State/local tax

Reverse state, local and sales/use tax review and recovery
Business tax credits assistance
Nexus study
State audit defense

Reverse state, local and sales/use tax review and recovery

Benefit:

• Help minimize state, local and sales/use taxes paid in error
• Recoup overpayments already made
• Establish system to avoid future overpayments

Who’s most likely to benefit:

• Wide variety of organizations including manufacturers, utilities, processors, and companies with business units, warehouses or staff in multiple states

Description:

Looking for additional revenue, states are stepping up audits and enforcement, even as federal, state, local and sales tax regulations become more complex and harder to understand. Many companies, trying to stay in compliance, unknowingly overpay and increase their tax burden unnecessarily.

In a reverse review, AGH’s tax professionals review prior returns and supporting documentation, including reviewing related transactions for refund potential. If overpayments are located, AGH’s team prepares a report outlining the available exemptions and the exceptions that were discovered, provides documentation, helps you apply for refunds and tracks the refund process through completion – including defending a claim if it is rejected.

In addition to seeking applicable refunds, AGH’s team also provides education on applicable tax code, and helps establish internal processes and training to track and pay appropriate taxes.

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Business tax credits assistance

Benefit:

• Increase cash flow by earning state tax credits

Who’s most likely to benefit:

• Organizations which are:
• Making significant investments in capital asset purchases
• Investing in eligible employee training and education and employee training
• Locating, relocating, expanding or renovating
• Growing and adding jobs in any state

Description:

Tax incentives, exemptions or other benefits for growing businesses are common nationwide but vary by state. If your organization is adding people or capital assets, you may be able to reduce your tax liability or earn other benefits.

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Nexus study

Benefit:

• Avoid or decrease penalties and interest in states where you do business but have not registered
• Understand what constitutes nexus
• Reduce tax liability through nexus planning

Who’s most likely to benefit:

• Organizations with even a minimal presence in multiple states, including:
• Sales reps
• Delivering products 
• Selling products
• Inventory
• Performance of warranty services

Description:

As states’ need for revenue increases, their likelihood of aggressively seeking all available taxes increases. That, combined with information-sharing between states through the recent streamlined sales tax initiative, makes it even more important to understand when your organization has established nexus in a state. Even an item as small as a phone directory listing may arouse state interest.

In each state where you have business activity, your operations are reviewed for tax liability. If liability has been incurred, AGH’s team can recommend corrective action to help avoid penalties, assist the company in registering with the applicable state, and negotiate reduction or elimination of penalties if possible.

If nexus is established in multiple states, AGH can review operations to determine if the organization’s tax liability can be reduced by transferring certain activities into a state with a lower tax rate.

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State audit defense

Benefit:

• Reduce or eliminate potential for assessments during a state audit
• Serve as an experienced and knowledgeable representative of an organization during an audit
• Reduce interruption to and stress on your operations by minimizing internal staff time required to work with audit team
• Negotiate on your behalf with state audit team

Who’s most likely to benefit:

• Any organization notified that it will be audited or currently undergoing a state Department of Revenue audit for state and sales tax.

Description:

As states seek to increase revenues, one of their tools is an emphasis on audits to uncover unpaid tax liabilities. If time permits, an AGH audit team arrives at your facility as soon as you are notified that you’ll be audited, in order to review your returns and any pertinent documentation before the state’s team arrives as well as develop any recommendations for working with the auditors.

During the audit itself, the AGH team monitors the state audit team’s progress, acts as a liaison to your organization, answers technical questions and handles daily contacts, decreasing staff time required. If tax liabilities are discovered or are in question, AGH represents your interests with the state audit team to reduce or eliminate penalties and minimize taxes. In a number of cases, AGH’s review and coordination turned what started as an audit defense engagement into additional tax refunds earned by the organization.