Monitoring state and local tax developments and building a proactive strategy are the keys to managing exposure and lowering the costs of conducting business on a multistate basis
State and local fiscal pressures and a changing economy have led to creative and aggressive tax policies. Additional manpower and technology is being deployed in audit and discovery programs.
Our professionals offer specialized expertise to help businesses and individuals understand these increasingly complex state and local tax rules. The costs of noncompliance and inadequate planning are rapidly rising. These costs will be reflected in audit assessments which may include non-deductible penalties, diversion of resources to respond to state and local tax notices and discovery actions, financial statement impairment, and increased tax consulting fees.
Baker Tilly services cover the full range of state and local taxes, including credits and incentives, employment tax, income and franchise tax, real/personal property, sales and use, excise and unclaimed property. We can also provide efficient, accurate and effective compliance solutions.
Given that many states continue to defer to dated regulations and informal letter rulings as guidance regarding the taxability of software as a service (SaaS) transactions, taxpayers must proceed with extreme caution when determining whether sales or use tax is due. Baker Tilly state and local tax specialists, Gary Peric and Chuck Lukens, discuss key SaaS sales and use tax compliance in the American Institute of Certified Public Accountants (AICPA) The Tax Adviser’s Tax Clinic section.
The time for ignoring sales-and-use-tax nexus and the potential exposure it can bring has passed. Make no mistake—state "discovery" units are scrutinizing businesses. Baker Tilly state and local tax specialists, Donna Scaffidi and Dana Delsman, discuss enacted state laws in the American Institute of Certified Public Accountants (AICPA) The Tax Adviser’s Tax Clinic section.
An emerging tool in addressing sales and use tax risk is a policy and procedures review. Baker Tilly state and local tax specialists, Jon P. Skavlem and Alyssa Geracie, discuss key aspects of such a review in the Journal of Accountancy.