State and Local Tax (SALT)

The full compliment of state and local services and consulting

Adding shareholder value to a company's bottom line is essential in the current tax environment. This is where alliantgroup SALT specialists excel. alliantgroup provides the full compliment of state and local services and consulting in the following general areas:

• State and Local Income Tax
• State and Local Tax Credits & Incentives
• Property Taxes
• State & Local Tax Controversy Services

Below is a brief description of the SALT services provided by alliantgroup, along with brief statements about who can benefit from these services and when they should be used.

State Income Tax Refund Review (SIT Refund)
alliantgroup's SALT experts proactively manage your state income/ franchise taxes through a comprehensive review of your income tax returns filed in the previous three years. We look for available credits, state add backs and modifications, alternative filing positions for apportionable and allocable income, and nexus issues. Our findings typically lead to future tax savings as well as tax refunds.

• Companies with a state tax effective rate of more than 5%
• Companies faced with FIN 48 compliance
• Companies with international and/or multi-state operations
• Companies that file on a federal consolidated basis
• Anytime, but especially after a business acquisition

State RAR Services
alliantgroup's professionals have the expertise to prepare amended state returns from federal income tax audit. Often, in the amended return process, we are able to identify issues that will offset the state tax liability. Our approach is much like our SIT Refund Review, whereby we look at the larger landscape of your state and local situation.

• Tax departments with limited staff resources and higher tax priorities
• State RAR's are time sensitive, labor intensive, and are “out task” compliance projects
• Upon receipt of RAR

State Tax Nexus Review
alliantgroup's state tax nexus review provides a company with a “snapshot” of how their multi-state corporate activities affect their state tax obligations. Our SALT experts know the “doing business” standards in all states and analyze them in reference to the company's activities. We estimate income, franchise and sales tax liability associated with the company's activities, thus providing a frame work to help the company become compliant, and more importantly, to proactively manage their state tax situation.

• Rapidly growing companies, high technology companies, and service enterprises including software developers
• Companies faced with FIN 48 compliance
• Upon receipt of a nexus questionnaire or other state correspondence

Voluntary Disclosure Agreement
Companies inadvertently fail to file state income tax and sales/use tax returns because they were unaware of their obligation. The voluntary disclosure process allows a company to obtain a favorable resolution that is acceptable to state authorities. The agreement covers all taxes including sales, use, income and franchise, in the same negotiation with reduced interest, penalties and limited look back period.

• Companies at risk that acknowledge that they have a filing and collection responsibility
• Before the state makes first contact

State & Local Tax Reduction Strategies
Opportunities may exist to lower the effective state tax rate and improve cash flow through the use of special purpose entities or alternative operating structures. We implement a legal entity structure that minimizes the company's state tax burden yet is seamless with business operations. State tax systems differ in the entity structures they tax and in the incomes that are apportionable to their state. alliantgroup's SALT experts take advantage of these state differences and look for planning opportunities to reduce a company's overall interstate tax burden.

• All industries: manufacturers, distributors, wholesalers
• Applies to companies filing in two or more states
• Post filing review or in preparation for compliance filing

Multistate Credits & Incentives Services
alliantgroup's credits practice specializes in identifying, documenting and securing retroactive and prospective wage and sales tax credits. Most states have statutory and negotiated benefits for companies located in specific geographic regions.

• Applies to companies located within designated economic development zones and/or companies that are manufacturing, processing or biotechnology enterprises
• Whenever a company has made an acquisition, relocated, or is contemplating expansion

State Due Diligence and M&A Planning Services

Material state income and sales tax liabilities can surprise the purchaser after a sale has closed. Bulk asset purchases do not always protect the buyer from acquiring the seller's sales/use, income/franchise, and gross receipts tax liabilities. Knowing these liabilities before the “hand shake” is critical. Moreover, the purchaser may acquire carryforward credits, losses or state-specific election opportunities. Regardless of which side of the transaction your company is on, we can help identify “pitfalls” as well as uncover “windfall gains.”

• Companies contemplating the acquisition or disposition of a business or business segment
• Early in the acquisition or disposition process

Property Tax Services
In the current economic climate, our clients may be overpaying on real and personal property taxes due to inflated valuations. Typically, the period for challenging property valuations is limited. In addition, negotiating with local tax authorities can be difficult unless company personnel handling property taxes are located in the taxing jurisdiction. Our property tax professionals help clients reduce property taxes by 1) identifying and confirming their property tax listing, 2) providing valuation support and 3) negotiating with local taxing authorities.
Applies to companies that own real property valued at $3 million or greater and/or personal property of $5 million or more.

• Applies to companies who have acquired new property in the last three years
• Applies to golf courses, hospitality, heavy construction and manufacturing entities
• Before the assessment appeals deadline, upon notice of impending audit, or upon a business acquisition or disposition

State Tax Controversy Services (State TCS)
State audits are on the rise. Income and sales/use tax audit defense/appeals is highly specialized. alliantgroup recommends a pre-audit review to set the audit direction and appeals strategy. We manage the audit from start to finish or consult on specific audit issues. Many of our tax professionals are former state auditors, CPAs, and attorneys with audit and/or appeal experience.

• All industries
• Upon notice of impending audit

For more information, please click here to contact alliantgroup.