ComplianceLinks is a suite of services designed to provide Internal Revenue Code (IRC) § 482 economic auditing power to state clients. The modules of the ComplianceLinks section, as well as associated services Chainbridge provides are detailed below. Click on any of the module titles below to see how Chainbridge helps you enforce IRC Section 482.
What is Transfer Pricing?
Explaining transfer pricing can be a daunting prospect, but we’ve made it easy for you to learn what it’s all about here at chainbridge.com
If there is going to be a corporate income tax, it’s only fair that everyone pays it. Chainbridge helps states uncover corporations who haven’t paid theirs. Learn how here.
After a comprehensive analysis of your state’s corporate data, Chainbridge will produce an expert economist report including a complete functional analysis, and a relevant income adjustment for a given taxpayer. Chainbridge takes the complication out of 482 compliance with our revolutionary ComplianceLinks software, and our unparalleled transfer pricing expertise.
IRC §482 Regulations
Our approach in determining a final income adjustment for a particular taxpayer relies on section 482 of the U.S. Internal Revenue Code. It’s a method that’s been employed on the international level for decades, and our patented software along with our unrivaled experience in transfer pricing assures our clients that our analysis is both accurate and authoritative.
Should you choose to couple with Chainbridge, you’ll receive an extraordinary customer experience. We ensure that you’ll have our support every step of the way to the very end. Our analysts have served as experts in numerous court cases, and would be more than willing to offer the same services to your state.
At the start of a project year, state staff provide Chainbridge with several years of electronic data for all state corporate taxpayers. Upon receipt of electronic tax return information, Chainbridge staff load the information into its patented software system that performs the preliminary analysis and generates a Ranked List of Candidates (RLC).
Once the data has been loaded into the system, internal checks are performed with the data from each separate tax return to validate the quality of that return’s data. We term this process “error detection and correction.”
After the quality control tests have been performed, the Preliminary Analysis process begins in earnest.
The process begins by reading a record from the corporate microdata file. For each record in the file, the following procedures are followed:
- Perform financial analysis of taxpayer (Profit Level Indicators — PLIs).
- Perform financial analysis of comparable firms (by industry) in Standard and Poor’s Compustat database and construct the interquartile range (IQ range) of observed PLIs.
- If the taxpayer’s PLI is below the bottom observation of the IQ range of PLIs for comparable firms, compute income and tax adjustments for the taxpayer and place it in the RLC.
- If the taxpayer’s PLI is above the bottom observation of the IQ range of PLIs for comparable firms, no further computations are performed and the next taxpayer in the database is selected for analysis.
Once all taxpayers have been processed, the RLC is sorted from highest tax adjustment to lowest. This list is then presented to the state so that a set of taxpayers may be selected for further analysis through performing Functional Analyses.
Who We Are
Chainbridge’s exceptional team of consultants and software developers have been in the business of tax for more than half a century collectively. Learn more about the brains behind Chainbridge’s unprecedented tax software by clicking the icon above.
Chainbridge has been providing tax models, and transfer pricing insight to numerous state clients across the country. Navigate our experience map to find out which of your neighboring states has partnered with Chainbridge to establish an effective tax program.