State & Local Tax Checkup

Over 9,000 state and local jurisdictions impose taxes on businesses, and their rules are in constant flux. Keeping up-to-date on these changes is a major challenge for businesses, yet failing to do so can significantly affect an organization’s cash flow and its ability to compete. Companies that simply follow last year’s procedures often leave money on the table or inadvertently open themselves to risk.

A state and local tax checkup (Checkup) can help businesses maintain compliance, improve cash flow, and plan for the future. Engaging in a Checkup before a transaction—such as a sale or restructuring—puts business owners and executives in control of the risks and opportunities that would be identified during due diligence, which helps prevent buyers from requesting price concessions.

What to Expect

Our Checkup approach involves a high-level interactive process. It’s not a detailed audit of your tax returns and isn’t meant to replace a detailed nexus study.

The discussion and review is structured to highlight areas that may warrant additional consideration—whether to capture opportunities or to identify and mitigate risk.

We’ll meet with executive management to discuss and assess procedures around state and local tax and incentives and review selected information. The Checkup will conclude with a management report of our findings and recommendations.

Scope of Review

  • Income and sales tax nexus
  • Sales tax process and tax decisions
  • Income tax filing positions (apportionment, major elections, and large modifications)
  • Unclaimed property compliance
  • Property tax reporting
  • Incentive availability
  • Local tax reporting


  • Management report highlighting areas where opportunity or exposure exists
  • Recommendations for further action


  • Competitive, fixed-fee pricing
  • Implementation of recommendations aren’t included in the fee arrangement

Ideal Checkup Timing

  • Annually or prior to filing state tax extensions
  • Prior to any material transaction, such as an acquisition, sale, restructuring, or large capital expenditure

We’re Here to Help

If you’d like to learn more about how a state and local tax checkup could help your business, contact your Moss Adams professional.

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