Q&A with the Pennsylvania Department of Revenue
For Capital Stock and Franchise Tax purposes, what is considered sufficient detail and support when the adjustment is NOT book income?
Each case is controlled by specific facts and circumstances. An adjustment to book income is reviewed and analyzed along with supporting documentation to determine its impact on book income for CS/FF purposes. Given that the taxpayer has the burden of proof, they should provide all relevant documentation so that the Department can fully understand the nature of the transaction.