Revenue Allocation and Cost of Performance

The issue of revenue allocation to specific state jurisdiction arises when a multi-state corporation provides services to its customers, and when these services rely on corporate functions and activities occurring in more than one state. Cost of Performance is an approach of sourcing service revenue to specific states based on the locations of income-producing activities.

We help our corporate clients better manage their state income tax burden through the development of Cost of Performance and revenue allocation studies. We also assist our state taxing authority clients in their evaluation of Cost of Performance and other revenue allocation studies submitted by corporate taxpayers in support of their state income tax filings.

QSI has been providing expert services on multi-state apportionment since 2008. This includes providing expert testimony in state tax courts on the results of our analysis and defend those results under cross-examination.

Federal, State and Local Telecommunications Taxes, Fees and Surcharges

Over the past decade, QSI has continuously evaluated federal, state and local Taxes, Fees and Surcharges (TFSs) assessed by telecom vendors on purchases made by U. S. General Services Administration (GSA) and Federal Executive Agencies. Our work in this area began over a decade ago under the unique provisions of the GSA's FTS2001 and Networx contract programs. QSI's work in this regard continues presently under the GSA's most recent Enterprise Information Services program. We have also designed and implemented an in-house database system, which maintains thousands of records on individual federal, state and local TFSs, related documents and analyses concerning the applicability of each TFS to governmental customer invoices purchased under various federal contracts.

Our efforts have identified numerous prohibited TFS charges and have worked with the Federal government to seek refunds/credits, resulting in millions of dollars in cost savings for American taxpayers.

We can leverage our database of federal, state and local Taxes Fees and Surcharges systems and analysts to assist corporate clients with analyzing TFSs and pursue cost savings.