State Income & Franchise Tax

DMA’s Nexus Studies & Voluntary Disclosure service focuses on getting your business compliant and mitigating any state income and franchise tax liabilities.

Our nexus studies provide an analysis of your activities and other key factors by state to determine if you are properly complying in jurisdictions for which sufficient presence is established.

If nexus is established in a jurisdiction for which you are currently not in compliance, DMA will quantify the tax liability and present those findings to the taxing jurisdiction. We then pursue voluntary disclosure agreements with the respective states on your behalf and negotiate the most favorable settlement possible.

To ensure you have a comprehensive understanding of your specific nexus status, we provide a nexus chart depicting your activities by state, along with recommendations regarding how to manage any new jurisdictions where you are not compliant with registration and filing requirements. We provide detailed schedules and a report of our findings to substantiate the voluntary disclosure agreement. Additionally, we work with you to establish procedures to prevent the need for future voluntary disclosure agreements.

DMA’s experienced state income and franchise tax professionals provide state-specific Tax Advisory services.

Some of the instrumental services include:

• Analysis and research of specific state income and franchise tax issues
• Tax planning services related to state income and franchise tax law changes, as well as for mergers, acquisitions, and dispositions
• Regulatory and legislative research and support for pre-audit planning, protests, and appeals
• Assistance with issue development across states
• Assistance with state tax minimization strategies

Through these tax advisory services, our team curates a written summary of our findings, including necessary substantiation from laws, regulations, and court cases.

DMA’s State Tax Credits & Incentives service focuses on obtaining all available state tax credits available to you. These services include:

• Identifying available—but unperfected or claimed—credits and incentives based on current or previous activity
• Analyzing activities planned for the future to identify and assist in claiming applicable credits and incentives
• Maximizing credits claimed

Many states offer tax credits and incentives. Benefits are typically in the form of a credit and can include:

• Investment tax credits
• Research and development credits
• Credits related to employment increases
• Credits for education and training
• Other applicable state credits

DMA’s highly experienced, seasoned tax professionals partner with you to provide a thorough analysis and well-documented findings.