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Understanding the Apportionment Rules for Service-Based Businesses

Date: Tuesday December 11, 2018
Time: 1:00 - 2:40 pm EST

Sponsored by Lorman Education Services

Registration - Live Webinar Only: $219.00

Registration - Live Webinar Plus CD Recording: $288.00


Gain a better understanding of the difference between the various apportionment methods being applied to service revenue and how it will impact overall tax liability.

States are aggressively going after business tax dollars in efforts to overcome their budget deficits. One recent trend being utilized to accomplish this goal is the shift to market sourcing of services and economic nexus.

The misapplication of various state apportionment rules can cause taxpayers to over or under report their state tax liabilities. This topic helps taxpayers understand the difference between the various apportionment methods being applied to service revenue and how it will impact their overall tax liability.

Learning Objectives:

  • You will be able to describe the difference between costs of performance and market based sourcing methodologies.
  • You will be able to discuss the US Constitutional limitation on apportionment.
  • You will be able to explain why states are shifting towards market based sourcing of services.
  • You will be able to identify market based sourcing implications in economic nexus states.
This Live Webinar Covers These Hot Issues

Apportionment: What Is It?

• Origin and Constitutional Constraints

Cost of Performance

• Comparison of Available Methods
• What Costs Are Included? Direct and Indirect
• Specific State Utilization
• Examples

Market Based Sourcing

• Outline of the Rules
• Specific State Utilization
• Examples

The Intersections

• Cost of Performance vs. Market Based
◦ Same Income Sourced to Two States
• Economic Nexus Implications

Other Apportionment Considerations

• States With Different Sourcing Methods by Entity Type
• Current Trends

Credit Information (Sponsored by Lorman Education Services):
  • CPE
  • AIPB
  • IAPP

For Detailed Credit Information page click here

Only registered attendee will receive continuing education credit.


Angie Monahan, Crowe LLP

  • Senior manager with Crowe LLP
  • More than thirteen years of public accounting experience and has been with Crowe since 2013, serving in the State and Local Tax Practice
  • Focuses on the multistate taxation of complex business structures and transactions
  • Engages in the design, management and implementation of state income tax minimization strategies and has experience with tax due diligence issues and procedures
  • Frequent speaker and has written numerous publications
  • J.D. degree, Loyola University Chicago School of Law; B.S. degree, Indiana University
  • Can be contacted at 317-706-2613 or

Sara R. VanderVeen, Crowe LLP

  • Tax senior manager in the State and Local Tax group of Crowe LLP
  • More than 17 years of progressive experience in federal, multistate and international tax consulting and compliance
  • Works primarily in the firm’s manufacturing and distribution vertical and is the State and Local Tax market leader for the Life Sciences subvertical
  • M.S. degree, taxation; B.B.A. degree, Grand Valley State University; CPA
  • Can be contacted at 616-752-4233 or

(Not available outside the US)