STATE TAX ADVICE

We analyze the composition of group filings to determine which method best serves the clients business. We analyze the various entities to determine which entity is permitted or excluded from the group filing to understand the parameters of each option. We analyze the historical impact of the filing method and the prospective impact for future periods. We work with our client to model out the various options to arrive at the most beneficial filing method. 

We analyze our clients’ intracompany relationships to determine whether the business operations are centrally managed, functionally integrated, and provide economies of scale. We work with our clients to engage with the business operations to understand whether the related entities operate in a unitary manner. We document the determinations to prepare for audit.

We work with our clients to determine the proper sourcing for their products or services. Whether it be destination based sourcing (i.e., market sourcing) or origination based sourcing (i.e., cost of performance) we have advised our clients on the various ways states have applied the law. We have worked to determine the best method to apply the different sourcing approaches.  

We analyze whether the client's statutory filing method fails to properly reflect its presence in the jurisdiction. We work with our clients to determine whether alternative apportionment is good approach to achieve a more equitable tax liability. We develop various reasonable alternatives to correct for the inaccurate reflection in the statutory apportionment and advise on the best approach.

We work with our clients to analyze the best way to maximize the use of net operating loss carry forwards. We analyze the state limitations imposed on the carry forward NOLs to determine the best way to maximize the benefit of the NOLs.  

We work with our clients to engage the business operation personnel to gain a deep understanding of their business products or services. We develop the relevant data points on how they provide the offerings now and the plan future development. We advise our clients on the multistate landscape of taxability and the risk from aggressive state and local tax administration.  

We advise our clients on the treatment of bundled transactions and the most prudent approach to analyzing the transactions. We work to analyze the primary purpose or true object of the transaction to determine whether it is taxable or not. Further, we advise clients on the considerations of unbundling the transaction to the market or in the accounting for transactions to avoid the entire transaction being subjected to tax.  

We advise ourclients on the controversial area of taxation of digital goods and services. The evolving digital economy has significantly outpaced the legislative efforts to subject the digital economy to taxation.  However, the legislative, regulatory, and administrative efforts to impose tax on the digital goods and services has created significant uncertainty for all businesses. We counsel our clients on the best way to navigate the uncertainty and protect themselves against tax liability.

We advise our clients on determining their gross receipts, including the character of such receipts and the application of any exemptions or exclusions. We analyze the nature of the transactions and review the accounting for such transactions to advise on the proper treatment of the transactions for gross receipts tax purposes.  

We advise our clients on the treatment of multi-party transactions for gross receipts tax purposes. Oftentimes these transactions raise the inquiry of whose receipt is it for tax purposes. These issues are particularly challenging in the evolving presence of marketplaces that facilitate transactions. We counsel clients on navigating the pitfalls and traps to avoid the improper incidence of tax.    

We advise our clients on the proper sourcing of receipts for gross receipts tax purposes. Sourcing has become particularly complicated with the provision of services on a remote basis. Taxpayers have struggled to work with the underdeveloped guidance available to properly source receipts.  We counsel clients on the best approach to sourcing receipts for purposes of determining their tax liability.

We advise our clients on special industry issues (financial, services, etc.) that impact the computation of gross receipts. We work with clients to take advantage of industry specific preferential treatment (i.e., rates, exclusions, exemptions). We ensure that our clients are minimizing their gross receipts tax obligations as permitted under the law.