State and Local Taxes (SALT)
While many business owners are aware of Federal tax obligations, State tax compliance is often overlooked. It is more complex, since each state has its own set of laws and issues. These challenges are expansive, because state and local tax variations apply to income tax and sales tax, and the rules for each type differ.
If your business has interactions or transactions with another state, such as sales, services, employees, or inventory (including held at an 3rd party warehouse), you may have “nexus” and be subject to additional tax exposure. And don’t forget about potential personal exposure: if you receive a K1 or a 1099 from another state, your personal SALT liability might be affected.
Our state and local tax services include:
- Review of state and local tax liabilities including identification of potential tax minimization by searching for tax savings opportunities and potential refunds. No one wants to pay more taxes than necessary.
- Preparation of multi-state nexus studies – With states continually changing the activity that can lead to tax liabilities, we will evaluate the way you do business and advise on any additional filing requirements for income, franchise and/or sales tax.
- Review of state tax implications of proposed mergers and acquisitions – As a business grows, it can acquire other companies or be the one acquired. We can analyze variances from the Federal tax treatment of these transactions.
- Development of sales and use tax process – We will advise processes to reduce the exposure of a sales and use tax audit, with the benefit not only being reducing assessment, but also saving the valuable time of your staff.
- Assistance with state and local tax audits – We can assist in the audit process to the degree you need; whether it is serving as the point of contact between you and the auditor and/or a review of the assessment before you agree to payments.
- Reverse sales tax audits– We can review and quote taxable transactions to determine if there are overpayments that are refundable.
- Negotiation of voluntary disclosure agreements –an opportunity to proactively reduce historical sales tax exposure. We can help with the negotiation and reporting to minimize interest and/or penalties.
- Tax credit/abatement opportunities – We review your current business, upcoming projects, or expansions to determine if there are tax incentives available and assist with the application and reporting process.
Wegmann Dazet’s proactive approach and knowledge of changing tax laws will translate into strategies designed to keep your tax burden low. We have decades of experience helping clients maintain SALT compliance. With timely meetings throughout the year, our professionals will help keep you on a prepared course as your business needs change.
With all of this experience at your disposal, why not give us a call to discuss your SALT nexus?