Tax Gross-up Audits & Tax Review

Transferees simply provide our tax professionals with a PDF of all federal, state, and local tax returns they filed, along with a PDF of their Relocation Tax Report. We calculate and document how much the transferee would have paid in taxes both “with” and “without” the move. The resulting difference, if positive, is then “grossed up” for the current year’s taxes. Ineo’s tax professionals turn around gross-up audit results within just a few days.

The scope of the reconciliation is to determine if the initial company paid gross-up was calculated following company policy. Our tax professionals also review transferee tax returns to verify the employee’s income used in calculating the gross-up itself, and that the income used reflects the company policy.