State and Local Tax Consultation and Planning
A&C provides experienced state and local tax consultation and planning services for businesses operating in one or multiple states. Our team can help you understand your state tax obligations, maintain compliance, and reduce potential penalties.
Our state and local tax services include the following:
State Income and Sales/Use Tax Returns – A&C prepares state income and sales/use tax returns for businesses operating in all states.
Quarterly Work – Preparing quarterly estimates and extensions on time can help minimize penalties. A&C handles these projects, reduces your peak workload, and helps ensure timely estimated filings.
State Notices – A&C responds to and tracks state notices in a timely manner. As a result, we can help minimize penalties and address issues before they become more serious.
State Amended Returns – A&C can help you meet state reporting requirements and file amended returns when needed to reflect federal audit adjustments.
Miscellaneous Returns – A&C is qualified to prepare annual reports, business license filings, and other required returns in state and local jurisdictions.
State and Local Tax Audit Representation
A state and local tax audit can be complex and time-consuming. A&C brings the experience and knowledge needed to professionally defend your company’s interests during state income tax and sales/use tax audits.
State tax auditors often take an aggressive approach when reviewing a company’s records. Therefore, it is important to have experienced professionals on your side. A&C’s audit representation services range from consultations before and during an audit to the complete handling of all aspects of the audit process.
Refund Reviews
Faced with budgetary constraints, states are becoming more aggressive and creative in collecting tax. A&C has also seen states limit exemptions, increase tax rates, and expand taxpayer liability.
Auditors generally do not search for refunds on your behalf. Although they may award available credits when uncovered, they do not actively seek them. Because of our experience and familiarity with state auditing procedures, A&C can look for available refunds that may help offset audit assessments.
Our state and local tax professionals can help you minimize sales and use, income, and franchise tax audit assessments. We also work to reduce business interruption and pursue the most favorable results possible.
State and Local Tax Nexus Studies
Your business may have state and local tax obligations based on its activities and connections within a state. Consider the following questions:
- Does your company have a place of business in a state?
- Does your company have employees or independent contractors in a state?
- Do your representatives have home offices?
- Do your representatives use company property, such as laptops?
- Does your company have equipment, inventory, or product samples in a state?
- Does your company install or repair its products?
- Does your company participate in trade shows, host sales meetings, or train users?
- Do out-of-state employees or representatives visit the state?
The answers to these questions can affect whether your company has nexus in a state. A&C’s nexus studies and reviews evaluate your business and its direct and indirect connections to different states.
We can also provide written determinations regarding your state filing obligations. Our tax advisers can work with you on a state-by-state or comprehensive basis. Alternatively, they can coordinate your in-house compliance efforts.
Representation Before Taxing Authorities
The many state income tax and sales/use tax laws can make state and local tax issues confusing. However, A&C’s professional tax experts can help resolve even complicated tax matters.
A&C has successfully represented clients contesting state tax liability notices and assessments. We can help you understand your options and represent your interests before state and local taxing authorities.
State and Local Taxability Studies
Taxability can vary by industry, method of delivery, and the state where services are performed. In addition, taxability rules can change frequently.
For this reason, businesses should regularly review the taxability of the services they provide. At least once a year, it may be important to research whether changes in state law affect your tax obligations.
If a state discovers during an audit that your company did not charge tax on taxable services, your company may be responsible for the uncollected tax, penalties, and interest. A&C can research relevant tax statutes, regulations, court cases, and rulings.
We can also provide a taxability matrix for different categories of services and the states in question.
Voluntary Disclosures
A voluntary disclosure can minimize the number of past returns your company must file. It may also help reduce the penalties and interest owed on an assessment.
In addition, some customers may have paid use tax for which your company may be entitled to a credit. A&C can review your situation and help determine whether a voluntary disclosure may be appropriate.