STATE AND LOCAL TAX COMPLIANCE
Businesses often wrestle with the issue of whether a particular transaction is taxable. States and localities impose franchise and net worth taxes, privilege taxes, gross receipts taxes, property taxes, enactments and other fees. In some cases a locality can act on its own, requiring periodic filing combined with or in lieu of annual reporting. As state and localities seek sources for funding, state and local tax compliance is becoming more and more complex.
To further complicate things, states are becoming increasingly more aggressive in the collection of sales and use related taxes. States are considering the broadening of tax bases by adding taxes on more service-based transactions and requiring out of state Internet retailers to collect and remit tax on in-state transactions, even if the company has no physical presence in the state. To further complicate things, states have differing definitions of "nexus" or physical presence.
Trying to stay on top of the thousands of different changes to state and local tax rates can be a herculean task for businesses. Most small and medium sized companies cannot afford to hire their own staff of sales and use tax professionals to oversee compliance. Our attorneys have extensive experience in sales and use tax issues as well as franchise, realty transfer, mergers and acquisitions, divestitures, technology transfer, and many other relevant areas of taxation.
Our experience in dealing with nexus issues may be a primary reason why so many businesses turn to us for both inter and intrastate compliance advice. Contact us today to discuss your business' tax compliance issues.
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