State and Local Tax

With thousands of different jurisdictions to track, the interplay between federal, state and local tax legislation can be extremely complex and difficult to manage. By partnering with highly knowledgeable state tax professionals who take a big-picture view of your situation, you can find the holistic tax solutions that work best for you.

Wayfair has left many business leaders wondering if they are creating unrecognized risk. Get clarity and customized solutions that enhance your operational efficiency while supporting full compliance, so you can focus on doing business — not doing battle.

Our uniquely qualified team of advisors provide solutions specific to your situation, enhance operational efficiency and ensure that your business is fully compliant. We make this process simple for you, allowing your team to focus on expanding your business without the growing pains.

• Nexus Studies - Have you evaluated where your business has a sufficient economic presence ("Wayfair nexus") or physical connection to establish a sales/use tax collection obligation? Are you aware that if your products/services are taxable in states where your company has established nexus, you can be held liable for uncollected sales/use taxes? Our sales tax team can perform this evaluation to identify and quantify these tax collection obligations and related prior period liabilities for the applicable taxes, interest and penalties, and recommend a plan for remediation.
• Registrations and Voluntary Disclosure Agreements (VDAs) - If a nexus and taxability study determines that your company must start collecting sales/use tax, the penalties for prior period noncompliance can be eliminated by registering with the state through its specific VDA process. If you are already registered for the tax type in that state, we can assist with amending returns to report the appropriate tax and negotiate a lesser penalty.
• Sales and Use Tax Return Compliance - When your business collects sales/use tax from customers, you must remit this tax to the state or jurisdiction. There are many options for accomplishing this task — from you preparing and submitting the returns manually, to a fully automated software solution. We work with you to discover the platform that makes the most sense.
• Sales and Use Tax Software (Tax Engine) Consultation - Once your company is registered to collect sales/use tax, you’ll likely need a software solution to seamlessly apply the correct amount of tax to customer invoices or e-commerce checkouts. This software function is generally referred to as the "tax engine." There are many companies that sell tax engines, and we can help you find the solution that is the best fit based on your needs.
• Sales and Use Tax Audits – Companies undergoing a state or local sales/use tax audit frequently require help to manage the audit process. With budget shortfalls, we are expecting there will be many more audit notifications in years to come. Our SALT team includes numerous former state tax auditors, and this professional experience helps us strategically manage the audit process for you.
• Due Diligence - During buy-side due diligence, we can do a prior period liability calculation for transaction cost adjustments. During sell-side due diligence, we can support preparation to document your organization’s position on nexus, taxability and prior period sales/use tax liability.
• Sales and Use Tax Minimization Consulting and Reviews - We can advise on transaction structuring to minimize sales and use tax liability including location analysis, intercompany transactions and exemptions.
• Reverse Audits - Often companies do not realize that there is an exemption available to them, and state auditors typically overlook such overpayments during state sales and use tax audits. We can review your records to see if there are any refund opportunities (e.g., to see if you have paid tax on any exempt transactions).