State & Local Tax

Navigate the Rough Sea of Regulations

For many types of entities, in many situations, profits come at a cost. And that cost often relates to taxes and regulations. The time it takes to understand ever-changing state and municipal laws. The resources required for upgraded ERP systems to manage all that complexity. The potentially devastating financial and reputational impact.

It can be overwhelming. But Barnes Dennig’s dedicated state and local tax (SALT) team will help you get your bearings. They’ll take that stress away, minimize your tax burden, and free you up to refocus on the other crucial aspects of your job.

Wherever your organization has a presence, our SALT team has the experience to handle the issues you face.

Common state and local tax compliance issues – and how to avoid them

Barnes Dennig state and local tax pros Dave Walls and Ryan Lauer outline common compliance issues – and how to make sure you’re in compliance. It’s a lot more than just e-commerce:

Can’t watch the video? Download the transcript. 

 

The issue: Multi-state economic nexus for sales tax

South Dakota v. Wayfair rewrote the rule book for remote sellers. Today, sellers in one state that meet another state’s economic presence threshold (typically $100,000 in sales) must register, collect, and remit sales tax by that state’s economic nexus effective date.

In many states, economic nexus legislation took effect in October 2018. If your company didn’t start charging sales tax, you could be liable for the unpaid sales tax in every state where you exceeded the economic nexus sales threshold.

How we handle it

Our dedicated state and local tax professionals provide a full range of advisory services. They’ll shoulder the burden of:

  • Identifying your taxable sales by state
  • Quantifying your sales tax liabilities and exposure
  • Ensuring that you’re compliant with state registrations
  • Helping you with voluntary disclosure programs or penalty abatement
  • Preparing prior sales tax returns

The issue: Sales and use tax due diligence for mergers and acquisitions

Almost all states, and hundreds of political subdivisions, tax almost every transfer or use of tangible personal property (unless there’s a specific exclusion or exemption). There are sales tax implications for all kinds of activities, including:

  • Business mergers
  • Acquisitions
  • Dispositions
  • Liquidations
  • Inter-company transfers of assets

Whether you’re a seller or a buyer, overlooking these sales tax implications could expose you to unexpected tax liabilities.

How we handle it

Barnes Dennig performs due diligence to catch sales tax liabilities before M&A activity can uncover them. We help sellers reduce those liabilities to boost the likelihood of a sale. And we help buyers identify potential tax exposure, quantify it, and explore ways to address it.

The issue: Apportionment study

Apportionment is the strategy of dividing a multi-state company’s income among jurisdictions where that company has sufficient nexus.

The states all have different, complex sets of rules governing this practice. And their purpose is not to reduce your company’s tax exposure. In fact, many states have adjusted their apportionment formulas to attract business investment and raise revenue.

How we handle it

If your company is conducting this kind of structuring business transaction, Barnes Dennig can help lower your taxes by strategically reducing or increasing apportionment factors. We’ll monitor legislation in relevant states and municipalities to make sure you’re not inadvertently paying more than you should.

The issue: Non-profit charitable solicitation registration

To protect their citizens, states want to know about the non-profits that solicit donations from them. In most cases, a non-profit must register with a state agency before it can fundraise in that state (which is more fraught and complex than you might think). Regulations are getting stricter. Registration forms vary widely from state to state. And improper registration can lead to anything from fines and penalties to the loss of tax-exempt status.

How we handle it

Barnes Dennig helps non-profits avoid the consequences of faulty or nonexistent registration by working with them to navigate each state’s unique registration process.

What makes us great can make you even greater

Barnes Dennig professionals have helped many companies chart a course through complex state-by-state income, franchise, and sales tax regulations.

Our full-service team has the technical expertise to:

  • Identify and help you qualify for multi-state state tax credits, incentives, and refunds
  • Train and help you implement best practices with your staff – from the finance team to your sales force, IT department, and software provider.

But what you’ll notice most about us is how we do it.

With a rare blend of precision and forward-thinking.

A deep commitment to long-term working relationships.

The tenacity to persist till you get where you want to go.

We call it “seeing beyond the numbers.” You’ll be amazed at its power to simplify your taxes.

Contact us

Contact us today to begin your journey with us.

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