State and Local Tax Services

State and local tax services encompass the management, compliance, and strategic planning related to state and local taxes for individuals and businesses. These services ensure that taxpayers meet their obligations while minimizing tax liabilities within the legal framework of state and local tax laws.

Key Areas of State and Local Tax Services

1. Sales and Use Tax Compliance:

Sales Tax: Calculating, collecting, and remitting sales taxes on goods and services sold.

Use Tax: Reporting and paying use tax on taxable items purchased without paying sales tax.

2. Income and Franchise Tax Compliance:

State Income Tax: Preparing and filing state income tax returns for individuals and businesses.

Franchise Tax: Filing franchise tax returns for businesses operating in states that impose this tax.

3. Property Tax Services:

Real Property Tax: Managing assessments, appeals, and payments related to real estate property taxes.

Personal Property Tax: Reporting and paying taxes on tangible personal property owned by businesses.

4. Excise and Other Specialty Taxes:

Excise Taxes: Managing taxes on specific goods and activities, such as fuel, tobacco, and alcohol.

Other Local Taxes: Handling local taxes such as hotel occupancy tax, utility taxes, and business licenses.

5. Audit Defense and Representation:

Audit Preparation: Preparing for state and local tax audits, ensuring all documentation and records are in order.

Representation: Representing taxpayers during audits, appeals, and disputes with state and local tax authorities.

6. Tax Credits and Incentives:

State and Local Tax Credits: Identifying and claiming available credits, such as job creation, investment, and research and development credits.

Incentive Programs: Leveraging state and local incentive programs to reduce tax liabilities and support business growth.

Key Steps in State and Local Tax Services

1. Review Tax Obligations:

Identify Tax Jurisdictions: Determine the states and localities where tax obligations exist based on business operations and activities.

Understand Tax Requirements: Review the specific tax requirements for each jurisdiction, including filing deadlines, rates, and reporting standards.

2. Gather Necessary Documentation:

Financial Records: Collect income statements, balance sheets, sales records, and other financial documentation.

Tax Returns: Gather prior years’ state and local tax returns for reference and comparison.

3. Calculate Taxes Due:

Sales and Use Tax: Calculate the amount of sales and use tax due based on sales transactions and taxable purchases.
Income and Franchise Tax: Compute state income and franchise taxes using the appropriate tax rates and apportionment methods.
Property Tax: Assess the value of real and personal property and calculate the corresponding tax liabilities.

4. Prepare and File Tax Returns:

State and Local Tax Forms: Complete and file the necessary state and local tax forms accurately and on time.

Electronic Filing: Use electronic filing options where available for faster processing and confirmation of receipt.

5. Pay Taxes Owed:

Payment Methods: Pay taxes owed using electronic funds transfer (EFT), credit card, or check.

Installment Plans: If necessary, set up installment plans with tax authorities to pay taxes over time.

6. Monitor and Respond to Notices:

Tax Notices: Monitor for any tax notices or correspondence from state and local tax authorities.

Respond Promptly: Address any issues or discrepancies raised by tax authorities in a timely manner.