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State and local tax work load becoming burdensome.

A Coopers & Lybrand survey of financial executives in companies with revenues of $30 million or more found that 52% believed the increase in the amount of time spent on state and local tax management over the last two to three years was greater than the corresponding increase for federal tax management.

Of those spending more time on state and local taxes, increased compliance requirements and in creased enforcement were each cited by 43% of the respondents as primary causes of the escalating work load. Of the companies surveyed, 86% were audited by at least one state in the past 12 months. On average, the companies were audited by 5.4 states in the preceding year.

Michael G. Persh, controller of NYNEX-AGS Federal Systems, Inc., Rockville, Maryland, agreed that administering state and local taxes is becoming more of a burden. "The state and local tax departments are becoming more aggressive," he said. As a result, "we must keep more records, respond to more inquiries and assist in more audit work."
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Publication:Journal of Accountancy
Article Type:Brief Article
Date:Dec 1, 1993
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