MillerMusmar CPAs is geared up to review the structure of your business to produce tax-saving opportunities. This includes benefits from unprofitable affiliates, combined reporting strategies, and optimal entities for jurisdiction.
We also utilize nexus reviews to identify opportunities to reduce your multi-state business’ tax exposure. This planning technique takes advantage of the interrelationships of state tax laws in different jurisdictions. A review of business operations can identify potential exposure to sales and use taxes that may be controlled by minimizing your contact with the tax jurisdiction.
The imposition of state and local taxes (i.e. – sales/use and real estate transfer taxes) is often overlooked when planning transactions, especially with tax-free re-organizations. While the transactional and prospective state and local tax costs are contemplated transactions, they have the potential to be quite significant. The cost of restructuring a transaction to reduce or even avoid such tax burdens is often minimal.
Therefore, we review proposed acquisitions and divestitures of assets, business operations, and business entities to assist you in identifying and minimizing the state and local tax implications. Our staff can often suggest ways of restructuring contemplated acquisitions to minimize the SALT (State & Local Taxes) implications of the transactions without altering the indented federal income tax consequences of business purpose underlying the transaction.
Sales Tax Planning
We can also advise you on issues involving taxable nexus, the appropriate characterization of various goods, services and transactions, the entitlement of statutory exemptions, and the proper application of sales tax in restructuring transactions. In addition to providing counsel on drop shipments and service transactions, we hold quality experience in structuring specialty leasing and transactions for large capital acquisitions, such as aircraft and barges.
We also offer the service of performing refund reviews or “reverse audits” for you. Reverse audits involve an on-site, detailed review of accounting records and an examination of purchasing transactions for potential tax refunds for you. We frequently augment resource-limited corporate tax departments to take advantage of these opportunities before statute periods expire.
Tax Credits & Incentives
States aggressively compete to attract and retain companies with tax credit packages. Companies should be proactive and take advantage of these opportunities. Ideal situations include:
- Companies Considering Expanding Operations
- Creation of New Division
- Merger & Acquisition Activity
- Multi-State Activity
Critical to company’s success in this area is the negotiation of these issues to any public announcement or press release of the expansion.
We secure the most beneficial incentives package for you through a comprehensive credit study. Our credit studies often also reveal other potential savings and refund opportunities. We can also conduct a low-impact review that frequently results in the identification of refundable income tax credits available to you.