Apportionment may have one of the following meanings, depending the context of the term:

1. Federal) The U.S. Internal Revenue Service (IRS) can reallocate or reapportion items of income or expense between or among related taxpayers if the allocation made by the taxpayers was for the purpose of avoiding tax or if it inaccurately reflects taxable income. 2. (State) Many states require multistate taxpayers to compute the income taxable to a particular state by one of two methods:

(a) Direct allocation-income and expense items for a particular state must be specifically reported.

(b) Apportionment-federal income is apportioned between states using any or all of the following factors:

(i) sales revenue, (ii) payroll expense, (iii) property basis.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

See Payroll Tax in the U.S. Legal Encyclopedia and Payroll Tax in the World Legal Encyclopedia.






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