients:

• Launching a fund and management company
• Review of legal agreement’s tax allocation provisions
• Warehoused investments
• Strategies for carried interest ownership including analysis of prospective legislation
• Qualified small business stock (QSBS) considerations
• Simple Agreement for Future Equity (SAFE) considerations
• International investments and investors, including foreign disclosure and withholding requirements
• Portfolio company structuring
• Planning for cash and stock distributions and exits

Andersen's breadth of knowledge in individual, corporate, and partnership tax law makes us uniquely suited to assist venture capital funds to maximize tax efficiencies throughout their structure. Our clients benefit from these many disciplines found throughout the Andersen global organization.

Success brings a wide variety of complex challenges. Andersen has the expertise and sophistication to handle your business, personal and generational wealth tax planning needs.  These goals work hand in hand – and so do we.

Real estate owners and executives choose Andersen because of our independent position in the market and industry experience.  Andersen offers unique tax and planning solutions to navigating the complexities of your real estate business and investments.

As an independent advisory firm not affiliated with an audit practice, Andersen provides a full range of tax and advisory services to a real estate businesses, operators, and investors.

Our professionals have significant experience in developing tax-efficient structures for the acquisition, operation, and disposition of real estate.  Andersen's real estate tax specialists understand the business and tax law nuances and take a proactive approach to mitigate future problems.

We work with our clients at every stage, providing a full range of tax, consulting, and preparation services:

• Acquisition
  • Structuring of Investment
  • Choice of Entity Planning
  • Review and Analysis of Partnership Agreements
  • Acquisition Analysis and Due Diligence
  • Purchase Price Allocation
  • Tax Credit Planning
  • Opportunity Zone Planning
  • UBTI and Foreign Ownership Planning
  • State and Local Tax Planning
• Operations
  • Cost Segregations
  • Repair versus Capitalization Review
  • Fixed Asset Review
  • Qualified Business Income Deduction Planning
  • Business Interest Limitation Planning
  • Lease Planning
  • Compensation Planning
  • State and Local Tax Planning
  • Accounting Method Planning
  • Succession Planning
  • Real Estate Valuation

Last Updated and Effective Date: December 6, 2022

I. INTRODUCTION

This privacy notice (“Privacy Notice”) describes how Andersen Tax LLC (“Andersen” or “we”) will collect, use and share personal information and other information collected from, about or relating to its clients and prospective clients in connection with the services Andersen provides, including information that is collected online and offline (e.g., information provided to an Andersen advisor electronically, over the phone or in person) or from other parties.

Andersen is a member firm of Andersen Global (“Andersen Global”), which is a Swiss verein comprised of legally separate, independent member firms located throughout the world providing services under their own name or the brand “Andersen,” "Andersen Tax,” "Andersen Tax & Legal," or "Andersen Legal." Andersen Global does not provide any services and has no responsibility for any actions of the member firms, and the member firms have no responsibility for any actions of Andersen Global or any other member firm. For purposes of this Privacy Notice, the member firms, excluding Andersen, of Andersen Global are referred to as “ Member Firms”.

For purposes of this Privacy Notice, “Personal Information” is information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with you or your household, which is typically provided on a voluntary basis by you or another party. Personal Information may include “personally identifiable information” under the Gramm-Leach-Bliley Act and its implementing regulations, personal data that is subject to the EU General Data Protection Regulation (“GDPR”), personal information under the California Privacy Rights Act (“CPRA”) and other like terms under applicable data protection laws. Personal Information does not include aggregated or combined information, which includes data that is related to you but studied as a group and is anonymized so that it does not identify you specifically.

II. INFORMATION COLLECTED BY ANDERSEN

In order to provide you with services under our contracts with you or another party (e.g., your employer, spouse, or a family office), Andersen collects certain information from you or another party. Unless a separate consent is required under applicable law, by providing Personal Information to Andersen, you agree to Andersen’s collection, use and sharing of the data as described in this Privacy Notice. Under applicable data protection laws that recognize the concept of a controller of Personal Information, Andersen is the controller responsible for the processing of Personal Information that we collect as described in this Section.

1. How We Collect Information

   • You may provide certain Personal Information to Andersen directly, such as when you provide information to Andersen over the phone, electronically, or in person.

   • We may collect information about you from other sources such as your employer, lawyers, banks, financial institutions and advisors, tax authorities, background check providers, family offices, family members, and other parties.

   • We may collect information about you from our Member Firms and collaborating firms that have contractual relationships with Andersen Global (“Collaborating Firms”) if you have done business with them.

   • We may collect publicly available information about you in public and private databases, such as through Lexis-Nexis or other search engines.

2. What Personal Information is Collected

   Personal Information may include the following information regarding you and your family members and/or employees, service providers and others, as applicable:

   • Identifying information, such as name, address, birthdate, contact information, and identification numbers.

   • Financial information, such as your banking and securities accounts and transactions, income and expenses, assets and liabilities.

   • Tax return information and employment information.

   • Special categories or sensitive Personal Information in connection with our performance of tax and other services, such as your racial or ethnic origin, your religion, or your sex life or sexual orientation. In addition, the following Personal Information that we may collect is also considered sensitive under the CPRA: your social security, driver's license, state identification card, and passport number; and account login and financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.

   • Criminal convictions and offenses information that includes personal data.

III. USE AND SHARING OF COLLECTED INFORMATION; PURPOSES FOR COLLECTION>

1. Use of Collected Information

   Andersen may use your Personal Information, including the categories of Personal Information described above (collectively, the “Collected Information”), in a variety of ways as permitted by applicable law, which include those set out below. For example, where your Collected Information is subject to the GDPR, such Collected Information may only be used by Andersen for a lawful purpose as set out in the GDPR. We continue to use your Personal Information as described in this in this Privacy Notice when you or another party are no longer a client of Andersen.

   • To provide you or another party with whom you are connected with professional services

   • To fulfill your requests and provide you with other services or service offerings

   • For other uses identified in agreements with you or another party

   • To contact you and send you materials and information

   • To confirm your identity

   • To manage our business

   • To improve our products and services

2. Basis for the Collection and Use of Collected Information

   We collect and use the Collected Information for the following reasons:

   • It is in our legitimate interest to provide you or the other party with which we have contracted with professional services, fulfill your specific requests, confirm your identity, and protect and manage our business.

   • It is necessary for the performance of our obligations under the applicable corresponding agreement.

   • We may be subject to legal or professional obligations which require us to confirm the details that you provide to us before entering into a relationship with you.

     Where your Collected Information is subject to the GDPR and includes special categories of Personal Information, such as your racial or ethnic origin or your religion, such Personal Information can only be processed under strict conditions. Where Andersen is processing special categories of Personal Information (other than Personal Information relating to criminal convictions and offences), unless another specified lawful purpose set out in applicable data protection laws applies, your explicit consent must be obtained before any such Personal Information is processed. Personal Information relating to criminal convictions and offences will only be processed if such processing is authorized under applicable data protection laws. It is possible that a data privacy impact assessment may need to be carried out before special categories of Personal Information can be processed.

     Where your Collected Information is subject to the CPRA and includes sensitive Personal Information, we will only use it for certain limited purposes under the CPRA, such as to provide you services; prevent, detect, and investigate security incidents; resist malicious, deceptive, fraudulent, or illegal actions; ensure the physical safety of natural persons; and verify or maintain the quality of our services (“Limited Purposes”). Because we use your sensitive Personal Information for Limited Purposes, we do not provide a Limit Use and Disclosure of Sensitive Personal Information right under the CPRA.

3. Disclosure of Collected Information

   In addition to Collected Information disclosed to other parties at your direction, Andersen may disclose your Collected Information for the following reasons with other parties who have agreed in writing to provide an adequate level of privacy protection:

   • With Our Vendors, Service Providers or Contractors: Andersen may disclose certain Collected Information with other parties acting on our behalf, such as consultants, professional advisers, data analytics providers, and other service providers, contractors and vendors.

   • With Our Member Firms and Collaborating Firms: Andersen may disclose your Collected Information with the other Member Firms and Collaborating Firms in Andersen Global for the purposes described in this Privacy Notice.

   • With Other Parties: We may also disclose your Collected Information with other parties, including our Member Firms, Collaborating Firms, vendors, in other circumstances, including but not limited to the following:

     • If you consent or direct us to share your information with another party provided that the consent or direction has not been revoked.

     • If permitted by applicable law or you authorize us to disclose information with another party as part of our provision of professional services to you.

     • If permitted by applicable law or you authorize us to disclose information to another party as part of fulfilling your request for other services.

     • To disclose or transfer your information when conducting a business deal (for example, a merger or acquisition, financing, sale of assets, transition of service to another provider, insolvency, receivership, or a bankruptcy transaction or proceeding).

     • For safety purposes, including to respond to an emergency.

     • To protect the rights, property, safety and security of you and others.

     • To comply with laws and regulations (including to fulfill our regulatory and professional obligations), court orders and subpoenas or similar requests for information by authorities, or as otherwise required by law.

     • To assist us in fraud, security or technical-issues prevention or investigation or otherwise manage risks.

     • If permitted by applicable law without your consent, to someone acting in a fiduciary or representative capacity.

     • For required institutional risk control or for resolving client disputes and inquiries.

     • If we determine a policy violation has occurred, including to enforce the engagement agreements and any other agreements you may have with us.

     • To identify, contact or bring legal action regarding injury or interference with our rights and property, including to enforce our rights against unauthorized access or attempted unauthorized access to our information technology assets or against other inappropriate use of our services.

       We will let you know where you must provide us with Personal Information so that we can use it and/or disclose it to other parties to comply with a legal obligation. If you do not provide us with the Personal Information in these circumstances, we will be unable to fulfill your request or provide the applicable service to you.

IV. YOUR RIGHTS TO YOUR PERSONAL INFORMATION

Outlined below are various rights you may have in connection with your Personal Information, depending on where you reside. You may exercise these rights by contacting us using the information in the “Contact Us” section below. We may ask you to verify your identity and to provide other details before we respond to your request.

1. Right to Review, Correct, Update and Delete Personal Information

   You may review, correct and update certain of your Personal Information that we have about you. For example, where your Personal Information is inaccurate or incomplete, you may ask for your Personal Information to be rectified or completed. In addition, in certain circumstances, you may request deletion of certain of your Personal Information. Your right to delete information is subject to our record retention policy, including any retention requirements under applicable laws, and to exceptions to this right under applicable laws.

2. Right to Disclosure and Access

   Depending on your applicable jurisdiction, including if you live in California or if your Personal Information is subject to the GDPR, you may have additional rights with respect to your Personal Information.

   • You may have the right to request that we disclose to you the categories of Personal Information we have collected about you, the categories of sources from which the Personal Information is collected, the business or commercial purpose for collecting, selling, or sharing Personal Information, the categories of parties to whom we disclose Personal Information, and the specific pieces of Personal Information we have collected about you.

   • In some jurisdictions, you may request that this information be provided in a structured, commonly used and machine-readable format so that you may share it with others.

     If you have these rights, we will not discriminate against you for exercising these rights. This includes us not: (a) denying you goods or services; (b) charging you different prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties; (c) providing you a different level or quality of goods or services; (d) suggesting to you that you will receive a different price or rate for goods or services or a different level or quality of goods or services; and (e) retaliating against you for exercising your privacy rights.

     A general list of the categories of Personal Information that we have collected, the categories of sources from which the Personal Information was collected, the business or commercial purposes for collecting the Personal Information, and the categories of third parties with whom we share Personal Information is described in this Privacy Notice. To obtain a list of this information that is specific to you, or to obtain the specific pieces of Personal Information that we have collected about you (which may be limited to certain information that we collected in a specific timeframe, depending on your jurisdiction), please contact us using the information in the “Contact Us” section below. We may ask you to verify your identity and to provide other details before we provide such information to you.

3. Other Rights

   Depending on your applicable jurisdiction, including if your Personal Information is subject to the GDPR, you may have the rights listed below:

   • The right to request the transfer of your Personal Information to another party

   • The right to object to us processing your Personal Information by asking for the processing of that Personal Information to be restricted or stopped

   • The right to ask us to restrict the processing of your Personal Information

   • The right to withdraw your consent to us processing your Personal Information where you have previously provided consent.

     You may exercise these rights by contacting us using the information in the “Contact Us” section below.

4. Authorized Agents

   Depending on your applicable jurisdiction, you may exercise your privacy rights through an authorized agent. If we receive your request from an authorized agent, we may ask for evidence that you have provided such agent with a power of attorney or that the agent otherwise has valid written authority to submit requests to exercise rights on your behalf. If you are an authorized agent seeking to make a request, please contact us in the “Contact Us” section below.

5. Right to Make a Complaint

   Depending on your applicable jurisdiction, you may make a complaint to your applicable data protection authority (or the equivalent regulator in your jurisdiction) about the manner in which Andersen is processing your Personal Information. For more information, or if you believe that Andersen has not complied with this Privacy Notice or the applicable law, please contact us using the information in the “Contact Us” section below. If you are not satisfied with the outcome of Andersen’s assessment of your complaint, you may be able to refer your complaint to the relevant regulator under applicable law.

6. No Sale or Sharing of Personal Information

   Andersen does not sell or share your Personal Information with third parties. Andersen also does not knowingly sell, share, use for cross-context behavioral advertising or disclose the Personal Information of children under the age of 16.

V. OPTING-OUT

You may receive email communications from Andersen, including communications regarding our services, marketing or promotions, and/or other topics. To contact you, Andersen may use the information you provide to us, including email, address, fax or phone. You may, at any time, inform us that you do not want Andersen to contact you for marketing purposes by sending your request to us using the contact information in the “Contact Us” section below. You may also opt-out of promotional email communications by clicking on a link provided in the promotional email message. After opting-out, you will no longer receive marketing or promotional communications but will continue to receive other non-marketing-related messages, such as emails relating to our provision of professional services to you or your account.

You may also receive communications from our Member Firms and Collaborating Firms. You may, at any time, inform us that you do not want Andersen to share your Collected Information with our Member Firms or Collaborating Firms for marketing purposes by sending your request to us using the contact information in the “Contact Us” section below.

VI. SAFEGUARDING YOUR PERSONAL INFORMATION

Andersen is committed to maintaining the security of the Personal Information you provide us. To protect your Personal Information from unauthorized access and use, we use security measures that comply with applicable law. These measures include administrative, technical, and physical safeguards. If your Personal Information is subject to the GDPR, then we will protect such information in accordance with Article 32 of the GDPR. However, please note that there is always some risk in transmitting information over the Internet. For this reason, Andersen cannot guarantee the security and privacy of transmissions via the Internet, and we will not be liable for any lack of security relating to the use of electronic communications by you. You agree that you will not hold Andersen liable for any damages resulting from any loss of privacy or security occurring in connection with any communications over such networks.

VII. RECORDS OF PERSONAL INFORMATION

Andersen has in place a policy regarding the storage of your Personal Information and will only store the Personal Information as long as Andersen considers it necessary or beneficial for the purposes set out in this Privacy Notice or for legal, regulatory, audit or record-keeping purposes.

The following paragraph applies if your Personal Information is subject to the GDPR or the CPRA. We will keep a record of the Personal Information that we receive from you in order to answer your inquiry or request. We will keep a copy of your Personal Information held for the specific purpose for which it was provided (such as to provide professional services to you), until such purpose has come to an end and we no longer need to comply with a legal obligation that requires us to retain your Personal Information. We will delete our copy of your Personal Information in accordance with Andersen’s document retention policy, although we may retain a record of certain Personal Information to the extent that and for so long as we are required to do so by applicable law. For example, if you have contacted us to ask for the processing of your Personal Information to be erased, we will retain a record of your request in order to ensure that we comply with your wishes. More information on our retention policy can be obtained by contacting us using the contact information in the “Contact Us” section below.

VIII. STORAGE AND TRANSFER OF PERSONAL INFORMATION TO OTHER COUNTRIES

If you are located in the EEA, the UK and/or Switzerland and provide data or information to Andersen, it may be transferred to, processed in, stored at or accessible from a destination outside the EEA, the UK and/or Switzerland, such as the United States. By providing your Personal Information, you agree to this transfer, processing and storing. We will take steps reasonably necessary to ensure your data is treated securely and in accordance with this Privacy Notice.

Where we pass your Personal Information from a location inside the EEA, UK or Switzerland to parties located outside the EEA, UK or Switzerland that do not offer adequate protection as determined by the European Commission, the UK and/or Swiss authorities, if such parties are not subscribed to an approved data protection framework, such as the EU-U.S. Privacy Shield, that permits us to transfer the Personal Information to them from a location inside the EEA, UK or Switzerland, we will enter into agreements which enable us to transfer the Personal Information to them and that enable you to exercise your rights in accordance with the GDPR. A copy of the applicable terms of these agreements can be obtained by contacting us using the information in the “Contact Us” section below.

Please do not provide your Personal Information to Andersen if you do not want this information to be transferred to the United States or to other countries, or if the laws in your country restrict these types of transfers. Your provision of Personal Information to Andersen means that you agree to the terms of this Privacy Notice.

IX. SUMMARY OF OUR PRIOR 12-MONTH PERSONAL INFORMATION HANDLING PRACTICES

For California residents, we provide below a summary of our prior 12-month Personal Information handling practices. You can learn more about the information we collect at or before the point of collection above in Sections II and III, which is the same for our prior 12 months. Please review Sections II and III for more details.

Category of Personal Information	Sources	Business or commercial purpose of processing and disclosure and recipients of personal information
Identifiers, such as a real name, postal address, birthdate, email address, other contact information, and identification numbers, such as social security number, driver’s license number, and passport number.	You or other sources	Sold This Personal Information has not been sold Shared for Cross-Context Behavioral Advertising This Personal Information has not been shared for cross-context behavioral advertising. Service Providers or Contractors This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers. Purpose of Processing We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Personal information described in subdivision (e) of Section 1798.80, such as, name, signature, social security number, telephone number, passport number, driver's license or state identification card number, education, employment, employment history, bank account number, credit card number, debit card number, or any other financial information.	You or other sources	Sold This Personal Information has not been sold Shared for Cross-Context Behavioral Advertising This Personal Information has not been shared for cross-context behavioral advertising. Service Providers or Contractors This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers. Purpose of Processing We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Characteristics of protected classifications under California or federal law.	You or other sources	Sold This Personal Information has not been sold Shared for Cross-Context Behavioral Advertising This Personal Information has not been shared for cross-context behavioral advertising. Service Providers or Contractors This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers. Purpose of Processing We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Professional or employment- related information	You or other sources	Sold This Personal Information has not been sold Shared for Cross-Context Behavioral Advertising This Personal Information has not been shared for cross-context behavioral advertising. Service Providers or Contractors This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers. Purpose of Processing We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Education information.	You or other sources	Sold This Personal Information has not been sold Shared for Cross-Context Behavioral Advertising This Personal Information has not been shared for cross-context behavioral advertising. Service Providers or Contractors This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers. Purpose of Processing We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Sensitive Personal Information, such as racial or ethnic origin, your religion, your sex life or sexual orientation, your social security, driver's license, state identification card, and passport number, and account login and financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.	You or other sources	Sold This Personal Information has not been sold Shared for Cross-Context Behavioral Advertising This Personal Information has not been shared for cross-context behavioral advertising. Service Providers or Contractors This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers. Purpose of Processing We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.

X. EXCLUSIONS

As a professional services provider, Andersen does not seek to, nor do we knowingly collect, information directly from children under the age of 16. If a child has directly provided us with Personal Information, a parent or guardian of that child may contact us to have the information deleted from our records. To do so, contact Andersen through the information provided below in the “Contact Us” section.

XI. CONTACT US

For questions or comments regarding this Privacy Notice, including to exercise your rights pursuant to the “Your Rights to Personal Information” section above, please contact us at:

By Phone:
1.888.731.2080

By Postal Mail:
Andersen Tax LLC
71 S. Wacker Drive, Ste. 2600
Chicago, Illinois 60605 Attn: Privacy Team

By E-mail:
andersenprivacy@andersen.com

XII. UPDATES TO PRIVACY NOTICE

From time to time, we may update this Privacy Notice which can be found on andersen.com. If we do, we do, we will note near the top of this notice the date that any changes are made and/or when they become effective. If the changes being made are material or if required by law, we may alert you to the changes in a more prominent way. Your inaction or continued use of our services or provision of Personal Information after any such notices, will tell us that you agree to these changes.

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Andersen Tax LLC is committed to providing a website that is accessible to the widest possible audience, regardless of technology or ability. We are always working to increase the accessibility and usability of our website and in doing so adhere to many of the available standards and guidelines. The accessibility of this site is tested and maintained on a regular basis. Accessibility standards used to assess this site are regularly reviewed.

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Companies benefit from R&D Tax Credits for a variety of qualified research activities – not just laboratory research.

The Research & Development Tax Credit (R&D Tax Credit) is among the most significant tax incentives offered to businesses each year. The credit can be worth as much as 20% of a taxpayer’s qualified research expense that exceeds an established base. It creates permanent tax savings, increases cash flow, and lowers a company’s effective tax rate. The credit is based on qualified research activities and related expense. The tax definition of qualified research is broad and extends beyond traditional laboratory research. Any company that develops new or improved products and/or processes, or develops software for use in its operations, may be eligible for the R&D Tax Credit. However, the standards for identifying qualified research are subjective, and taxpayers frequently have difficulty meeting Internal Revenue Service (IRS) requirements for contemporaneous documentation that demonstrates the nexus between qualified activities and their related expense. As a result, the benefit of the R&D Tax Credit is often disallowed or diminished on examination.

Andersen can help you maximize the value of this important tax incentive. R&D Tax Credits can be claimed on original or amended tax returns allowing taxpayers to claim credits for all open tax years. Documentation to support prior-year credits can be compiled long after qualified research is performed. However, the more time that passes between the underlying research and the effort to substantiate the credits claimed, the more invasive the exercise becomes to document credit eligible activity, and the more likely it is that some portion of the prior-year credits will be disallowed. Andersen can help you document all prior year qualified research activities, and at the same time, document your current-year qualified research. By establishing some best practices and nonintrusive procedures to create and capture the data and documentation needed to support future claims, Andersen can help you efficiently maintain the benefits of the R&D Tax Credit on a real-time basis.

R&D Tax Credit Related Incentives

State Research Credits. Many states provide their own R&D Tax Credits to companies that conduct research and development within state borders. Most states adopt some version of the federal rules for credit eligibility, but there are often important differences. The definition of qualified research and gross receipts can vary between jurisdictions. Carryforward periods for unused credits are often different depending on the state. Some state credits are refundable, turning tax liabilities into tax refunds.

Basic Research Credit. Basic research payments made by C corporations to any qualified organization for the advancement of scientific knowledge not having a specific commercial objective may qualify for the Basic Research Credit. Companies that support university research or scientific foundations may claim a credit worth as much as 20% of the eligible payments (the amount paid in excess of an established base).

Orphan Drug Credit. With proper designation from the Food & Drug Administration, pharmaceutical companies that develop new drug treatments for a rare disease or condition can claim a credit equal to 50% of their qualified clinical testing expense.

Energy Research Credit. Payments made to an energy research consortium qualify for a federal tax credit that is equal to 20% of the gross payments made to the qualified institution. Payments must fund qualified energy research, but there is no established base that reduces the amount of the qualified expense.

Partners in Creating Value

Our multidisciplinary team brings a unique combination of skill sets to each R&D Tax Credit engagement including professionals with science and engineering backgrounds who speak the language of your research and development personnel. Our team also includes professionals with backgrounds in tax controversy, providing critical evaluation of the documentation needed to support your R&D Tax Credit and sustain your benefits during IRS examination. We involve federal and state and local tax resources to ensure that the maximum benefit is secured in every jurisdiction where qualified research is performed. We identify any related incentives that may enhance the value of the credits claimed. Where appropriate, we recommend reserves that should be established against these tax incentives, and provide suggested disclosure language if needed for your return.

Our audit-ready deliverables include federal and state R&D Tax Credit calculations and completion of the related tax compliance forms. We author a custom report tailored to the specific research and development activities of your organization, and cross-referenced to the relevant contemporaneous documentation of your credit eligible activities. We also assess your research and development processes to determine where efficiencies can be introduced to the documentation and calculation of your credit, adding value to your business for years to come.

Let Andersen perform a complimentary review of your Research Credit today to see how you can further enhance this important tax incentive.

Analysis of software development costs can generate significant tax benefits by accelerating or deferring tax deductions for use when needed, and identifying tax credits related to software development or systems implementations.

Timing Deductions to Make Them Available When Needed

Expenditures for the development of software are often capitalized for book purposes and amortized over the useful life of the software. Taxpayers have several alternatives for the tax treatment of these expenses. Expenses for software development can be deducted currently or capitalized and amortized depending on the taxpayer’s circumstances and the need to accelerate or defer tax deductions. Eligible software development expenses may include enterprise resource planning (ERP) implementation costs, e-commerce costs, and other large or small scale software development efforts.

Research and Development Tax Credits

In 2015, the Treasury Department issued new regulations that make it easier for taxpayers to claim the federal R&D tax credit for software development activities. Prior to these regulations, IRS presumed that software that was not developed for sale, lease, or license to third parties was ineligible for the R&D tax credit unless a high threshold of innovation test was met. Under the new regulations, software that is third-party-facing (e.g., software developed to enable third parties to initiate functions, track the progress of goods, search a taxpayer’s inventory for goods, receive services over the internet, etc.) is eligible for the R&D tax credit without meeting the high threshold of innovation test. The regulations define dual function software as software developed for both internal and third-party use (customers, suppliers, investors, etc.). A new safe harbor allows taxpayers to claim credits for 25% of their dual function software development expense if it is anticipated that third parties will comprise at least 10% of the software’s user base. Finally, the new regulations clarify circumstances in which ERP implementation expenses can qualify for the R&D tax credit. The ERP guidance applies to all open tax years since 2003.

Partners in Creating Value

Andersen’s tax professionals work with in-house client personnel to optimize the tax treatment of software development expenditures. Our team will analyze your specific circumstances to align tax deductions with years in which you have taxable income and defer tax benefits for years in which you have losses. We will also prepare all necessary tax filings.

Our deliverable includes IRS examination-ready binders, including a summary of each project and related costs, our recommendations on the appropriate tax treatment of these costs, and a detailed technical report supporting the tax return positions with any required support documentation. Additionally, Andersen can provide full IRS examination support to help sustain the tax benefits identified through our study.

Andersen will also perform and/or review the reserves analysis required by FASB ASC 740-10 (accounting for income taxes) that are related to the tax benefits associated with our study, and the likelihood that these benefits will be sustained on examination.

Software and workplace productivity tools undoubtedly add value to your organization. Including Andersen in your analysis of the expenses incurred to acquire or develop these tools can augment the value of these solutions by establishing the optimal tax treatment for these expenses.

Every U.S. state, the District of Columbia, and U.S territories have unclaimed property laws and regulations that require businesses to report and remit unclaimed or abandoned property for which ownership rights have not been demonstrated over a certain period of time (referred to as the “dormancy period”). The rules apply to both tangible and intangible property.

Risk Assessment 

Understanding a range of potential exposure is necessary for a multitude of reasons.  Our team will use readily available records and industry experience to quantify a range of potential liability.  One complete we will discuss the impact, options for mitigation and devise a specific strategy for next steps.

Voluntary Disclosure Agreements

Our team assists with all steps  of a voluntary disclosure agreement (VDA) process from identifying relevant reporting jurisdictions, submission of state forms, identification of liability, workpaper preparation and discussions with the state agents or reviewers.

Audit Defense

Whether an audit is being conducted by the state or a third-party agent, our team will manage communication with the auditors, audit requests, internal teams and the flow of information.   Each step will have a strategic approach that is discussed internally with the goal of mitigating overall exposure in the most efficient way possible.

Annual Compliance & Due Diligence

States require companies to report identified unclaimed property annually.  Our team will steer the compliance process, including determining what is owed, sending and tracking due diligence letters, managing all filings and ensuring timely payments.  Throughout the process, we will evaluate strategy and advise on how each filing will impact overall risk.  

Policies and Procedures

Our team will work with various process owners to establish and implement tangible unclaimed property policies and procedures. Our process will help reduce audit/compliance risk while simultaneously increasing the reunification process of balances owed to customers, vendors, and employees. 

General Consulting

Our experienced team can assist with any ongoing consulting needs related to unclaimed property. For example, Andersen can assist with gift card consulting/best practices/mitigation, ASC 450/accruals, refund reviews, remediation studies, M&A strategic consultation, etc.

The experienced professionals of Andersen, and the member firms and collaborating firms of Andersen Global, are ready to meet your domestic and global transfer pricing needs. We have extensive experience advising emerging businesses and multinational organizations through all aspects of their tax management lifecycle – planning, implementation, compliance, and controversy. We help you ensure that your tax positions are practically and properly aligned with your business operations.

Companies in the early stages of international expansion often consider migrating intellectual property (IP) or off-shoring various aspects of their supply chains. At the same time, more established companies tend to have complex supply chains, reflecting the cumulative impact of M&A activity and/or operational consolidation. Because companies at different stages in their development have different tax needs and obligations, our team can proactively advise on how to best structure the corresponding related-party transactions and design, implement, and document a transfer pricing policy that makes sense for your business.

We can help your company with all aspects of transfer pricing, including:

• Planning and Implementation – Design new tax structure as you grow globally and move business functions to new locations.
• Documentation – Prepare U.S. and OECD-compliant contemporaneous documentation reports for the jurisdictions in which your business operates.
• IRS and Foreign Controversy/Audit Support and Defense – Defend your transfer pricing policy with IRS or foreign tax authorities. Likewise, we can help limit uncertainty with your transfer pricing policy by pre-negotiating your position with tax authorities through private rulings or, in the case of the U.S., the Advanced Pricing and Mutual Agreement Program.
• IP/Cost Sharing Planning – Properly value IP for tax purposes in order to safeguard against tax authorities claiming that IP rights were transferred without reasonable compensation.
• Country by Country Reporting (CbCR) – As BEPS Action 13 continues to be implemented by an increasing number of countries, it is imperative for businesses (especially large enterprises) to ensure that the narrative of the CbCR forms accurately reflects where their functions, assets and risks are located, and does not suggest one that allows tax authorities to impute an alternative interpretation more to their liking.

Our approach to transfer pricing is built to provide solutions that are clear, comprehensive, concrete and convincing. Let our experienced Andersen professionals help you solidify your transfer pricing position.

Please direct all media inquiries related to Andersen and Andersen Global to:

Phone: 415-764-2799
Email: mediainquiries@andersen.com

We look forward to speaking with you.

Our experience ranges across family partnerships, private equity funds, hedge funds, real estate funds, venture capital funds and fund of funds. Andersen provides valuation services for fund principals, the funds themselves and their portfolio companies.

Andersen is unique in our deep expertise with all of the stakeholders in a fund—the fund, the general partner, the portfolio companies, the individual principals and the fund investors. Our comprehensive, practical approach focuses on both the funds and the partners, providing value-added planning along with practical solutions to the administrative complexities of funds.

Andersen also has significant experience assisting portfolio companies of all stages and industries with valuations related to issuing stock options consistent with IRC Sec. 409A regulations, as well as acquisitions of intangible assets and other GAAP-related valuations. 

Our valuation services can assist the following stakeholders:

• Fund principals: Andersen works closely with fund principals to assist them with estate and gift tax appraisals related to their FLPs, carried interests and other interests. 
• Funds themselves: Fund management often faces valuation issues with regard to the value of portfolio holdings or interests in their respective funds. Accounting Standards Codification 820 (ASC 820) has changed the way private equity firms and investment partnerships must report the fair value of financial investments. Due to the complexity and variety of investments for which there is no active market, private equity firms, hedge funds, endowments and other investors often require independent valuations of these asset classes. Andersen has significant experience addressing fair value measurement issues.
• Portfolio companies: We provide valuations related to issuing stock options consistent with IRC Sec. 409A/ASC Sec. 718, as well as acquisitions of intangible and tangible assets and other GAAP-related valuations. 

Appraising your wine business or property can be challenging, but understanding the value of your asset is vital, especially if you plan to scale in size, or to sell. The value of property, the vines, the products at various stages of production, the brands, and other assets are unique in an industry where the farmer may also be the manufacturer, marketer and retailer. Andersen has helped wine businesses throughout California and other regions successfully value their businesses and properties for purposes such as estate and gift tax planning, buy-sell agreement transactions, tax and financial reporting, income tax planning, litigation, and divorce. 

The valuation of a winery includes analysis of numerous factors. Some of the key driving factors include: strength of wine trademarks and trade names; market position; channels of distribution; wine market conditions; broader economic conditions; historical, current, and projected financial performance of the winery; historical and current ratings from wine critics; an ownership of vineyards and other real estate, as well as tangible assets including inventory. 

Andersen has significant experience with regard to the valuation issues related to vineyard property and wineries (including appellation values), as well as the related accounting method changes. Additionally, Andersen professionals hold many qualifications for conservation easements including the following: 

• Successful completion of AI/ASA/ASFMRA  Conservation Easement Registry Program
• MAI-, ASA-, and CFA-designated appraisers
• Participation on Appraisal Institute IRS Valuation Summit panels with IRS agents on conservation easement valuation issues

Andersen offers comprehensive real estate valuation with thorough, independent analyses together with superior client service and responsiveness. We provide deliverables that surpass quantitative modeling to document the “story” behind the piece of land or building being valued. 

Our appraisals are used for a variety of purposes including financial reporting, gift and estate tax planning, bankruptcy proceedings, litigation support and mortgage lending.

Clients who require appraisals of multiple properties face the challenge of engaging with multiple appraisers to accomplish this task. Working with various firms can lead to inconsistencies in terms of valuation methodology. Andersen is frequently engaged to perform engagements featuring multiple properties and will deliver a consistent, timely, and easily understood product. 

Andersen's real estate services also extend to conservation easements. To quantify the donation value of a conservation easement, our appraisers employ a “before and after” valuation methodology. Our team holds many qualifications for real estate valuation services including the following: 

• Successful completion of AI/ASA/ASFMRA Conservation Easement Registry Program
• MAI and CFA-designated appraisers
• Extensive database of California “before and after” land sales
• Participation in Appraisal Institute – IRS valuation conferences
• Summit panels with IRS agents on conservation easement valuation issues

Cost segregation is an IRS-recognized technique of combining tax and engineering strategies to identify and segregate the costs of “short lived” property from real property. In addition to providing income tax benefits through accelerated depreciation, the results of a Cost Segregation Study may also provide tax benefits by reducing state and local property taxes. And because cost segregation is generally associated with commercial property, any entity owning real estate or leasehold improvements can benefit from a Cost Segregation Study—regardless of the industry. 

Andersen cost segregation professionals recognize the time constraints of our clients and our methodology is designed to minimize time and effort required by clients. Andersen assists taxpayers in segregating assets eligible for a shorter depreciation recovery period—such as land improvements (15 years) and personal property (5 or 7 years)—from the total costs of its existing and new facilities. The significant tax benefits of a Andersen Cost Segregation Study generally result from the following steps (as necessary):

• Review of capitalized costs and documentation
• Site inspection of the property
• Cost allocation and documentation analysis
• Asset-by-asset tax authority citation
• Computation of understated depreciation and filing Form 3115 (for retroactive studies)
• Audit support

Even if an entity owns facilities purchased or constructed in prior years, a Andersen Cost Segregation Study can be conducted retroactively. Andersen follows established cost and engineering analyses that allow for the identification and estimation of personal property within older buildings without invoices or construction drawings.  Our team includes CPAs, tax professionals, and an individual with a Senior Cost Segregation Professional (SCSP) designation as accredited by the American Society of Cost Segregation Professionals.

Andersen’s fixed-asset valuation group provides valuations of machinery and equipment for tax planning, financial reporting, mergers and acquisitions, ASC Topic 360 impairment studies, due diligence, asset-based lending, charitable contributions, ad valorem tax, and estate planning purposes. 

Our experience in appraising machinery and equipment extends to a wide variety of industries including automobile manufacturing, food processing, metal working, plastic-injection molding, printing, agriculture, recycling, medical, hi-tech, bio-tech, rolling stock, construction, semiconductor manufacturing, crystal growing, printed circuit boards, broadcasting, telecommunication, textile equipment, wineries, newspaper, restaurants, professional culinary institutes, sports leagues, retail trade, hotel furnishings, and many other industries.

Andersen appraisers hold designations through the American Society of Appraisers and have the knowledge and experience to appraise your fixed assets. We can also assist with fixed-asset management, cleaning up old asset lists, removing phantom assets and inventorying assets.

Additionally, Andersen assists taxpayers in the IRS-recognized technique of cost segregation. 

Andersen has extensive experience in valuing a wide range of businesses and assets. Our professionals will assist you in valuations of closely-held companies, partial interests and investment portfolios, offering supportable analyses designed to withstand review by third parties. 

We have experience in valuing the following types of businesses and assets:

• Closely-held companies and partial interests 
• Family limited partnership and limited liability company interests 
• Business operations, including subsidiaries, divisions and profit centers 
• Intellectual property, including patents, trademarks, trade names, copyrights and trade secrets 
• Intangible assets, including proprietary technology, in-process R&D, customer lists, relationships, contract rights and covenants not to compete 
• Preferred stock and debt instruments 
• Options and warrants 
• Investment portfolios, including private equity, venture capital and hedge funds 
• Securitized assets 
• Machinery and equipment
• Real estate
• Winery and vineyard assets

Andersen's litigation and dispute professionals provide experienced litigators with valuable financial and economic analysis, dispute resolution and expert services to assist in resolving complicated business disputes. By providing valuable financial insight and clarity to counsel, we handle complicated, high-stakes litigation and dispute resolution for various types of clients from diverse industries. From expert witness services to appraisals related to marital dissolution, Andersen provides financial insight needed to build a credible case. 

The increasing financial complexities in divorce make understanding financial information and tax consequences in matrimonial matters essential to your effectiveness as a family law practitioner. Andersen has a thorough understanding of the issues of family law matter—from distinguishing between assets and income to understanding business valuation. 

Our litigation and dispute services include:

• Analyses related to shareholder and contract disputes
• Valuation consulting related to patent infringement claims
• Expert witness services
• Analyses of asset values for insurance claims
• Appraisals related to marital dissolution
• Economic damages calculations
• Minority shareholder dissenting actions
• Eminent domain-related valuations

Andersen's team recognizes the importance of accounting for tangible, intangible and financial assets for companies undergoing acquisitions, mergers or divestitures. 

Our services include the following:

• Due diligence support
• Analyses of potential operational and financial synergies
• Assessment of proposed capital structures
• Analyses for joint ventures, strategic alliances, management buyouts and recapitalizations
• Formulation of value-allocation strategies between divisions of an acquired company
• Financial modeling and sensitivity analyses 
• Business and asset valuations for financing 
• Advice for buying or selling a business

While owners of closely-held companies devote much of their careers to building their businesses, they face the prospect of paying out substantial portions of their personal wealth to federal and state governments through estate taxes. The estate tax difficulties of these owners are amplified by the fact that the business interests are illiquid and typically comprise a significant portion of their estates.  

Estate planning professionals have developed a number of techniques to mitigate the effects of these taxes and at the same time further the non-tax objectives of the business owner. These techniques include the use of: 

• Family limited partnerships
• Gifts and charitable donations
• Trusts
• Limited liability companies (LLCs)
• Buy-sell agreements
• Life insurance

The effective application of these estate and gift appraisal techniques requires sound, reliable valuations of the underlying closely-held business interests or assets. When an estate contains a closely held-business interest or asset, a defensible and accurate valuation can reduce the likelihood of a long, drawn-out battle with IRS. We have assisted in IRS audits and have differentiated our valuation deliverable to incorporate additional methodologies prescribed by IRS that many other valuations fail to consider and address. 

Tax planning and compliance are key elements of effective business management. With significant changes in our tax laws occurring on a regular basis, tax planning is essential to exercising sound judgment in business and investment decisions. Andersen can assist clients with appraisals in conjunction with tax planning and compliance. 

Our tax planning-and compliance-related valuation services include:

• Estate and gift tax appraisal
• Shareholder and buy-sell agreements
• Appraisals for charitable contributions
• Valuations for domestic and international tax planning

Andersen’s valuation services team provides thorough, independent valuation analyses together with superior client service and responsiveness. We produce comprehensive analyses and deliverables that reflect our technical depth and extensive experience with complex valuation issues and diverse industries.

We provide thorough, supportable analyses and deliverables that surpass quantitative modeling to document the “story” behind the business being valued. Our analyses combine a detailed understanding of the business, industry and economic context with the insight to address complex valuation issues. Our services include valuations for the following:

• Tax Planning and Compliance Matters
• Acquisitions, Mergers, and Divestitures
• Litigation and Dispute
• Asset Valuations and Analyses
  • Machinery and Equipment - Cost Segregation Studies
  • Real Estate
  • Wineries and Vineyards
  • Insurance Appraisal Services
  • Intangible Assets

Appraising your wine business or property can be challenging, but understanding the value of your asset is vital, especially if you plan to scale in size, or to sell. The value of property, the vines, the products at various stages of production, the brands, and other assets are unique in an industry where the farmer may also be the manufacturer, marketer and retailer. Andersen has helped wine businesses throughout California and other regions successfully value their businesses and properties for purposes such as estate and gift tax planning, buy-sell agreement transactions, tax and financial reporting, income tax planning, litigation, and divorce. 

The valuation of a winery includes analysis of numerous factors. Some of the key driving factors include: strength of wine trademarks and trade names; market position; channels of distribution; wine market conditions; broader economic conditions; historical, current, and projected financial performance of the winery; historical and current ratings from wine critics; an ownership of vineyards and other real estate, as well as tangible assets including inventory. 

Andersen has significant experience with regard to the valuation issues related to vineyard property and wineries (including appellation values), as well as the related accounting method changes. Additionally, Andersen professionals hold many qualifications for conservation easements including the following: 

• Successful completion of AI/ASA/ASFMRA  Conservation Easement Registry Program
• MAI-, ASA-, and CFA-designated appraisers
• Participation on Appraisal Institute IRS Valuation Summit panels with IRS agents on conservation easement valuation issues

Andersen offers comprehensive real estate valuation with thorough, independent analyses together with superior client service and responsiveness. We provide deliverables that surpass quantitative modeling to document the “story” behind the piece of land or building being valued. 

Our appraisals are used for a variety of purposes including financial reporting, gift and estate tax planning, bankruptcy proceedings, litigation support and mortgage lending.

Clients who require appraisals of multiple properties face the challenge of engaging with multiple appraisers to accomplish this task. Working with various firms can lead to inconsistencies in terms of valuation methodology. Andersen is frequently engaged to perform engagements featuring multiple properties and will deliver a consistent, timely and easily understood product. 

Andersen’s real estate services also extend to conservation easements. To quantify the donation value of a conservation easement, our appraisers employ a “before and after” valuation methodology. Our team holds many qualifications for real estate valuation services including the following: 

• Successful completion of AI/ASA/ASFMRA Conservation Easement Registry Program
• MAI- and CFA-designated appraisers
• Extensive database of California “before and after” land sales
• Participation in Appraisal Institute – IRS valuation conferences
• Summit panels with IRS agents on conservation easement valuation issues

Cost segregation is an IRS-recognized technique of combining tax and engineering strategies to identify and segregate the costs of “short lived” property from real property. In addition to providing income tax benefits through accelerated depreciation, the results of a Cost Segregation Study may also provide tax benefits by reducing state and local property taxes. Because cost segregation is generally associated with commercial property, any entity owning real estate or leasehold improvements can benefit from a Cost Segregation Study—regardless of the industry. 

Andersen cost segregation professionals recognize the time constraints of our clients, and our methodology is designed to minimize time and effort required by clients. Andersen assists taxpayers in segregating assets eligible for a shorter depreciation recovery period—such as land improvements (15 years) and personal property (five or seven years)—from the total costs of its existing and new facilities. The significant tax benefits of a Andersen Cost Segregation Study generally result from the following steps (as necessary):

• Review of capitalized costs and documentation
• Site inspection of the property
• Cost allocation and documentation analysis
• Asset-by-asset tax authority citation
• Computation of understated depreciation and filing Form 3115 (for retroactive studies)
• Audit support

Even if an entity owns facilities purchased or constructed in prior years, a Andersen Cost Segregation Study can be conducted retroactively. Andersen follows established cost and engineering analyses that allow for the identification and estimation of personal property within older buildings without invoices or construction drawings. Our team includes CPAs, tax professionals, and an individual with a Senior Cost Segregation Professional (SCSP) designation as accredited by the American Society of Cost Segregation Professionals.

Andersen’s fixed-asset valuation group provides valuations of machinery and equipment for tax planning, financial reporting, mergers and acquisitions, ASC Topic 360 impairment studies, due diligence, asset-based lending, charitable contributions, ad valorem tax, and estate planning purposes. 

Our experience in appraising machinery and equipment extends to a wide variety of industries including automobile manufacturing, food processing, metal working, plastic-injection molding, printing, agriculture, recycling, medical, hi-tech, bio-tech, rolling stock, construction, semiconductor manufacturing, crystal growing, printed circuit boards, broadcasting, telecommunication, textile equipment, wineries, newspaper, restaurants, professional culinary institutes, sports leagues, retail trade, hotel furnishings, and many other industries.

Andersen appraisers hold designations through the American Society of Appraisers and have the knowledge and experience to appraise your fixed assets. We can also assist with fixed-asset management, cleaning up old asset lists, removing phantom assets and inventorying assets.

Additionally, Andersen assists taxpayers in the IRS-recognized technique of cost segregation. 

Andersen has extensive experience in valuing a wide range of businesses and assets. Our professionals assist in valuations of closely-held companies, partial interests and portfolio companies, offering supportable analyses designed to withstand review by third parties. 

We have experience valuing the following types of businesses and assets:

• Closely-held companies and partial interests
• Family limited partnership and limited liability company interests
• Business operations including subsidiaries, divisions and profit centers
• Intellectual property including patents, trademarks, trade names, copyrights and trade secrets
• Intangible assets including proprietary technology, in-process R&D, customer lists and relationships, contract rights, and covenants not to compete
• Preferred stock and debt instruments
• Options and warrants
• Investment portfolios including private equity, venture capital and hedge funds
• Securitized assets
• Machinery and equipment
• Real estate
• Wineries and vineyards

At Andersen, we offer a wide range of commercial reorganization and bankruptcy services for debtors, creditors, bondholders, financial institutions, asset purchasers, plan holders, and many other interested parties in bankruptcy and reorganization cases. We offer clients assistance in achieving a positive outcome in difficult financial situations. 

• Valuation and financial advisory for debtors, creditor committees, secured and unsecured lenders, and other constituents
• Determination of enterprise reorganization and asset values for fresh-start accounting
• Liquidation, going-concern and solvency analyses
• Assessment of collateral values

Andersen's litigation and dispute professionals provide experienced litigators with valuable financial and economic analysis, dispute resolution and expert services that help to resolve complicated business disputes. By providing valuable financial insight and clarity to counsel, we handle complicated, high-stakes litigation and dispute resolution for various types of clients from diverse industries. From expert witness services to appraisals related to marital dissolution, Andersen provides financial insight needed to build a credible case. 

Our litigation and dispute services include:

• Analyses related to shareholder and contract disputes
• Valuation consulting related to patent infringement claims
• Expert witness services
• Analyses of asset values for insurance claims
• Appraisals related to marital dissolution
• Economic damages calculations
• Minority shareholder dissenting actions
• Eminent domain-related valuations

Andersen's team recognizes the importance of accounting for tangible, intangible and financial assets for companies undergoing acquisitions, mergers or divestitures. 

Our services include the following:

• Due diligence support
• Analyses of potential operational and financial synergies
• Assessment of proposed capital structures
• Analyses for joint ventures, strategic alliances, management buyouts and recapitalizations
• Formulation of value-allocation strategies between divisions of an acquired company
• Financial modeling and sensitivity analyses 
• Business and asset valuations for financing 
• Advice for buying or selling a business

Andersen conducts detailed analysis of the target’s financial statements and pertinent business documents, discussion with company management, and a thorough review of current economic and industry-specific conditions. We combine our valuation expertise with our deep knowledge of the relevant sections of both U.S. GAAP and IFRS accounting rules to deliver fair values that stand up under third-party review.

We have experience valuing a wide array of tangible assets, intangible assets and liabilities. Tangible assets include real property, leasehold improvements, leases, inventory, machinery and equipment, and other fixed assets. Intangible assets include technology and proprietary practices, customer relationships and contracts, franchise rights and licensing agreements, trade names and trademarks, non-compete agreements, and other assets. We can also value assumed liabilities such as deferred revenue or the fair value of contingent consideration. Below is an overview of our complete financial reporting offering:

• Allocation of the purchase price paid in a transaction to acquired intangible and tangible assets and assumed liabilities
• Goodwill and long-lived asset impairment analyses (including intangible and tangible assets) 
• Stock option, derivative and “cheap stock” analyses, including phantom stock and profit units
• Determination of the fair value of financial instruments both assets and liabilities
• Determination of the value of contingent consideration 
• Fair value reporting of investment portfolios for private equity and venture capital firms 

As one of the largest full-service, national valuation practices, we have performed thousands of 409A/ASC 718 valuations for companies of all stages and industries and backed by virtually every major venture capital or private equity firm. In addition, our valuations regularly undergo successful review by all of the major accounting firms. Further, we have considerable experience working with clients through the initial public offering process and addressing the valuation questions raised by external auditors and the SEC staff. 

Section 409A

Under Internal Revenue Code Sec. 409A, a stock option having an exercise price less than the fair market value of the common stock determined as of the option grant date constitutes a deferred compensation arrangement. If your company fails to comply with 409A, your employees could be personally liable for immediate taxation in addition to a 20% penalty tax and potential interest payments. Private company common stock virtually always has value; therefore, obtaining a defensible appraisal is an important step in potentially saving you from unnecessary IRS challenges and saving your employees from unexpected taxes and penalties.

ASC 718

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 718 requires that all equity awards granted to employees be accounted for at "fair value." Subsequent modifications to outstanding awards result in incremental compensation cost if fair value is increased as a result of the modification. No company wants to restate its historical financial statements to reflect an increase in compensation expense associated with prior equity awards. The key to avoiding these “cheap stock charges” is to understand the accounting rules before making any grants and, when valuing the grants, to make reasonable assumptions that are supported by contemporaneous independent valuations.

Andersen’s valuation services team can help you determine the fair market value/fair value and update the valuation every 12 months, or more frequently if significant changes occur in the business between grant dates (such as new rounds of financing). We have differentiated our valuation deliverable to incorporate additional methodologies prescribed by IRS and expected by external auditors that many other valuation firms fail to consider and address.​

Tax planning and compliance are key elements of effective business management. With significant changes in our tax laws occurring on a regular basis, tax planning is essential to exercising sound judgment in business and investment decisions. Andersen can assist businesses in determining the best course of action based on your specific circumstances and objectives. 

Our tax planning and compliance valuation services include:

• Restricted stock and stock options (IRC Sec. 409A/ASC Topic 718)
• Shareholder and buy-sell agreements
• Appraisals for charitable contributions
• Allocation of the purchase price paid in a taxable transaction to acquired assets
• Corporate reorganization
• International restructuring
• Ownership/control changes and net operating loss utilization
• Conversions of C corporations to S corporations
• ESOP appraisals

Andersen’s valuation services team provides thorough, independent valuation analyses together with superior client service and responsiveness. We produce comprehensive analyses and deliverables that reflect our technical depth and extensive experience with complex valuation issues and diverse industries.

We provide thorough, supportable analyses and deliverables that surpass quantitative modeling to document the “story” behind the business being valued. Our analyses combine a detailed understanding of the business, industry and economic context, with the insight to address complex valuation issues regarding your business. Our services include valuations for:

• Tax Planning and Compliance Matters
• Financial Reporting
• Acquisitions, Mergers, Divestitures and Strategic Planning
• Litigation and Dispute
• Commercial Reorganization and Bankruptcy
• Asset Valuations and Analyses
  • ​​Machinery and Equipment - Cost Segregation Studies
  • Real Estate
  • Wineries and Vineyards
  • Insurance Appraisal Services
  • Intangible Assets

QSBS is stock in a C corporation that meets the conditions of being a qualified small business corporation (QSBC). Rules applying to QSBS were created to urge investment in certain small businesses by allowing investors the opportunity to avoid tax on some or all of their gain from the disposition of QSBS. The specific requirements to determine whether or not a stock is QSBS are explained in detail below.

Benefits depend on when you acquired equity in your early stage company.

When QSBS is held for more than five years, a portion of the gain from the sale of the QSBS can be excluded from federal income. The amount of gain eligible for exclusion depends on when you acquired the QSBS shares. Use the Andersen QSBS Calculator to determine how much of your gains will be eligible for exclusion once your five year holding period expires.

Stock acquired between 8/11/93 and 2/17/09 is eligible for 50% gain exclusion, subject to a 7% AMT addback. 

Stock acquired between 2/18/09 and 9/27/10 is eligible for 75% gain exclusion, subject to a 7% AMT addback. 

Stock acquired after 9/28/10 is eligible for 100% gain exclusion without any AMT addback.

Corporation Assets:

During substantially all of the taxpayer’s holdings period for the stock, at least 80% of the corporation’s assets have been used in the active conduct of a trade or business that is in a category other than any of the following:

• Professional services (such as health, law, engineering, architecture, and brokerage services)
• Banking, insurance, financing, leasing, or similar businesses
• Farming
• Mining or natural resource production or extraction
• Operating a hotel, motel, restaurant, or similar business

Provisions

• “Exclusion” (Section 1202): Individual must hold QSBS for at least five years from the date he/she acquires the shares (if shares are from stock options acquisition date is the exercise date, not the date of grant)
• “Rollover” (Section 1045): Individual must hold QSBS for at least six months

For more resources for venture-backed companies and their founders, click here.

If you own Qualified Small Business Stock (QSBS), you may be eligible to eliminate tax on all or a large portion of your gain when you sell. Many founders and entrepreneurs who are unaware of the existence and benefits of QSBS may be missing out on potential savings. Rules applying to QSBS were created to urge investment in certain small businesses by allowing investors the opportunity to avoid tax on some or all of their gain from the disposition of QSBS. The specific requirements to determine whether or not a stock is QSBS are explained in detail below.

Andersen professionals focus on the unique circumstances of entrepreneurs and their companies. We are well-versed in the intricacies of QSBS, the associated filings and documentation, and steps that may be needed to meet the requirements. 

Why is it Important?

Gains from selling Qualified Small Business Stock (QSBS) may be eligible for up to 100% exclusion from federal income tax – which means, when you sell your qualifying stocks, you could avoid paying federal tax on gains of up to $10 million or 10x your tax basis (basis for this purpose is equal to the amount of cash plus the fair market value of any property contributed to the corporation in exchange for the stock). For example, if you invested $2 million in a QSBS in 2013, you could sell that stock five or more years later for up to $22 million and pay zero federal income tax on that gain, a savings of nearly $5 million at today's rates. Companies and individuals must follow certain requirements in order to qualify.

Basic Requirements of Qualified Small Business Stock

• Company is a domestic C corporation
• Stock is issued after August 10, 1993
• Stock is acquired by taxpayer directly from the company for money, property (other than stock), or services (limited exceptions to this rule)
• The tax basis of the total gross assets of the corporation at all times from August 10, 1993 until immediately after the issuance of the taxpayer’s stock must be less than $50 million (for assets contributed to the corporation, tax basis is determined based on the fair market value of the assets immediately after contribution)
• Certain redemptions can retroactively eliminate QSBS treatment

Click here for more information about specific QSBS rules.

Andersen’s tax controversy practice helps clients navigate complex audits and appeals and resolve challenging practice and procedure matters with federal, state, local, and foreign tax authorities. 

Our professionals have years of experience dealing with a wide range of issues for private clients, businesses, and alternative investment funds. Complex regulations coupled with increased enforcement present a substantial need for clients to have support from trusted and experienced tax controversy professionals. Our team adds value over the full lifecycle of taxation, from planning and reporting through examination defense and dispute resolution. Our tax controversy professionals work closely with Andersen subject-matter specialists to ensure that the right combination of tax technical expertise is paired with a thorough understanding of practice and procedure to secure optimal outcomes for our clients. Our tax controversy professionals can assist you with:

Audits & Appeals

• Managing communication, coordinating timeline, and limiting scope with examiners from early stages through closing in pursuit of a “no change” conclusion.
• Negotiating and responding to Information Document Requests (IDRs).
• Conducting technical research and analyses to support tax positions.
• Defending tax positions in response to Notices of Proposed Adjustment (NOPAs).
• Preparing protest letters to the IRS Independent Office of Appeals and providing representation.
• Rendering expert testimony, analyses, and other litigation support in judicial proceedings.

Practice & Procedure

• Communicating with tax authorities through notice and letter analysis and response, telephone calls via priority service lines, acquisition of transcripts and status updates, and imposition of collection holds.
• Providing advice and guidance with respect to statute of limitations, BBA partnership procedure, foreign and domestic withholding and reporting, refund claims and Joint Committee on Taxation review, and collection due process for federal tax liens and levies.
• Assisting with residency certifications, EIN verification, entity classification issues, interest computations, transcript analysis, identity and tax return verification, voluntary disclosure, and penalty abatement.
• Facilitating requests for Taxpayer Advocate Service assistance and providing representation throughout the resolution process with the assigned advocate. 

Other

• State and Local Tax Controversy – Navigating complex audits and appeals and resolving challenging practice and procedure matters with state and local tax authorities.
• R&D Controversy – Defending R&D credit reporting in audit and appeal cases and supporting R&D credit refund claims.
• International Tax Controversy – Managing challenges to transfer pricing positions in audit and appeal cases and providing support with Advance Pricing Agreements, Mutual Agreement Procedures, and Competent Authority.
• Global Tax Controversy – Dealing with foreign tax authorities in more than 170 countries worldwide through the Andersen Global association of member firms.

Partners in Creating Value

Andersen knows that the best way to avoid controversy is to plan for it. Our tax controversy professionals interact with local client service teams on a regular basis, inviting local teams to involve the tax controversy practice before tax returns are filed and examination notices are sent. Disputes can often be avoided through appropriate documentation and the development of fact patterns that support favorable tax positions. Andersen tax controversy professionals include former IRS and Treasury attorneys who provide a critical review of return positions and substantiation requirements before disputes arise with tax authorities. Whenever possible, Andersen adds value to clients by resolving potential controversies before they materialize.

Andersen specializes in independent, objective and practical planning advice for successful private equity firms, their general partners and portfolio companies.

While private equity ownership can provide significant opportunities through hedge, venture and buy-out investments, the complexity created due to cash flow, valuation, distribution, diversification and family transfers can result in significant tax planning needs.

Andersen can help. Our professionals have extensive experience assisting private equity funds and their partners and are fluent with multiple aspects of private equity investing. Our comprehensive, practical approach focuses on the funds and their partners, assisting them to plan for and make decisions that will help them achieve their goals on a tax-efficient basis. We offer an organized, experience-based approach.

Andersen advises several of the largest private equity funds and their partners in the United States and continues to address the complex issues facing the industry. While not exclusive, the following represents some of the expertise we bring to our individual clients:

• Strategies for carried interest ownership including analysis of prospective legislation
• Diversification of wealth concentration
• Post-diversification consulting
• Qualified small business stock (QSBS) considerations

Andersen also serves as a critical member of the advisory team to private equity funds to help them confront some of today’s most pressing topics, including:

• Management fee structuring
• Distribution timing and execution
• Portfolio company structuring
• Planning for portfolio company executives

Andersen specializes in independent, objective and practical planning advice for successful hedge funds, their general partners and portfolio companies.

While hedge fund ownership can provide significant opportunities through hedge, venture and buy-out investments, the complexity created due to cash flow, valuation, distribution, diversification and transfers can result in significant tax planning needs.

Andersen can help. Our professionals have extensive experience assisting hedge funds and their partners, and are fluent with multiple aspects of hedge fund investing. Our comprehensive, practical approach focuses on the funds and their partners, assisting them to plan for and make decisions that will help them achieve their goals on a tax-efficient basis. We offer an organized, experience-based approach.

Andersen advises several of the largest hedge funds in the United States and continues to address the complex issues facing the industry, providing the following expertise:

• Strategies for optimal fund structure
• Preparation of Form 1065s and state and local tax returns, including calculation of financial statement-to-tax differences
• Preparation of Schedule K-1s, reporting to meet U.S. filing requirements and U.S. tax reporting obligations
• Preparation of passive foreign investment company (PFIC) statements, including consideration of the excess distribution regime, mark-to-market regime, and the qualified electing fund (QEF) regime
• Preparation of interim tax information
• Planning/analysis of fund structure with regard to unrelated business taxable income (UBTI) for tax-exempt entities, effectively connected income (ECI) for foreign investors and other special investor issues
• Preparation of tax documentation to obtain withholding tax refund in accordance with international tax treaties
• Tracking contributed property and mandatory built-in gain or loss basis adjustment calculations

Andersen also addresses the needs of hedge fund partners in bringing the following services to its individual clients:

• Strategies for profits interest ownership including analysis of prospective legislation
• Diversification of wealth concentration
• Post-diversification consulting
• Qualified small business stock (QSBS) considerations

Andersen clients are accustomed to receiving personal, reliable, and valuable service from our tax and financial planning professionals. Now, Andersen is extending this capability beyond the walls of your office to provide personalized, convenient and secure management of your most important documents through The Andersen Extranet, our online document management system.

The Andersen Extranet is a secure online tool for managing your information assets. From tax returns to birth certificates, deeds to financial statements, The Andersen Extranet keeps your documents organized, accessible, protected and at your fingertips. Free yourself from the hassle of managing all of your critical documents and let Andersen do it for you.

Five Steps to Document Management Freedom
1. Andersen will meet with you to identify your specific needs and develop an organizational structure that works for you.
2. Send us your scanned files (or we can work with you to identify other scanning options).
3. We’ll place your files into an encrypted online vault according to the organizational structure you identify based on your needs.
4. Contact your Andersen Support Team to add, modify and organize files as needed.
5. Access your files anytime, anywhere.

Features

Organization
Free up some real estate in your file cabinet by converting all of your paper files into a digital/online format. We will create a custom organizational structure for your online document vault so you can find files quickly and easily.

Powerful Search Capabilities
You will never have to spend hours looking for a document again. With the Andersen Extranet, all of your documents will be organized in one safe place. Browse for files using the “Folder View,” or utilize the search capabilities to find exactly what you need in just a few clicks.

24/7/365 Access to Your Files
Access all of your most important documents anytime, anywhere. All you need is an internet connection and you are ready to gain access.

Secure File Sharing
Share files securely among advisors, family members, and other individuals according to the pre-established permissions. Andersen will work with you to identify the appropriate levels for your needs and based on your structure. Permissions are granular, meaning you have control over who can view each document, when they view it and for how long.

For more information, please contact us at extranet@andersentax.com.

Many of our clients have a passionate interest in philanthropy. Andersen helps our clients fulfill their philanthropic desires by finding “matching dollars” in the form of tax benefits for their charitable gifts. Andersen has a dedicated practice focused on charitable giving as a key component of income, estate, gift and trust planning.

As the authors of the highly regarded treatise, Tax Economics of Charitable Giving, Andersen is recognized as the thought leader for achieving philanthropic objectives in the most effective manner. Our services include:

• Optimizing available income tax benefits
• Integrating income tax benefits with estate, gift and generation-skipping transfer tax planning
• Designing charitable gifts to fit the client's overall objectives and financial situation, including outright versus deferred gift considerations
• Selecting the right vehicle, such as a trust, public or private foundation, or charitable gift fund
• Creating private charities
• Selecting appropriate assets to fund a charitable entity, including appreciated property, works of art and other collectibles, life insurance policies, limited partnership interests, etc.
• Structuring gifts of partial interests such as qualified conservation easements or remainder interests in a personal residence or farm
• Creating governance structure and selecting stewards of charitable entity (i.e.,  trustee, foundation manager, etc.)
• Documenting and substantiating charitable gifts, including special valuation issues and qualified appraisal requirements
• Representation before IRS on examinations of charitable giving issues

Our outsourcing approach gives clients immediate access to an effective and efficient finance and accounting solution.

In addition, our infrastructure can keep pace as company operations expand and volume of activity escalates. Our accounting services for closely-held businesses can provide services such as:

Establishment of Accounting Functions

Andersen can assist you with the initial set-up of your accounting functions, including:

• Assessment of financial accounting system needs and implementation of appropriate general ledger
• Design of effective accounting processes, forms and workflow
• Implementation of policies, procedures and internal controls
• Design and development of financial and management reporting packages
• Development of budgets and forecasts

Ongoing Accounting Outsourcing

Andersen can serve as the company’s full accounting department on an outsourced basis, assuming responsibility for all finance and accounting functions from the controller level down to administration, including:

• General accounting, record-keeping, reconciliation and financial reporting functions
• Cash disbursements and accounts payable processing
• Sales invoicing and accounts receivable processing
• Inventory management
• Specialized industry accounting
• Preparation of budgets and cash flow projection
• Payroll
• Fixed assets
• Cash management

Support During An External Audit

Andersen is not a CPA firm, but we are experienced in dealing with the audit process from the perspective of the client. Andersen can assist your staff as you respond to your independent auditors. We can provide qualified personnel to help you with preparation of schedules and analyses, assistance in responding to auditor’s inquiries in addition to functioning as the interface with your auditors and providing assistance with drafting of financial statements with full disclosures/footnotes.

Specialized Business Consulting Services

Many businesses that have established their own in-house accounting functions have benefited from our consulting services. Andersen professionals work together with your internal staff to develop accounting solutions that will fit your company now and can grow with you as your operations expand.

• Business Process Review Services – Andersen can review your company’s existing processes, workflow, personnel capabilities and technology, and identify specific opportunities to improve the overall operational efficiency of your accounting and administrative functions.
• Internal Control Services – Our specialists can provide consulting services focused on designing, assessing, enhancing and testing internal controls.
• Policies and Procedures – Andersen has helped many companies to formulate, tailor and document effective policies and procedures to fit their unique circumstances.

Temporary Staffing Assistance

We can provide experienced accounting professionals who step in on an interim basis to assist with special projects, meet seasonal needs, fill an unexpected vacancy, or assist in times of transition or growth.

Wealth brings a wide variety of complex challenges wealth brings a wide variety of complex challenges.

WTAS offers the objective expertise necessary to help you effectively navigate the complexities of wealth, providing solutions to effectively manage your taxes, financial and estate planning and personal accounting.

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When you are accumulating wealth, it’s not just how much you make but how much you keep that matters.  We offer a comprehensive, range of tax services to help our clients increase after-tax returns on private wealth.  Whatever the primary source of wealth -- private companies, real estate, stock-based compensation or financial investments – we consider each component and develop integrated strategies to minimize the impact of taxes.  Our expertise will help you deal with the wide variety of taxes that can diminish your returns from private wealth across generations – federal and state income taxes; estate, gift and generation skipping taxes; Medicare and social security taxes; and even property, sales and use taxes.

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We do much more than just give advice, we roll up our sleeves and assist our clients to manage their complex financial lives.  We objectively evaluate the financial services you receive so that you can make effective decisions and  provide unique and customized accounting solutions designed for the special needs of families and family offices.

Most importantly, we deliver the services you need with the highest standards of objectivity, integrity and professionalism.  Our single-minded purpose is to help develop and implement the solutions that are right for you and your family.

• Most importantly, we deliver the services you need with the highest standards of objectivity, integrity and professionalism. 
• Our single-minded purpose is to help develop and implement the solutions that are right for you and your family.
• Most importantly, we deliver the services you need
• Our single-minded purpose is to help

Most importantly, we deliver the services you need with the highest standards of objectivity, integrity and professionalism.  Our single-minded purpose is to help develop and implement the solutions that are right for you and your family.

Most importantly, we deliver the services you need with the highest standards of objectivity, integrity and professionalism. Our single-minded purpose is to help develop and implement the solutions that are right for you and your family.

Most importantly, we deliver the services you need with the highest standards of objectivity, integrity and professionalism.  Our single-minded purpose is to help develop and implement the solutions that are right for you and your family.

Accuracy related penalties — Any tax advice in this communication is not intended or written by us to be used, and cannot be used, for the purpose of (i) avoiding penalties that may be imposed by any governmental taxing authority or agency, or (ii) promoting, marketing or recommending to another party any matters addressed herein.

The opinions and analyses expressed herein are subject to change at any time, as are statements of financial market trends, which are based on current market conditions. Any suggestions contained herein are general, and do not take into account an individual’s or entity’s specific circumstances or applicable governing law, which may vary from jurisdiction to jurisdiction and be subject to change. Any third party information contained herein is from sources believed to be reliable, but which we have not independently verified. Past performance is not indicative of future results. Investments in securities may lose value, and fees, charges, and taxation can have an adverse effect on investment returns. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument.

No warranty or representation, express or implied, is made by Andersen Tax LLC, nor does Andersen Tax LLC accept any liability with respect to the information and data set forth herein. Distribution hereof does not constitute legal, tax, accounting, investment or other professional advice. Recipients should consult their professional advisors prior to acting on the information set forth herein.

Last Updated and Effective Date: May 12, 2023

I. INTRODUCTION

Andersen Tax LLC (“Andersen” or “we”) is a member firm of Andersen Global (“Andersen Global”), which is a Swiss verein comprised of legally separate, independent member firms located throughout the world providing services under their own name or the brand “Andersen,” "Andersen Tax,” "Andersen Tax & Legal," or "Andersen Legal." Andersen Global does not provide any services and has no responsibility for any actions of the member firms, and the member firms have no responsibility for any actions of Andersen Global or any other member firm. For purposes of this Privacy Policy, the other member firms of Andersen Global are referred to as Member Firms.

This privacy policy (“Privacy Policy”) describes how Andersen will collect, use and share your personal information and other information, including information related to our business-to-business and vendor relationships (“B2B”), the use of our website at andersen.com (the “Website”), which includes the U.S. Client Portal located on the Website, and information that is provided to us offline (e.g., information provided to an Andersen advisor electronically, over the phone or in person), including Andersen and Andersen Global communications, such as newsletters, that reference this Privacy Policy.

For purposes of this Privacy Policy, “Personal Information” is information that identifies, relates to, describes, is reasonably capable of being associated with, or could reasonably be linked, directly or indirectly, with you or your household, which you typically provide on a voluntary basis. Personal Information may include personal data that is subject to the EU General Data Protection Regulation (“GDPR”) and other applicable European data protection laws, personal information under the California Privacy Rights Act (“CPRA”), and, to the extent applicable, “personally identifiable information” under the Gramm-Leach-Bliley Act (“GLB Act”) and its implementing regulations. Personal Information does not include aggregated or combined information, which includes data that is related to you but studied as a group and is anonymised so that it does not identify you specifically.

II. INFORMATION COLLECTED BY ANDERSEN

In order to provide you with the benefits of using our Website, Andersen collects certain information from you and your devices. By using the Website or otherwise providing Personal Information to Andersen as part of our B2B relationship (online or offline), you consent to Andersen’s collection, use and disclosure of the data as described in this Privacy Policy. Under applicable data protection laws that recognize the concept of a controller of Personal Information, Andersen is the controller responsible for the processing of Personal Information that we collect as described in this Section.

1. Information that You Provide to Andersen

You may provide information to Andersen in a number of ways. When we enter into a B2B relationship, you may provide us information online or offline to consummate the relationship and carry out business functions. When you use the Website, you may provide certain Personal Information to us, such as when you register for an account on the U.S. Client Portal, complete forms on the Website, use the QSBS Calculator or other calculation tools, communicate with us, subscribe to our mailing lists, or apply for a job. You may also provide certain Personal Information to Andersen offline, such as when you provide information to an Andersen advisor over the phone, electronically, or in person.

The Personal Information we may collect include your (and your family members and/or employees, service providers and others, as applicable) personal and business name, contact information, identification numbers, financial information, and employment information. This Personal Information may also include special categories or sensitive Personal Information in connection with our performance of tax, consulting and other advisory services, such as your racial or ethnic origin or your religion; social security, driver's license, state identification card, or passport number; and account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.

2. Information Collected from Other Sources

In addition to Personal Information that you provide to Andersen, you may also affirmatively authorize or direct other parties to provide us with information, such as through your business, family members or advisors. We may also collect information about you from the Member Firms and firms with whom Andersen Global collaborates (“Collaborating Firms”) that have contractual relationships with Andersen Global. This Personal Information may include your (and your family members and/or employees, service providers and others, as applicable) personal and business name, contact information, identification numbers, financial information, and employment information. This Personal Information may also include special categories or sensitive Personal Information in connection with our performance of tax, consulting and other advisory services, such as your racial or ethnic origin or your religion; social security, driver's license, state identification card, or passport number; and account log-in, financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.

We may also collect other information about you from other parties. For example, other parties may provide us with your contact information as part of a referral. We may also collect publicly available information about you in public and private databases, such as through Lexis-Nexis or other search engines.

3. Information Collected from Your Browser or Device

In addition to the information that you provide to Andersen, when you visit the Website, we may automatically gather and store certain information (including Personal Information) about your visit from your browser or device, such as your IP address, geographical information, browser type and version, operating system, referral sources, and other information relating to your usage of the Website (“Website Data”). We may collect this information through the use of browser information, log files, and other methods.

4. Information Collected Using Cookies

For further information on our use of cookies, please visit our Cookie Notice.

III. USE AND SHARING OF COLLECTED INFORMATION; PURPOSES FOR COLLECTION

1. Use of Collected Information

Andersen may use your Personal Information (including the categories of Personal Information described above) and Website Data (collectively, the “Collected Information”) in a variety of ways as permitted by applicable law, which include those set out below. For example, where your Collected Information is subject to the GDPR, such Collected Information may only be used by Andersen for a lawful purpose as set out in the GDPR. We continue to use your Personal Information and Website data as described in this in this Privacy Policy when you are no longer a client of Andersen.

Where the relevant lawful purpose under the GDPR is that it is necessary for our legitimate interests to use your Collected Information, we have made sure to check that such legitimate interests are not overridden by your interests or fundamental rights and freedoms. You can obtain further information about how we assess these legitimate interests against any potential impact on your interests or fundamental rights and freedoms by contacting us using the information in the “Contact Us” section below.

• To Provide You with the Website and Related Services: We may use your Collected Information to provide you with the Website, maintain your U.S. Client Portal account, verify your identity to use the Website, provide you with customer service, and for troubleshooting, support services, and maintenance. We may do this because it is in our legitimate interests to provide you with the Website and related services, and to verify your identity. We may also do this because we may be subject to legal obligations which require us to verify your identity before allowing you to use the Website.
• To Provide You with Professional Services: We may use your Collected Information to provide you with professional services, such as tax consulting services, advisory services, valuation services, and investment consulting services, and to perform our obligations under the applicable corresponding agreement. We may also use your Collected Information for the purposes of offering other services to you. We do this because it is in our legitimate interests to provide you with professional services. We may also do this because it is necessary for the performance of our obligations under the applicable corresponding agreement.
• To Carry Out B2B Functions: We may use your Collected Information to consummated our B2B relationship with you and the business you represent and carry out business functions.
• To Fulfill Your Requests and Provide You with Other Services: We may use your Collected Information to fulfill your specific requests or provide the service for which you provided the information, such as signing you up for our Andersen Alumnus program or providing you with your requested calculation from our QSBS Calculator. We also do this because it is in our legitimate interests to fulfill your specific requests and provide you with the services for which you provided the information.
• To Process Your Employment Application: If you complete an employment application form on the Website, we may use your Collected Information to process your application and consider you for employment. We may do this because it is in our legitimate interests to consider your suitability for any of our employment vacancies.
• For Other Uses Identified in Agreements: We may also use your Collected Information for the specific uses identified in any agreements you may have with us. We may do this because it is necessary for the performance of the relevant agreement in which the specific use is identified.
• To Contact You and Send You Materials:  We may use your Collected Information to contact you. We may also use your Collected Information to fulfill your requests for information or services, including requests to receive our For the Record newsletter and other newsletters, information regarding Andersen Alumni News and Events, and other materials, to invite you to events, to send you marketing or promotional communications, and to ask you for your feedback. Where you are an individual subscriber, we will process your Collected Information in this way where you have consented to receive these marketing or promotional communications from us. Should you no longer wish to receive these marketing or promotional communications, you may withdraw your consent at any time by opting out as described in the “Opting-Out” section below. If you withdraw consent, this will not affect our use of the Collected Information processed on the basis of such consent, prior to your withdrawal of consent. Where you are a corporate subscriber, we will process your Collected Information in this way because it is in our legitimate interests to process your information in this way. Should you no longer wish to receive these marketing or promotional communications, you may opt out at any time as described in the “Opting-Out” section below.
• To Confirm Your Identity: We may use your Collected Information to confirm your identity, including in connection with any requests made in connection with the “Your Rights to Your Personal Information” section below. We may do this because it is in our legitimate interests to make sure that our counterparties are genuine and relationships are not being established for fraudulent or other illegal reasons. We may also do this because we may be subject to legal obligations which require us to confirm the details that you provide to us before entering into a relationship with you.
• To Manage Our Business: We may use your Collected Information to manage our business, including to perform accounting, auditing and other internal and administrative purposes, and to fulfill our regulatory obligations relating to our professional obligations. We may do this because it is in our legitimate interests to manage our business. We may also do this because we may be subject to legal obligations that require us to use the information for these purposes.
• To Improve Our Products and Services: We may use your Collected Information to evaluate and improve our products and services (including our Website), because it is in our legitimate interests to improve our products and services, and to operate our Website and keep our Website secure. We may also use your Collected Information to conduct research and perform analysis, learn more about our users and customers and identify new customers, and enhance the customer experience (including to better optimize and target our marketing and services). We may also use your Collected Information to personalize your experience on the Website and to improve the security, design, and functionality of our Website. We may do this if you have consented to our use of essential and analytics cookies, as further explained above in Section II.4.

Where your Collected Information is subject to the GDPR and includes special categories of Personal Information, such as your racial or ethnic origin or your religion, such Personal Information can only be processed under strict conditions. Where Andersen is processing special categories of Personal Information (other than Personal Information relating to criminal convictions and offences), unless another specified lawful purpose set out in applicable data protection laws applies, your explicit consent must be obtained before any such Personal Information is processed. Personal Information relating to criminal convictions and offences will only be processed if such processing is authorised under applicable data protection laws. It is possible that a data privacy impact assessment may need to be carried out before special categories of Personal Information can be processed.

Where your Collected Information is subject to the CPRA and includes sensitive Personal Information, we will only use it for certain limited purposes under the CPRA, such as to provide you services; prevent, detect, and investigate security incidents; resist malicious, deceptive, fraudulent, or illegal actions; ensure the physical safety of natural persons; and verify or maintain the quality of our services (“Limited Purposes”). Because we use your sensitive Personal Information for Limited Purposes, we do not provide a Limit Use and Disclosure of Sensitive Personal Information right under the CPRA.

2. Disclosure of Collected Information

Andersen may disclose your Collected Information for the following reasons with other parties who have agreed in writing to provide an adequate level of privacy protection:

• With Our Vendors, Service Providers or Contractors: Andersen may disclose certain Collected Information with other parties acting on our behalf, such as consultants, professional advisers, data analytics providers, and other service providers, contractors and vendors.
• With Our Member Firms and Collaborating Firms: Andersen may disclose your Collected Information with the other Member Firms or Collaborating Firms in Andersen Global for the purposes described in this Privacy Policy.
• With Other Parties: We may also disclose your Collected Information with other parties, including our Member Firms, Collaborating Firms, vendors, in other circumstances, including but not limited to the following:
  • If you consent or direct us to share your information with another party provided that the consent or direction has not been revoked.
  • If permitted by applicable law or you authorize us to disclose information with another party as part of our provision of professional services to you.
  • If permitted by applicable law or you authorize us to disclose information with another party as part of fulfilling your request for other services.
  • To disclose or transfer your information when conducting a business deal (for example, a merger or acquisition, financing, sale of assets, transition of service to another provider, insolvency, receivership, or a bankruptcy transaction or proceeding).
  • If we determine a policy violation has occurred, including to enforce the Andersen Terms and Conditions and any other agreements you may have with us.
  • To identify, contact or bring legal action regarding injury or interference with our rights and property, including to enforce our rights against unauthorized access or attempted unauthorized access to our information technology assets or against other inappropriate use of our Website.
  • For safety purposes, including to respond to an emergency.
  • To protect the rights, property, safety and security of you and others.
  • To comply with laws and regulations (including to fulfill our regulatory obligations relating to our professional obligations), court orders and subpoenas or similar requests for information by authorities, or as otherwise required by law.
  • To assist us in fraud, security or technical issues prevention or investigation or otherwise manage risks.
  • To someone acting in a fiduciary or representative capacity.
  • For required institutional risk control or for resolving client disputes and inquiries.

We will let you know where you must provide us with Personal Information so that we can use it and/or disclose it to other parties to comply with a legal obligation. If you do not provide us with the Personal Information in these circumstances, we will be unable to fulfill your request or provide the applicable service to you.

3. Website Data

In addition to the uses described above, Andersen may use Website Data to improve the Website and to help Andersen understand how users are using the Website. This information is also collected for statistical analysis, to improve the utility of the Website, and for other purposes described in this Privacy Policy. To the extent the Website Data constitutes Personal Information, we use this Personal Information if you have consented to our use of essential and analytics cookies, as further explained above in Section II.4. We may also use this Personal Information to ensure that content from the Website is presented in the most effective manner for you because it is in our legitimate interests to improve our customers' online experience in relation to the Website. Please note that we do not engage in cross-context behavioral advertising for targeted advertising based on your activities on this Website and other non-Andersen websites, applications, or services.

 

IV. YOUR RIGHTS TO YOUR PERSONAL INFORMATION

1. Right to Review, Correct, Update and Delete Personal Information

You may review, correct and update certain of your Personal Information that we have about you. For example, where your Personal Information is inaccurate or incomplete, you may ask for your Personal Information to be rectified or completed. In addition, in certain circumstances, you may request deletion of certain of your Personal Information. You may exercise these rights by contacting us using the information in the “Contact Us” section below. We may ask you to verify your identity and to provide other details before we provide access to, update or delete any of your information. Your right to delete information is subject to our record retention policy, including any retention requirements under applicable laws, and to exceptions to this right under applicable laws.

2. Right to Disclosure and Access

Depending on your applicable jurisdiction, including if you live in California or if your Personal Information is subject to the GDPR, you may have additional rights with respect to your Personal Information.

You may have the right to request that a business that collects Personal Information about you to disclose to you the categories of Personal Information we have collected about you, the categories of sources from which the Personal Information is collected, the business or commercial purpose for collecting, selling, or sharing Personal Information, the categories of parties to whom we disclose Personal Information, and the specific pieces of Personal Information we have collected about you. In some jurisdictions, you may request that this information be provided in a structured, commonly used and machine-readable format so that you may share it with others.

If you have these rights, we will not discriminate against you for exercising these rights. This includes us not: (a) denying you goods or services; (b) charging you different prices or rates for goods or services, including through the use of discounts or other benefits or imposing penalties; (c) providing you a different level or quality of goods or services; (d) suggesting to you that you will receive a different price or rate for goods or services or a different level or quality of goods or services; and (e) retaliating against you for exercising your privacy rights.

A general list of the categories of Personal Information that we have collected, the categories of sources from which the Personal Information was collected, the business or commercial purposes for collecting the Personal Information, and the categories of third parties with whom we share Personal Information is described in this Privacy Policy. To obtain a list of this information that is specific to you, or to obtain the specific pieces of Personal Information that we have collected about you (which may be limited to certain information that we collected in a specific timeframe, depending on your jurisdiction), please contact us using the information in the “Contact Us” section below. We may ask you to verify your identity and to provide other details before we provide such information to you.

3. Right to Transfer; Right to Object to Processing; Right to Restrict Processing; Right to Withdraw Consent

Depending on your applicable jurisdiction, including if your Personal Information is subject to the GDPR, you may have the right to request the transfer of your Personal Information to another party. You may also have the right to object to us processing your Personal Information by asking for the processing of that Personal Information to be restricted or stopped. You may also have the right to ask us to restrict the processing of your Personal Information, for example, if you want us to establish its accuracy or the reason for processing it. You may also have the right to withdraw your consent to us processing your Personal Information, where you have previously provided consent. You may exercise these rights by contacting us using the information in the “Contact Us” section below. We may ask you to verify your identity and to provide other details before we fulfill your request.

4. Authorized Agents

Depending on your applicable jurisdiction, you may exercise your privacy rights through an authorized agent. If we receive your request from an authorized agent, we may ask for evidence that you have provided such agent with a power of attorney or that the agent otherwise has valid written authority to submit requests to exercise rights on your behalf. If you are an authorized agent seeking to make a request, please contact us in the “Contact Us” section below.

5. Right to Make a Complaint

Depending on your applicable jurisdiction, you may make a complaint to your applicable data protection authority (or the equivalent regulator in your jurisdiction) about the manner in which Andersen is processing your Personal Information. For more information, or if you believe that Andersen has not complied with this Privacy Policy or the applicable law, please contact us using the information in the “Contact Us” section below. If you are not satisfied with the outcome of Andersen’s assessment of your complaint, you may be able to refer your complaint to the relevant regulator under applicable law.

5. No Sale or Sharing of Personal Information

Andersen does not sell or share your Personal Information with third parties. Andersen also does not knowingly sell, share, use for cross-context behavioral advertising or disclose the Personal Information of children under the age of 16..

 

V. OPTING-OUT

You may receive email communications from Andersen, including communications regarding the Website or our services, marketing or promotions, and/or other topics. To contact you, Andersen may use the information you provide to us, including email, address, fax or phone. You may, at any time, inform us that you do not want Andersen to contact you for marketing purposes by sending your request to us using the contact information in the “Contact Us” section below or by sending an e-mail to andersenprivacy@andersen.com. You may also opt-out of promotional email communications by clicking on a link provided in the promotional email message or through the use of Section 7216 Consent to Use forms in relation to tax returns information (if such is applicable to you). After opting-out, you will no longer receive marketing or promotional communications but will continue to receive other non-marketing-related messages, such as emails relating to our provision of professional services to you, your account or your use of the Website.

 

VI. Do Not Track Disclosure

Certain web browsers may provide a do-not-track (“DNT”) option. You may be able to ask your browser to inform websites that you do not wish your activities to be tracked, either with cookies or other persistent identifiers, commonly called “DNT signals.” The Website currently does not respond to DNT signals.

 

VII. SAFEGUARDING YOUR INFORMATION

Andersen is committed to maintaining the security of the data you provide us. To protect your personal information from unauthorized access and use, we use security measure that comply with applicable law. These measures include computer safeguards and secured files and buildings. If your Personal Information is subject to the GDPR, then we will protect such information in accordance with Article 32 of the GDPR. However, please note that there is always some risk in transmitting information over the Internet. Because the Website is provided through the Internet, when you use the Website, your communications may be intercepted by others. For this reason, Andersen cannot guarantee the security and privacy of transmissions via the Internet, and we will not be liable for any lack of security relating to the use of the Website, electronic communications, or U.S. Client Portal by you. You agree that you will not hold Andersen liable for any damages resulting from any loss of privacy or security occurring in connection with any communications over such networks.

 

VIII. RECORDS OF PERSONAL INFORMATION

Andersen has in place a policy regarding the storage of your Personal Information and will only store the Personal Information as long as Andersen considers it necessary or beneficial for the purposes set out in this Privacy Policy or for regulatory, audit or record-keeping purposes.

The following paragraph applies if your Personal Information is subject to the GDPR or the CPRA. We will keep a record of the Personal Information that we receive from you in order to answer your inquiry or request. We will keep a copy of your Personal Information held for the specific purpose for which it was provided (such as to provide professional services to you), until such purpose has come to an end and we no longer need to comply with a legal obligation that requires us to retain your Personal Information. We will delete our copy of your Personal Information in accordance with Andersen’s document retention policy, although we may retain a record of certain Personal Information to the extent that and for so long as we are required to do so by applicable law. For example, if you have contacted us to ask for the processing of your Personal Information to be erased, we will retain a record of your request in order to ensure that we comply with your wishes. More information on our retention policy can be obtained upon request by contacting us using the contact information in the “Contact Us” section below.

 

IX. Storage and Transfer of Personal Information to Other Countries

If you are located in the EEA, the UK and/or Switzerland and provide data or information to Andersen, it may be transferred to, processed in, stored at or accessible from a destination outside the EEA, the UK and/or Switzerland, such as the United States. By providing your Personal Information, you agree to this transfer, processing and storing. We will take all steps reasonably necessary to ensure your data is treated securely and in accordance with this Privacy Policy.

Where we pass your Personal Information from a location inside the EEA, UK or Switzerland to parties located outside the EEA, UK or Switzerland that do not offer adequate protection as determined by the European Commission, the UK and/or Swiss authorities, if they are not subscribed to an approved data protection framework, such as the EU-U.S. Privacy Shield, that permits us to transfer the Personal Information to them from a location inside the EEA, UK or Switzerland, we will enter into agreements which enable us to transfer the Personal Information to them and that enable you to exercise your rights in accordance with the GDPR. A copy of the applicable terms of these agreements can be obtained by contacting us using the information in the “Contact Us” section below.

Please do not provide your Personal Information to Andersen if you do not want this information to be transferred to the United States or to other countries, or if the laws in your country restrict these types of transfers. Your provision of Personal Information to Andersen means that you agree to the terms of this Privacy Policy.

X. Summary of Our Prior 12-Month Personal Information Handling Practices

For California residents, we provide below a summary of our prior 12-month Personal Information handling practices. You can learn more about the information we collect at or before the point of collection above in Sections II and III, which is the same for our prior 12 months. Please review Sections II and III for more details.

Category of Personal Information	Sources	Business or commercial purpose of processing and disclosure and recipients of personal information
Identifiers, such as a real name, postal address, birthdate, email address, other contact information, and identification numbers, such as social security number, driver’s license number, and passport number.	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Personal information described in subdivision (e) of Section 1798.80, such as, name, signature, social security number, telephone number, passport number, driver's license or state identification card number, education, employment, employment history, bank account number, credit card number, debit card number, or any other financial information.	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Characteristics of protected classifications under California or federal law.	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Professional or employment-related information	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Education information.	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Sensitive Personal Information, such as racial or ethnic origin, your religion, your sex life or sexual orientation, your social security, driver's license, state identification card, and passport number, and account login and financial account, debit card, or credit card number in combination with any required security or access code, password, or credentials allowing access to an account.	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Internet or other electronic network activity information	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.
Inferences from any of the Personal Information herein	You or other sources	Sold   This Personal Information has not been sold   Shared for Cross-Context Behavioral Advertising   This Personal Information has not been shared for cross-context behavioral advertising.   Service Providers or Contractors   This Personal Information may have been shared with service providers or contractors, such as consultants, professional advisers, and data analytics providers.   Purpose of Processing   We may have used and disclosed this Personal Information for other reasons, as described in Sections II and III above.

 

XI. EXCLUSIONS

The Website may contain links to websites owned by other companies. Because Andersen has no control over the privacy practices or content of these linked sites, we recommend that you carefully review the privacy policy of each website you visit. Andersen is not responsible for the content or privacy practices of websites owned by other companies.

As a professional services provider, Andersen does not seek to, nor do we knowingly collect, information directly from children under the age of 16. If a child has directly provided us with Personal Information, a parent or guardian of that child may contact us to have the information deleted from our records. To do so, contact Andersen through the information provided below in the “Contact Us” section.

 

XII. CONTACT US

For questions or comments regarding this Privacy Policy, including to exercise your rights pursuant to the “Your Rights to Personal Information” section above, please contact us at:

By Phone:

1.888.731.2080

By Postal Mail:

Andersen Tax LLC

71 S. Wacker Drive, Ste. 2600

Chicago, Illinois 60605

Attn: Privacy Team

By E-mail:

andersenprivacy@andersen.com

 

XIII. UPDATES TO PRIVACY POLICY

From time to time, we may update this Privacy Policy. If we do, we will note near the top of this page the date that any changes are made and/or when they become effective. If the changes being made are material, we may alert you to the changes in a more prominent way. Your inaction or continued use of the Website or provision of Personal Information after any such notices, will tell us that you agree to these changes.

Copyright in these pages, screens, information, and material and their arrangement in this site is owned by Andersen unless otherwise noted.

All documents, programs, publications, designs, products, processes, software, technology, information, and ideas (Content) provided by or described in this Site are the property of Andersen Tax LLC and are protected by U.S. and international copyright laws and other intellectual property laws. The Content is provided to users of this Site for informational purposes only. Any other use, including reproduction, modification, distribution, transmission, display, or performance of the Content is strictly prohibited.

By accessing this site and any of its pages you agree to be bound by the following conditions.

Limitations on availability of services

Andersen Tax LLC is a registered investment advisor (RIA). Information and services provided are intended only for residents of the United States.

Andersen Tax LLC is not a CPA firm, public accounting firm or law firm. This information is not intended to provide legal, tax, or accounting advice and should not be relied upon in that regard. Persons accessing the website are advised to obtain proper legal, accounting, tax, or professional advice where necessary.

The member firms of Andersen Global cannot obligate each other and are not liable for each other’s acts or omissions. Andersen Global does not provide any services.

Limitation of Liability

In no event will Andersen be liable for any damages, including without limitation direct or indirect, special, incidental or consequential damages, losses or expenses arising in connection with this site or its use or inability to use by any party, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus or line or system failure, even if Andersen is advised of the possibility of such damages, losses or expenses. Hyperlinks to other Internet resources are at your own risk; the content, accuracy, opinions expressed and other links provided by these resources are not investigated, verified, monitored or endorsed by Andersen.

No Warranty

THE INFORMATION AND MATERIALS IN THIS SITE, INCLUDING TEXT, GRAPHICS, LINKS OR OTHER ITEMS, ARE PROVIDED "AS IS" AND "AS AVAILABLE." Andersen DOES NOT WARRANT THE ACCURACY, ADEQUACY OR COMPLETENESS OF THIS INFORMATION AND MATERIALS, AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THIS INFORMATION AND MATERIALS. NO WARRANTY OF ANY KIND, IMPLIED, EXPRESS OR STATUTORY, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF NON-INFRINGEMENT OF THIRD-PARTY RIGHTS, TITLE MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND FREEDOM FROM COMPUTER VIRUS, IS GIVEN IN CONJUNCTION WITH THE INFORMATION AND MATERIALS.

Andersen is one of the largest independent, full-service valuation firms in the country. Clients range from individuals and small start-up operations to multibillion-dollar global enterprises. Our valuation professionals are highly qualified to help clients with critical valuation issues. Our deliverables are designed to withstand review by third parties and, as applicable, in administrative, regulatory body review and court proceedings. 

Andersen’s valuation services team provides thorough, independent valuation analyses together with superior client service and responsiveness. We produce comprehensive analyses and deliverables that reflect our technical depth and extensive experience with complex valuation issues and diverse industries.

As an independent firm that is not affiliated with an auditing or research firm, we are free from conflicts. Our valuation group provides thorough and well-reasoned analyses, including presentation of logical, defensible support for key assumptions, consideration of multiple valuation methodologies, and “out of the box” thinking beyond standard approaches for unique assets. 

By working with our clients at every step of the valuation process, we maximize efficiencies by minimizing diversion of client resources and personnel. Andersen professionals have a track record of dependability, including on-call availability during a project, strict adherence to deadlines, and continuous communication with our clients. 

Our valuation specialists have extensive experience in providing appraisals and financial consulting services for a variety of needs and across a wide range of industries. Andersen's comprehensive team includes tangible asset experts who perform valuations of real property and other tangible assets such as machinery and equipment. Our team has expertise in the valuation of:

• Business entities and interests
• Closely held companies
• Partial interests
• Family limited partnership and limited liability company interests
• Business operations including subsidiaries, divisions, profit centers and reporting units
• Financial assets such as preferred stock, debt instruments, options, warrants and embedded derivatives
• Investment portfolios and management companies including private equity, venture capital and hedge funds
• Intangible assets including intellectual property, patents, trademarks, copyrights, covenants-not-to-compete, technology, software, customer assets and other contractual relationships
• Real estate 
• Machinery and equipment

Our experience ranges across family partnerships, private equity funds, hedge funds, real estate funds, venture capital funds and fund of funds.

Andersen is unique with respect to our deep expertise with all of the stakeholders in a fund: the fund, general partner, portfolio companies, individual principals and the fund investor. Our comprehensive, practical approach focuses on both the funds and the partners, providing value-added planning along with practical solutions to the administrative complexities of funds.

Andersen does not perform attest services and does not issue financial opinions. We are free from today’s most scrutinized conflicts-of-interest, including audit, research and bond-rating offerings. We have only our clients’ interests in mind.

Andersen's alternative investment fund team provides the following advisory services:

Entity structuring Estate planning Wealth transfer planning Charitable planning Tax due diligence

Valuation services Income tax planning Cross border consulting Compensation planning

Andersen's alternative investment fund team provides the following accounting services:

Maintenance of schedule of partners’ capital Computation of capital calls and preparation of capital call notices Allocation of partnership net income (loss) to partners Allocation of management fees and other expenses Accounting for distributions, including calculation of carry Accounting for investments in portfolio companies Marking investments to current estimated market value

Reconciliation of bank accounts and recording of resulting journal entries Maintenance of general ledger Quarterly financial reporting to partners Preparation of audit schedules, as requested Interface with outside auditors Preparation of checks for management company Preparation of checks for partner distributions Processing of cash deposits

• Tell us about where you are, where you've been, and where you are going, and we'll keep you in touch about Andersen and any upcoming alumni events.

Andersen specializes in independent, objective and practical planning advice for successful private equity firms, their general partners and portfolio companies.

While private equity ownership can provide significant opportunities through hedge, venture and buy-out investments, the complexity created due to cash flow, valuation, distribution, diversification and family transfers can result in significant tax planning needs.

Andersen can help. Our professionals have extensive experience assisting private equity funds and their partners and are fluent with multiple aspects of private equity investing. Our comprehensive, practical approach focuses on the funds and their partners, assisting them to plan for and make decisions that will help them achieve their goals on a tax-efficient basis. We offer an organized, experience-based approach.

Andersen advises several of the largest private equity funds and their partners in the United States and continues to address the complex issues facing the industry. While not exclusive, the following represents some of the expertise we bring to our individual clients:

• Strategies for carried interest ownership including analysis of prospective legislation
• Diversification of wealth concentration
• Post-diversification consulting
• Qualified small business stock (QSBS) considerations

Andersen also serves as a critical member of the advisory team to private equity funds to help them confront some of today’s most pressing topics, including:

• Management fee structuring
• Distribution timing and execution
• Portfolio company structuring
• Planning for portfolio company executives

Andersen specializes in independent, objective and practical planning advice for successful hedge funds, their general partners and portfolio companies.

While hedge fund ownership can provide significant opportunities through hedge, venture and buy-out investments, the complexity created due to cash flow, valuation, distribution, diversification and transfers can result in significant tax planning needs.

Andersen can help. Our professionals have extensive experience assisting hedge funds and their partners, and are fluent with multiple aspects of hedge fund investing. Our comprehensive, practical approach focuses on the funds and their partners, assisting them to plan for and make decisions that will help them achieve their goals on a tax-efficient basis. We offer an organized, experience-based approach.

Andersen advises several of the largest hedge funds in the United States and continues to address the complex issues facing the industry, providing the following expertise:

• Strategies for optimal fund structure
• Preparation of Form 1065s and state and local tax returns, including calculation of financial statement-to-tax differences
• Preparation of Schedule K-1s, reporting to meet U.S. filing requirements and U.S. tax reporting obligations
• Preparation of passive foreign investment company (PFIC) statements, including consideration of the excess distribution regime, mark-to-market regime, and the qualified electing fund (QEF) regime
• Preparation of interim tax information
• Planning/analysis of fund structure with regard to unrelated business taxable income (UBTI) for tax-exempt entities, effectively connected income (ECI) for foreign investors and other special investor issues
• Preparation of tax documentation to obtain withholding tax refund in accordance with international tax treaties
• Tracking contributed property and mandatory built-in gain or loss basis adjustment calculations

Andersen also addresses the needs of hedge fund partners in bringing the following services to its individual clients:

• Strategies for profits interest ownership including analysis of prospective legislation
• Diversification of wealth concentration
• Post-diversification consulting
• Qualified small business stock (QSBS) considerations

Andersen Directory

Interviews don't have to be stressful. If you are well prepared and in the right frame of mind, they can be enjoyable.

Before:

• Make sure you know where you are going and how to get there.  Give yourself plenty of time.
• Re-read your application. Remember what you said and why you said it.
• Remind yourself of the research you completed on WTAS and your chosen business area in particular. Knowing your facts and being able to demonstrate your understanding of the industry shows us you are serious about a career with us.
• Prepare appropriate questions. This is your chance to find out exactly what is involved in the work and the training, and to make sure both WTAS and the job are right for you.
• Beyond the essential criteria, we look for other skills and interests. Be prepared to talk about yourself in a wider context.

During:

• Whenever possible, your interviewer will be a line manager from your chosen business area.
• Speak clearly and concisely, but avoid one-word answers—"yes" and "no" will not tell your interviewer anything and will prevent you progressing to the next stage.
• Like the telephone interviews, our face-to-face interviews are structured and capability-based. We want to find out whether you possess various capabilities.  We will ask you to talk about specific examples of when you've used your skills and experience to demonstrate those capabilities. Answer the question asked rather than just talking about everything you know.  Listen carefully to what the interviewer is saying and asking.
• Be yourself, relax and let your real personality come through.
• We do not expect you to have an instant answer for every question. Do not be afraid of silences; take time to think about your responses. If you do not understand a question, ask to have it repeated or rephrased.

After:

• We aim to get back to you as soon as possible. If you are successful, we may invite you to take part in a further interview.
• If you are unsuccessful, please be aware we may not be able to offer individual feedback at this stage due to the sheer number of applicants we interview.

If you haven't taken part in a telephone interview before, you might find these tips useful:

• Take your telephone interview as seriously as a face-to-face interview. This is often your initial contact with our firm and may be your only opportunity to demonstrate your abilities.
• Remember which number you give us as your contact number for your telephone interview. Make sure you can hear the telephone ring at the scheduled time for your interview.
• Consider the interview to be an appointment.  It is surprising how many people forget to be in the right place to receive the call.
• Make sure you can be somewhere quiet where you won't be disturbed – particularly if you are using a cell phone. If you do use a cell phone, be sure to take the call somewhere with adequate reception.
• Remember, you won't be able to give or receive all the visual clues that you normally do during a face-to-face interview. This makes listening especially important and your verbal communication skills essential.
• Make sure you understand the questions and be as clear and articulate as you can when you answer.
• Naturally, you will prepare for your interview in advance, but avoid the temptation to prepare scripted answers to the questions you think you will be asked.  Candidates who do this often find themselves answering inappropriately to the question that was actually asked.
• The telephone interview is structured in nature and the interviewer will have a time limit. The interviewer will be attempting to learn specific information about you and therefore will guide the direction of the conversation.  The interviewer may cut you off if your response is heading off course or if you have provided sufficient information.  Do not be offended – this is merely to ensure that the interviewer learns what he/she needs in the time allotted.

Practice Management
If you are interested in an administrative position, please review our open PMG positions and submit your resume to Human Resources.

Experienced Professionals
We continually seek high quality experienced professionals to join our team. Whether you are starting your career or are more experienced, we welcome the opportunity to review your qualifications. Please review open positions and submit your resume to Human Resources.

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The Andersen organization operates under the direction of the firm's Managing Directors located throughout the United States. Click below for a brief biographical sketch of  Andersen Managing Directors and Directors to learn more about their primary areas of practice as well as their background and experience. Feel free to contact any of our people to discuss how Andersen can help you or your business.

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Newsletters

For the Record, Andersen’s official newsletter, covers a variety of tax and financial topics relevant to both individuals and corporations.

Use the links below to review recent newsletters written and published by Andersen professionals. If you have any questions or would like additional information about any of the topics covered in these articles and publications, please contact us.

Andersen Managing Directors publish key resources that are widely used by tax practitioners. These resources have been trusted by tax professionals for years and showcase the outstanding technical capabilities that differentiate our firm.

Andersen has an exceptional team of tax professionals that specialize in the asset and credit practice including research tax credit studies, cost segregation studies, fixed asset reviews and software development cost analysis.

Research Tax Credit Study

Andersen research tax credit (RTC) studies can generate significant tax benefits by providing federal and/or state tax credits to companies performing eligible research activities. The RTC provides a non-refundable tax credit to small-, mid- and large-cap companies performing domestic research and/or development activities, which can be used to offset income tax liability. Andersen provides solutions that may significantly reduce tax liability, reduce ETR and increase EPS, while ensuring the proper documentation is in place to support the tax position under IRS audit for our RTC studies.

Cost Segregation Study

An Andersen cost segregation study (CSS) can generate significant tax benefits by accelerating the depreciation deductions for your new, existing, or purchased real estate or leasehold improvements. By coupling our team’s engineering and accounting experience we can help your company maximize the amount of personal property that can be reclassified from real property. This tax deferral strategy can result in reduced federal (and some state) taxes, as well as increased cash flow. Reducing real property basis can also create a permanent tax benefit by reducing state and local property taxes.

Fixed Asset Review

The objective of the Andersen fixed asset review is to maximize tax depreciation deductions and increase cash flow. It is a challenge for companies to keep up with constantly changing tax rules and court cases that affect asset depreciation methods based on the classification of property. The analysis that Andersen performs focuses on uncovering missed depreciation deductions and ensuring that these deductions are captured and taken into account on your company’s current tax return filing. In addition, a fixed asset review can help your company clean up its fixed asset ledger thereby helping to mitigate audit risks.

Andersen has the ability to effectively address the complexity of tax and financial reporting that is unique to investment partnerships and the principals who manage them.

Our experience ranges across family partnerships, private equity funds, hedge funds, real estate funds, venture capital funds and fund of funds.

Andersen is unique in our deep expertise with all of the stakeholders in a fund -- the fund, general partner, portfolio companies, individual principal and the fund investor. Our comprehensive, practical approach focuses on both the funds and the partners, providing value-added planning along with practical solutions to the administrative complexities of funds.

Andersen does not perform attest services and does not issue financial opinions. We are free from today’s most scrutinized conflicts-of-interest including audit, research and bond-rating offerings. We have only our clients’ interests in mind.

Andersen brings a high level of sophistication and expertise to address the tax and financial issues that arise in a pre-marital situation or a marital dissolution. Clients appreciate our ability to coordinate and integrate tax, valuation, financial and practical considerations to the planning process. We have a unique familiarity with the complex financial lives of individuals and families associated with substantial wealth. Our assistance frequently extends well beyond the marital union or dissolution process to assist with the continued management of the divided wealth.

Following are some of the services that we provide to assist clients with the challenges of efficiently creating an equitable division of assets:

• Measurement of the deferred tax liability associated with marital assets to ensure equitable division of after-tax assets
• Planning to mitigate tax consequences associated with the division of marital assets
• Revision of estate planning in consideration of changes to marital status in a way that preserves and enhances any existing wealth transfer planning
• Valuation of marital assets
• Provision of expert advice and other assistance with dispute resolution
• Evaluation of alternatives for funding a marital settlement

Many of our clients have a passionate interest in philanthropy. Andersen helps our clients fulfill their philanthropic desires by finding “matching dollars” in the form of tax benefits for their charitable gifts. Andersen has a dedicated practice focused on charitable giving as a key component of income, estate, gift and trust planning.

As the authors of the highly regarded treatise, Tax Economics of Charitable Giving, Andersen is recognized as the thought leader for achieving philanthropic objectives in the most effective manner. Our services include:

• Optimizing available income tax benefits
• Integrating income tax benefits with estate, gift and generation-skipping transfer tax planning
• Designing charitable gifts to fit our client's overall objectives and financial situation, including outright gift versus deferred gift considerations
• Selecting the right vehicle, such as a trust, public or private foundation, or charitable gift fund
• Creating private charities
• Selecting appropriate assets to fund a charitable entity, including appreciated property, works of art and other collectibles, life insurance policies, limited partnership interests, etc.
• Structuring gifts of partial interests including qualified conservation easements or remainder interests in a personal residence or farm
• Creating governance structure and selecting stewards of charitable entity (i.e., trustee, foundation manager, etc.)
• Documenting and substantiating charitable gifts, including special valuation issues and qualified appraisal requirements
• Representation before IRS on examinations of charitable giving issues

WTAS offers a full spectrum of services for both individuals and corporations providing employees opportunities to explore many different areas of interest. We offer our clients integrated solutions and creative problem solving. Individually and collectively, we take pride in our focus, state of the art ideas, and client service.

Much like the fast pace and rapid change of international business, Andersen is a dynamic and nimble organization poised to meet your global tax needs.

We have extensive experience in advising new and mature multinational businesses. Our focus is on effective and efficient global tax planning that seamlessly integrates with your international business operations in a practical and proactive manner.

Our international tax professionals at Andersen and the member firms and collaborating firms of Andersen Global help companies across a wide range of international expansion stages. Companies in the beginning stages of international expansion considering opening rep offices abroad, while not creating a permanent establishment, need particular attention and guidance. Andersen specialized services for these early-stage companies include basic-to-sophisticated planning concerning: choice of an entity or a branch; acquisitions; joint ventures; financings; foreign-loss utilization, holding companies, IP planning and cost-sharing.

Later stage, more developed companies that manufacture and distribute outside the U.S. also have a unique set of needs. Andersen professionals provide thorough, proactive solutions in complex tax matters that arise as companies grow from the early stages into the later, sophisticated stages of global expansion. Our approach to tax planning is driven by your business operations, not vice versa.

Some significant international tax practice areas that Andersen provides include:

Compliance

• Foreign tax credit calculations including: income sourcing, expense apportionment, interest allocation, determining creditable foreign taxes and Sec. 78 gross-up
• Dual consolidated loss determinations, calculations, elections and triggering-event exceptions
• Foreign exchange planning and calculations
• IRS and foreign tax filings
• Elections and notifications
• E&P and tax pool calculations
• Earnings stripping planning, structuring and calculations
• U.S. withholding tax determinations, remittance and compliance
• CFC calculations and filings
• PFIC calculations and filings

International and Domestic Tax Provision Calculations and Assistance

International Tax Consulting and Planning

• International tax planning projections and calculations
• Acquisition structuring and restructurings
• Disposition planning
• Cash repatriation
• Subpart F minimization
• Efficient use of foreign tax credits
• Financings and re-financings
• U.S. and foreign incentives
• Tax treaty planning and interpretation including permanent establishment planning and determinations, limitation on benefits determinations and reducing or eliminating withholding taxes

Transfer Pricing

• Contemporaneous documentation and penalty protection
• Economic value chain / functional analysis
• Benchmarking analysis
• IRS and foreign audit support and defense
• Planning including IP transfers, risk allocation, business operations re-structuring, among others.

U.S. and Foreign Tax Authorities Audit Defense and Support

U.S. and Foreign Tax Rulings and Opinions

The current economy left states with unprecedented budget deficits and the prospect of significant future budget shortfalls. Faced with this prospect, states are required to aggressively pursue tax reviews and audits to attempt to bridge these budget gaps. This environment of increased audit activity and expensive assessments will place a burden on every taxpayer to defend its tax positions and reduce its taxes.

Resolving tax audits favorably may be difficult for taxpayers in an environment when tax authorities become very creative in computing assessments.

Because tax auditors and agency administrators are on the lookout for ways to generate revenue, they resort to very aggressive tactics to enforce the tax laws. Anyone may find him/herself in the cross hairs of an aggressive state taxing agency’s auditors who are using more sophisticated methods of identifying potential taxpayers and imposing their respective laws.

Our experienced state and local tax (SALT) professionals—many of whom are former state government employees—work with state and local taxing agencies across many jurisdictions. We have developed relationships with auditors and key administrators to help you navigate, negotiate, and resolve audit and appeal issues. Our SALT team is experienced in the states’ audit techniques and can help manage an audit, negotiate with the auditors, or strategize with tax personnel to significantly reduce any tax exposure. We also work to minimize any potential liability by identifying opportunities for offsets of credits, overpayments and refunds.

Andersen offers flexible pricing arrangements, in select circumstances, such as contingency pricing for our services. Our goal is to ensure that we not only meet your expectations, but also surpass them both in client service and convenience.

Andersen takes a strategic approach in looking at your business to find opportunities and provide value in the following areas:

Audit Defense and Administrative Appeal

• Audit Defense Services: Our highly qualified team keeps abreast of trends and can work with the auditor and supervisory staff to help resolve the audit at the lowest possible level of administration.
• Administrative Hearings and Appeals: Andersen has experienced professionals who handle all steps in the process of resolving your audit issues. We view ourselves as part of your team. We will scale our involvement accordingly based on whether you are actively involved or prefer that we manage the entire process. Our SALT professionals bring our experience and relationships with key personnel at state tax departments to your company.
• Regulatory Projects: Key issues and topics are addressed before state revenue departments to keep you up to date with the most important topics for your business when state revenue agencies act.
• Negotiated Settlements: The option to settle difficult matters often involves approaching the right people with the best alternative approach and persuasion. Our team can develop that approach with the relevant key state personnel to get you the best potential resolution without the time and expense of litigation or appeal.

Voluntary Disclosure Agreements and Strategic Refund Claims

• Voluntary Disclosure Agreements to States: Many states will limit the look-back period, negotiate resolution and waive penalties for taxpayers who voluntarily come forward to pay back taxes. Andersen can also approach the state and local taxing authorities on an anonymous basis to assist you with identifying potential outcomes prior to your disclosure.
• Strategic and Protective Refund Claims: Our SALT team keeps abreast of key tax issues being appealed and litigated in your state to identify opportunities for you to file strategic claims on issues being addressed or resolved that may favorably impact your business. In addition, we can assist you in filing protective claims on important matters, navigating through the courts for you in order to protect potential refunds for prior years before the statute of limitations might otherwise expire.

Conducting business in a multistate environment can be challenging from many perspectives, but especially from the state and local tax perspective. Each state has the ability to impose taxes, and all of the states exercise that right. There are no bright-line limits to their ability to tax or to the amount of tax they can require. The only limitations to their ability to tax are the U.S. Constitution and the individual voters. That leads to many, many vagaries and complexities.

For many companies, a large percentage of their overall income tax liability is attributable to state and local income and gross receipts based taxes.

Andersen takes a strategic approach to helping clients manage the complexities of state income, franchise and gross receipts tax. Our state and local tax (SALT) professionals work with business owners, finance professionals or tax department professionals to educate, advise and assist them in understanding and planning for the effects of operations on state income and gross receipts taxes. Additionally, our SALT professionals work with clients to recover overpaid income and gross receipts taxes, assist with the preparation of annual tax return obligations or other compliance, and identify and implement planning that impacts the overall state income tax posture of companies.

Some of the specific areas in which our SALT professionals can assist include:

Strategic Consulting

• Nexus Studies: Determination of the jurisdictions where your company must file tax returns.
• Tax Amnesty/Voluntary Disclosures: Agreements with tax jurisdictions to give your company a means to settle past state and/or local tax exposures.
• Tax Recovery Reviews: Review of past filings to determine where your company may be paying more tax than is required.
• Apportionment: Determination of the proper manner in which to source sales, payroll and property to the various taxing jurisdictions.
• Tax Controversy: Help in resolving audits and negotiating with taxing jurisdictions.
• Accounting for Uncertain Tax Positions: Evaluation of uncertain tax return positions and related documentation to avert accuracy-related penalty.
• Accounting for Income Taxes: Computations of income tax provisions and tax accrual work papers.
• Business Structure Review and Planning: Determination of the proper entity choice for a business to reduce personal liability, protect assets and minimize tax.

Compliance

• Multistate filings
• Unitary/combined/consolidated filings
• Identification of state adjustments
• Local tax filings
• Help with state/local estimated tax calculations and penalty avoidance
• Guidance on new state tax policy and legislation, and on the tax return impact of those changes

Andersen takes a strategic approach to helping clients manage the complexities of state income, franchise and gross receipts tax. 

Nearly every transaction of goods and many service transactions come with an added charge for sales or use taxes. The tax rates can be as high as 10%. Each individual and every business—large or small—must consider the taxability of everything that is sold, bought, given away and/or consumed.

For businesses, overpayments of sales and use taxes are above-the-line costs, unduly burdening EBITDA and impacting earnings per share. Efficiently managing these costs aligns with effective financial management of the business, and can save significant time and money. Our experienced state and local tax professionals work with every aspect of sales and use tax and can help you make sense of the obligations and opportunities. Our services include the following:

Sales and Use Tax Process Review/Automation

Andersen can assist clients with reviewing their tax compliance processes to identify opportunities to enhance, streamline and automate the sales and use tax function. Our experience in process re-engineering and tax technology can improve processes, strengthen internal controls and reduce the cost of compliance.

Sales and Use Tax Compliance Outsourcing

Andersen provides full service, outsourced sales and use tax compliance services. Andersen focuses on identifying and adopting best practice methodologies specifically suited to our clients’ business activities. Outsourcing sales and use tax compliance relieves clients of the burden of deadlines, and lowers the costs in terms of compensation, benefits, training, administration and licensing/maintenance of tax preparation software.

Audit Defense Services

State and local tax authorities are becoming very creative and aggressive in their audits of business taxpayers. Auditors often overlook credit items and assess tax on transactions that may not be taxable based on use or interpretation. Andersen can assist clients in managing an audit from start to finish. Andersen has extensive experience representing clients and our credibility and tax knowledge allow us to obtain the best possible results.

Refund Analysis

Sales tax is frequently paid on exempt items, either to the supplier or to the state, where a legal exemption is available. We can assist clients by performing a review of their purchases to identify potential refunds of sales and use taxes. During a review of the capital assets and supply purchases, we typically identify overpayments in a variety of areas and have been successful in assisting clients with obtaining refunds of overpaid taxes.

Airplanes, Artwork, Antiques and Automobiles

Certain types of property are usual suspects for state use tax collectors. Large dollar items bought at auctions, brought through customs, or having mobility are targets for audits. Andersen works with consumers of such items, both businesses and individuals, navigating the rules to comply with and minimize state use tax obligations related to these items.

Nexus Study/Voluntary Disclosure/Amnesty

As companies expand operations across state lines, or engage in acquisitions of existing companies and business operations, they face questions about physical presence and resulting nexus issues. Andersen can assist clients in determining past SALT exposure where they may have nexus, and negotiate on an anonymous basis to minimize interest, penalties and deficiency look-back period through voluntary disclosure and amnesty agreements.

Other Sales and Use Tax Services

In addition to the services noted above, Andersen has the knowledge and experience to assist clients with the following areas:

• Sarbanes Oxley compliance (documentation, testing, remediation)
• M&A (diligence readiness, tax due diligence, deal considerations, post-transaction integration)
• Tax process improvement (tax variance analysis, formula use tax reporting, etc.)
• Managed audits
• Transactional analysis/tax determination
• Exemption certificate management/automation

The state and local tax landscape is replete with opportunities to reduce taxes, conserve cash, and increase the return on capital investment by taking advantage of tax and related incentives. Our experienced state and local tax professionals have worked with state and local governments across the country to identify, negotiate and claim funds available to a variety of companies in different industries and at different stages of growth, from startups to the Fortune 100. Credits and incentives may be available to any business. Companies with a higher likelihood of opportunities for credits and incentives are those that are expanding, moving operations or hiring and training employees.

Andersen can work with you to identify those credits and incentives that are advantageous for your business to capture. Some of the current credits and incentives include: 

Statutory Incentives

• Enterprise Zones: Many states and local governments provide incentives based upon the location of the business in a favored zone. Companies located in these areas may be eligible for significant tax credits.
• Capital Investment Credits: Several states provide tax credits based on the level of capital investment in machinery and equipment in the state or a favored area. Some of these credits may be industry specific (e.g., agricultural equipment, film production equipment or manufacturing machinery).
• Hiring Credits: Many states and several cities provide tax credits for increasing headcount or hiring workers that meet certain eligibility criteria (e.g., disability, Native American heritage, military service veterans or low income).
• Training Credits: Several states provide credits for training expenditures.

Negotiated Incentives

• Business Expansion Funding: Many states and localities provide funding for companies that intend to make capital investments and create jobs. The funding may range from cash grants and refunds of expenditures to low- or no-interest financing.
• Tax Abatements: Many governments are willing to negotiate abated or lower property tax, sales and use tax, and income/franchise tax.
• Training Funding: Several states provide cash grants for a company training its workforce, especially in new technology.

Green Incentives

• Solar and Wind: The expansion of alternative energy has created a vast patchwork of incentives. Income tax credits and property tax abatements are most common.
• Geothermal and Other: An ever increasing number of states are expanding incentives to reach energy efficient technologies.

Income taxes imposed on individuals, trusts and estates are one of the top sources of revenue for state and local jurisdictions. The complexities of business ownership, investment and the mobility of the workforce can cause traps. Similar to the common scenario of professional athletes who travel from state to state, company executives working in multiple states should also file a return for the period of time spent in those jurisdictions. Failure to report income in all applicable states can be embarrassing not only to the executive, but also to the company. However, with these complexities, significant opportunities for planning also exist.

Our experienced state and local tax (SALT) professionals provide proactive planning, compliance, consulting and audit defense services for individuals, trusts and estates with complex tax situations.

Specific areas in which our SALT specialists provide services include:

Residency Issues

State residency rules can be quite complex and vary from state to state. Our experts can assist in determining a taxpayer’s state of residency and defend clients who have been challenged to support their residency status.

Income Sourcing

Determining how much salary, business or investment income should be sourced to a particular state is complicated and inconsistent among the state jurisdictions. Our SALT professionals regularly identify the issues and provide the methodology to determine the appropriate amount of income/loss to be reported to a jurisdiction.

Audit Defense

Andersen professionals can manage, assist and/or represent clients to rigorously defend and reduce any potential assessment.

Refund Opportunities

Individuals may be allowed certain deductions or credits unique to the state or local jurisdiction, which are often missed. Our SALT team has expertise in identifying these opportunities for our clients.

Compliance

The patchwork of state filings for individuals who derive income from multiple jurisdictions can be challenging. Our SALT professionals have a proven, efficient and results-oriented process to manage complex multi-jurisdiction filings for individuals.

Planning

Individuals who maintain varied investments and business activities may structure their activities to achieve tax efficiencies. Andersen can assist individuals in meeting their planning goals.

The state and local tax landscape has changed drastically over the past few years. No longer is state and local tax policy administered through informal channels and in cooperation with neighboring states. The states now operate in a very competitive environment juggling job growth, fiscal demands, changing ways of doing business and the mobility of their respective tax bases. The result is a complex state tax environment .

Multiply the complexity by 50 different taxing schemes, encompassing 15-20 taxes each, as well as municipalities. It is a system fraught with multiple taxation, complex technical issues and burdensome compliance requirements.

Our state and local tax (SALT) professionals understand the dynamic state and local tax environment. We assist our clients in navigating this complex system of taxation for permanent, recurring savings as well as tax deferral, while ensuring the effective management of risk. We view our role to be that of an advocate for our client, helping to educate, minimize and comply in this complex arena.

Andersen can assist with all areas of state and local taxation including:

• Credits & Incentives
• Sales & Use Tax
• State Income, Franchise and Gross Receipts Tax
• SALT Controversy
• Individual SALT Services
• Unclaimed Property

Compensation and benefits play a critical role in attracting and retaining quality personnel. Andersen professionals can assist businesses in navigating the numerous compensation and benefit alternatives, and then design and implement an effective, tax-efficient compensation and benefit program.

Our experienced professionals have been assisting clients for over 35 years and can help you with:

Equity Compensation Programs

Andersen can assist you in the design, establishment, implementation and administration of equity compensation programs such as nonqualified stock options, incentive stock options, restricted stock arrangements, restricted stock unit programs and phantom stock plans.

Nonqualified Deferred Compensation Arrangements

Andersen professionals design and implement nonqualified deferred compensation, including employment contract and separation pay arrangements.

Transaction Consulting

Andersen provides transaction consulting services including the review of retirement programs, compensation arrangements, and welfare benefit plans; integration issues of these programs; various income tax issues; and golden parachute consulting.

Qualified Retirement Plans

Andersen can assist in the design, implementation, termination and administration of qualified retirement plans such as pension plans, profit sharing plans, 401(k) plans and employee stock ownership plans. This includes consulting regarding operational issues, compliance issues, prohibited transactions, discrimination testing, preparation of Form 5500, and reporting and income tax withholding issues.

Welfare and Fringe Benefits

Andersen has depth and experience in providing consulting services on income and payroll tax issues, and reporting rules regarding all types of welfare and fringe benefits.

Andersen software development cost analysis (SDCA) studies can generate significant tax benefits by identifying the accelerated tax deductions related to software development. Although the majority of these expenditures are typically capitalized for book purposes, the same project expenditures can potentially be eligible as a current-period deduction for tax purposes in the year in which the cost is incurred. Some of these software development initiatives include, but are not limited to: enterprise resource planning implementations; business-to-business costs; e-commerce costs; and other large scale software development projects.

Combining the experience of Andersen's engineering, tax and accounting professionals with in-house client personnel, can optimize the tax advantaged treatment of software development expenditures. This may result in accelerated deductions, accelerated amortization for purchased software and/or software license arrangements, and potential research tax credits (RTCs) for innovative business-process design and software development.

As part of our overall deliverable, Andersen provides IRS examination-ready binders, which include a summary of the project and related costs, a summary of recommendations on treatment of these costs, a detailed technical report supporting the tax positions and the necessary supporting documentation. Andersen can provide full IRS examination support to help sustain current deductions, applicable tax credits, other tax incentives and beneficial accounting methods.

Andersen can also perform and/or review FASB ASC 740 (accounting for income taxes) measurement studies related to accelerated deductions and research tax credit claims performed by in-house tax departments or outside tax consultants.

Some additional areas of our expertise include:

Research Tax Credits

As part of an SDCA study, Andersen can assist in identifying and maximizing available RTCs for certain new or improved e-business transformation initiatives in the core infrastructure, business process and software development areas.

Accelerated Amortization of Tangible and Intangible Assets

Based on current guidance and project-specific facts, the opportunity may exist to accelerate the depreciation/amortization of the asset. Andersen can assist in the evaluation of all related asset purchases and help to ensure the most favorable amortization schedule based on the tax defined “placed in service” date of the asset.

The objective of the Andersen fixed asset review is to maximize tax depreciation deductions and increase cash flow.

It is a challenge for companies to keep up with constantly changing tax rules and court cases that affect asset depreciation methods based on the classification of property. The analysis that Andersen performs focuses on uncovering missed depreciation deductions and ensuring that these deductions are captured and taken into account on your company’s current tax return filing. In addition, a fixed asset review can help your company clean up its fixed asset ledger thereby helping to mitigate audit risks.

Andersen’s professionals have in-depth knowledge of the tax laws in the area of fixed assets and are highly qualified in the areas of accounting methods, classification of tangible and intangible property, and tax treatment of tangible and intangible assets resulting from transactions such as acquisitions and reorganizations. Our professionals also have extensive experience working on federal and state tax audits as well as assisting clients with negotiation and issue resolution. Our approach focuses on minimizing the impact and costs of completing a fixed asset review. Some of the services we offer include:

Capital vs. Expense Review

An Andersen capital vs. expense review can generate significant tax benefits by identifying, supporting and quantifying costs that were capitalized improperly for federal income tax purposes. This is done by identifying costs that can be expensed under final regulations effective in 2014. Our team can assist taxpayers in applying for a change in accounting method and taking the current year catch up deduction.

Cost Segregation Study

An Andersen cost segregation study can generate significant tax benefits by maximizing the reclassification of real property to personal property. A cost segregation study can be performed for newly acquired real property, or for property that was acquired in prior years. The results of these studies can defer federal and state taxes, as well as increase cash flow. Our combined appraiser skills, accounting expertise, processes and tools ensure optimal results within existing tax rules. Our qualifications include the Senior Cost Segregation Professional (SCSP) designation of the American Society of Cost Segregation Professionals (ASCSP).

Partial Dispositions

When replacement assets are placed in service, Andersen will analyze the opportunity to make a partial disposition election to write-off the remaining tax basis of property that was replaced in the current year. New regulations provide simplified techniques for calculating the amount of the partial disposition.

Ghost Assets

An Andersen ghost-asset study can generate permanent tax benefits by identifying and eliminating ghost assets from your company’s fixed asset ledger, thereby reducing the values for property tax assessments and reducing the chance of over-insuring nonexistent property.

An Andersen cost segregation study (CSS) can generate significant tax benefits by accelerating the depreciation deductions for your new, existing, or purchased real estate or leasehold improvements.

By coupling our team’s engineering and accounting experience, Andersen can help your company maximize the amount of personal property and land improvements that can be reclassified from real property. This tax deferral strategy can result in reduced federal (and some state) taxes, as well as increased cash flow. Our CSS reports are also developed to aid our clients in conforming to the final tangible property regulations. By separating the building into its component parts, clients will be able to determine whether they will be able to expense future renovations, or deduct the remaining tax basis of replaced property through a partial disposition election. Reducing real property basis can also create a permanent tax benefit by reducing state and local property taxes. Some of our areas of expertise include:

Pre-Construction Services

If you are currently bidding on or recently engaged in a construction project, Andersen will work with the general contractor before and during construction to maximize personal property and site improvement classification. This provides another opportunity to optimize short-lived property identification related to analyzing actual costs as opposed to estimated costs. In addition, the Department of Treasury issued final regulations in 2014 allowing taxpayers to expense certain real property and leasehold improvements. Coupling this with the increased deductions from personal property reclassification can yield tremendous tax savings.

Retroactive Studies

An Andersen cost segregation study can be performed retroactively for any real estate or leasehold improvement property constructed in prior tax years. Additionally, if the property was placed in service in certain years after September 11, 2001, there is an opportunity to take bonus depreciation on reclassified property. The bonus depreciation amount could range between 30% and 100% of the cost of the amount reclassified. Any understated depreciation, including bonus depreciation, can be deducted in the current tax year by filing a Form 3115, Application for Change in Accounting Method.

Capital vs. Expense Analysis

An Andersen capital versus expense review can generate significant tax benefits by identifying, supporting and quantifying costs that were capitalized improperly for federal income tax purposes. This is done by identifying costs that can be expensed under final regulations that were effective in 2014. Our team can assist taxpayers in applying for a change in accounting method and taking the current year catch-up deduction.

Energy Efficient Commercial Building Deductions

Sec. 179D allows for an immediate deduction of up to $1.80 per square foot for commercial buildings that achieve a 50% or greater reduction in total energy and power costs for property placed in service by December 31, 2016 and after 2005. Commercial buildings include office buildings, retail facilities, industrial buildings, as well as governmental and public buildings and must be located in the United States. The building may involve new construction or the renovation or retrofit of an existing location. Partial deductions are available for building systems in the case of buildings that do not meet the overall requirement. Examples of improvements may include: more efficient lighting; more efficient HVAC equipment and controls; geothermal systems and heat pumps; better insulation and windows/reflective coatings. When energy efficient commercial building property is installed on or in government-owned buildings, the Sec. 179D deduction can be allocated to the person primarily responsible for designing the property.

Evaluation and Support Services

Andersen can provide guidance on evaluating exposure created by in-house cost segregation studies and/or outside tax consultants for uncertain tax positions. Andersen also provides IRS examination support on any cost segregation issues.

By coupling our team’s engineering and tax accounting experience we can help your company maximize the amount of personal property that can be reclassified from real property.

Andersen can support you in all stages of your company’s lifecycle including assistance with minimizing the tax liability of the company, maximizing the after-tax return on investment to the investors, and ensuring compliance with various federal and state income and non-income based taxes. Renewable energy credits and incentives vary greatly from state to state. As a national practice, we have individuals throughout the country who understand these complicated issues.

Andersen has significant experience in all aspects of assisting clients in analyzing investments in alternative or green energy—for the investors in alternative energy companies and the companies themselves—including the review of financial/tax models and the substantive elements of various investment structures. Andersen has experience working with project developers in the creation of investment structures to assist them in maximizing the value of production tax credits, investment tax credits or grants in their financial model. Andersen has also worked with outside investors and a number of solar panel installers. In addition, our state and local tax personnel have assisted clients in maximizing the value of available state and local incentives, including state sales tax opportunities and refunds.

Our professionals have expertise in many services specific to our alternative energy clients. These services include:

Alternative or Green Energy-Related Federal Tax Incentives

Congress enacted significant tax legislation that encourages investment in alternative or green energy including:

• Production Tax Credits (PTCs) [Sec. 45] based on the per kilowatt hour for electricity generated from renewable resources such as wind power
• Investment Tax Credits (ITCs) [Sec. 48] for investments in alternative energy property of 30%
• Manufacturing Tax Credits (MTCs) [Sec. 48C] provide 30% credit (based on a joint application process between the Department of Energy and the U.S. Treasury) for certain investments in domestic manufacturing capabilities for the production of renewable energy (e.g., manufacturing plants for the production of solar modules or wind turbines) or the production of electric vehicles

PTCs and ITCs

Developers of projects involving PTCs and ITCs, particularly wind and solar power projects, are often syndicated in so-called flip limited partnerships whereby investors with tax credit capacity are allocated credits throughout the term of credit availability subject to a buy-out option. Taxpayers with tax credit capacity can invest in solar power for their business energy consumption needs, generating a 30% credit on qualified property. Developers of solar projects often effectively monetize the value of energy tax credits and/or grants through either a partnership flip-type structure or through a sale-leaseback structure.

MTCs

While the initial allocation of MTCs has been exhausted, both President Obama and a number of Congress members sought an additional allocation of MTCs to encourage greater investment in this sector.

Additional guidance and answers to frequently asked questions have been recently provided to add some clarity. However, the application process can be complicated and our tax professionals can assist to maximize the potential of obtaining a grant. Andersen can:

• Evaluate the best credit program that is aligned with the objectives of the company
• Identify appropriate direct and indirect costs to qualify for the investment tax credit
• Develop or review future tax credit benefit for the investors or the company
• Review the tax implications of proposed corporate or partnership structures
• Assist in developing tax efficient structures that meet the objectives of the investors and the company

Other Alternative Energy Tax Planning

Tax Planning and Compliance for Non-Income Based Taxes 

Prior to the company commencing operations in a state, Andersen can:

• Identify filing obligation requirements
• Develop a tax filing calendar
• Identify exemptions for qualified property
• Assist in the preparation of filings

For existing state filing obligations, we can:

• Determine if filings are in compliance with state requirements
• Determine if existing filings have benefited from state specific exemptions
• Identify exposures for incorrect filings or non-filing
• Assist with voluntary disclosure to minimize tax liability, interest and penalties
• Provide guidance on specific tax treatment of transactions, including state ruling preparation, and refund claim preparation and defense

Energy Efficient Commercial Building Deductions [Sec. 179(D)] Qualification and Accounting Method Changes

Andersen can:

• Identify qualified property eligible for deduction for the current year or prior year additions
• Quantify eligible costs
• Prepare technical and costs source documentation support
• Prepare Form 3115 for any required changes in accounting method

The timing of income and expense recognition and the appropriate determination of capitalizable costs are essential elements of tax planning for every business.

Andersen has the knowledge and experience necessary to help you address tax accounting method issues effectively, whether in the context of planning, compliance or IRS examinations.

Andersen professionals have years of experience practicing before IRS National Office handling accounting method changes, rulings, requests for technical advice and closing agreements. Our professionals work with businesses of all sizes, whether organized as a C corporation, S corporation, partnership, or individual taxpayer. Our focus is on helping our clients achieve their goals, including risk minimization, cash generation, or simplification. Tax methods of accounting should be evaluated in the event of any major transaction.

Some of the accounting methods planning services we provide include:

Accounting Method Reviews

Andersen reviews your trial balance and book/tax reconciling items to identify potential opportunities and areas of exposure. Book and tax treatment of many items are different due to the tax requirement to account for income and expense when legal rights and obligations fix as compared to book accounting that matches related income and expense.

Andersen identifies opportunities and exposure items, handle all administrative filings and interface with IRS to obtain permission for any non-automatic or automatic method changes to correct or optimize the company’s methods of accounting. Andersen can assist with the implementation of the new methods and any compliance issues that arise. Accounting method reviews can enhance net operating losses that are available for carryback and can resolve issues that may otherwise require disclosure. They can also provide cash that can be used for debt service or business expansion. Taxpayers who are carrying forward net operating losses can use accounting method changes to manage alternative minimum tax liability.

Inventories

Inventories are a large dollar item on many company balance sheets. The treatment of inventories for book and tax purposes can be quite different. The determination of LIFO inventories, allowable mark-downs, other inventory reserves, and UNICAP costs are a few of the areas in which book inventory accounting differs from tax accounting. Experienced professionals at Andersen can review your inventory accounting and suggest changes that will address exposure and capture opportunities. The administrative process for changing tax accounting methods provides back-year audit protection, allowing the correction of erroneous methods prospectively with no penalty or interest exposure to the company.

Capitalization

Many costs that are properly capitalized for book purposes may be currently deducted for tax purposes. Examples include engineering costs, certain prepaid expenses, certain transaction costs, recurring repairs and maintenance, abandoned property, cost of removal and demolition costs. Andersen can identify these opportunities and file the necessary applications to change the company’s tax accounting methods for these items.

Mark-to-Market Elections for Traders (Sec. 475)

Individuals and companies that actively trade securities may benefit from a voluntary Sec. 475 mark-to-market election. This election converts capital losses from trading activities to ordinary losses that can offset ordinary income without limitation. Andersen can assist with the preparation of the election and the required method change filings. We also provide advice on the recordkeeping necessary to designate securities held for investments.

Regardless of the size or nature of your business—whether you outsource your company’s tax function or keep it in house—accurate and efficient tax reporting and compliance are critical to your business. 

Andersen's experienced professionals can help your business optimize its tax processes and structures, meet tax compliance requirements on time and avoid tax penalties.

Andersen provides the following services:

Tax Return Preparation

Assist in preparing complex or data-intensive federal and state tax returns including complex book/tax difference calculations. We assist in identifying and preparing tax adjustments for deriving taxable income.

Tax Return Review

Review and sign final federal and state tax returns as prepared by in-house resources.

Other Return Preparation

Prepare short period returns due to acquisitions or divestitures, as well as partnership returns.

Estimated Taxes/Extension Work

Review or prepare federal and state quarterly estimated tax payment calculations, as well as year-end extension calculations.

IRS Audit Support

Provide support and assistance during the tax examination or appeals process, including: gathering data to respond to IRS information document requests; preparation of responses to tax authorities; and coordination with tax examiners.

Tax Provision Assistance

Assist in preparing interim and annual tax provisions. Provision computations may be leveraged for preparation of quarterly estimates and extension payments. Andersen assists with special projects including: uncertain tax position consulting; financial statement carve-out support; tax basis balance sheet support; deferred tax validation projects; remediation and restatement assistance; and other issue-based tax consulting.

Tax provision calculations have become increasingly challenging due to ever-changing tax laws and financial reporting guidance, global business expansion, operational evolution, and resource constraints.

Is your company:

• Facing a significant deficiency or material weakness in the area of income tax or compensation reporting?
• Considering any significant acquisition, merger, or sale transactions?
• Planning for domestic or foreign expansion?
• Concerned with the expiration of income tax attributes?
• Revising its equity compensation plans?
• Undergoing a federal or state income tax audit?
• Concerned about nexus in states, or permanent establishments outside the U.S.?
• Struggling to hire the internal tax department talent that you need?
• Considering outsourcing all or part of your tax provision function?

Any of these situations above can — and should — impact both the ASC 740 income tax provision process and final ASC 740 reporting and disclosures. Andersen is a proven resource to assist dynamic companies in timely addressing the complexities of ASC 740 reporting.

Many companies have turned to Andersen to assist in addressing these challenges because of our ability to identify issues early in the process which translates into timely, informed and favorable results.

Andersen professionals serve a wide range of companies, both public and private, from early stage to global Fortune 500. Our clients know that they can count on Andersen to provide ASC 740 services to meet their changing needs as their businesses evolve. The Andersen approach is hands-on, which means more partner-level attention and timely, highly experienced, and informed responsiveness.

Andersen is the solution for companies that want to team with their service provider and minimize unforeseen issues that can arise during an audit. The ASC 740 reporting and disclosures must adhere to guidance set forth by Generally Accepted Accounting Principles (GAAP) and the Financial Accounting Standards Board (FASB). We assist our clients in staying abreast of changes in this regulatory guidance. Our in-depth technical knowledge in a variety of complex, tax-related matters provides your company with the advantage of visibility into issues and ultimately your overall tax risk and liabilities.

We understand the provision process and have extensive experience working with our clients’ audit teams, typically from Big 4, other national/international firms and regional accounting firms. This experience results in the highest level of quality in our tax provision work, which ensures that your tax provision documentation meets both your expectations and those of your audit firm.

Whether your company intends to outsource the provision process, would like us to work hand-in-hand with your personnel to prepare the provision, or needs assistance on any ASC 740 issue, Andersen will assemble the right team to best address your needs.

Areas of potential complexity that we address frequently: 

• Business Acquisitions/Combinations/NOLs & Tax Credits
• Equity Based Compensation
• Uncertain Tax Positions/Income Tax Audits
• International Operations
• State Tax Effective Rate/State Deferred Rate Analysis
• Valuation Allowance Determinations
• Indefinite Reinvestment Conclusions and Documentation (APB 23)
• Intraperiod Allocation Considerations
• Interim Reporting/Discrete Items
• Convertible Debt/Hybrid Instruments
• Outside Basis Differences
• Internal Controls
• Deferred Tax Validation
• Currency Translation Impacts
• Branch Operations
• Joint Ventures
• Income Provision Process Improvement
• Integration of Provision and Compliance Process
• Accounting for Tax Law Changes
• Documentation of Income Tax Accounting Policies
• Financial Statement Income Tax Disclosures
• Accounting for Book and/or Tax Accounting Method Changes
• Effective Tax Rate Reconciliations and Analysis
• Initial Public Offerings
• S1 Filings