Tag Archives | government contractors

Cost of Performance vs. Market Based Approach

Government contractors use various resources to perform contracts and accomplish their work in different states. For multi-state contractors, service revenue is generally traced to a particular state based on one of the two approaches, “market-based” or “cost of performance.” Cost of Performance Many states continue to follow Cost of Performance (COP) sourcing rules for apportioning […]

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FAR Tightens Rulings on Government Contractors and Human Trafficking

We all know that human trafficking is wrong, and we would all be shocked if we heard that a well-known company involved itself in human trafficking. Luckily, there are organizations out there that seek to prevent global human trafficking and quickly point out alleged instances of such trafficking occurring, so that large corporations monitor their […]

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State Apportionment

Corporations with a taxable presence in multiple states must assign, or apportion, their total taxable income to each state. Apportionment is designed to prevent over-taxation of company profits by spreading business income among states. First things first, a company must determine in what states to file. For government contractors especially, this is of the utmost […]

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A New Twist on the Business Systems Rule

DOD has relieved DCAA of yet another of its responsibilities and put the burden squarely on government contractors. A proposed change to the Defense FAR supplement published in the Federal Register July 15th, would make government contractors responsible for audits of their own accounting, estimating and material accounting systems, including engaging and paying a CPA […]

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Document Retention

These days we’re so used to working with technology that we often overlook how much paper we’re still using – and how long we’re supposed to keep that paper around!  For government contractors, FAR subpart 4.7 provides the policies and procedures for contractor records retention.  This subpart outlines which records should be retained and for […]

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Afghan Taxes: To Pay or Not to Pay?

In recent years, there has been considerable uncertainty regarding whether or not government contractors operating in Afghanistan are required to pay income or business taxes to the local authorities. The U.S. government has adopted the stance that taxpayer funded assistance in the efforts of reconstructing Afghanistan should not be subject to local taxation, leading many […]

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Doin’ the Shutdown Dance!

This makes twice in as many years we’ve now faced a Government-wide shutdown over budget and political differences.  At this point, why and who’s to blame is less important than what to do.  For some Government contractors, the answer to that question could be critical.  Read our article on the Looming Shutdown for some practical […]

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Contractors: Know Your Records Retention Requirements

Contractors need to be familiar with FAR Subpart 4.7 (Go to “Find”, and type in “4.7”), which provides the policies and procedures government contractors must follow for retention of their records.  Contractors are required to retain all records “which include books, documents, accounting procedures and practices and other data, regardless of type and regardless of […]

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