CHALLENGE
Calculating corporate earnings and profits (E&P) is a complicated matter. E&P is the measure of the cash-equivalent amount available to a corporation for paying dividends to shareholders. However, the term dividend for income tax purposes does not correspond to the term dividend under state law. A corporate distribution may be a tax dividend even if it impairs capital or is otherwise unlawful under state law. A distribution may be a lawful dividend under state law without qualifying as a tax dividend. And either way, E&P is not the same as taxable income. E&P calculations take time and require information that may not be readily available – and it’s critical that you calculate E&P before it can interfere with effective tax planning.

SOLUTION
We have extensive experience in helping clients address the many elements that affect E&P. To ensure that the E&P calculation is correct, our team focuses on obtaining up-to-date, accurate information about all of a corporation’s business activities, recognizing that they all have an impact on E&P. Our technical tax to the corporation’s E&P account. The E&P experts at True Partners are also equipped to help US corporations with foreign subsidiaries determine E&P for these subsidiaries.

THE TRUE PARTNERS TEAM
Our professional team is dedicated to meeting your E&P needs. Clients can count on working with senior-level experts on all projects. Key members of our team include:

Susan R. Alexander , CPA Office Managing Director
312 235 3320 | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it

Lawrence P. Salus Jr. , ESQ, CPA Managing Director
312 235 3319 | This e-mail address is being protected from spam bots, you need JavaScript enabled to view it