Nearly all business decisions made by companies with multistate operations have state and local tax consequences. Most companies that answer yes to any of the following questions below need a state and local tax advisor.
- Does your company operate in multiple states?
- Is your company entering into new states or new markets?
- Is your company purchasing assets or an entire business?
- Are the owners looking to sell a portion or all of their business?
With over 5,000 taxing jurisdictions, state and local taxes can become burdensome to even the simplest business organization. Although there are many bedrock principles to state and local taxation (e.g., nexus), most jurisdictions operate under their own set of guiding principles and constantly changing legislative mandates. Consequently, your tax advisor needs to be experienced and knowledgeable about the unique nature of state and local taxation.
J.H. Cohn recognizes the increasing burden of state and local taxes on our clients as most jurisdictions struggle to close budget deficits. Our State and Local Tax (SALT) Group specifically addresses the challenges of state and local taxes and can provide assistance with the following:
- Nexus studies, which determine those jurisdictions where the company must file tax returns—for income, franchise, sales and use, or other types of taxes
- Net income and franchise tax apportionment issues, such as determining the proper manner in which to source sales, payroll, and property to the various taxing jurisdictions
- Sales and use taxes, such as providing taxability matrixes of sales and/or purchase transactions
- Sales/use tax and property tax compliance and process review and improvement analysis
- State income tax credits, such as credits for investing in certain equipment and/or increasing headcount
- Transactional advisory services, such as advising of the state tax consequences of purchasing or selling a business
- Voluntary disclosure agreements, which is a means of settling past state and/or local tax exposures, with the most advantageous terms
Are you sure your tax advisor is providing the SALT services you need? Can you afford not to be sure?