State & Local Tax
BlumShapiro provides businesses and individuals with a wide range of multistate and local tax services, beyond the preparation of tax returns. Following are brief descriptions of the primary state & local tax services we offer:
Business Entity Income and Franchise Taxes
Tax Return Preparation/Outsourcing
We can provide state and local tax expertise to accurately and efficiently prepare state and local income and franchise tax returns. This includes the preparation of corporation, S corporation, partnership and limited liability company tax returns.
Tax Return Compliance Reviews
We can review current and/or prior year state and local income and franchise tax returns prepared by businesses to ensure businesses are in compliance with state and local tax laws. During this review, we would also look for tax refund opportunities.
Nexus and Tax Risk Consulting
For multistate operations, we can assist businesses (and pass-through entity owners) with understanding when and where they are required to file state and local income and franchise tax returns and pay taxes to particular state and local jurisdictions. In conjunction with our nexus consultation, we can assist with quantifying potential income, franchise and gross receipts tax liabilities. We can then consult on recommended ways of tax compliance entry.
Tax Credit Identification and Quantification
We can help businesses identify and quantify state and local tax credits such as investment, research, and jobs credits. If warranted, we can help businesses claim tax credit refunds or tax credit carryforwards from previously unidentified credits.
Sales and Use Taxes
Automated Sales and Use Tax Compliance Consulting
We can consult and help businesses identify appropriate automated solutions to help with their sales and use tax compliance burden.
Nexus and Tax Risk Consulting
For multistate operations, we can help businesses understand when and where they are required to collect sales and use taxes and self assess use taxes as well as file sales and use tax returns with particular state and local jurisdictions. In conjunction with our nexus consultation, we can assist with quantifying and mitigating potential sales and use taxes that are due. We can then consult on recommended ways of sales and use tax compliance entry.
Sales and Use Tax Determinations
We can help businesses identify and determine the taxability of their sales and purchases of goods and services, by state and local tax jurisdictions. This analysis can include taxability determinations for sales tax collection and use tax self-assessment purposes. As a deliverable, we can provide a taxability matrix.
Before entering into a transaction, we can help businesses determine the sales and use tax consequence of a proposed transaction.
Property Tax Return Compliance
We can prepare Connecticut municipality Personal Property Declarations.
Abatement and Exemption Assistance
We can help identify property tax abatements and exemptions offered by Connecticut municipalities and other states to which a business may be entitled.
Cost Segregation Studies
We can provide cost segregation studies. Although a cost segregation study identifies real property costs which are eligible for accelerated income tax depreciation methods and shorter depreciable lives, it may also result in property tax savings by reclassifying property (i.e., between real property and personal property).
Employment Tax Consultation
We can help businesses identify state and local payroll and employment tax requirements; including employee state income tax withholding requirements and unemployment tax requirements.
Unclaimed Property Consultation
We can help businesses identify, quantify and report abandoned property that must be escheated to state treasurers.
State Tax Planning
Tax Mitigation Consulting
We can help identify and manage a business’ state and local tax liabilities in the most efficient and effective manner. It encompasses structural, reorganizational, legal/tax form, transactional, apportionment/allocation, transfer pricing, and state-specific suggestions to mitigate state and local tax liabilities.
Tax Due Diligence Reviews
We can assist businesses with identifying state and local tax issues of a potential acquisition/merger before a business is acquired. We can also assist in seeking ways to minimize the state and local tax consequences that may occur as a result of a planned acquisition.
Divestiture Tax Consulting
We can assist businesses with identifying state and local tax issues of a potential business divestiture before a business is sold, liquidated, merged or otherwise divested. We can consult to minimize the state and local tax consequences resulting in a planned divestiture.
Individual Tax Services
Income Tax Compliance
We can prepare multistate income tax returns for high-wealth, high-income individuals and individual owners of pass-through entities.
We can help individuals determine state income sourcing from current and deferred salary compensation as well as compensation received in the form of stock-based incentives. We can also help individuals determine state income sourcing derived from multi-state investment and business activities.
We can consult with individuals on state domicile and residency planning and determinations.
General State and Local Tax Services (All Tax Types)
Voluntary Disclosure and Amnesty Program Representation
States offer businesses and individuals the ability to voluntarily come forward and pay back taxes under a Voluntary Disclosure or Amnesty Program. We can assist businesses and individuals with anonymously disclosing themselves to state and local tax authorities about past tax liabilities they owe. This often results in limited look-back periods and favorable tax, penalty and interest reduction outcomes.
Audit and Appeal Defense
We can represent businesses and individuals before the audit and appellate divisions of state and local tax authorities. In the capacity of a taxpayer advocate, we can help businesses and individuals through the process as well as support and defend tax positions.
Offers in Compromise, Settlement Agreements, Installment Plans Assistance
We can help businesses and individuals reduce the impact of unforeseen tax, penalty and interest assessments. In many instances, a business or individual may be able to enter into negotiations with state and local tax authorities to reduce or mitigate their overall financial burden.
Ruling Request Assistance
We can assist businesses with writing and requesting tax rulings, with respect to a particular transaction or situation, from state and local tax authorities.
Accounting for Taxes Analysis
For financial statement purposes, we can assist businesses with analyzing and documenting uncertain state and local income tax positions (ASC 740-10; formerly FIN 48) as well as establish liabilities for non-income tax positions (FAS 5 tax related liabilities, such as sales and use taxes).