StateIncomeTax
StateIncome

State Tax Minimization Strategies

The ever-changing world of corporate taxation often creates a challenge for tax departments. DMA provides strategic services specific to your immediate needs that result in long-term benefits to you.

Audit Management & Defense

DMA’s State Income & Franchise Tax professionals provide Audit Management & Defense services focusing on your specific needs related to current, upcoming or past state income and franchise tax audits. We can manage the entire audit process on your behalf or review audit work papers at any time during the audit process and prior to the statute of limitations expiring. Most important, you can be assured that you will pay only the minimum tax due. Our comprehensive audit management & defense service is flexible and can provide you with research and issues development resources along with an experienced tax professional that will become an extension of your tax department. Our audit involvement is entirely at your discretion. DMA’s full audit management services include:
  • Meeting with the auditor and devising an equitable audit plan
  • Reviewing all audit work papers in detail, including the audit methodology
  • Identifying overpayments to incorporate into the audit work papers
  • Negotiating issues and settlements at your direction
  • Determining if penalty and interest computations are accurate or can be waived
  • Documenting and presenting all findings to you and the auditor
  • Pursuing unresolved issues through the appropriate channels, with your approval
DMA can also be a “second pair of eyes” by reviewing the audit work papers at any time during the audit process or after the audit has concluded, as long as the statute of limitations remains open.   

 

We focus on helping you reduce proposed audit assessments and providing you with recommendations to eliminate state income and franchise tax errors in the future.

Nexus Studies & Voluntary Disclosure

DMA’s Nexus Studies & Voluntary Disclosure services focus on assisting you in becoming compliant and mitigating any past and prospective state income and franchise tax liabilities. We combine state-specific tax professionals with multi-state tax experience in order to provide you with the most thorough and accurate service in the industry. Our nexus studies provide an analysis of your activities by state to determine if you are properly complying in jurisdictions for which sufficient presence is established. We look at factors such as property locations, payroll, location of personnel, inventory locations, and the nature of your product or service delivery. We provide you with a nexus chart depicting your activities by state along with recommendations regarding how to manage any new jurisdictions where you are failing to comply with registration and filing requirements. If nexus is established in a taxing jurisdiction for which you are currently not in compliance, DMA will pursue voluntary disclosure agreements with the respective states on your behalf. We negotiate the most favorable settlement possible without compromising your identity. And, we quantify the tax liability and present those findings to the tax jurisdiction. We also provide you with detailed schedules and a report of our findings to substantiate the voluntary disclosure agreement. Additionally, as your partner, we work with you to establish procedures to prevent the need for prospective voluntary disclosure agreements.

Tax Advisory Services

DMA’s most experienced state income and franchise tax professionals provide state corporate tax research related to specific tax issues in support of your tax administration endeavors. We customize this service to meet your specific needs. The group is staffed with tax attorneys and state tax technical professionals with multi-state experience. Some of the instrumental services provided by this group include:
  • Analysis and research of specific state tax issues
  • Analysis and research of specific state transactions
  • Legal support for preliminary hearing and pre-court evaluations
  • Assistance with issue development across states
  • Assistance with state tax minimization strategies
Regardless of the nature of the service, we provide you with a written summary of our findings, including necessary substantiation from laws, regulations, and court cases.