State & Local Taxes

Arnett Carbis Toothman’s Tax Team knows that State and local tax issues can be complicated. We are dedicated to help you understand and navigate this challenging area. While you focus on your business, we will focus on the state tax implications and help you take advantage of all tax incentives and credits available to you. We will do this and also help you maintain compliance with the state. Even if you do business in several states, we will be there to help you navigate the different laws and regulations, no matter how big or small.

Income & Franchise Taxes

State income and franchise tax planning has become more important than ever before. Although basic concepts are similar, each state is different. Every state has rules and regulations regarding income and franchise tax, but no two states are the same. State income and franchise taxes can be difficult and whether you are doing business in one state or many. This complexity requires a tax advisor who is experienced with state laws and is aware of how they can affect your business.

Our goal is to work to develop a tax plan that can help your company grow and be cost effective. People on our experienced tax team have a deep understanding in areas such as:

  • Multistate tax planning
  • Entity selection
  • Compliance
  • Audit assistance

What this means to you is, we take the time to understand your business and find the best approach to minimize your tax burden.

Nexus

Business activities, no matter how insignificant they may seem, can establish a connection with a state that subjects you to its tax laws. It is possible for you to unknowingly have nexus within a state for many years. As a result, you could be responsible for back taxes for sales, franchise and/or income tax. Penalties and interest could even be imposed for those past years.

There are currently initiatives between states that will greatly increase their ability to share information. Such communication could result in states expanding their emphasis on nexus reviews.

This is not all bad news however, because there are procedures available which can reduce your state tax exposure so long as you undertake them before discovery by the states.

We can assist you in conducting a nexus study, looking for estimated tax liabilities. We can also anonymously contact selected states on your behalf to negotiate a voluntary disclosure agreement.

Sales and Use Tax

State sales and use tax can be one of the most complicated areas to understand. You could easily be paying too much in sales and use tax. Arnett Carbis Toothman has worked with hundreds of businesses and as a result acquired an extensive amount of knowledge allowing us to understand your unique business situation and lead you toward paying only what is your fair share.

As a regional CPA and consulting firm, Arnett Carbis Toothman is uniquely positioned to help you turn state and local taxes into an opportunity for genuine savings. Our dedicated state and local tax team has been the firm of choice for several companies and is the choice for your state and local tax needs.

To help you maximize your sales and use tax savings, we:

  • Meet with you to review the work plan and identify locations of records
  • Conduct interviews and tour your facility to determine procedures and systems for payment of taxes
  • Analyze records and source documents to identify opportunities for refunds
  • Prepare documentation to substantiate the claim for refund
  • Meet with you to discuss findings and recommendations and provide reports with recommendations for reducing future liabilities
  • Represent you at administrative hearings
  • Provide additional assistance, as necessary, to support you in realizing tax recoveries and future tax savings

Credits & Incentives

Many state and local governments offer credits and incentives to help businesses start or expand their operations. These incentives can be exceedingly valuable which is why it is extremely important to meet with us. Every day we work with clients helping them to apply for these programs. We have extensive knowledge of all credits and incentives available for your business. Credits and incentives are available for such things as expanding current business operations, hiring employees and purchasing equipment.

Too often companies miss out by not taking advantage of such opportunities. Our tax team can explain what options may be available to you and develop a plan to implement the best strategy.

Contact an ACT Advisor

For more information, contact your Arnett Carbis Toothman advisor or one of these trusted advisors.

Steven Robey CPA, CVA, CGMA steve.robey@actcpas.com
Mark Pendleton CPA, CGMA, CFE mark.pendleton@actcpas.com