Ensure all financial records, including federal RARs, are organized and securely maintained for at least the duration of the statue of limitations.
For tax years ending on or after December 31, 2024, a standard excise tax deduction is available, which is the lesser of net earnings or $50,000.
Taxpayers must maintain records that can be used to determine their franchise and excise tax liability. 2. Key Content & Procedures
It is highly recommended to make a copy of any signed, amended, or revised tax forms before returning them to the auditor. 3. Related Tax Considerations (As of 2025-2026)
"RAR" stands for Revenue Agent Report, which details changes resulting from a federal tax examination.
If a taxpayer files a consolidated federal return, a reconciliation reflecting all adjustments for each entity is generally required.
Franchise tax is calculated based on the taxpayer's net worth, which is total assets minus total liabilities, derived from records. 4. Best Practices