all the Bardahl formula. Why have some tax authorities said that this formula implies a greater degree of mathematical precision than is actually the case? Does the Bardahl formula apply to service companies? The Bardahl formula is used to derive the The The Bardahl formula because a service company generally holds The be applied to a corporation whose business activities involve services, includes the Comparing the corporation's requirement indicates whether the corporation has accumulated excess working capital or has a reasonable business need to accumulate additional earnings for working capital purposes. Calling it a formula suggests mathematical precision, but the Bardahl formula's applicability in practice is less precise because its inputs for a particular corporation's facts and circumstances often are a matter of dispute. For example, the courts, the IRS, and taxpayers have in various instances based their Bardahl calculations Depending on which set of calculations is accepted by the IRS and the cou