Don’t Get Derailed by State and Local Taxes

State and local taxes (SALT) matters are quite complicated, with laws changing frequently and rapidly. As states seek to develop new avenues to raise revenue, they are targeting businesses they believe are not reporting or underreporting taxes owed. Actually, state tax examiners now audit returns and assess taxes for prior years – going back as far into the past as they want to. Each time federal tax laws are changed, there is a ripple effect at the state and local level. State legislatures and tax authorities determine how and to what extent they may or may not conform to federal law, thus adding additional complexity to compliance.

All types of businesses can be exposed to multi-state taxation issues, even if they only have a single office. Finding out after the fact is an expensive and unpleasant surprise you want to avoid at all costs. From small businesses that primarily serve clients remotely to large, international businesses wanting to conduct business in the U.S., multi-jurisdictional tax concerns can have a powerful effect on your tax liability as well as your bottom line.

Our increasingly complex, borderless and service-based economy makes it more and more difficult to interpret state and local tax policies written for a brick and mortar economy. Don’t let state and local taxation issues derail your business’ progress toward success and profitability.

SOLVING BUSINESS ISSUES

“PBMares’ expansive knowledge and services make it a “one-stop shop”. We have multi-state entities and frequently have questions regarding particular state issues. PBMares does tax and consulting work for our nine entities and they are helping us with the formation and structure of a new, unique real estate development. Their ability to guide me in decision-making saves me time and helps me avoid making costly mistakes. I consider PBMares to be part of my team and I depend on them.”
Charles Chase, Owner/President, SOUTHEAST MANAGEMENT COMPANY

By looking at the big picture and researching the details, we help you fulfill your compliance responsibilities while minimizing tax obligations.

Avoid costly mistakes by working with SALT professionals who offer the knowledge and expertise you need. Our dedicated SALT team keeps up with the changing legislation to keep you in full compliance, taking a proactive approach that pursues savings opportunities for each individual business we assist. We dig deep so you don’t have to, putting us in a strong position to review your big picture, research the details and help you fulfill your compliance responsibilities while minimizing tax obligations.

Audits by state and local taxing authorities are on the rise. If you are under audit, thorough preparation may be the best thing you can do to prepare. PBMares professionals will make sure all necessary documentation is in order and represent you at the audit.

Whether you are deciding to form a business or expand one, part of the process will be obtaining the business licenses you need to legally conduct business in the jurisdiction. For example, you will need to register with the state to collect and remit sales tax. Our experts will make sure you’re licensed and in compliance in all relevant jurisdictions.

When it comes to SALT, determining where you need to file can be complicated. There are thousands of jurisdictions in the U.S., and each of them taxes different goods and services at different rates. To be liable for paying tax to a particular jurisdiction, your company must conduct a certain amount of business activity there. The decisions you make about such things as relocation or business expansion may be affected by this.

Property taxes are different than most other taxes. Although they are set at a certain amount per $1,000 of the property’s value, that value is based on the estimated value of the property. That value may be disputed if there is adequate cause. Our experts are experienced in evaluating these matters and determining whether the taxing entity has valued your property fairly.

Sales tax applies to retail sales of certain tangible personal property and services within a particular jurisdiction. Use tax applies if you buy tangible personal property and services outside one jurisdiction and used in another. It is important to be aware of the distinction, though. Otherwise, you might find yourself with an unexpected tax liability.

State and local taxes are a big part of most company’s tax burden. Depending on how business is conducted, taxes may be incurred without the business even knowing. PBMares’ SALT professionals will assess your business and advise you about where you are responsible for paying tax as well as changes you can make to lessen your tax bill.

Keeping track of the tax rates in state and local jurisdictions can be challenging. It is even more so if you have to file in multiple places. Our SALT experts will relieve you of this burden and make sure you pay the correct tax to the right jurisdiction.

When a taxing authority reaches out to you, your stress rises. You have questions and concerns and are fearful about taxes owed and penalties. Dealing with taxing authorities is stressful. Having an experienced SALT professional available to guide you through the process gives you the knowledge you need to understand how each step needs to be navigated.

Required to Pay State and Local Taxes to Multiple Jurisdictions?

Businesses in all industries are impacted by state and local taxes. We have helped those from nearly every industry; ensuring they are compliant in every jurisdiction where they have nexus. However, we have specialties helping those in the following industries: financial institutions, construction, government contractinghealthcare and hospitality.

TAX INSIGHTS

MEET YOUR TEAM LEADER



Lorilei J. Roberts, CPA, MSBA, CGMA

Director, State & Local Tax Team Leader

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