Strategic Tax Services
Much of the day-to-day value-added project work for our clients at Miles Consulting Group includes nexus and taxability reviews, determination of potential sales tax exposure, registration and compliance, and often, audit defense. We also regularly assist with merger & acquisition due diligence projects as part of or strategic tax services.
Key strategic tax planning services include:
– Voluntary Disclosure Agreements
– Reverse Audit & Tax Recovery
– Training & Educational Services
– Custom Tax Solutions
Our Expertise in Strategic Tax Services
Reduced Penalties and Financial Relief
Participating in Voluntary Disclosure Agreements (VDAs) can lead to a significant reduction in penalties associated with past tax liabilities, providing financial relief and improving overall fiscal health for businesses.
Limited Lookback Period
VDAs typically specify a limited lookback period, ranging from three to four years, allowing businesses to address past tax liabilities within a defined timeframe and move forward with a clean slate in terms of compliance.
Mitigated Audit Exposure and Proactive Compliance
By voluntarily disclosing past tax discrepancies through VDAs, businesses can reduce the likelihood of intrusive audits and shift their focus to future compliance, creating a more secure operational environment.
Confidentiality and Discreet Handling
The confidential handling of the voluntary disclosure process ensures discretion and instills confidence in businesses as they rectify their tax liabilities, maintaining a level of privacy throughout the compliance procedure.
Strategic Positioning and Offensive Advantage
Participating in VDAs empowers businesses to take control of their tax compliance journey, providing an offensive advantage by allowing them to steer the process, determine timing, and proactively address past tax issues, rather than being on the defensive during an audit situation.
Strategic Tax Compliance Solutions
Voluntary disclosure agreements
A VDA is a key strategic tax tool, and is a contract between a company and a state that outlines the benefits for both parties when a taxpayer becomes compliant for past tax exposure (sales tax, income tax, or both). It involves said taxpayer coming forward voluntarily to settle outstanding liabilities, before the state identifies these liabilities as taxation concerns. It’s important to note that companies can generally only participate in a VDA if they have not been previously contacted by the state and/or they have not collected (and not remitted) the sales tax.
VDAs offer a strategic avenue for rectifying past tax issues and setting your business on a path of financial stability – and of course, a good tax standing with the state.
- Reduced Penalties: Participating in the VDAs can lead to a significant reduction in penalties (and interest in rare cases) associated with past tax liabilities. This financial relief can alleviate the burden on businesses and improve their overall fiscal health.
- Limited Lookback Period: State programs often specify a limited lookback period during which businesses must address past tax liabilities. This period typically ranges from three to four years.
- Mitigated Audit Exposure: By voluntarily disclosing past tax discrepancies, businesses can shift their focus to future compliance. This proactive approach reduces the likelihood of intrusive audits, providing a more secure operational environment.
- Confidential Handling: The program ensures discreet handling of the voluntary disclosure process, maintaining confidentiality and instilling confidence in businesses as they rectify their tax liabilities.
- Offensive Advantage: The business has the advantage of being in the driver’s seat with respect to timing, documentation provided, etc., as opposed to being on defense in an audit situation.
Reverse Audit and Tax Recovery
A reverse audit is a strategic tax process where a company reviews its past sales and purchases to identify potential overpayments or underpayments of sales tax. This involves examining transactions to ensure that taxes were correctly applied and paid. Tax recovery, in this context, refers to the process of reclaiming any overpaid taxes discovered during the reverse audit, which can result in refunds or credits from tax authorities.
Training and Educational services
Our team’s experience in training and education ranges from boardrooms and ballrooms to classrooms and conference rooms, as workshop leaders to conference keynote speakers and everything in between. We can also customize training for individual companies or CPA firms and have done so regularly!
Custom Tax Solutions
While sales tax may seem relatively straightforward, there are many ways in which we work with clients to achieve best practices for their situations. Sales tax is not a “one-size fits all” approach. For instance, some clients have internally developed software systems that don’t easily “bolt on” to existing sales tax compliance modules. We often work with them (and sometimes with other consulting partners) to be able to work with their systems and still utilize common software. Some clients have difficulty closing their books timely – we work with them to become compliant. Still other clients may have cross border issues, issues with bills of lading (to prove shipment overseas), etc. – and we work with them.
What Our Clients Say About Us
As a Tax Professional for a Fortune 500 company in the SF Bay Area, I’ve worked with Bill Loew’s team for over 10 years in the areas of Audit Defense, Reverse Audits and Tax Research. In addition to their technical expertise, the Miles Team is friendly, professional, and highly motivated to help clients achieve significant tax savings. Bill and the Miles Team continue to be a trusted and valued business partner that assist me in efficiently and effectively manage the growing complexities of multi-state sales/use tax compliance obligations.Tax Director
Sales tax isn’t an area of competency for most CPA’s. In talking with Monika and the Miles Consulting team, you can see their breadth of knowledge and experience in sales tax consulting. They are also quick to respond, are helpful, organized, and great at taking cumbersome compliance work off our plate.Corporate Controller, Technology Company
Our experience with the Miles team is that they engage in detailed research, close reading of the law and a savvy navigation of the gray areas where the law meets the business operations. This is often tricky and you have to be aware of risk mitigation, particularly in the SaaS industry, where things can be a little unclear with respect to sales tax. Tax Director, SaaS Company
Frequently Asked Questions About Our Strategic Tax Services
A VDA is a contract between a company and a state that allows businesses to voluntarily disclose past tax liabilities and become compliant while reducing penalties. It offers financial relief, limited lookback periods, and a proactive approach to resolving tax issues.
Companies should consider VDAs when they have identified past tax liabilities, want to reduce penalties, and prefer to take a proactive approach to rectifying tax issues before they are contacted by the state tax authorities.
The benefits of VDAs include reduced penalties, limited lookback periods, mitigated audit exposure, confidential handling, and the strategic advantage of being in control of the compliance process.
A reverse audit involves reviewing past sales and purchases to uncover potential sales tax errors. Tax recovery refers to reclaiming overpaid taxes, resulting in refunds or credits from tax authorities, helping businesses rectify past tax discrepancies.
Conducting a reverse audit involves examining past transactions to identify tax errors and recover overpaid taxes, providing businesses with the opportunity to optimize tax compliance and financial outcomes.
Our training and educational services cover a wide range of topics tailored to individual companies or CPA firms, providing comprehensive knowledge and skills to enhance tax compliance, regulatory understanding, and operational efficiency.
Custom tax solutions allow businesses to address specific challenges in sales tax compliance effectively, including integrating internal software systems, navigating cross-border issues, and streamlining processes to achieve best practices.
By partnering with us, businesses can benefit from expert guidance, tailored solutions, and strategic support to address past tax liabilities, recover overpaid taxes, enhance compliance practices, and achieve financial stability. Our customized approach, industry expertise, and commitment to proactive compliance empower businesses to navigate complex tax issues effectively, optimize financial outcomes, and maintain a strong tax standing with state authorities.
VDAs can be utilized for both sales tax and income tax liabilities, providing businesses with a comprehensive solution to address past tax exposure and become compliant with state tax regulations.
By voluntarily disclosing past tax liabilities through a VDA, businesses can proactively address compliance issues, reduce audit exposure, and avoid the uncertainty and potential penalties associated with non-compliance.
The process of initiating a VDA involves contacting the state tax authorities, negotiating terms, disclosing past tax liabilities, and reaching an agreement. The timeline can vary but typically ranges from a few months to a year, depending on the state and the complexity of the case.
Yes, a reverse audit can help identify potential overpayments or underpayments of sales tax, even when the extent of errors is unclear. It allows businesses to review past transactions systematically and uncover tax discrepancies for potential recovery.
Tax recovery provides businesses with the opportunity to reclaim overpaid taxes, resulting in refunds or credits from tax authorities. This can improve cash flow, financial health, and compliance practices for businesses.
Our training and educational services equip businesses with the knowledge, skills, and tools needed to improve tax compliance, understand regulatory requirements, and optimize operational efficiency, leading to better internal control and compliance practices.
Yes, our customized tax solutions are designed to address each client’s unique needs, challenges, and industry-specific requirements, ensuring that the strategies implemented are tailored to optimize tax compliance, operational efficiency, and financial outcomes.
Our strategic tax services, including VDAs, reverse audits, training, and custom solutions, help businesses mitigate tax risks, address compliance issues, and pave the way for long-term financial stability by optimizing tax management practices and regulatory adherence.
We support businesses in M&A due diligence projects by conducting thorough tax reviews, identifying potential tax exposures, providing strategic guidance on tax implications, and ensuring compliance with tax laws to facilitate successful transactions and minimize risks.
Our team has extensive experience in audit defense support, representing businesses in state tax audits, providing documentation, advocating for clients’ interests, and negotiating favorable outcomes to resolve audit disputes effectively and protect businesses’ financial interests.
Yes, we provide continuous support and guidance to clients post-engagement, offering assistance with compliance monitoring, strategic planning, training, and ongoing advice to help businesses maintain compliance, address challenges, and optimize tax efficiency.
By partnering with us, businesses can streamline tax compliance processes, proactively identify and address tax risks, optimize financial outcomes, and enhance operational efficiency through tailored solutions, expert guidance, and proactive compliance practices.
Our strategic tax services cater to a wide range of industries and businesses, including e-commerce, technology, manufacturing, healthcare, and many others, providing tailored solutions to meet the specific needs and challenges of each sector.
Yes, we specialize in helping businesses with operations in multiple states manage sales tax compliance, navigate state-specific regulations, and develop strategic tax planning strategies to ensure compliance and minimize risks across jurisdictions.
Participating in a VDA can help businesses rectify past tax errors, reduce penalties, and establish compliance, setting the business on a path toward financial stability and regulatory adherence with the state tax authorities.
Our reverse audit and tax recovery services offer businesses the opportunity to uncover overpayments, secure tax refunds or credits, optimize cash flow, improve compliance practices, and enhance financial performance through strategic tax recovery efforts.
Our training and educational services equip businesses with comprehensive tax knowledge, regulatory insights, and compliance strategies, empowering teams to enhance tax compliance practices, optimize operational efficiency, and navigate complex tax issues effectively.
