Income and Franchise Tax

Where do I have nexus? What is “economic nexus,” and how does it apply to me? How many returns should I file? What are the state—and local—tax rates in the jurisdictions in which my business operates? What are the filing deadlines for each state? How do I source income to each state? How do I source service income? Do specific sourcing rules apply to my industry?

Ever-changing tax laws, rates, and jurisdictional boundaries—not to mention preparing monthly filings, handling audits, and complying with tax accounting for financial statements—pose real challenges to business tax departments. What’s more, states are increasingly aggressive in enforcing their tax laws. Add an environment of limited resources for managing the tax function, and it becomes vital to have a working understanding of the intricate rules regarding nonbusiness income, sales sourcing, “nowhere sales,” economic nexus, and similar issues.

Income and franchise tax issues can also surface when businesses expand (especially into different states), change their product or service offerings, increase their marketing activities, engage in merger or acquisition activity, or experience other structural or business changes.

Moss Adams can help. We provide a wide range of income and franchise tax compliance, planning, and consulting solutions, including:

  • Tax planning strategies for intrastate and interstate transactions
  • Tax compliance services for all filing jurisdictions
  • Help negotiating Voluntary Disclosure Agreements to limit exposure where required filings may not have been made
  • Reviewing filing methodologies to identify potential refunds and risks
  • Identifying different tax positions and analyzing the risk and benefits of each
  • Providing guidance on new state tax policy and legislation and advising on the tax return impact of those changes
  • Negotiating incentives packages for expansions and, in some cases, job retention
  • Helping companies communicate with state and local tax authorities
  • Assisting with state tax audits and appeals representation and resolution
  • Conducting reverse income tax audits

In addition, for companies with multistate tax liabilities in excess of $250,000 or single-state liabilities of $100,000 or more, we can review your state returns at no charge to uncover potential tax refunds available. After our review we provide a summary of our findings along with potential items of audit risk and discuss the ability to garner cash refunds for the applicable years open under statute.

Our goal? To help reduce your overall state income and franchise tax burden, thereby lowering your state effective rate and increasing your cash flow. Contact us to learn more.

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