SALT State & Local Tax

Overview

Businesses operating in multiple states must navigate and comply with varied and complex state and local taxes imposed on legal entities, their owners, and transactions of products and services. The pace of change in the world of state tax has increased in recent years, thereby altering the landscape in which businesses operate creating both opportunities and pitfalls. In addition, with every state facing serious financial problems, state departments of revenue are more focused on enforcement. Business owners who are not aware of their tax obligations may find themselves liable; not just for the tax, but they may also incur penalties. At Mueller, our State & Local Tax Group (SALT) is committed to staying up-to-date with current tax legislation so we can assist you in accurately determining your tax burden and help you capitalize on tax opportunities.

Resources

New State Tax Nexus Obligations – Covid-19 and work from home

New Proposed Tax Revenues – Illinois budget proposal

South Dakota vs. Wayfair – Multi-state implications for business

 

Services

Allocation/Apportionment Reviews: Several states assign sales of services to the state in which the benefit of the service is received. Other states assign such sales to the state in which the services are received, the state in which the customers or marketplace is located, or the state in which the service is delivered. How you source your income and taxes can be  challenging but an allocation and apportionment review can help you protect your business.

Sales and Use Tax: States are independent when it comes to sales and use tax applications and the differences are many and varied. We can help you through the maze of these different requirements so you only pay the expected taxes of your organization.

Nexus Studies/Reviews: States are very aggressive about getting their share of tax dollars and may be looking at your company for nexus. A nexus study provides a detailed review of your business’s activities that are conducted outside of your home state to identify potential tax filing requirements.

Voluntary Disclosures: We can help you limit your liability on the penalties and interest on unpaid back taxes through a voluntary disclosure agreement.

Controversy and Audit Representation: From pre-audit conference through the appeals process, we can help minimize income/franchise tax assessments.

Economic Development Incentives and Tax Credits: Find out how the current tax code and policies can reward you for creating jobs and investing in your business.

Transaction Planning: Are you planning corporate changes or involved in buy-sell agreements? We can help provide due diligence services to analyze the potential state and local tax impact of those changes and agreements.