The Importance of State Tax Due Diligence
In today's complex business landscape, mergers, acquisitions, and other transactions require careful consideration of various financial and legal factors. Among these considerations, state tax obligations play a critical role.
In this article, we’ll discuss the importance of state tax due diligence in business transactions, particularly mergers and acquisitions. We’ll outline how businesses can thoroughly assess their state tax obligations to mitigate risks, make informed decisions, and ensure compliance. We’ll also touch on the identification of potential tax liabilities, transaction-specific triggers, and the scope of tax liability. And finally, we’ll define an effective state sales tax due diligence plan, and how to develop your own.
Maximizing Benefits from State Tax Due Diligence
State tax due diligence plays a crucial role in maximizing benefits and minimizing liabilities. By conducting thorough research and analysis of state-specific tax regulations, businesses can uncover potential savings opportunities and optimize their transactions.
In this article, we’ll explore the strategies and advantages of thorough research and analysis of state-specific tax regulations. We’ll emphasize the importance of identifying potential savings opportunities and optimizing transactions. We’ll examine the benefits of engaging state sales tax professionals and highlight their expertise in navigating complex tax laws. And finally, we’ll discuss avoiding penalties and maintaining a good industry reputation, through effective risk management and compliance.
Conducting Effective State Tax Due Diligence
Mastering state tax due diligence is a crucial aspect of achieving business success in today's complex regulatory landscape. State tax obligations can have a significant impact on a company's financial health, compliance status, and overall operations.
In this article, we’ll emphasize the importance of conducting thorough and accurate due diligence to understand tax obligations, identify risks, and ensure compliance with state tax laws. We’ll cover essential aspects such as preparing for state sales tax due diligence, gathering necessary documentation and information, analyzing sales tax compliance and reporting history, identifying and addressing potential issues or liabilities, and remediation strategies. We’ll also unpack the significance of engaging with tax authorities and maintaining open communication throughout the process.
North Carolina & South Carolina and Sales Tax- SaaS, Software & other
This month, we continue our blog series with a contrast of a couple of southeastern states – North Carolina and South Carolina – specifically their treatment of technology items for sales tax purposes.
Wait! Already know you need help with North Carolina or South Carolina issues? Please reach out to us at info@milesconsultinggroup.com
The Sales and Use Tax Audit Series: 2nd Blog- The Mini Sales and Use Tax Audit
Today’s blog is the second in a series of 5 from our “Sales Tax Audit Series – For California and Beyond.” In this blog we discuss the self-audit. In our first blog we called the self-audit a “Mini Sales and Use Tax Audit” or an MSUTA. The purpose of the MSUTA is to be proactive and protect a company from a future bad audit outcome - an unexpected material tax assessment. The MSUTA is very much like your annual medical physical; like an annual health physical, the MSUTA is done to catch problems early and correct them. Like a physical, the MSUTA consists of tests, analysis of the results of the tests, and a prescription for correcting problems.
On the 5th Anniversary of The Wayfair Decision - The Impact of Economic Nexus on Small and Mid-Sized Businesses
As we get ready to acknowledge the 5th anniversary of the US Supreme Court’s groundbreaking ruling in South Dakota v. Wayfair (June 2018), we wanted to revisit and summarize the ramifications of that decision as we sit here 5 years later. Small and mid-sized businesses are finding themselves in a tax landscape that continues to evolve due to the introduction of economic nexus laws over the last 5 years. It's essential for these businesses to grasp and navigate these laws to stay compliant and steer clear of potential penalties. In this article, we'll delve into the concept of economic nexus, discuss its impact on small and mid-sized businesses, and offer practical advice for successfully managing this intricate tax environment.
Navigating Food Sales Tax Exemptions and Exclusions - A More Digestible Guide
Navigating food sales tax exemptions and exclusions in the United States can be a formidable task, especially for businesses operating in multiple states. By understanding these nuances, and then adhering to the relevant tax reporting requirements, you can ensure a smooth and hassle-free experience in your tax obligations, while minimizing the risk of non-compliance.
So, without further ado, let’s unpack some sales tax intricacies in the food industry, with top compliance tips to follow, so that you’re undoubtedly empowered when the taxman comes knocking.
The Sales Tax Audit Series- For California and Beyond
The Sales Tax Audit Series – For California and Beyond
Over the next several weeks we will post five blogs that should interest any taxpayer who is in fear of a sales and use tax audit – especially an audit that results in a “huge, unexpected liability.” These five blogs will help prepare you for all aspects of a sales tax audit by a government agency (before, during and after) and, more importantly, will help to put you on a path to owe little or nothing (you might even get a refund) – particularly if you follow the second of the five blogs, where we’ll talk about shoring up your systems before an auditor even shows up.
Mississippi Reverses its Stance on Taxing SaaS
As businesses both utilize and develop technology product including electronically downloaded software and cloud computing or Software-as-a-service (“SaaS”), the taxability of these products continues to be varied and can be confusing.
The SaaS model continues to be a very popular method of delivering software to users. If you are a frequent reader of our blogs, you know that many states tax the SaaS revenue stream and many do not. In this article, we take a look at how the rules in Mississippi have recently become more defined in this space and the state has changed its taxability of SaaS.
Texas & New Mexico and Sales Tax- SaaS, Software and More
Last month, we changed our format of our State of the Month posts by doing a “compare and contrast” between 2 states – California and Washington. This month, we continue our blog series with a contrast of a couple of southwest states – Texas and New Mexico – specifically their treatment of technology items for sales tax purposes.
Wait! Already know you need help with Texas or New Mexico issues? Please reach out to us at info@milesconsultinggroup.com
Software as a Service (SaaS) in Texas vs. SaaS in New Mexico
Software as a Service (SaaS) is subject to sales tax in several jurisdictions across the country. Approximately half of states (and some local jurisdictions) do tax the SaaS revenue stream. As you’ll see below, both states are aggressive regarding their treatment of sales tax.
