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At alliantgroup, our State & Local Tax (SALT) professionals stay current with the constantly changing state and local statutes and regulations. Using this knowledge, we provide proactive, value-added services to meet the specific state and local tax needs of your clients (if you are a CPA) or your business.
alliantgroup SALT professionals consult on a wide variety of issues:
- Alternative Apportionment Methodology
- Classification of Income as Business or Non-business Income
- Revenue Ruling Request
- Audit Issue Representation and Research
- Unitary/Combined Reporting Analysis
- World Wide Combined Reporting
- Tax Attribute Analysis in Acquisitions/ Dispositions
- Nexus Planning
- State Income Tax reduction Strategies
- State Due Diligence and M&A Planning Services
- FAS 109 / FIN 48 State Compliance
- State Specific Issues for Texas, Michigan, California, Massachusetts, Etc.
State Income 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 state and local tax experts take advantage of these state differences and look for planning opportunities to reduce a company's overall interstate tax burden.
- Who: All industries: manufacturers, distributors, wholesalers applies to companies filing in two or more states
- When: Post filing review or in preparation for compliance filing
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 the company is on, we can help identify “pitfalls” as well as uncover “windfall gains.”
- Who: Companies contemplating the acquisition or disposition of a business or business segment
- When: Early in the acquisition or disposition process
FAS 109 / FIN 48 Compliance
The Financial Accounting Standards Board issued Statement 109: Accounting for Income Taxes (FAS 109) in February 1992. The purpose of FAS 109 is to recognize (a) the amount of taxes payable or refundable for the current year and (b) the deferred tax liabilities and assets for the future tax consequences of events that have been recognized in a corporation's financial statements or tax returns. In essence, FAS 109 requires public companies to disclose a reconciliation of the reported amount of income tax expense to the amount of income tax expense that would result from applying domestic federal and state statutory rates to pretax financial income. FIN 48 is a required adjustment to FAS 109 for “uncertain tax positions or UTPs.”
alliantgroup SALT professionals support the computation of the state tax provision of the FAS 109 / FIN 48 adjustment.
- Who: Companies seeking a “best practices” review of State Effective Tax Rates. Companies with historical state cushions” buried in their state tax provisions or have never had a State Income Tax Review.
- When: Early in the last quarter proceeding tax provision.
For more information, please click here to contact alliantgroup.
For immediate assistance, contact Daryl Jendras.
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