We investigate how firms use differences in state income tax regimes to lower their state tax burdens. We develop a model that predicts that firms' state effective tax rates first decrease then increase as a function of the number of states in which they file returns. Using firm-level data, we...

This study investigates the effect of accounting measurement and disclosure requirements on multistate income tax avoidance. The proliferation of sophisticated state tax planning techniques combined with the complexity of varying state tax regimes make multistate taxation an area rampant with...