Uncover opportunities to minimize state and local taxes
Tax minimization is a way of increasing cash flow. It’s an easy axiom to understand, but a hard one to execute especially when it comes to state and local taxes. Legislative, regulatory, and precedent-setting developments in tax are complex and always evolving. Staying on top of them can be very time consuming. That is why so many business service providers turn to our tax planning experts who continuously monitor the evolution of state and local tax rules.
Don’t be surprised by big bills for state taxes
If your organizations has expanded into new states and created a taxable presence, you want to make sure you are not overlooking some additional state tax liabilities. If you find that you have, voluntary disclosure can help you mitigate or eliminate back obligations.
A tax minimization review finds opportunity for savings
When one client called us in for a tax minimization review, we found that the local government had made an error in assessing taxable assets. Due to the timing of the discovery, recourse and appeal rights were limited. However, by working with the local assessor, we were able to secure a $35,000 refund of the prior year’s taxes and another $30,000 reduction in the current year’s taxes.
Entity structuring results in tax minimization
Realigning entity structure meant tax savings for a corporation with three transportation and three logistics subsidiaries. Each was a c corporation and had multistate operations with varying profit and loss positions. The state and local tax experts at Plante & Moran recommended that they reorganize the c corporation subsidiaries into single-member limited liability companies, which permitted combining the two separate lines of business into groups that were able to combine results and reduce state income taxes by 25 percent.
Keeping up with the changes in tax laws is worth the effort
Part of a successful tax minimization strategy is staying up to date with changes in the laws. One of our clients was paying sales tax based on a process established more than a decade ago. The company had grown, the laws had changed, and the process did not keep up. Using proven analytical procedures, we discovered the company was overpaying its state sales tax obligations and obtained a $160,000 refund. As an added bonus, we also discovered the opportunity for a $50,000 refund for unclaimed tax credits.
Tax credits and incentives often spell r-e-l-i-e-f
If you are planning an expansion, relocation or merger and acquisition, we can help you determine which tax credits, exemptions, and abatements and which financing and infrastructure assistance services are available to you. For example, we know that when you spend money improving the skills of your employees, you can apply for training tax credits. We recently helped a discount drug store chain claim $100,000 in tax credits for its training program.
Minimizing your state and local taxes makes sense. Plante and Moran tax experts can help you do it.
Our state and local tax offerings include:
- Commercial activity tax
- Michigan business tax
- Multi-state income and franchise tax
- Sales and use tax
- FIN 48
- Property tax
- Credits and incentives
- Audit defense and controversy resolution
- Voluntary disclosure agreements