What to Expect from Figeroux & Associates in State and Local Tax (SALT) Services

Introduction
State and local taxes (SALT) present unique challenges for businesses and individuals, especially for those operating in multiple jurisdictions with differing tax codes. With complex regulations around sales tax, use tax, property tax, income tax, and franchise tax, businesses must navigate an intricate tax landscape to remain compliant. Figeroux & Associates offers a range of SALT services, helping clients achieve compliance with state and local tax requirements, manage various types of taxes, and handle audits or appeals when issues arise.

This article provides an in-depth analysis of the services provided by Figeroux & Associates in SALT, including tax compliance, guidance on specific tax types, and support for audits and appeals.

1.Ensuring Compliance with Complex Tax Issues Based on Jurisdiction

The tax obligations that businesses and individuals face vary significantly by jurisdiction. From differing tax rates to unique reporting requirements, compliance with state and local taxes can be a complex process that requires specialized knowledge. Figeroux & Associates offers expert guidance in navigating these jurisdiction-specific requirements, ensuring that clients fulfill their obligations and avoid penalties.

Understanding Jurisdictional Tax Requirements

Each state, county, and municipality may impose different tax requirements, and compliance often depends on correctly understanding these variations. Figeroux & Associates helps clients analyze their business operations to determine which jurisdictions have tax authority, providing tailored guidance on meeting each jurisdiction’s unique requirements.

What Clients Can Expect:

• Detailed Compliance Assessment: Figeroux & Associates conducts a comprehensive assessment of clients’ tax responsibilities across all relevant jurisdictions. This includes reviewing their operational footprint to identify which states, counties, and cities impose taxes on their business activities.
• Jurisdiction-Specific Registration and Filing Guidance: The firm assists clients with registering for necessary tax accounts in each jurisdiction, such as sales tax permits, income tax registrations, and property tax accounts. This ensures that clients are legally authorized to conduct business and meet all local filing requirements.
• Ongoing Compliance Monitoring: Regulations can change over time, so Figeroux & Associates provides ongoing compliance support to help clients adapt to regulatory changes. This includes updating tax filings and accounts to align with new laws and ensuring continuous compliance as the business expands or changes.
• Application of Nexus Standards: Nexus, or the level of connection a business has with a state, determines whether the state can impose taxes. The firm advises clients on nexus standards, helping them understand when physical or economic presence in a jurisdiction creates tax obligations.
• Multi-State and Local Tax Harmonization: For clients operating in multiple states, Figeroux & Associates helps harmonize tax practices across jurisdictions, creating a streamlined approach that reduces administrative burden and ensures consistency in tax compliance.

Proactive Compliance Planning and Strategy

In addition to addressing immediate compliance needs, Figeroux & Associates takes a proactive approach to SALT planning, helping clients anticipate potential changes in tax obligations as they expand into new jurisdictions or introduce new products and services.

2.Navigating Issues Such as Sales and Use Tax, Property Tax, Income Tax, and Franchise Tax

Navigating specific state and local taxes, such as sales and use tax, property tax, income tax, and franchise tax, requires in-depth knowledge of each tax type’s requirements, exemptions, and liabilities. Figeroux & Associates provides guidance on these taxes, helping clients manage their tax obligations while maximizing any available savings or exemptions.

Sales and Use Tax Compliance

Sales and use tax compliance is especially complex, with different rates, exemptions, and sourcing rules across jurisdictions. For businesses that sell goods or services in multiple states, compliance with sales and use tax regulations is essential to avoid fines and penalties.

What Clients Can Expect:

• Sales Tax Registration and Collection Procedures: Figeroux & Associates assists clients in determining where they need to collect sales tax, helping them register in the appropriate jurisdictions and establish systems for collecting, reporting, and remitting sales tax.
• Taxability Analysis and Exemptions: Different products and services are taxed differently depending on the state. The firm provides a taxability analysis to identify which items are subject to tax and advises on exemptions that may apply to certain sales, such as sales for resale, nonprofit sales, or manufacturing exemptions.
• Use Tax Compliance and Reporting: Use tax applies to goods and services purchased out of state for use within a particular state. Figeroux & Associates assists clients in understanding and reporting use tax obligations, ensuring that they remain compliant when acquiring goods and services from out-of-state vendors.
• Handling Remote Seller Requirements: For businesses that sell online or across state lines, compliance with remote seller requirements, like those stemming from the Wayfair decision, is critical. The firm advises on economic nexus thresholds and helps clients set up systems for tax collection and reporting.

Property Tax Management

Property taxes apply to real estate and personal property owned by businesses and individuals. Managing property tax assessments and appeals requires a thorough understanding of local assessment methods and valuation practices.

What Clients Can Expect:

• Assessment Review and Appeal Services: Property tax assessments can vary widely by jurisdiction, and overvaluations can lead to excessive tax burdens. Figeroux & Associates reviews property tax assessments and assists clients in appealing inaccurate valuations to ensure fair tax treatment.
• Personal Property Tax Compliance: Many states impose taxes on personal property used for business purposes, such as equipment and machinery. The firm helps clients report personal property accurately, exploring any exemptions or reductions available.
• Advice on Real Estate and Business Property Transactions: Property transactions can trigger tax events, such as reassessments. Figeroux & Associates provides guidance on the tax implications of property transactions and helps structure deals to minimize property tax liabilities.

State Income Tax Compliance

State income taxes apply to the income earned by businesses and individuals within the state. Compliance with state income tax requirements can be challenging, especially for multi-state businesses.

What Clients Can Expect:

• Multi-State Income Tax Planning: For businesses operating in multiple states, Figeroux & Associates provides guidance on income allocation and apportionment methods to accurately report taxable income. This helps ensure that income is not overtaxed across different states.
• State-Specific Deductions and Credits: The firm advises clients on state-specific deductions, credits, and incentives that can reduce their income tax liability. This includes tax credits for job creation, research and development, and other state-level incentives.
• Compliance with Non-Resident and Pass-Through Entity Taxes: For pass-through entities like partnerships and S-corporations, state income tax compliance can be complex. The firm assists clients in understanding non-resident filing requirements and navigating state tax obligations for pass-through income.

Franchise Tax Management

Some states impose franchise taxes on businesses for the privilege of doing business within the state. These taxes can be based on income, net worth, or a flat fee, depending on the jurisdiction.

What Clients Can Expect:

• Franchise Tax Nexus Determination: Franchise tax obligations depend on a business’s nexus in a particular state. Figeroux & Associates advises on the nexus standards that apply to franchise taxes, helping clients determine when they must file and pay these taxes.
• Calculation and Payment of Franchise Taxes: The firm assists clients in calculating franchise taxes based on applicable state formulas, such as income, capital, or net worth. This ensures accurate filings and helps avoid penalties for underpayment.
• Handling Minimum and Alternative Franchise Taxes: Some states impose minimum franchise taxes or alternative methods for calculating franchise taxes. Figeroux & Associates provides guidance on managing these requirements to minimize the client’s overall tax burden.

Comprehensive Support for Multi-Jurisdictional Tax Issues:

For clients facing multiple SALT obligations, Figeroux & Associates provides comprehensive support, harmonizing compliance practices across jurisdictions and helping clients maintain a consistent approach to tax management.

3.Advising Clients on Compliance, Audits, and Appeals at the State and Local Levels

Audits, compliance reviews, and appeals are a critical aspect of state and local tax management. Tax authorities may audit businesses to ensure compliance with tax laws, and businesses may need to appeal incorrect assessments or determinations. Figeroux & Associates offers expert representation and guidance throughout these processes, helping clients resolve issues effectively.

Compliance Advisory Services

Compliance advisory services help businesses navigate state and local tax requirements, including those that apply to new or expanding operations. Figeroux & Associates provides proactive compliance advice to help clients avoid issues before they arise.

What Clients Can Expect:

• Compliance Readiness Assessments: The firm conducts readiness assessments to identify potential compliance risks, such as underreported sales tax or unfiled property tax returns. This helps clients address issues proactively and reduce their risk of audits.
• Implementation of Compliance Systems and Policies: Figeroux & Associates assists clients in establishing systems and policies for consistent compliance, such as automated sales tax collection software or documentation procedures for property tax reporting.
• Training for In-House Compliance Teams: For businesses with internal tax teams, the firm offers training to ensure that staff members understand jurisdictional requirements and are equipped to manage day-to-day compliance tasks effectively.

Audit Representation and Support

State and local tax audits can be time-consuming and costly. Figeroux & Associates provides representation and support throughout the audit process, advocating on behalf of clients and working to minimize any potential tax liabilities.

What Clients Can Expect:

• Audit Preparation and Documentation Review: The firm assists clients in gathering and reviewing documentation for the audit, ensuring that records are complete and accurate. This preparation helps prevent surprises and improves the client’s position during the audit.
• Communication with Tax Authorities: Figeroux & Associates manages communication with auditors on behalf of the client, providing explanations, responding to inquiries, and negotiating audit findings when necessary.
• Minimizing Assessments and Penalties: When discrepancies are found, the firm works to minimize additional tax assessments and negotiate penalties, using tax law knowledge to reduce the client’s overall liability.

Appeals and Dispute Resolution

In cases where audit findings are unfavorable, or when clients disagree with tax assessments, Figeroux & Associates provides support for appeals and dispute resolution. This includes administrative appeals as well as representation in court when necessary.

What Clients Can Expect:

• Assessment Review and Case Evaluation: The firm conducts a thorough review of the assessment and evaluates the strength of the client’s case, advising on the likelihood of success in challenging the determination.
• Preparation and Filing of Appeals: Figeroux & Associates prepares and files appeals on behalf of clients, presenting evidence and arguments to support the client’s position. This includes drafting formal appeal documents and gathering supporting materials.
• Representation in Administrative Hearings and Court: For cases that proceed to administrative hearings or court, the firm provides experienced representation, presenting a compelling case for the client and cross-examining witnesses as necessary.
• Settlement Negotiations and Alternative Dispute Resolution: In some cases, disputes can be resolved through settlements or alternative dispute resolution methods, such as mediation. Figeroux & Associates explores these options to reach favorable outcomes without prolonged litigation.

Ongoing Support for Compliance and Dispute Avoidance:

Following an audit or dispute, Figeroux & Associates provides guidance on compliance improvements and dispute avoidance strategies, helping clients reduce the risk of future issues with tax authorities.

Conclusion

Figeroux & Associates offers a comprehensive suite of state and local tax (SALT) services, helping clients navigate complex jurisdictional requirements, manage various tax obligations, and address compliance issues. With a client-focused approach, the firm provides expertise in SALT compliance, tax planning, audit representation, and appeals, ensuring that businesses and individuals meet their state and local tax obligations while minimizing liabilities.

For businesses looking to maintain compliance with multi-jurisdictional tax regulations, the firm offers tailored support, including registration assistance, guidance on specific taxes like sales, use, and franchise taxes, and proactive compliance strategies. When clients face audits or disputes, Figeroux & Associates provides strong representation and dispute resolution services, working to protect the client’s interests and achieve favorable outcomes.

By partnering with Figeroux & Associates for state and local tax matters, clients gain access to a team of experienced advisors who understand the intricacies of SALT compliance and are dedicated to helping businesses succeed in a complex tax landscape. With the firm’s expertise and strategic approach, clients can manage their SALT obligations confidently, ensuring compliance and minimizing tax liabilities across all relevant jurisdictions.