Property Tax Review
Property tax reviews consist of both real estate appraisal challenges and personal property tax rendition reviews. Cash-strapped taxing authorities often over-appraise realty, resulting in you overpaying property tax. We recommend a challenge at least once every five years. Some companies do it every year. To challenge the local assessor’s valuation, we compare market equivalents and consider other valuation methodologies in more complex situations working with independent valuation firms. In the case of personal property, we can determine if inventory is receiving the appropriate exemptions, as well as identify “ghost assets” lurking on renditions long after their disposal.
Reverse Sales Tax Audit
Our extensive and collective experience indicates that sales/use tax paid through a company’s supply chain is the most overpaid tax for most businesses. Whether it is sales tax paid with a vendor’s invoice or use tax self-remitted by certain industries, this tax is very often untracked and administered by personnel with numerous responsibilities and little tax background. Our solution is to approach the situation as a state auditor would – only inversely. We take a statistical sample over the prior three to four years and pore over the invoices while applying our knowledge of the intricate sales/use tax laws. This effort allows us to determine the overpaid amount and whether a party is subject to a refund.
State Income Tax Planning
State income and franchise tax may be the most complex tax in the United States. Laws and regulations vary by state/locality, industry, and entity structure. These variations yield thousands of different potential tax results. Finding the optimal result for our clients begins with an entity-specific nexus review to determine where tax returns should be filed. Next, we use a basic tax model to consider the mandatory and optional industry-specific rules that apply. Then, revenue streams are examined to identify previously unseen (yet optimally taxed) existing sources of revenue. Various apportionment formulas are analyzed. Finally, based on different entity structures, iterations of tax results are created to identify the optimal result.
Tax Credits & Incentives (C&Is) Diagnostic
C&I reviews include historical and future aspects. States often have dozens of distinct C&Is concerning investments, job growth, training, pollution control, enterprise zones, and more. Related to ongoing operations, we work with your staff to review your operations, identify potentially overlooked C&Is, and advise you on ways to secure credits. With regard to future C&Is, we have relationships with the Economic Development Councils in several states and, based on your future business plans, can advise you on how to strategically optimize both statutory and negotiated C&Is.