As your co-sourcing partner, DMA is ready to help you with your state and local income and franchise tax compliance. We provide the remote support your team needs so they can focus their efforts on more value-added projects while maximizing your budget and resources.

Use this checklist to successfully prepare and file your state income returns.

Comprehensive Record-keeping

  • Maintain accurate and organized financial records, including financial statements, fixed and intangible asset records, and supporting documentation
  • Regularly review and reconcile financial statements to ensure accuracy and completeness
  • Document changes or updates to financial data promptly to track historical records effectively

Legislative Awareness

  • Stay updated on legislative changes, including new tax laws, regulations, and court rulings that may impact income tax obligations
  • Subscribe to reliable tax news sources, attend industry conferences, and participate in professional development programs to stay informed
  • Monitor updates specific to where your business operates, including changes in tax rates, credits, deductions, and filing requirements

Resource Allocation

  • Evaluate the expertise and resources within your tax department to handle income tax filing effectively
  • Consider co-sourcing compliance tasks to specialized tax consulting experts to optimize efficiency
  • Allocate resources strategically, prioritizing high-value activities such as tax planning, risk management, and compliance strategy development

Compliance Timelines

  • Familiarize yourself with income tax filing deadlines and requirements for each jurisdiction where your business operates
  • Develop a comprehensive timeline and workflow for preparing and submitting income tax returns, ensuring adherence to statutory deadlines
  • Implement systems and processes to track filing deadlines, monitor compliance status, and escalate any issues or delays promptly

Ensuring the Correct State Modifications

  • Conduct a comprehensive review of available deductions for income tax purposes, including industry-specific credits, exemptions, and allowances
  • Collaborate with tax professionals to identify potential deductions often overlooked, such as research and development credits, investment incentives, and employee benefits
  • Document all eligible deductions accurately and maintain supporting documentation to substantiate claims in case of audits or inquiries from tax authorities

Post-Audit Review

  • Review Revenue Agent Reports (RAR) thoroughly to identify adjustments made by tax authorities during audits
  • Analyze the financial impact of RAR adjustments on state tax liabilities, including any additional taxes, interest, or penalties assessed
  • Prepare necessary documentation to support amended filings and respond to audit findings in a timely and accurate manner

Strategic Partnerships

  • Partner with DMA to access expert guidance and support for state and local income and franchise tax compliance
  • Leverage our expertise to navigate complex tax regulations, optimize deductions, and ensure compliance with jurisdiction-specific requirements

Ease Unclaimed Property Burdens

Contact us today to learn how DMA can ease the burden of unclaimed property compliance, allowing you to focus on what truly matters: serving your customers and growing your business.

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