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State & Local Tax

 

Minimize the majority of business taxes.

Overview

There are over 80,000 state and local tax jurisdictions nationwide, each with its own set of evolving rules and regulations. For most companies and organizations, state and local taxes represent the majority of overall tax burden. Companies may not even realize they have incurred liabilities, which can lead to penalties and interest payments.

TaxBud’s dedicated, partner-led practices are experienced with tax regulations in every state, and in virtually every locality. Our team advises on all tax-related issues, including practices, processes, operations and multi-jurisdictional tax complexities. At all times, our goal is to help minimize tax liabilities in both the short and long term.

  • Income, Franchise, and Gross Receipts

  • Property Tax

  • Sales and Use Tax

  • Site Selection and Tax Credits & Incentives

  • Telecommunication Taxes and Fees

  • Unclaimed Property

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    Income, Franchise and Gross Receipts

    Meeting the constant challenges.

    For tax departments, pressure continues to grow. State income and franchise tax authorities are becoming more aggressive, increasing both the number of audits as well as their scale. Laws are continually updated to eliminate perceived tax loopholes. Recent changes to the reporting requirements of ASC 740 and ASC 740-10 (FIN 48) have only added to the challenge of keeping company income and franchise taxes at a minimum.

    The dedicated tax professionals at TaxBud have deep experience with all components of income and franchise tax compliance. Drawing on resources from across the country, we help minimize overall tax burden while ensuring compliance with applicable state and local regulations.

  • Nexus Studies and Voluntary Disclosures: Review your operations to determine the states where you may have “nexus” and should be filing tax returns. In addition, we offer assistance with voluntary disclosure programs to bring your business into compliance in states where you should have been filing returns and to minimize tax exposure and penalties for previous periods.

  • Diagnostic Assessments and Return Reviews: Conduct a comprehensive review of your state tax position, state tax returns, and structure, in order to identify refunds and prospective filing opportunities. We will also analyze whether your business is properly apportioning its income under evolving apportionment rules and alert you to saving opportunities.

  • Restructuring and Minimization Techniques: Assess, design, implement, and maintain alternative structures that meet your business objectives, while minimizing prospective state income, franchise, and gross receipts taxes.

  • Controversy and Audit Defense: Provide guidance through the audit process; negotiate with auditors; develop solutions to your income, franchise, and gross receipts tax controversies; and represent your business before administrative tax tribunals.

  • Compliance: Prepare your annual returns to take advantage of deductions, credits, and filing methodologies to reduce your state tax liabilities. We also assist with preparing amended state tax returns to report federal audit adjustments (RARs), which if prepared internally can be a significant drain on your resources.

  • M&A/Transactional Analysis and Due Diligence: Analyze the consequences of a spectrum of transaction types, such as a stock or asset acquisition, a disposition of a division, an IPO, or a recapitalization. We develop disposition and acquisition strategies to provide state tax efficient structures, as well as perform buyer-side and seller-side due diligence to identify exposures and maximize state tax attributes.

  • Provision and ASC 740 Analysis: Determine your business’s state tax accrual for financial reporting purposes, identify and analyze state uncertain tax positions (UTPs), perform computation and measurement analysis, and develop reasonable approaches to addressing UTPs – all within the framework of your materiality thresholds.

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    Property Tax

    Proactive. Comprehensive. Compliant.

    Nearly all jurisdictions below the state level generate revenue through the imposition of property taxes. Levied most frequently by counties and cities, these taxes are one of the most substantial sources of local government revenue, and can be one of the largest regular operating expenses for businesses in the U.S. Unlike other taxes, property tax assessments are an ad valorem tax, meaning they are based on the estimated value of the property, and thus, are subject to varying opinions. Companies with properties in multiple jurisdictions must manage differing rules, regulations, and deadlines while determining whether their assessments are equitable.

    At TaxBud, we believe that the best way to help our clients reduce their property tax liability is by being proactive. We offer a series of comprehensive services, all designed to address nearly every property tax issue, from return filing and value negotiation to inventory valuation and exemption analysis. Our process also covers:

  • Data acquisition and analysis

  • Tax reporting

  • Assessment monitoring

  • Assessment appeals

  • Tax payment

  • Audit defense

  • Management reporting

  • Strategic planning

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    Sales and Use Tax

    The complexities of operating in multiple jurisdictions.

    In the U.S. there are 46 jurisdictions (45 states plus the District of Columbia) that impose a sales and use tax. The tax rate can be as high as 10% in some areas, and these taxes represent a significant portion of a company’s overall tax burden. For national companies, complying with and optimizing against multiple regulations present enormous challenges, especially as cloud computing becomes more prevalent. State and local authorities are aware of these challenges, and many actively use sales and use tax audits as a means of recovering lost revenue, leaving companies facing penalties and interest.

    TaxBud’s sales and use tax professionals draw on a range of backgrounds and work experience, beyond public accounting. Many of TaxBud’s professionals are former sales and use tax auditors from state tax departments, while others have worked in some of the largest multi-state tax departments in America. Our unique Government and Industry work experience allows us to understand and address our clients’ concerns with technical and practical advice, and services tailored precisely to their needs.

    Our partner-led platform helps navigate the pitfalls that affect each unique client, within each particular industry, in each specific geographic area.

  • Reverse sales and use tax audits

  • Sales and use tax compliance outsourcing

  • Sales and use tax review

  • Voluntary and amnesty disclosure registration

  • General consulting, including research and planning

  • Sales and use tax training

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    Site Selection & Tax Credits & Incentives

    National perspective. Local insight.

    For both multinationals establishing footholds in the U.S., and U.S. firms expanding, relocating, or consolidating operations, site selection can present significant opportunities. Tax credits/incentives vary significantly from state to state, and minimizing state and local tax liabilities is an important consideration in selecting sites for production, distribution, sales, back office functions, customer assistance, and more.

    TaxBud’s integrated, partner-led team is comprised of tax and industry professionals from offices across the country. We have strong working relationships with state and local economic development agencies that partner with us during the site selection and tax incentives process. Tax and business incentives can be awarded in numerous forms, including:

  • Income/franchise tax credits

  • Tax rebates

  • Discretionary cash grants and infrastructure assistance

  • Tax exemptions for state and local taxes including income/franchise, sales and use taxes, payroll taxes, and real and personal property taxes

  • TaxBud has accountants with decades of experience assisting clients with tax credits and incentives. To help our clients maximize these benefits, we offer a wide variety of specialized services, including:

  • Identifying, quantifying, and securing state and local negotiated tax and financial incentive packages

  • Preparing economic impact analyses measuring indirect/induced fiscal and economic impact of investment/expansion projects

  • Drafting comparative tax and financial operating cost analysis by location

  • Implementing processes and systems to comply with annual incentive reporting requirements as well as maximize the value of the benefits over the term of the incentives package

  • Performing statutory income tax credit refund reviews for overlooked or underutilized credits

  • Providing Work Opportunity Tax Credit (WOTC) as well as state and local employment tax credit services for hiring targeted individuals

  • Supporting sustainability and energy efficiency efforts through the use of “green” credits and incentives

  • Enhancing the public-private partnerships for businesses within their community

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    Telecommunication Taxes and Fees

    For telecommunication companies – and others that bill for telecommunication services.

    Telecommunication companies – including cable companies and others that bill for communication services – are required to master the complex world of taxes and fees imposed on telecommunication services: sales taxes, state gross receipts taxes, local telecommunications taxes, federal universal fund fees, state universal service fund fees, and 911 fees. Billing and remitting these taxes and fees can be very complex. As states become more aggressive in auditing companies offering telecommunication services, failure to comply could cause significant exposures. Conversely, telecommunication companies may be eligible for exemptions or refunds of overpayments of tax on access charges and certain telecommunications equipment purchases.

    The Telecommunications Tax Group at TaxBud is a partner-led, dedicated practice with a deep focus in this area and all its complexities. We work to minimize both tax burden and the risk of non-compliance, and help clients develop optimization strategies for the years ahead.

  • Taxability Matrix Reviews

  • Telecommunications Tax Compliance Reviews

  • Telecommunications Tax Controversy and Audit Defense

  • Federal Universal Service Fund Fees Compliance Reviews

  • Telecommunications Tax Nexus Studies

  • Refunds of Overpayments of Tax on Access Charges and Certain Telecommunications Equipment Purchases

  • Implementation of Purchasing Companies

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    Unclaimed Property

    Have you received a state unclaimed property letter?

    Many companies may not fully understand – or even be aware of – unclaimed property statutes and regulations. Unclaimed property consists of tangible and intangible items that a business owes to its employees, customers, vendors, creditors, or shareholders, including everything from un-cashed checks, voided checks, and unused/unredeemed gift certificates to accounts receivable credits, deposits, refunds, and rebates. All 50 states, the District of Columbia, Puerto Rico, Guam, and the U.S. Virgin Islands have unclaimed property laws that require companies to report and remit various unclaimed property types that have been unclaimed or dormant for a statutorily defined period of time. With various state laws, frequent legislative changes, and administrative burden, many companies struggle to implement a process and maintain ongoing unclaimed property compliance.

    But states are enforcing unclaimed property laws more strictly. Audits are now prevalent for all industries and businesses of all sizes, and can go back 15 years or more. Most of these audits are multi-state in nature, and are conducted by third party, contingency fee-based firms. More than ever, companies must take proactive steps to manage the potential risks related to unclaimed property and ensure compliance.

    TaxBud has extensive experience and the comprehensive technical and information technology resources required to mitigate unclaimed property exposure, including:

    Consulting

  • Voluntary Disclosure Agreements

  • Audit Defense

  • Feasibility Study and Risk Assessments

  • Remediation Reviews

  • Merger & Acquisition Due Diligence

  • Refund Reviews

  • Global Mapping Consulting

  • General Consulting

  • Compliance

  • Compliance Report Preparation and Filing

  • Due Diligence Letter Preparation and Tracking

  • Policy & Procedure Implementation

  • Compliance Education and Training