Bill Backstrom, a partner on the State and Local Tax Team in the New Orleans office, co-presented "Intercompany Transactions - State Challenges" at the Council on State Taxation (COST) Spring Audit and Income Tax Conference in Denver, Colorado. The presentation focused on transactions between related parties and how they attract the attention of state taxing authorities. The speakers discussed several methods states use to challenge intercompany transactions, such as addbacks, throwbacks, and throwouts, as well as transfer pricing studies. The speakers also discussed if the state has the authority to use these methods and what the taxpayer’s best arguments are against their application.