Navigating Transfer Pricing: Insights and Strategies for State Tax Compliance

Listen to the newest episode of our podcast, In the vault with KPMG, with Elizabeth L’Hommedieu from the KPMG Banking & Capital Markets Tax practice, along with Enrique Martin and Brie Siciliano from the KPMG Transfer Pricing Tax practice, and Jeana Parker from the KPMG State and Local Tax practice. During this episode, they dive into the complexities of transfer pricing under IRC Section 482 and its impact on state income and franchise taxes. They discuss the challenges banks face with intercompany transactions, state-level scrutiny, and practical strategies for audit preparation and defense. Below are the key points addressed during this discussion:

• Overview of transfer pricing and section 482
• Typical intercompany transactions in banking
• State tax implications of transfer pricing
• State enforcement trends
• Practical tips for defending transfer pricing at the state level