alliantgroup’s state tax nexus review provides a company with a snapshot of how its corporate activities conduced within states affect its state tax obligations. Our State And Local Tax (SALT) experts know the “doing business” standards in the states and analyze them regarding the company’s activities conducted in all 50 states. Our estimate of income, franchise, and sales tax liability associated with the company’s activities provides a framework to help the company become compliant and, more importantly, to proactively manage its state tax situation in view of the FIN 48 disclosures.
Get a Clear Snapshot of Your Company’s Multistate Activities
Our state and local tax professionals have developed an approach to provide you with a snapshot of how your multistate activities affect your bottom line. Our process quantifies, documents findings, and allows you to prioritize your state tax situations using our “nexus decision matrix” tool.
We will analyze your nexus (the minimal presence within a state that allows the state to impose their tax laws upon out-of-state businesses) and estimate income and franchise and sales tax liability associated with your company’s activities in all 50 states. This analysis provides a roadmap to help you resolve issues and formulate a practical plan or solution to help your company reduce and mitigate any identified exposures.
Armed with a clear understanding of your multistate position, you are in the driver’s seat. Get your arms around your company’s past state tax exposure – and start proactively identifying the state and local tax issues associated with your company’s future growth from several angles:
- Compliance. Identifies states requiring resolutions of past and current liabilities.
- Planning. Allows for creating planning opportunities to comply, reduce and eliminate future state tax costs.
- Management. Provides an understanding of the tax consequences associated with your company’s specific activities – now and in the future.
Limit Your Potential Tax Liabilities
Companies inadvertently fail to file income tax and sales/use tax returns in states because they are unaware of their obligation. If a state discovers your company is not meeting tax requirements, the normal statute of limitations does not apply. The results can be staggering.
To help ease the financial burden, let our SALT professionals leverage established relationships with state agencies to anonymously negotiate a settlement on your behalf. A favorable agreement can eliminate years of outstanding tax, interest and penalties.
Create a Fresh Slate
In the voluntary disclosure process, we work to obtain a resolution that is acceptable to both you and state authorities. The agreement can cover all types of taxes, including sales, use, income and franchise, in the same negotiation. While the terms and conditions of each agreement vary, the result of the process usually:
- Limits the look-back period to the previous zero-to-four years instead of eight
- Results in all penalties waived
- Closes the statute of limitations on years prior to the agreed upon look back period
- Establishes registration in the state
- Closes the book on historical tax obligations that can rise to full FIN 48 required disclosures
