Multistate (SALT)

If your organization has a presence in multiple states, it adds a significant level of complexity to tax planning and compliance. States are continually looking for ways to increase tax revenues and are enforcing tax laws in an increasingly powerful manner. How a business operates and generates cash flow has a major impact on how the taxpayer is taxed. The current state regulatory environment presents many traps for the uninitiated, which can lead to an increased percentage of a company’s total tax liability that is earmarked for state and local income/franchise taxes.

Multistate Structure Analysis

Operating a business in multiple states adds a significant level of complexity to tax planning and compliance. You need a firm with expertise in State and Local Tax (SALT), and your business strategy should include an in-depth analysis of state and local tax implications.

PKM maintains the resources necessary to address the issues and opportunities that exist for companies that operate across multiple states. We have proven experience implementing state tax savings strategies, as well as day-to-day state tax compliance. In addition, the firm has implemented company-specific strategies that allow for risk reduction while reducing the overall state tax burden  –  including those beyond state income and franchise taxes, such as sales and use taxes, property taxes, employment taxes and business incentives.

Nexus, Apportionment Planning & Analysis

The experts at PKM have access to extensive research on what constitutes nexus on a state-by-state basis.  We have the resources to determine for which states you have nexus, how many apportionment factors the states use, and what the filing requirements are for each.  We will analyze and help you plan your interstate business based on these factors.

Exposure Analysis

State-by-state exposure analysis can call clients’ attention to potential state tax savings as well as possible risks for state income, franchise, and sales and use taxes.  It is important to uncover and analyze these benefits/risks before the window for action expires and savings are lost or penalties are imposed.

Voluntary Disclosures (VDA)

The Multistate Tax Commission (MTC) offers a voluntary disclosure program that allows companies to resolve potential tax liabilities simultaneously with multiple states. Companies are able to contact a number of states anonymously to propose settlement of potential state tax liabilities. Taxpayers may address potential state conflicts before there is an assessment or penalties. Voluntary Disclosures, once accepted by the state, are binding, and can provide resolution and eliminate future time-consuming and expensive tax consultation.

Audit Management

Much like an IRS audit, an audit by the state requires significant amounts of communication and documentation.  PKM cross-references controversial tax positions with layers of authoritative literature and supporting documents.  We can help our clients prepare for a state audit and manage the process quickly and effectively.

Amended Returns

Changes in facts and circumstances or incorrect information may result in the need for amended returns.  We will weigh the necessity of amending (if not required by the state) with the possibility of current-year true-ups.  We will prepare you for the possibility of additional tax liabilities or the potential for refund.